Last week industry bellweather Equinix (NASDAQ:EQIX, news, filings) warned of a revenue shortfall, and the entire sector shivered. The question was whether or not the datacenter business was about to take a bit of a breather, with growth slowing down, prices softening, etc. But a report today from Telegeography suggests its all bunk.
Well, Telegeography didn't say that outright. What they said was that colocation capacity has been struggling to keep up with demand. From mid-2009 to mid-2010, the number of facilities filled to 80% of capacity rose to some 41%. Despite all that building going on, all that extra space built out - operators had less available space than they did at midyear 2009.
What does that mean? Well, at least at the colocation level there is no glut. Perhaps Equinix's troubles really do come down to a bit of timing.
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