REDWOOD CITY, Calif.,
Oct. 15, 2019 /PRNewswire/ -- The
latest Global Interconnection Index (GXI), an annual market study
published by Equinix, predicts private connectivity at the edge is
forecast grow by 51 percent compound annual growth rate (CAGR), and
expected to exceed a total bandwidth capacity of more than 13,300
Tbps, which is equivalent to 53 zettabytes of data exchanged
annually. This is enough bandwidth to support every person on earth
simultaneously downloading a complete season of Game of
Thrones in ultra-high definition resolution in less than a
single day. The GXI market study also finds that interconnection
bandwidth is an essential component to digital business and
validates that to compete in the digital economy, companies must
address growing data volumes and increasing data exchange velocity
across a rising number of clouds and business ecosystems.
Experience the interactive Multichannel News Release here:
https://www.multivu.com/players/English/8590051-equinix-global-interconnection-index-2019/
"People, software and machines are creating and consuming data
faster and in all the places where we work, play, and live," said
Rick Villars, Research Vice
President, Datacenter & Cloud, IDC. "The significant increase
in data created, aggregated and analyzed in these new locations is
contributing to a major shift away from deploying IT in traditional
corporate datacenters. Enterprises need access to robust, modern
datacenter facilities near the edge locations where businesses want
to deploy dedicated infrastructure and interconnect to the
increasing number of clouds, customers and partners that are at the
core of digital transformation efforts."
Key Findings:
The GXI Vol. 3 delivers insights by
tracking, measuring and forecasting growth in interconnection
bandwidth—the total capacity provisioned to privately and directly
exchange traffic, with a diverse set of partners and providers, at
distributed IT exchange points inside carrier-neutral colocation
data centers. The GXI finds:
The ability to exchange large volumes of data through
interconnection is essential to compete in the digital
economy
- The GXI forecasts that in order to manage the growing volumes
of data, enterprise consumption of interconnection bandwidth will
grow at a 64 percent CAGR, outpacing other forms of business data
exchange.
- The GXI shows that to manage increasing volumes of data,
enterprises are on average deploying in nine locations, with a
total of 340 interconnections to networks clouds and business
partners.
- A separate independent survey commissioned by Equinix of more
than 2,450 global senior IT professionals, found that almost half
of global IT decision-makers believe interconnection is a key
facilitator of digital transformation, and nearly half of all
global IT decision-makers believe interconnection can help their
business to gain competitive advantage within the marketplace.
Distance is the biggest performance killer for digital
business
- Deploying direct, private connections at the edge propels both
application performance and user experience.
- According to the GXI, today's latency-sensitive workloads
require response times ranging from <60 to <20 milliseconds,
forcing IT infrastructure closer to the points of consumption.
- According to the Equinix survey, more than one-third of global
IT decision-makers are using interconnection to increase speed of
connectivity.
Leading businesses are gaining competitive advantage using a
combination of key interconnection deployment models
- Interconnecting to multiple network providers across multiple
edge locations is the most prominent use case for interconnection
bandwidth and is expected to grow 4x by 2022.
- Interconnecting to multiple clouds and IT services across
multiple edge locations and cloud regions represents the next
largest and fastest use of interconnection bandwidth and is
predicted to grow 13x by 2022.
- Interconnecting to digital business partners for financial
services, content and digital media and supply chain integration
makes up the remainder of interconnection bandwidth use cases and
is forecasted to grow 5x by 2022.
Regional insights:
The GXI provides significant
insight into geographical differences in how growth in
interconnection bandwidth at the edge is accelerating in different
regions of the world.
Global
- Global interconnection bandwidth is predicted to reach 13,300+
Tbps by 2022, a predicted 51 percent CAGR and a 7 percent increase
over the previous year's projection.
North America
- Is predicted to grow at a 46 percent CAGR and leads in capacity
globally, contributing to 38 percent of total interconnection
bandwidth. North America is the
most digitally mature region and is focused on further digitizing
traditional industries such as Manufacturing, Energy, Banking and
Insurance.
