In part 1 and part 2, we looked at how service providers and enterprises can transform their data center infrastructures into revenue centers by leveraging the five dense ecosystems-networking and mobile, content and digital media, cloud and IT services, financial services, and enterprise services-that are growing rapidly across Platform Equinix.
In Part 3, we’ll demonstrate how network operators in particular are reaping the maximum benefit from these ecosystems by leveraging high levels of penetration across Equinix’s expanding global footprint.
In-depth analysis of our customers’ presence and interconnection patterns reveals that our top-performing network provider customers, those with the highest number of cross connects with other service providers and customers, are deployed in 90 percent or more of our facilities.
This means they are canvasing more ground from a geographic perspective, and thereby able to reach more of the masses. But for a service provider, deeper penetration can translate to revenue gains when they offer a larger portion of their service portfolio from currently installed sites.
For example, Service Provider A only offers IP transit services in our Ashburn facility today. A customer who wants MPLS services needs to pay for a loop from Ashburn to Service Provider A’s main transmission node on K Street in Washington, DC.
Due to this fact, Service Provider A often loses this higher margin network opportunity for lack of the proper infrastructure in Ashburn. What’s even worse is that often times Service Provider A will actually subsidize the loop cost between Ashburn and K Street for a sufficiently large customer. Creating a “full service” network node in Ashburn would actually save them margin on existing customers while simultaneously opening them up to more opportunities.
Case Study: AboveNet
Now let’s look at one of our top performing customers to further illustrate the specific benefits of high penetration.
AboveNet enables customers to create high-performance, cost-effective networks by bypassing the “last mile” legacy telecom infrastructure. Leveraging its private, dense optical fiber network, AboveNet delivers network services in the U.S. and Europe, serving multiple markets including financial services, media, health care, retail and government. AboveNet has dual-entrance fiber running into 41 Equinix data centers in North America and 13 Equinix data centers across Europe.
For John “Joc” Jacquay, senior vice president of sales and marketing at AboveNet, the reason for going with Equinix is simple.
“We are the leading provider of high-bandwidth connectivity. Equinix has the largest global data center footprint, with the most bandwidth-hungry networks and enterprises connected to their facilities, and the most content stored in them. Together we deliver the fastest, lowest latency, most scalable, most secure, and most diverse network in the world. Our ongoing partnership synergies deliver this high-bandwidth connectivity and sophisticated data center solution to the world’s most demanding customers.”
According to Jacquay, the future is all about being prepared for-and helping other companies prepare for-the massive growth in bandwidth consumption.
“It’s a self-fulfilling prophecy. The more comfortable we are relying on the internet, the more performance we demand from it. And the only way we can continue to feed this need is with giant pipes connected through data centers capable of optimizing the exchange of data. AboveNet has the optical fiber to deliver true economies of scale. Equinix has the footprint, connectivity and expertise to improve its customers’ application performance and protect their vital digital assets. Together we make it possible for businesses to grow their operations faster and more economically.”
As the largest data center provider in the world, Equinix has created vast content and service hubs populated by companies that require ever more bandwidth to keep pace with the insatiable demand of businesses and consumers.
This has presented AboveNet with a tremendous opportunity to reach new customers that require ultra-low latency, ultra-high security transport of content and services both nationally and globally.
The ability to efficiently reach these customers via Platform Equinix has translated into much higher utilization of the AboveNet fiber, directly increasing the company’s ROI.
The optical fiber that AboveNet brings into Equinix data centers offers joint customers a uniquely scalable solution.
They are able to ramp up their bandwidth from 100 megabytes to 1 gigabyte, or even 10 or 40 gigabytes, essentially on demand, without the cost or time of waiting for days or weeks for new T1, E1 or D3 lines.
The elimination of this wait time-made possible by interconnections within Platform Equinix-has resulted in a competitive advantage for AboveNet as it is able to accelerate its customers’ time to revenue for new, high-bandwidth applications.
Over the years, the relationship between Equinix and AboveNet has evolved into a strategic partnership. In addition to purchasing each other’s products and services, the two companies enthusiastically support each other’s marketing activities and maintain a very active and mutually beneficial relationship.
Equinix customers looking for very high bandwidth connectivity can use AboveNet’s services in almost any site, while AboveNet customers looking for data center and IP services are a natural fit for Equinix.
In addition, AboveNet sees Equinix’s Carrier Ethernet and Internet Exchange programs as essential components of its increasingly strategic mission to help customers deliver private and hybrid Cloud services. These synergies are what Platform Equinix is all about.
Says Jacquay, “Equinix is a terrific organization to work with. They are always looking for ways to take care of their customers and partners, and they have the vision and strategies to make it all happen. The data center facilities are also the best I’ve seen in terms of the way they’re built, the security they have in place, and the people they have running them.”