Interxion and CENX today announced they will be working together to develop a Pan-European Carrier Neutral Ethernet Exchange. The initial node will open in London in June, followed soon thereafter by nodes in Paris and Amsterdam, with more to follow through the year. CENX, of course, was the first to open the doors to such an Ethernet exchange in the USA. Interxion, on the other hand operates some 26 data centers in 13 cities in Europe, and their entry into the Ethernet Exchange market is not unexpected.
This arrangement seems like it’s win-win for both. Partnering with CENX brings them a US dimension they could not otherwise offer. Likewise, CENX needs a European presence and this partnership allows them that without diverting their attention from getting their US business model right. Both are jockeying for position in their respective markets with Equinix (NASDAQ:EQIX, news, filings), and it’s no accident that this announcement coincided with Equinix’s formal launch of its competing service, which happens to also include a node in London.
This is turning into something of an arms race, as CENX and Equinix match initiatives and PRs. It’s almost as if they view this as a Highlander-type situation. You know … ‘there can be only one.” I am interested in opinions from readers on whether the economics of this new line of business favor dominance by a few or a proliferation of providers. With efforts by tndm in process and others rumored to be on the way, I guess we are going to find out.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Datacenter · Ethernet