Equinix Chicago Data Center Grows

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Equinix Chicago Data Center Grows

Tuesday March 9, 2004 18:09:54

Equinix, Inc. (Nasdaq:EQIX), the leading provider of network-neutral data centers and Internet exchange services, today announced that more than 60 enterprises, content providers and network service providers have signed on to the company's Equinix Direct(TM) multi-network connectivity service. The company also announced the expansion of the service to Equinix's Chicago Internet Business Exchange(TM) (IBX(R)) center effective April 1, 2004.

Equinix Direct is the first and only service that enables buyers and sellers of Internet network connectivity to quickly, easily and cost-effectively establish business relationships with each other. Bandwidth purchasers, such as enterprises and content companies, can use the service to diversify their IP connections to any number of network providers in order to reduce connectivity costs and to achieve more reliable performance through the "network insurance" of a redundant connectivity infrastructure. For bandwidth providers, Equinix Direct offers a convenient and low-cost channel to acquire new revenue through the aggregation of bandwidth buyers in a single location and on a single service.

Currently, more than 30 enterprises and content companies, including Hallmark.com, Adobe, Shutterfly, Macromedia, Hotwire and ExpertCity are using Equinix Direct. The more than 20 bandwidth providers currently on the service include America Online, Level (3), Cox Communications, Global Crossing, BIG PIPE (a division of Shaw Communications), Teleglobe and WilTel.

Equinix Direct enables enterprises and content companies that have become increasingly dependent upon their network infrastructure for business operations to easily integrate a multi-network connectivity strategy that ensures the redundancy needed in the event of a failure to a primary provider. By leveraging a more efficient buyer-seller relationship within the same physical location, Equinix Direct allows bandwidth buyers to overcome previous challenges to establishing relationships with multiple networks, such as costly and prohibitive long-term contracts and monthly usage minimums, expensive local loops with lengthy provisioning times, the installation of complex router configurations for each network service provider, and the administrative and technical requirements of establishing these relationships. With the ability to select from multiple service providers in a competitive marketplace, Equinix Direct enables bandwidth buyers to reduce network expenditures by between 40 to 50 percent of the cost to establish independent relationships with three or more network service providers, based on current market rates for bandwidth.

The service combines Equinix's unique multi-network environment with a patent pending automated routing, billing and dynamic settlement technology to provide bandwidth-buying customers with a simplified and cost-effective IP connectivity solution to reach a variety of networks. The service, accessed over a single connection, offers these companies a choice of leading bandwidth providers with short-term, 30-day contracts and no bandwidth commitments. Through an easy-to-use Internet portal, customers can automatically control the routing of their traffic to multiple networks, and the service provides a single monthly invoice identifying all networks and capacity used.

Equinix Direct also offers a strong value proposition for bandwidth sellers. By aggregating buyers of bandwidth in a single location and on a single service, Equinix Direct offers bandwidth providers a convenient and low-cost channel to acquire new revenue. Additionally, unlike bandwidth trading, which commoditizes anonymous bandwidth providers, Equinix Direct enables IP networks to provide businesses with complete visibility to their branded offerings and SLAs. By preserving the direct relationship between the business and the network, each provider retains its unique value, with different quality, services and pricing.

"We require a diversified infrastructure that cannot rely on a single network to serve our customers," said Allan Moger, network manager of Shutterfly. "Equinix Direct provides us with a single source multi-network solution to establish redundant connectivity that enhances our reliability and helps us to reduce associated costs."

"As the number of networks available within Equinix's centers continues to grow, the strategic value of Equinix to enterprises and content providers becomes increasingly more attractive," said Peter Van Camp, CEO of Equinix. "The momentum we are experiencing with the Equinix Direct service clearly underscores the value that our network neutral model is bringing to customers."

In addition to Equinix's Chicago IBX center, Equinix Direct is also available in one of Equinix's Silicon Valley area centers, as well as the company's Washington, D.C. area center.

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