Thursday, February 17, 2011

NYSE and Deutsche Borse merger - the data center question

from www.datacenterdynamics.com:

>>As the planned merger gets board approval, where do its data center plans begin, and end?

To date Deutsche Boerse and NYSE have fundamentally different approaches. One laid off risk in favour of a partnership approach, through its deal with Equinix. The other, NYSE, onboarded risk to play in the colocation business. Deutsche Boerse does not have anything equivalent to Basildon, a shining palace on the hill. The question is does the merged entity sell Basildon to someone like Equinix and move into Frankfurt. Where do I concentrate liquidity? It makes sense keeping derivatives and cash equities close together. What is the compelling value to a market operator to own real estate?'

....

Where do we go from here?
The fact is that the only people who know are sitting around the board tables at NYSE and Deutsche Boerse but with $400m in annual savings planned and IT earmarked to deliver it, whatever happens, we are talking about change at a data center scale.

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