IBM > Case Studies > Equinix completes twin transformations within unmovable timelines

Equinix completes twin transformations within unmovable timelines

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Customer Company Size
Large Corporate
Region
  • America
Country
  • United States
Product
  • IBM Power 750
  • IBM Flex System
  • Oracle E-Business Suite
  • Oracle R12 database
Tech Stack
  • IBM AIX Enterprise Edition
  • IBM FlashCopy Manager
  • IBM SAN Volume Controller
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Infrastructure as a Service (IaaS) - Cloud Computing
Applicable Industries
  • Telecommunications
Applicable Functions
  • Business Operation
About The Customer
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most interconnected data centers. In 33 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. In a digital economy where enterprise business models are increasingly interdependent, interconnection is essential to success. Equinix operates the only global interconnection platform, sparking new opportunities that are only possible when companies come together. At the end of 2014, Equinix generated $2.444 billion in revenues, at an annual growth rate of 14 percent.
The Challenge
Equinix, a global interconnection platform provider, was facing challenges due to its high growth rate. The company identified that converting to a Real Estate Investment Trust (REIT) could potentially save millions of dollars, creating shareholder value. However, the company and reporting structures in place at Equinix would need to be completely transformed to achieve REIT status. Manual processes were not scalable or reliable, and the level of detail, consistency and auditability required for intercompany transactions would not be possible with existing systems. REIT status would require new processes and structures for global operations, and much more. At the same time, Equinix created a Strategic Worldwide Integrated Financial Transformation (SWIFT) program, designed to streamline and improve its financial operations.
The Solution
To make the combined REIT/SWIFT program possible, Equinix embarked on total business transformation. Oracle databases and Oracle E‑Business applications needed to be upgraded and extended to meet the new requirements, and new processes and systems embedded. Equinix appointed IBM Global Business Services to assist in the transformation project. The program started with comprehensive reviews of the target structures, and rapidly moved to deployment followed by iterative feedback. IBM took on the upgrade and migration to the Oracle R12 platform, managing other vendors, and ensuring that the focus remained on the REIT/SWIFT target. IBM set up new project processes, including stakeholder management, participation of senior executives and the Equinix business team, and developed a comprehensive plan to move to the business model to a shared service center approach.
Operational Impact
  • Operating as a REIT offers millions in economic benefit to Equinix and its shareholders.
  • New business systems offer greater control, reporting and analytics for cost savings, insight and efficiency.
  • The company now uses the Power Systems infrastructure as a private cloud, using automated provisioning to assign compute, network and storage resources as appropriate to each application area for maximum efficiency.
Quantitative Benefit
  • Potential savings of around $340 million over two years from converting to a REIT.

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