Newsroom Press Release

October 6, 2009

Equinix Developing First Carrier-Neutral Ethernet Exchange Solutions; Selects Alcatel-Lucent Service Router Technology

Global Network Interconnection Services Leader to Leverage Top Ethernet Technology to Deliver Platform Enabling Seamless Exchange of Carrier Ethernet

Key highlights:

  • Developing first global carrier-neutral Ethernet services platform
  • Will create new and expanded Ethernet service opportunities for carriers

Geneva, Switzerland (at the ITU Telecom World 2009 Conference) - October 6, 2009 - Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced the development of a program to define enhanced solutions for the exchange of data traffic between carriers providing Ethernet services. The Equinix Carrier Ethernet Exchange platform, which will be the first of its kind in the industry, will use Alcatel-Lucent's service router portfolio to enable the delivery of ubiquitous, high-performance global Ethernet services, marking the evolution of the next generation of carrier interconnection services.

“Just as Equinix pioneered new solutions for IP and content peering, we are now looking into ways that we can apply our interconnection expertise to the challenges faced by carriers seeking to expand their Ethernet service offerings,” said Jarrett Appleby, chief marketing officer for Equinix. “Our work with Alcatel-Lucent pairs the leader in colocation and network interconnection services with the top provider of carrier Ethernet interconnection technology to develop solutions aimed at addressing this critical market need.”

Ethernet services, which provide significant speed, quality, and cost advantages, have traditionally been limited to the geographic areas in which a carrier's network is deployed. While significant customer demand exists for universal Ethernet services, carriers have been limited in offering a seamless service outside of their service area due to the complex and time consuming challenges of establishing multiple, separate interconnection agreements with other carriers. 

The Equinix solution will focus on developing a platform for multi-provider carrier Ethernet interconnection that meets Metro Ethernet Forum standards. It will review a variety of solutions including Ethernet Network to Network Interconnection (NNI) and additional services that leverage the density and breadth of networks operating within Equinix's centers. The solution will be delivered at Equinix International Business Exchange™ (IBX®) data centers globally using Alcatel-Lucent's service routing portfolio.

“Equinix's new carrier neutral Ethernet exchange program is a natural extension of its existing IP interconnect offerings and gives a competitive edge to customers already interconnecting in Equinix POPs/carrier hotel locations,” said Basil Alwan, President, Alcatel-Lucent IP Division. “By leveraging Alcatel-Lucent's market-leading service routing solutions, Equinix is helping open up a whole new Ethernet market for carriers.”

Key outcomes of the activities will include:

  • Enabling carriers to interconnect and pass data between Ethernet services;
  • Providing  solutions to translate between different carrier Ethernet offerings to ensure transparent service and developing an interconnection technical specification; and
  • Developing a marketplace to enable carriers to partner on Ethernet services to extend global reach and depth.

“Carriers have valuable assets in their local Ethernet service offerings, but they are limited to specific geographic regions and are missing opportunities to respond to the demand for end-to-end Ethernet services across regional, national and global footprints,” said Daniel Golding, vice president and research director for Tier1 Research. “The current model for carriers to expand their service offerings is to negotiate one-off Ethernet interconnection agreements with other carriers. This model presents a myriad of challenges, including the harmonization of standards across multiple, different carriers, and incremental costs that impact carrier profitability. There is a strong need for a solution that can automate this process and enable carriers to seamlessly interconnect with multiple Ethernet carriers that have complimentary footprints through a centralized switching fabric.”

Equinix has more than 10 years of expertise in facilitating network interconnection through its pioneering Internet Core Exchange (ICE) service that facilitates data exchange between Tier 1 network service providers, and the Equinix Exchange service which facilitates IP and content peering between networks. Alcatel-Lucent is recognized as a leader in carrier Ethernet interconnection technology, with the service router portfolio deployed by over 300 service providers in over 100 countries worldwide. Equinix and Alcatel-Lucent are both members of the Metro Ethernet Forum (MEF).

About Equinix

Equinix, Inc. (Nasdaq: EQIX) provides global data center services that ensure the vitality of the information-driven world. Global enterprises, content and financial companies, and more than 350 network service providers rely upon Equinix's insight and expertise to protect and connect their most valued information assets.  Equinix operates 45 International Business Exchange™ (IBX®) data centers across 18 markets in North America, Europe and Asia-Pacific.

Important information about Equinix is routinely posted on the investor relations page of its website located at www.equinix.com/investors. We encourage you to check Equinix's website regularly for the most up-to-date information.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

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, 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 companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; 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. International Business Exchange is a trademark of Equinix, Inc.