Equinix Expands Cloud Adjacent Storage Portfolio with Dell Technologies
Equinix (Nasdaq: EQIX) has announced the availability of Dell PowerStore on Equinix Metal, introducing a new enterprise-grade Storage as a Service (STaaS) solution. This service offers flexible configurations to manage high-performance multicloud workloads through low-latency connectivity, enhancing data collection and distribution. It provides scalable storage with a burst capacity of 25% above committed levels, reducing total cost of ownership (TCO) and optimizing resources. Key benefits include global availability, simplified infrastructure management, and robust security with multi-layer data encryption. The service is available in over 30 markets, including Brazil, with an entry point of 25 tebibytes.
- Introduction of Dell PowerStore on Equinix Metal, enhancing storage solutions.
- Offers flexible, scalable storage with 25% burst capacity above committed levels.
- Reduces total cost of ownership (TCO) by providing storage as a service.
- Available in over 30 global markets, including Brazil.
- Provides low-latency, high-performance connectivity ideal for multicloud workloads.
- Ensures robust security with single-tenant appliances and multi-layer data encryption.
- Designed to meet industry compliance and regulatory requirements.
- Simplified global deployments with hardware and software operated by Dell and Equinix.
- Persistent data across Metal server restarts, supporting mission-critical transactions and disaster recovery.
- The high entry point of 25 tebibytes may not suit smaller enterprises.
- Potential for increased operational overhead if not managed efficiently.
- Dependency on Dell and Equinix integration could pose risks if either party faces operational issues.
Insights
Equinix expanding its Cloud Adjacent Storage Portfolio through a partnership with Dell Technologies is a significant development. This offering, Dell PowerStore on Equinix Metal, caters to enterprises requiring high-performance, low-latency storage solutions that are flexible and scalable. Cloud Adjacent Storage means placing storage solutions close to public cloud services, ensuring faster data access and reduced latency compared to traditional cloud storage. This development can improve performance for applications needing quick data retrieval and processing, such as analytics and real-time data processing.
Cloud Adjacent Storage is an emerging trend alleviating some of the typical drawbacks of public cloud storage, like latency and compliance issues. By ensuring data proximity to compute resources, it promises enhanced performance and control. For enterprises, this can mean significantly improved operational efficiency, reduced downtime and lower costs associated with data transfer. The ability to burst above committed capacity by 25% adds a layer of flexibility, allowing businesses to handle unexpected data spikes without incurring the high costs of over-provisioning.
However, enterprises must consider potential integration complexities with existing infrastructure. While Equinix's extensive global reach – over 30 markets – is a strong point, businesses with operations in less-covered regions might face limitations. Additionally, while single-tenant solutions provide robust security, they might be costlier compared to multi-tenant offerings.
In the broader tech landscape, partnerships like these reflect a growing focus on edge computing and hybrid cloud strategies. As data volumes soar and latency becomes a critical component of user experience, solutions like Dell PowerStore on Equinix Metal are poised to meet these rising demands.
From a financial perspective, the introduction of Dell PowerStore on Equinix Metal could be a boon for both Equinix (EQIX) and Dell Technologies. Offering Storage as a Service (STaaS) can potentially lead to recurring revenues, which are typically more stable and predictable than one-time hardware sales. This shift aligns with the broader trend in the tech industry towards service-oriented models, which investors often view positively due to their recurring revenue nature.
The ability to burst above committed capacity by 25% can translate into cost savings for enterprises, reducing Total Cost of Ownership (TCO). For investors, this could mean a competitive edge for Equinix, attracting more businesses to its platform. Lower TCO and enhanced operational efficiency are strong selling points in the current economic climate where cost optimization is a priority.
However, it's essential to consider the initial capital expenditure required for Equinix to support this new service. Expanding infrastructure to meet the demands of high-performance, low-latency storage could be significant. Investors should monitor Equinix's capital expenditures in upcoming financial reports to ensure that the revenue generated justifies these investments. Additionally, the competitive landscape is always a factor; other tech giants might launch similar solutions, potentially impacting market share.
In the long run, if the service gains traction, it could positively impact Equinix's financial metrics by boosting revenue and possibly improving profit margins. The ability to offer a differentiated, high-value service can help increase market share in the highly competitive digital infrastructure sector.
