Equinix and Neutral Tandem Announce Plans to Simplify the Delivery of Ethernet Services for Network, Cloud and Financial Communities

Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, and Neutral Tandem, Inc. (Nasdaq:TNDM), a leading provider of global interconnection services, today announced plans to offer participants of the Equinix Carrier Ethernet Exchange (ECEE) a single point of contact for managing the complexity associated with global, exchange-based, end-to-end managed Ethernet services.

Equinix will offer ECEE participants the option to utilize Neutral Tandem’s EtherCloud^SM Layer-2 connectivity network and platform to streamline and accelerate Ethernet service delivery into new markets. Neutral Tandem’s unique global footprint offers regional operators and multi-national carriers a channel for expansion into over 70 countries, including tier-two and tier-three markets. Utilizing Neutral Tandem’s EtherCloud service, ECEE participants are able to save time and reduce complexity with a single source for managing multi-carrier local loop arrangements, E-NNI agreements, service provisioning, SLAs, and more.

The planned combination of ECEE and Neutral Tandem’s EtherCloud platform is ideally positioned to address the needs of customers in the network, cloud and financial services markets, enabling them to capitalize on higher-margin Layer 2 and Layer 3 services as they expand into new markets.

“Carriers with significant expansion plans in regions where they have limited presence need to understand the reach afforded by different Ethernet exchange providers, and weigh this against other approaches,” said Scott Morrison, managing vice president for Communications Service Provider Markets in Gartner Research. [Gartner, Jan 26, 2011 Emerging Technology Analysis: Ethernet Exchanges Will Change Network Buying Patterns]

“Unlike other offerings, the Equinix Carrier Ethernet Exchange is focused on expanding the buy-sell dynamic between networks and non-network communities, namely the cloud and financial ecosystems,” said Jim Poole, general manager, global networks & mobility for Equinix. “Together with Neutral Tandem, we’re helping solve a very critical problem: how to drive more services into more markets. We’re giving participants in our Ethernet Exchange a single point of contact in Neutral Tandem to manage the delivery of Ethernet and VPLS services on a global scale.”

Neutral Tandem selected Equinix to propagate its EtherCloud offering due to the reach of Equinix’s interconnection business across multiple business ecosystems, including financial services and cloud.

“Neutral Tandem’s proven track record with interconnecting carriers, combined with Equinix’s strategic data center locations, will form an attractive combination,” comments Surendra Saboo, Neutral Tandem president and COO. “With this planned collaboration, Equinix customers will be able to leverage Neutral Tandem’s expansive network, while our customers will have access to the hundreds of customers in Equinix’s strategic IBX locations.”

Equinix Carrier Ethernet Exchange

The Equinix Carrier Ethernet Exchange delivers value to its participants by combining large scale Ethernet interconnectivity with a global ecosystem of partners and customers, including 680 operator partners, all securely housed in Equinix’s market-leading IBX data centers. The ECEE provides scalable connectivity and secure layer 2 global Ethernet reach for its members, and the opportunity for access to new channels of revenue.

• Read the latest ECEE news: Equinix Carrier Ethernet Exchange Expands Reach in Europe and Scandinavia
• Watch the ECEE video (00:01:52 min)
• Meet with Equinix in Honolulu at PTC’12: Request a meeting here.
• Listen to the webinar: Equinix and cloud services provider GoGrid discuss aligning Network operators and cloud service providers for “frictionless” commercial interaction. Connectivity solutions featured include private E-NNI, Ethernet exchange and white-label approaches. Download the webinar recording.

Neutral Tandem EtherCloud

EtherCloud is a Layer 2 platform connecting diverse partner networks into a seamless Ethernet cloud that delivers end-to-end connectivity around the world. It relies on a global MPLS backbone as a distributed switched network, present at 120 PoPs in four continents, to interconnect partners’ networks, through standardized E-NNIs. By interconnecting partner networks to create one holistic Ethernet cloud, EtherCloud enables users to both source and sell Ethernet Point-to-Point, Point-to-multipoint and Any-to-Any (VPLS), allowing them to create high performance connectivity solutions for all Global Ethernet WAN requirements. EtherCloud provides a one-stop-shop to connect anywhere in the world.

• Watch the EtherCloud video
• View the EtherCloud brochure

Equinix at PTC’12

Equinix data center customers leverage our platform to reach 38 global markets on 5 continents, and connect to over 4,000 financial, enterprise, cloud, content and networking companies. Visit us at the telecommunications industry conference PTC in Honolulu, HI. Learn how direct access to our rich ecosystem of customers and partners can connect your business to accelerated revenue. To schedule a meeting click here.

About Neutral Tandem

Headquartered in Chicago, Neutral Tandem, Inc. provides voice, data and video interconnection services worldwide. Neutral Tandem recently acquired Tinet, a global carrier focused on the IP Transit and Ethernet wholesale market. The acquisition combines Neutral Tandem's interconnection services for wireless, wireline, cable and broadband companies with Tinet's global IP backbone. Collectively, Neutral Tandem provides voice, IP Transit and Ethernet solutions to carriers, service providers, and content management firms worldwide. With over 100 Ethernet sites, the company is now the largest global Ethernet interconnection provider, a top 10 global IPv4 backbone provider and has a leading IPv6 network. Please visit Neutral Tandem's website at www.neutraltandem.com and follow us on Twitter @NeutralTandem.

About Equinix

Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 680 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://www.equinix.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, reaching a final definitive agreement with Neutral Tandem for the provision of EtherCloud services, risks associated with marketing and delivering EtherCloud services; 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 each party’s filings with the Securities and Exchange Commission, as updated from time to time. In particular, see each party’s recent quarterly and annual reports filed with the Securities and Exchange Commission. Neither party assumes 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.