California-based interconnection company Equinix announced last month that they would be acquiring bare metal cloud provider Packet. Acquisition of the New York-based startup, which has raised $36 million since its founding, is expected to complete by the end of the first quarter.
In a blog post announcing the acquisition, Packet co-founder Zachary Smith expressed his excitement for the next steps for the future while assuring users that the company would be run the same as before with the same team. “Our commitment to our customers, the open source community and developing partner-driven ecosystems will grow, as will our ability to scale: as part of Platform Equinix we will help to connect you to its unmatched combination of people and footprint — 200+ data centers in 55 markets and 1,800 networks.”
In a press release from Equinix, Chief Product Officer Sara Baack also emphasized that Packet’s acquisition was a good match for the company and would ultimately be a boon for its customers. “Packet's innovative and agile bare metal service, and neutral approach to software stacks, fit our own cloud-neutral model and match our strategy for helping enterprises flexibly deploy digital infrastructure, within minutes, at global scale. Our combined strengths will further empower companies to be everywhere they need to be, to interconnect everyone and integrate everything that matters to their business."
Since its founding in 2014, Packet has offered bare metal cloud services to customers, which allows for rental of public cloud hardware and services. This allows for flexibility resources that most other public cloud based systems would not be able to provide. Smith emphasized that Equinix’s resources would allow for further growth, emphasizing that Packet would be expected to have new and expanded cloud locations, faster provisioning, and platform and support improvements going into 2020.
Equinix, which was founded in 1998, specializes in internet connections and is the current global leader in the market share of colocation data centers, renting out equipment, space, and bandwidth to customers. With the Packet acquisition, Equinix expects “to add important new on-demand deployment alternatives that meet the market's full range of use cases” and stated that Packet’s own team, products, and services will “add important new skills and assets to Equinix's own product development and management capabilities.”
More details of the acquisition will be released by Equinix upon completion later in the first quarter.