Equinix Eyes Federal Market

Add Equinix Inc. to the list of service providers stepping up their D.C. presence. The company has been operating data centers in the Washington area, but verticals other than government, for the most part, have filled the business pipeline there. Now, Equinix is taking a closer look at federal government opportunities. Here's why.

“We haven’t really targeted it, but we are going to get a little more focus,” said
Steve Smith, president and CEO of Equinix. “There are a couple of large procurements that we’re partnered up with some [systems integrators].”

Smith, speaking during the company’s Q3 earnings call, said Equinix assessed the government market opportunity over the last quarter and concluded that some additional focus was warranted.

Today, Equinix operates five data centers in its Ashburn, Va. campus near Washington. Last month, the company announced plans for a six data center, a 152,000 square foot facility slated to open in the summer of 2010. The company offers colocation, interconnection, and support services in its D.C. area centers.

The government’s interest in cloud computing, in particular, has prompted more service providers to expand in the federal space.

In other Equinix news, the company has announced an agreement to purchase Switch and Data Facilities Company Inc. in a $689 million cash and stock transaction. Switch and Data’s colocation and interconnection facilities include operations in the Northern Virginia.

As for financial results, Equinix reported revenue of $227.6 million for the quarter ended September 30. That represents a 24 percent increase over the same period last year. Third quarter earnings came in at $18.8 million compared with $5.6 million last year.

Promising results, especially as Equinix marches deeper into the federal market.

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