Equinix Iberian Expansion Speeds Digital Transformation in Spain and Portugal

Ignacio (Nacho) Velilla

The Iberian Peninsula is fast becoming an essential hub for global interconnection due to its physical location between Africa, Mediterranean Europe and Northern Europe, and its strong cultural connection to Latin America. Spain is the world’s fourteenth-largest economy, the sixth-largest in Europe. Last year, Equinix solidified its presence in the fast growing Iberian market by acquiring Itconic, a leading data center, connectivity and cloud infrastructure solutions provider in Spain and Portugal, and CloudMas, an Itconic subsidiary that is focused on supporting enterprise adoption of cloud services.

Today, we are excited to announce that the integration of the Itconic/CloudMas businesses with Platform Equinix® is complete in our – two in Madrid, one in Barcelona and one in Seville. We are celebrating this launch in an event focused on helping our customers extend their digital infrastructures and demonstrating how they can leverage all the same benefits of Platform Equinix enjoyed by all our customers worldwide.

Our expanded presence in the Iberian market supports the growth in traffic within Europe. According to the second volume of the Global Interconnection Index, the European market is projected to contribute 23% of the global Interconnection Bandwidth-the total capacity provisioned to privately and directly exchange traffic with a diverse set of participants at distributed IT exchange points. Private Interconnection Growth in Europe is expected to grow annually at 48% between 2017 and 2021.

Our expansion into Spain and Portugal also supports the growth in traffic between Europe, Latin America and Africa driven by new submarine cable systems (15+ land in Spain and Portugal), making the Peninsula a compelling peering market and major telecommunications hub and enabling accelerated traffic globalization, data consumption, and the rapid growth of cloud and online services. As the local economy improves, the businesses are launching new projects and the cloud hyperscalers are thinking about Spain. All of this equates to a huge opportunity for the entire region’s businesses.

Spain’s digital growth is expanding

Spain ranks 10th out of the 28 EU Member States in the European Commission Digital Economy and Society Index (DESI) 2018. The country performs well in connectivity due to the wide availability of fast and ultra-fast fixed and mobile broadband networks, and the increasing adoption by consumers and businesses. Currently, 85% of Spanish households have access to fast broadband networks and the deployment of fibre networks continues to be an important feature of the Spanish digital society, covering 83.6 % of the population. Overall, the use of internet services in Spain is broadly comparable with the EU average with 83% of the people in Spain engaging in a variety of online activities.

Spain is also making excellent progress when it comes to business digital transformation – it ranks 7th, well above the EU average, mainly through e-commerce initiatives, and ranks highest in the eGovernment domain. However, there is still room for growth; one fifth of Spanish citizens are not yet online and close to half of them still do not have basic digital skills. Spain is also becoming a very important gateway to the Americas via the many submarine cables that are opening new interconnection routes as landing points inside of Equinix. Equinix operates in the key markets of Madrid, Barcelona and Seville and provides a rich portfolio of services to support our customers’ deployments. Our four state-of-the-art data centers provide a total of 8,500+ square meters (90,000+ square feet) of colocation space. More than 200+ companies colocate with Equinix in Spain to connect with partners and customers across their digital supply chains.

In addition, we offer interconnection and data center colocation services to a market of more than 55 million people between Spain and Portugal. This growing local market provides enormous opportunities for many international companies to expand in the Iberian region and abroad. The benefit of being in a global company such as Equinix means Iberian businesses will find the same processes, tools, business and digital ecosystems, and customer portals as any Equinix customer in the world. On Platform Equinix, a company that wants to establish itself in Spain, Portugal, or internationally, can accelerate the globalization of its operations and deployment of its IT infrastructure and easily connect with the rest of the world.

The hub for building a digital transformation strategy

We help a broad range of customers achieve their digital transformations, from monolith service providers looking to leverage telecommunications companies to access greater bandwidth and share business processes to enterprises interested in interconnecting to cloud, SaaS or digital content providers. Equinix Cloud Exchange Fabric™ (ECX Fabric™) is quickly becoming a powerful pillar that supports the digital transformation strategies of today’s CIOs. ECX Fabric is a software-defined interconnection platform that enables our customers to interconnect with each other, in a fast, secure and direct way. It also enables remote interconnection to any cloud platform on the ECX Fabric across global IBX data centers. For example, a customer in Madrid who wants to connect to AWS in an Equinix data center in Frankfurt can do so immediately.

In Spain, large companies traditionally had to develop their own data centers, but that trend is changing fast. The cloud is accelerating the outsourcing of data center capabilities, either partially or completely. The final integration of the Itconic/CloudMas businesses with Platform Equinix provides our customers with direct and secure access to vibrant digital ecosystems of network, cloud and SaaS providers, as well as vertical industry ecosystems in financial services, content, media and entertainment, and online advertising markets. Enterprise and service providers can also apply Interconnection Oriented Architecture® (IOA®) best practices to further their digital transformation out at the edge, which includes leveraging the rich set of interconnection and data center services that we provide worldwide. CIOs see us not as a local company, but as an expansive organization of 200 global data centers that opens many doors at once.

Learn more about our global interconnection and colocation platform by reading the Platform Equinix® Vision paper.

Ignacio (Nacho) Velilla
Ignacio (Nacho) Velilla Managing Director Equinix Spain