“We’re seeing right now continued strength across our business because people are prioritizing digital transformation as a way to gain competitive advantage,” says Equinix CEO Charles Meyers. “The reality is people who are responding well to that are thriving and people that are not are being left behind. What companies (like Walmart) are doing essentially is using a hybrid and multi-cloud strategy. They have private infrastructure that they may house in a significant caged environment at Equinix but they interface it then with the public clouds.”
Charles Meyers, CEO of Equinix, discusses their huge under the radar role in facilitating the massive digital transformation in progress with companies worldwide. Meyers was interviewed by Jim Cramer on CNBC:
There’s A Very Deep Demand Pool For Data Centers
We continue to see a really strong set of underlying secular demand drivers for the business. We’re seeing real strength in the business globally right now. Broadly, we’ve seen the sector respond very well. We think there’s a very deep demand pool for data centers. I do think that Equinix plays a very unique role in the market and our differentiated position is allowing us to even outperform relative to our peers. Public cloud adoption is a major catalyst for our business. As enterprises are adopting public cloud and looking at hybrid and multi-cloud as their architecture of choice we’re seeing really strong demand.
We may not be a household name but I think it’s pretty safe to say we’re probably impacting the lives of millions of consumers on a day to day basis working with (many big-name companies such as Salesforce and Netflix). We play a very important role in terms of interconnecting our customers sometimes to public cloud providers, sometimes to SAAS providers like Salesforce, sometimes to other members of their supply chain, and sometimes to networks. A really big part of our legacy and history has been interconnecting people to networks. The interconnection story is a really central piece of the Equinix story.
Equinix Is The Best Representation Of The Digital Edge
Equinix is in fact the best representation of the digital edge today. That is the point at which people are interconnecting their private infrastructure with public cloud infrastructure, with networks, and with other members of their supply chain. When you hear about edge, oftentimes that edge is in fact within an Equinix facility and being interconnected over private interconnection facilities that are facilitated by Equinix.
Typically, when inside one of our facilities, we’re unlike some wholesalers which might have one or a very small number of customers, we tend to have a larger number of customers in any individual facility. They are distributed across the site typically in private cages or sometimes in shared caged environments or shared rack environments and they have their equipment. They’re all obviously very secured and something that’s available just for them to access. But they’re all across the facility. You typically wouldn’t be able to see who the customer is because they are very sensitive about that from a security standpoint.
Firms Prioritizing Digital Transformation For Competitive Advantage
We’re seeing right now continued strength across our business because people are prioritizing digital transformation as a way to gain competitive advantage. The reality is people who are responding well to that are thriving and people that are not are being left behind. So we’re seeing strong demand. I think the trade tensions, etc. probably affects some level of sentiment but we have not seen that impact the demand profile for our business.
What companies (like Walmart) are doing essentially is using a hybrid and multi-cloud strategy. They have private infrastructure that they may house in a significant caged environment at Equinix but they interface it then with the public clouds. They’re using a variety of public clouds to house some of their workloads. So that hybrid multi-cloud environment is really the architecture of choice for enterprise customers of all sorts. Retail is actually an incredibly strong segment for us. That architecture of choice, hybrid and multi-cloud, is a major driver for Equinix’s business.
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