Interxion makes progress in cloud computing, emerges on analysts’ radar

Wednesday, October 3rd, 2012 5:40:33 by

William Blair and Co. started coverage of cloud-computing service providers Interxion Holding with a buy rating. The investment bank had positive view about the company for the reason that it has a strong business model to go forward.

“This company has a solid competitive position and attractive business model, which includes predominantly recurring revenue streams, largely fixed-cost infrastructure and expanding free cash flow,” analyst Jim Breen wrote in a research note.

The cloud-computing industry had caught root of late due to the cost-effective model of storing and retrieving data from remote services. More and more companies are plunging into cloud computing and virtual server configurations due to the fact that they consume fewer resources and provide the same services and on-site services.

Interxion was trading at $22.43 on Tuesday, down one percent from the day before, but up 66 percent this year.

Virtual servers are different software that have the capabilities of running different operating systems and files on the same machine. This saves costs and provides the same standard of quality services.

Cloud-based service providers, according to Breen, are making headway in Europe, as compared to the US. Breen thinks that cloud service providers in Europe are expected to grow at the rate of 35 percent, compared to the anticipated 20 percent growth by the US-based counterparts.

Economic uncertainty in Europe shouldn’t much bother the company, which “will continue to exhibit superior growth,” writes Breen.

In addition to Interxion, another Europe-based cloud service provider Rackspace has also bleeped on the radar of tech analysts. Both of companies are making progress in the stock market.

Big companies like IBM, Oracle, SAP and HP have either started cloud-based computing or are in the process of. Interxion says it has 1,200 clients throughout the world.

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