May 17, 2006
Equinixâs New L.A. Area Data Center Opening Today with MySpace as Anchor Customer
Foster City, CA — May 17, 2006 — Equinix, Inc. (Nasdaq: EQIX), the leading provider of network-neutral data centers and Internet exchange services, today announced that MySpace, the premier lifestyle portal for connecting with friends and discovering popular culture, has entered into a new agreement with Equinix to significantly expand the company's presence through a new Equinix Internet Business Exchange™ (IBX®) center opening today in the Los Angeles area. Once MySpace is fully installed, the agreement is expected to generate approximately $6 million in annual revenues for Equinix.
The MySpace social networking portal has experienced tremendous growth and regularly ranks in the top 10 most visited sites on the Web with more than 75 million users. As a quality end-user experience is critical to the company's offering, MySpace is leveraging the network-rich environment of Equinix's centers to implement a robust, high-performance network connectivity infrastructure. At Equinix, MySpace has access to a critical mass of network service providers, giving it the greatest amount of flexibility in managing its Web operations, including high-bandwidth features such as multimedia streaming, as well as the ability to reduce network interconnection costs and enhance end-user performance.
"MySpace is an excellent example of the new generation of digital content and media providers that seek a more streamlined and efficient approach to the network infrastructure that provides the critical link between them and their end-users," said Peter Van Camp, CEO of Equinix. "Equinix is committed to providing solutions to this market that help them directly reach their network partners through peering relationships that improve performance and eliminate the costs of intermediate network backbones."
With the aggregation of networks operating within Equinix's centers, the new facility will allow MySpace to cost-effectively execute strategic connectivity and data exchange, or “peering,” agreements with key business partners within a highly secure and reliable environment. To optimize interconnection efficiencies, MySpace will be able to expand its use of the Equinix Exchange™ service, a central switching fabric managed by Equinix that facilitates network and content peering amongst Equinix customers. Through these direct connections within the same facility, MySpace will also be able to eliminate the cost, as well as the performance degradation associated with linking to multiple partners over significant geographic distances, resulting in enhanced end-user performance.
"By offering a unique, network-rich environment with access to more than 200 networks, Equinix enables us to directly interconnect with the networks serving our end-users, providing a more streamlined path between content and users," said Aber Whitcomb, CTO of MySpace. "This model not only enhances our site performance, but also enables MySpace to peer with end-user networks and exchange traffic in a way that circumvents the traditional method where content providers were required to pay for transit to reach end-users."
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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out 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; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent 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.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.