Telefónica is leveraging Equinix’s diverse cloud connectivity and offering it to customers. The big Spanish telecommunications company will provide enterprises with dedicated connectivity to multiple cloud service providers through the Equinix Cloud Exchange. The Cloud Exchange offers direct access to cloud providers and networks inside Equinix data centers.
Enterprises are moving to colocation and a big reason is connectivity. Hooking up directly to cloud from a data center helps address proliferation of data growth and reduce costs.
Telefónica instantly adds diverse cloud connectivity to its arsenal through its global IP MPLS network. In addition, the company is also providing secure access to cloud application providers.
“By connecting Telefónica IP MPLS services to Equinix’s Cloud Exchange, we are expanding our own cloud services offer giving our customers the ability to choose from the best combination of cloud infrastructure, platform and software service providers to ensure they can put the best possible hybrid cloud solution in place to meet their individual business needs,” Jose Luis Gamo, CEO of the multinationals business unit of Telefónica Global Services.
Telefónica launched its own Infrastructure-as-a-Service solution in 2012 but recognizes options aren’t competition but a complement, but Telecoms are becoming increasingly neutral when it comes to connectivity because customers don’t like to be locked in, so it is growing the diversity of cloud offerings available through its network.
“Carrier Neutral” has become so commonplace that it’s almost assumed by default. Locking in customers into only your cloud or your network doesn’t lock them in; it prompts them to find a provider with diverse options.
Verizon is also offering private IP service to cloud service providers out of Equinix, despite the fact it has it’s own in-house cloud formed by acquisition of Terremark in 2011. Cloud pricing wars have suggested that cloud is becoming a commodity, but an increasing need to offer diverse options dispels this thinking.
The announcement is also indicative of the power of ecosystems. Equinix recently noted that private links to cloud is now its fastest growing business segment. The company has turned itself into a major cloud hub prompting companies like Telefónica to leverage this ecosystem.
Telecoms are also directly connecting to the big public clouds themselves to address these needs.