Dell Acquires Clerity Solution

The acquisition of Clerity Solution reiterates the company's growing focus on cloud computing. Given the benefits of cloud computing, including cost and space savings, the company is set to explore the business potential of this segment. We believe that the recent acquisition will help the company to strengthen its cloud business.

Clerity offers unequalled technology that assists companies to migrate from older version of computer networks to somewhat new IT systems that include cloud computing. Clerity's services help in automating the transition and spare the company from re-training their IT personnel.

The favorable pricing trend in the U.S.

We believe that the favorable pricing trend in the U.S. coupled with planned expansion into higher-growth higher-margin segments will boost revenue growth in the upcoming quarters. Equinix is as well planning furthermore expansion in emerging markets. China, India, Japan and Australia are the new target areas.

We remain optimistic about the company's recurring revenue model and future expansion plans. In spite of all the positives, competitive threat from the likes of AT&T Inc. and Verizon Inc. continue to increase. European exposure and industry consolidation are as well concerning.