>>OVUM research indicates data center customers increasingly rely on these facilities to deliver low-latency resources that support the products and services they deliver to their own customers. Data center vendors can lower their wholesale customers’ transaction times by building or acquiring facilities close to the ultimate end users.
Much more than just data storage
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Equinix’s announced acquisition of Switch and Data highlights the importance of data center locations. In response to customer demand for resources in close proximity to their end users, Equinix agreed to acquire Switch and Data for approximately $689 million in cash and stock. The combination extends Equinix’s global data centre services into 16 new markets across North America.
Equinix acknowledges that the rapid growth in demand for online information requires its existing and potential customers to store and distribute larger volumes of latency-sensitive digital assets and applications at the network edge, near local population centers and the eyes of professional and recreational users. Ovum expects mergers and acquisitions to be a constant presence in this market as companies deploy their facilities to meet wholesale customers’ requirements.
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