American Tower (AMT) Subsidiary CoreSite Enhances OCX Offerings
American Tower Corporation’s AMT subsidiary and a leading hybrid IT solutions provider — CoreSite — recently launched new capabilities to its software-defined networking platform, Open Cloud Exchange (OCX).
The enhancements will enable clients to quickly create higher-bandwidth virtual connections to Google Cloud and between CoreSite data centers, including 20G and 50G services.
Given that wireless connectivity usage is on the rise on the back of the advent of next-generation technologies, including edge computing functionality, autonomous vehicle networks and the Internet of Things, along with the rampant usage of network-intensive applications for video conferencing and cloud services and hybrid-working scenarios, the move seems like a strategic fit.
The key features include accelerated data transfer to cloud applications by nearly five times for improved machine learning (ML)-ops and visual effects, simplification of the process to rapidly scale network capacity between the enterprise edge and public cloud providers, and reduced operating expenses by right-sizing the client’s network to meet current and future business needs.
Clients will also benefit in terms of reduced time required for organizations to augment network capacity and support the next wave of high-bandwidth, low-latency hybrid applications like artificial intelligence, ML and digital media production.
Particularly, CoreSite launched the new OCX capabilities as part of an initiative to support a global streaming media and entertainment (M&E) client. With improved functionality, the client can support its burst operations in peak production season, increasing operational agility to meet stringent movie launch schedules.
Per Juan Font, president and CEO, CoreSite and SVP of U.S. Tower, “Businesses are looking for innovative ways to improve agility and optimize their operations. By providing enhanced connection capabilities through our proprietary Open Cloud Exchange with Google Partner Interconnect, CoreSite is delivering the platform customers require to meet the growing need to access and manage their data effectively.”
It may be noted that American Tower acquired CoreSite in December 2021 for a total consideration of $10.4 billion. Through the buyout, AMT added more than 20 data center facilities and related assets in eight U.S. markets to its portfolio.
With this, American Tower capitalized on CoreSite’s highly interconnected data center facilities and critical cloud on-ramps, and banks on the robust demand from enterprises, the cloud, network and IT service providers in the major U.S. markets.
Shares of the Zacks Rank #3 (Hold) firm have lost 18.9% in the past three months compared with its industry’s decline of 10.9%.
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Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower WELL, Boston Properties BXP and Vornado Realty Trust VNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been revised marginally upward over the past month to $3.56.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been increased marginally over the past month to $7.30.
The Zacks Consensus Estimate for Vornado Realty’s current-year FFO per share has moved 1.2% northward over the past month to $2.59.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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