Europe
- Is predicted to grow at a 51 percent CAGR, contributing 22
percent of interconnection bandwidth globally. Strong data
compliance regulations are unlocking data exchange and growth of
interconnection bandwidth in Healthcare & Life Sciences,
Government & Education, and Business & Professional
Services.
Asia-Pacific
- Is anticipated to grow at a 56 percent CAGR, contributing more
than 29 percent of interconnection bandwidth globally. In
Asia-Pacific, Cloud & IT
Services consumes the most interconnection bandwidth and is
forecast to outpace growth of clouds in all other regions.
Latin America
- Is expected to achieve a 63 percent CAGR, contributing 11
percent of interconnection bandwidth globally. In this region,
Content & Digital Media is expected to outpace other regions in
interconnection bandwidth adoption.
Quotes:
- Sachin Gupta, Senior Vice
President, Product Management, Enterprise Networking Business,
Cisco
"As enterprises embrace the imperative of digital
transformation, they increasingly adopt multiple cloud-based
applications to meet their objectives. This places pressure on the
network to deliver a fast and secure application experience to
users located anywhere in the world. With both applications and
networks becoming more distributed, enterprises today will continue
to require a low-latency, interconnected architecture to securely
connect end users with business-critical applications."
About the Global Interconnection Index (GXI)
The
Global Interconnection Index, published annually by Equinix,
delivers insights that drive digital business advantage by
tracking, measuring and forecasting growth in interconnection
bandwidth—the total capacity provisioned to privately and directly
exchange traffic with a diverse set of counterparties and providers
at distributed IT exchange points. The Global Interconnection Index
is the industry's only market study that projects how
interconnection bandwidth growth will unfold through 2022. The
report serves as a market baseline that analyzes the deployment
profile of thousands of ecosystem participants using
carrier-neutral colocation data center providers globally. This
data was combined with local and regional market data (including
macroeconomic trends, market demographics and industry
concentrations) to form a weighted demand multiplier to assist in
predicting growth and assess impact on digital business
transformation. A detailed methodology description is included in
the Global Interconnection Index.
About the Equinix independent survey
As part
of a separate independent study commissioned by Equinix, APCO
Insight surveyed 2,485 IT decision-makers from a diverse enterprise
set across North America,
Latin America, Europe and Asia-Pacific. Respondents were selected for
participation from Dynata's online panel. The survey was conducted
online between August 1-16, 2019.
Additional Resources
- Global Interconnection Index Volume 3 [report]
- Forrester Total Economic Impact Study (TEI) [analyst
report]
- Gartner Exploring the Edge: 12 Frontiers of Edge Computing
[analyst report]
- Gartner: Infrastructure is everywhere [analyst report]
- Taking Digital Business to the Edge [Equinix blog]
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects
the world's leading businesses to their customers, employees and
partners inside the most-interconnected data centers. On this
global platform for digital business, companies come together
across more than 50 markets on five continents to reach everywhere,
interconnect everyone and integrate everything they need to create
their digital futures. www.equinix.com.
Forward-Looking Statements
This press release
contains forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements. Factors
that might cause such differences include, but are not limited to,
the challenges of acquiring, operating and constructing IBX data
centers and developing, deploying and delivering Equinix services;
unanticipated costs or difficulties relating to the integration of
companies we have acquired or will acquire into Equinix; a failure
to receive significant revenue from customers in recently built out
or acquired data centers; failure to complete any financing
arrangements contemplated from time to time; competition from
existing and new competitors; the ability to generate sufficient
cash flow or otherwise obtain funds to repay new or outstanding
indebtedness; the loss or decline in business from our key
customers; and other risks described from time to time in Equinix
filings with the Securities and Exchange Commission. In particular,
see recent Equinix quarterly and annual reports filed with the
Securities and Exchange Commission, copies of which are available
upon request from Equinix. Equinix does not assume any obligation
to update the forward-looking information contained in this press
release.
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SOURCE Equinix, Inc.