Digital Service Providers Forecast to Increase Private Connectivity 5x Between 2019 and 2023, Driven by Greater Demands from Enterprises to Close Digital Gaps at the Edge
REDWOOD CITY, Calif., Oct. 13, 2020 /PRNewswire/ -- The latest Global Interconnection Index (GXI), an annual market study published by Equinix, shows that the COVID-19 pandemic has already had a dramatic effect on how businesses are planning their digital infrastructure initiatives over the next three years. According to the report, digital service providers, within industries like telecommunications, cloud & IT services, content & digital media and technology providers, are forecast to increase private connectivity bandwidth 5x by 2023, driven by greater demands from enterprises to close digital gaps at the edge.
"As interconnected services, cloud providers, distributed cloud, edge services and SaaS offerings continue to proliferate, the rationale to stay only in a traditional data center topology will have limited advantages. This is not an overnight shift, but an evolutionary change in thinking how we deliver services to our customers and to the business. This trend, coupled with the new reality that outside factors might limit physical access to the data center (such as emergency quarantine), is driving new thinking in infrastructure planning," wrote David Cappuccio, Distinguished VP Analyst, Gartner and Henrique Cecci, Senior Director Analyst, Gartner.1
The report also forecasts that overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, will achieve a 45% compound annual growth rate (CAGR) from 2019 to 2023. The expected growth is driven by digital transformation, and specifically by greater demands from enterprises extending their digital infrastructure from centralized locations to distributed edge locations. This comes as businesses scale and support real-time interactions by strategically interconnecting workflows closer to and across people, things, locations, cloud and data. The capacity of this connectivity is equivalent to 64 zettabytes of data exchange, which is enough bandwidth for every human on the planet (7.8 billion) to transmit their full DNA sequence in an hour.
"Digital leaders have to prepare for post-pandemic recovery by planning and implementing the right digital transformation initiatives now," said Claire Macland, Senior Vice President of Marketing, Equinix. "We believe those that have a foundational infrastructure which helps bring together all the right places, partners and possibilities will gain a business advantage over the long term."
The GXI Vol. 4 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 Vol.4 provides insight on how global macro trends and COVID-19 have impacted certain industry segments:
The GXI provides insight into how growth in interconnection bandwidth is expected to accelerate in different regions of the world between 2019 and 2023:
Industry Perspective on the Global Interconnection Index
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 2023. 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.
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements about interconnection bandwidth growth, the rate of adoption of digital transformation, and the benefits of the "network effect". Actual results may differ materially from expectations discussed in such forward-looking statements and the predictions made from the Global Interconnection Index. Factors that might cause such differences include 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.
1 "Your Data Center May Not Be Dead, but It's Morphing," Gartner, September 17, 2020
2 "IDC FutureScape Webcast: Worldwide Digital Transformation 2020 Predictions," IDC, Doc # US46287720, May 2020
SOURCE Equinix, Inc.