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Technology Stocks : Equinix Inc. - EQIX
EQIX 829.93-0.3%3:59 PM EST
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To: Frank A. Coluccio who wrote (18)9/6/2000 10:01:17 AM
From: Rupert  Read Replies (1) of 78
 
Hi Frank, know very little about Globix, but looking at their website it looks like they offer "traditional" web hosting/co-location services rather than specifically "neutral" exchange services. I think it's correct to see this as the difference between a bundled and an unbundled service. When a company gets a "traditional" web hoster like Exodus to host its servers, they buy a bundled package of Exodus branded services: co-location, bandwidth, etc from them. When a company goes to a neutral exchange they can choose from a variety of different services offered at that exchange from the various companies who use it. It's not that one model is better than the other: they are aimed at different customers. There's a wide range of customers in this sector some of whom want everything bundled, and some of whom want to hook up to specific services. So the typical customers of an exchange would be companies who themselves provide services to other Internet companies via that exchange, such as INAP, who use Equinix's facilities to offer their branded IP routing services, or STOR, who use them to offer network managed storage services. It's a "neutral" exchange because the company that runs the facility doesn't itself offer these services or compete with what the customers offer.

(The Epoch report link posted earlier has more about this, and of course does a much better job than me at describing it).

(I'm long EXDS and EQIX)
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