REDWOOD CITY, Calif.,
March 3, 2020 /PRNewswire/
-- Equinix, Inc. (Nasdaq: EQIX), the global
interconnection and data center company, today announced it
has completed the acquisition of Packet, a leading bare metal
automation platform. The transaction, announced on January 14, 2020, accelerates Equinix's strategy
to help enterprises seamlessly deploy hybrid multicloud
architectures.
As a part of the $335 million
transaction, the combined company will operate the existing Packet
business as "Packet, an Equinix company," while developing new
solutions for enterprise customers that combine Packet's leading
bare metal automation technology with the rich ecosystems, global
reach and interconnection fabric of Platform Equinix®. Zachary Smith, former CEO of Packet, will serve
as managing director of the bare metal business.
By leveraging Packet's innovative and developer-oriented bare
metal service offering to accelerate its organic bare metal
solution development, Equinix aims to create advanced solutions for
enterprises to rapidly deploy digital infrastructure at global
scale with differentiated performance and robust integration to the
public cloud. Businesses will be able to deploy advanced IT
infrastructures via the physical or virtual consumption model of
their choice, enabling them to more easily reach everywhere,
interconnect everyone and integrate everything that matters to
their business.
Highlights/Key Facts
- As enterprises today embrace digital transformation and adopt
hybrid multicloud and edge architectures as the modern digital
infrastructure of choice, the most forward-thinking organizations
are increasingly recognizing the need for speed, agility, control
and flexibility when managing their hybrid multicloud
workloads.
- Bare metal is a new category of digital infrastructure,
enabling businesses to deploy workloads on secure,
single-tenant hardware, distributed geographically for proximity
and performance. Focused on hardware-only automation, bare
metal allows companies to select and deploy their own choice of
operating system or virtualization software in hybrid multicloud
environments. A proven leader in bare metal automation, Packet's
proprietary technology automates physical servers and networks
without the use of virtualization or multitenancy.
- Bare Metal as a Service allows companies to rapidly deploy
physical infrastructure at the edge. With a combined Equinix and
Packet solution, enterprises and service providers can gain the
agility and flexibility they need to build and deploy low-latency
services at the edge either through their choice of owned physical
deployments, or by utilizing the combined offering, which leverages
as-a-service consumption to reduce CAPEX and resource
requirements.
- For Equinix's cloud partners, an Equinix bare metal offering
will also help accelerate global hybrid cloud deployments and
increase enterprise consumption of their cloud services by reducing
the time to market for deployments and enabling new use cases that
require both public cloud and private infrastructure.
Quotes
- Ivo Rook, SVP of IoT at
Sprint
"Equinix and Packet together create a
unique infrastructure to execute our vision
for Curiosity: A scalable IoT platform for business
that is not only secure but also developer-friendly,
partner-driven, globally available and interconnected to
everything. We believe this formula is the only way to succeed
in a software-driven world, and we're excited to continue
our expansion with both Equinix and
Packet."
- Eric Hanselman, Chief
Analyst, 451 Research
"As businesses around the world
continue to digitally transform in order to gain competitive
advantage, we've seen a rise in adoption for hybrid
multicloud architectures as the infrastructure model of
choice. A mix of on-premises, private cloud and multiple
public clouds into one seamless, global infrastructure is essential
for optimizing different applications and workloads on a global
scale. Bare metal automation simplifies the hardware ownership
requirements
for private cloud deployments, and allows
companies to select and deploy their own choice of
operating system or virtualization software that best fits within
their unique hybrid multicloud environments."
- Zachary Smith, Managing
Director of Bare Metal, Equinix
"We started Packet to
help make infrastructure a competitive advantage for the leading
companies of the world. As part of Equinix, we're excited to take
the next step on our journey and accelerate that vision globally.
In my new role, I look forward to leading our combined bare metal
efforts and leveraging the unique strengths of both Packet and
Equinix to help digital businesses seamlessly deploy on Platform
Equinix."
- Sara Baack, Chief Product
Officer, Equinix
"The Packet acquisition represents a
bold move to accelerate our strategy for helping enterprises
quickly and seamlessly deploy hybrid multicloud architectures on
Platform Equinix. By combining Packet's innovative and agile
bare metal automation technology with our dynamic data center and
interconnection platform, we can offer our customers an alternate,
agile way to deploy and consume private digital infrastructure.
This approach will make it easier for our customers to extract
greater value from our rich ecosystems, superior global reach and
the interconnection platform."
Additional Resources
- Equinix Chief Product Officer Sara Baack Discusses Packet Bare
Metal Acquisition [blog]
- Equinix to Acquire Bare Metal Leader Packet [press
release]
- Learn more about Platform Equinix [website]
- Learn more about Packet [website]
- Global Interconnection Index Vol. 3 – [report]
- Gartner – Exploring the Edge: 12 Frontiers of Edge Computing –
[analyst report]
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects
the world's leading businesses to their customers, employees and
partners inside the most-interconnected data centers. On this
global platform for digital business, companies come together
across more than 50 markets on five continents to reach everywhere,
interconnect everyone and integrate everything they need to create
their digital futures. www.equinix.com.
Forward-Looking Statements
This press release
contains forward-looking statements which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual results to differ materially
from expectations discussed in such forward-looking statements,
including statements related to the acquisition of Packet and the
expected benefits from the acquisition. When used in this document,
the words "anticipates," "can," "will," "look forward to,"
"expected," and similar expressions and any other statements that
are not historical facts are intended to identify those assertions
as forward-looking statements. Factors that might cause such
differences include, but are not limited to, the possibility
that the anticipated benefits from the acquisition cannot be fully
realized or may take longer to realize than
expected; unanticipated costs or difficulties relating to the
integration of data centers or companies we have acquired or will
acquire into Equinix, including Packet; the challenges of
acquiring, operating and constructing IBX centers and developing,
deploying and delivering Equinix products and solutions; a failure
to receive significant revenue from customers in recently built out
or acquired data centers or companies, including Packet; 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 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.
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SOURCE Equinix, Inc.