Through a recent press release, Equinix Inc. (EQIX) announced that the company, in collaboration with Alcatel-Lucent (ALU), is developing an enhanced solution for the exchange of data traffic between carriers providing Ethernet services. 

Equinix will use Alcatel-Lucent’s service router to equip the Equinix Carrier Ethernet Exchange platform in order to deliver high performance global Ethernet services. Equinix is looking to apply its expertise in interconnection for resolving the challenges faced by different carriers planning to enhance their Ethernet services. 

Ethernet connection generally provides quality, cost advantage and speed, but is generally provided within a geographical region. The Equinix Carrier Ethernet Exchange platform is different in the sense that it will focus on developing a multi-provider carrier Ethernet interconnection that meets Metro Ethernet Forum standards. 

This solution will be delivered through Equinix International Business Exchange (IBX) data centers located across the globe. Additionally, the company is expanding its data centers across geographies. Recently, Equinix unveiled its plan to set up a 4,500 square meter or 48,400 square foot data center in Geneva , Switzerland. 

The company is in the process of expanding its global data center network to meet the growing demand for data center services. This second data center in Geneva falls within the company’s $1.4 billion expansion plan to be executed within the 2007 – 2010 time period, under which the company expects to expand its operations in 15 out of 18 markets, where the company operates. 

We believe that the setting up of a carrier-neutral Ethernet services platform is in-line with the company’s data center expansion plans, as these services will be delivered through the company’s data centers. Alcatel-Lucent is considered to be a leader in Ethernet technology, while Equinix has around 10 years experience in developing network interconnections, so we believe that this joint venture is a good strategic move by Equinix and will provide a new dimension to the Ethernet technology.
Read the full analyst report on “EQIX”
Read the full analyst report on “ALU”
Zacks Investment Research