This new offering from Equinix and Dell Technologies is highly relevant given current market trends. Businesses are increasingly adopting multi-cloud and hybrid cloud strategies to leverage the best of various cloud platforms. The demand for flexible and scalable storage solutions reflects a broader trend towards agility and cost-efficiency in IT infrastructure management.
The shift towards Storage as a Service (STaaS) aligns with the increasing preference for operational expenditure (OpEx) over capital expenditure (CapEx) models. By paying for storage as needed, businesses can better manage cash flows and scale resources in line with demand. This is particularly important for enterprises that face fluctuating data storage needs.
Equinix's extensive network of International Business Exchange (IBX) data centers and its strong presence in over 30 markets provide a significant advantage. Enterprises can deploy storage solutions closer to their operational hubs, reducing latency and enhancing performance. This level of global reach is a key differentiator in the market, which could attract businesses with extensive geographical operations.
Moreover, the integration with Dell PowerStore, known for its high performance and scalability, adds a layer of reliability and trust, important for enterprises handling mission-critical data. The compliance and security features, including multi-layer data encryption and single-tenant appliances, address significant concerns for businesses, particularly those in regulated industries.
Overall, this service offering is likely to resonate well in the market, given its alignment with current IT trends and business needs. Its impact on Equinix's market position and attractiveness to enterprise customers could be significant.
Businesses are increasingly seeking flexible storage solutions that accelerate data collection and distribution, thus offering faster time to value, according to Enterprise Strategy Group (ESG).1 Dell PowerStore on Equinix Metal delivers scalable and flexible storage—with the option to burst by
The Dell PowerStore on Equinix Metal service offering allows enterprises to view, manage and globally deploy storage, compute and networking, achieving simplified infrastructure management and reduced operational overhead. The comprehensive single-tenant storage solution is designed for cloud adjacent environments: with more private cloud on-ramps inside Equinix International Business Exchange™ (IBX®) data centers than anywhere else in the world, customers benefit from fast, secure and scalable access to public cloud providers.
"Businesses need storage solutions that allow them to be more agile and get the most out of their hybrid multicloud architectures," said Merrie Williamson, Chief Customer and Revenue Officer at Equinix. "By combining the powerful capabilities of Dell PowerStore with Equinix's global platform, we are giving them the low-latency, high-performance connectivity they require without sacrificing on security or breaking their budget."
Key benefits of Dell PowerStore on Equinix Metal include:
- Integrated and Cloud Adjacent: Leverage a cloud adjacent approach, choose a combination of Dell Technologies deployment options and position storage and compute resources close to public cloud services. Maintain control in a low-latency, high-performance environment that offers seamless integration and private connectivity.
- Financial Flexibility: The solution is delivered as a service (aaS), with the ability to burst above committed levels, providing the opportunity for significant cost saving compared to purchasing storage hardware and software upfront.
- Globally Available: The service is available in more than 30 Equinix Metal markets including
Brazil , with a storage entry point of 25 tebibytes. - Simplified Global Deployments: Deploy easily and in more locations with hardware and software jointly operated by Dell and Equinix.
- Security and Compliance: Single-tenant appliances with always-on, enterprise-grade, multi-layer data encryption ensure the highest level of data protection. Designed to meet industry compliance standards, regulatory requirements are addressed with ease.
- Persistent Data: Data persists across Metal server restarts, enabling a range of use cases—from mission-critical transactions to disaster recovery.
- Performance and Control: Achieve sub-millisecond latency with colocated compute from Equinix Metal and storage from Dell PowerStore. This combination delivers higher performance while maintaining end-to-end control over your data.
The Dell Partner First Strategy for Storage provides predictability and opportunities for partners to work together to deliver solutions for customers, including Dell PowerStore on Equinix Metal. This STaaS solution, available via channel partners later this year, expands the portfolio of options for Dell partners.
To learn more, visit the Equinix Dell Technologies website or contact your sales rep.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company®. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX® and xScale® data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
1 | Enterprise Storage Group (ESG). (2024). Analyzing the Economic Benefits of Equinix Cloud Adjacent Storage [White paper]. https://www.equinix.com/resources/analyst-reports/esg-economic-benefits-cloud-adjacent-storage. |
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SOURCE Equinix, Inc.
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