Equinix's Global Footprint Attracts Rakuten Mobile & Nokia

Zacks Equity Research
·3 min read

Equinix, Inc. EQIX announced that it joined hands with Rakuten Mobile Singapore Pte. Ltd. — a subsidiary of Rakuten Mobile, Inc. — to deploy the latter’s Rakuten Communications Platform (“RCP”) in international markets.

Specifically, RCP will be rolled out in phases through Platform Equinix to operators and enterprise customers spread across the world. Initial deployment will start in Singapore, which homes Rakuten Mobile's international headquarters, and in Los Angeles. This will be followed by expansions across the United States, EMEA and the Asia Pacific in the future.

Notably, global demand for network services is expected to increase and Rakuten intends to meet this need through RCP that will be offered as a set of important technologies and services. It will facilitate governments, telecom companies and enterprises to build and deploy fully cloud-native network services with high speed and low costs.

Equinix’s global network infrastructure offered through Platform Equinixwill enableRakuten Mobile to leverage on the same, and accelerate the global expansion of RCP across the company’s global presence and enriched ecosystems.

Per Equinix management,“With Platform Equinix, Rakuten Mobile can take advantage of our global footprint and solid network ecosystems to deliver high-speed, low-latency and secure services to its customers around the globe.”

In a different press release, Equinix announced that it joined hands with Nokia to supply the latter’s Worldwide IoT Network Grid (“WING”) managed service.

Leveraging on Equinix’s global IBX data-center presence, the companies will offer next-generation edge architectures and services to operators. This will enable operators  to penetrate the IoT market even if they do not have an established IoT footprint and to aid them to expand such existing business.

In fact, on the back Equinix’s IBX data centers, Nokia will roll out core and edge nodes to assist mobile, IoT and cloud connectivity, globally. Moreover, both companies are eyeing edge architectures and deployment model opportunities. This is aimed at improving the performance of use cases of artificial intelligence (“AI”), cloud computing, machine learning and IoT.

Markedly, data-center REITs are experiencing a market boom, with growth in cloud computing, IoT and big data, and an increasing number of companies opting for third-party IT infrastructure. Growth rates for the AI, autonomous vehicle and virtual/augmented reality markets are estimated to remain robust over the next five to six years.

Moreover, data centers are poised to benefit from the rising reliance on technology in the wake of the coronavirus pandemic. Thus, data-center REITs like Digital Realty Trust DLR, CyrusOne Inc. CONE and CoreSite Realty Corporation COR will keep witnessing significant demand.

Amid these positives, shares of Equinix have rallied 26.1% as against the real estate market’s decline of 16.8% over the past year.

 

 

The company carries a Zacks Rank of 3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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