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 this, the fourth volume of the report (Vol.4), 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.
Even before the current pandemic, enterprises were implementing digital transformation initiatives, reassessing their cloud adoption strategies and cloud readiness, and moving towards digital solutions and tools to ensure business continuity. As the pandemic continues to accelerate the shift to digital, enterprises facilitating more remote working, such as telecommunications and cloud & IT providers, are expected to contribute to 54% of the total interconnection bandwidth growth in EMEA, outpacing other industries in the region.
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, within the EMEA region. 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.
Vertical/Industry Insights:
The GXI Vol.4 provides insight on how global macro trends and COVID-19 have impacted certain industry segments:
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.
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