Equinix Closes $335M Packet Deal
March 4, 2020
Equinix has completed the acquisition of Packet, a leading bare metal
automation platform. The transaction, announced on January 14, 2020,
accelerates Equinix's strategy to help enterprises seamlessly deploy
hybrid multicloud architectures.
As a part of the $335 million transaction, the combined company will
operate the existing Packet business as "Packet, an Equinix company,"
while developing new solutions for enterprise customers that combine
Packet's leading bare metal automation technology with the rich
ecosystems, global reach and interconnection fabric of Platform Equinix®.
Zachary Smith, former CEO of Packet, will serve as managing director of
the bare metal business.
By leveraging Packet's innovative and developer-oriented bare metal
service offering to accelerate its organic bare metal solution
development, Equinix aims to create advanced solutions for enterprises
to rapidly deploy digital infrastructure at global scale with
differentiated performance and robust integration to the public cloud.
Businesses will be able to deploy advanced IT infrastructures via the
physical or virtual consumption model of their choice, enabling them to
more easily reach everywhere, interconnect everyone and integrate
everything that matters to their business.
Ivo Rook, SVP of IoT at Sprint said, "Equinix and Packet together create
a unique infrastructure to execute our vision for Curiosity: A scalable
IoT platform for business that is not only secure but also
developer-friendly, partner-driven, globally available and
interconnected to everything. We believe this formula is the only way to
succeed in a software-driven world, and we're excited to continue our
expansion with both Equinix and Packet."
Eric Hanselman, Chief Analyst, 451 Research added, "As businesses around
the world continue to digitally transform in order to gain competitive
advantage, we've seen a rise in adoption for hybrid multicloud
architectures as the infrastructure model of choice. A mix of
on-premises, private cloud and multiple public clouds into one seamless,
global infrastructure is essential for optimizing different applications
and workloads on a global scale. Bare metal automation simplifies the
hardware ownership requirements for private cloud deployments, and
allows companies to select and deploy their own choice of operating
system or virtualization software that best fits within their unique
hybrid multicloud environments."
Zachary Smith, Managing Director of Bare Metal, Equinix commented, "We
started Packet to help make infrastructure a competitive advantage for
the leading companies of the world. As part of Equinix, we're excited to
take the next step on our journey and accelerate that vision globally.
In my new role, I look forward to leading our combined bare metal
efforts and leveraging the unique strengths of both Packet and Equinix
to help digital businesses seamlessly deploy on Platform Equinix."
Sara Baack, Chief Product Officer, Equinix concluded, "The Packet
acquisition represents a bold move to accelerate our strategy for
helping enterprises quickly and seamlessly deploy hybrid multicloud
architectures on Platform Equinix. By combining Packet's innovative and
agile bare metal automation technology with our dynamic data center and
interconnection platform, we can offer our customers an alternate, agile
way to deploy and consume private digital infrastructure. This approach
will make it easier for our customers to extract greater value from our
rich ecosystems, superior global reach and the interconnection
enterprises today embrace digital transformation and adopt
hybrid multicloud and edge architectures as the modern
digital infrastructure of choice, the most forward-thinking
organizations are increasingly recognizing the need for
speed, agility, control and flexibility when managing their
hybrid multicloud workloads.
- Bare metal
is a new category of digital infrastructure, enabling
businesses to deploy workloads on secure, single-tenant
hardware, distributed geographically for proximity and
performance. Focused on hardware-only automation, bare
metal allows companies to select and deploy their own choice
of operating system or virtualization software in hybrid
multicloud environments. A proven leader in bare metal
automation, Packet's proprietary technology automates
physical servers and networks without the use of
virtualization or multitenancy.
- Bare Metal
as a Service allows companies to rapidly deploy physical
infrastructure at the edge. With a combined Equinix and
Packet solution, enterprises and service providers can gain
the agility and flexibility they need to build and deploy
low-latency services at the edge either through their choice
of owned physical deployments, or by utilizing the combined
offering, which leverages as-a-service consumption to reduce
CAPEX and resource requirements.
Equinix's cloud partners, an Equinix bare metal offering
will also help accelerate global hybrid cloud deployments
and increase enterprise consumption of their cloud services
by reducing the time to market for deployments and enabling
new use cases that require both public cloud and private