Connecting to 12x Growth in Cloud Traffic

Jim Poole

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By Jim Poole (part 1 of a two-part series)

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A fascinating article by Forbes’ Joe McKendrick explains that despite predictions about cloud computing leading to the end of enterprise data centers, “…new industry data suggests that cloud computing will soon make data centers even busier places than ever.”

How?

First, some cloud computing stats from Cisco’s Global Cloud Index:

    • Cloud computing will grow 12-fold and represent more than one-third of all data center traffic by 2015

 

  • Global cloud traffic will grow at a compounded annual growth rate of 66 percent, reaching 1.6 zettabytes by the end of 2015

 

 

  • By 2014, workloads processed in cloud data centers will surpass workloads processed in traditional data centers – 51 percent to 49 percent. By 2015, cloud computing will reach 57 percent of data center workloads.

 

But the real dynamite of disruption here is the idea that enterprise IT will evolve from a maintainer of hardware and software to “a broker of services that need to be provisioned, on demand, as the business changes and expands in current markets or moves into new markets.”

This means that enterprises will be looking to service providers to deliver “everything on demand” (IaaS, PaaS, SaaS).

And they will want it all right away – and they will want it delivered reliably, complete with SLAs.

If you’re a cloud or network service provider, you can’t miss out on this opportunity, but how can you afford to make the investment in infrastructure that will be required to meet the demand?

How do you grow fast enough?

How do you stay ahead of the competition?

How do you maximize the return on investment in your data center capabilities?

The answer – and a market opportunity in its own right – is by investing in network and service provider-rich data center facilities that enable you to quickly build out capabilities through simple cross-connects.

Doing this enables you to create a multi-tier architecture by easily deploying multiple service nodes in proximity to key target markets, combined with network hubs at locations that enable traffic aggregation and network choice.

How Can Your Data Center Boost Your Business Growth? With an Ecosystem that Grows Ahead of Your Needs.

Equinix data center customers leverage Platform Equinix to reach 38 global markets on five continents, and connect to over 4,000 businesses.

This model enables service providers to maximize the growth of high-margin services. You can deliver applications directly into carrier backbones as well as directly to mobile internet and broadband networks.

Interconnection services also enable you to build less complex, lower cost, more reliable, and higher performance service delivery environments.

The model also allows you to build out these capabilities with dramatically lower CAPEX spend, and because Platform Equinix is constantly growing, future capacity is always there before you need it!

Platform Equinix has become the data center services provider of choice because our global footprint and rich ecosystem enables businesses to make connections that drive competitive advantage and accelerated growth.

Our vast and diverse customer base, allows for interconnection with the most attractive customers: mobile, content, financial and cloud:

  • 800+ cloud & IT service providers
  • 680+ network providers
  • 600+ financial services firms
  • 475+ content & digital media firm
  • 4,000+ potential customers
  • Less than 10 ms latency from 90 percent of the population of Western Europe and North America
  • 10 million lit buildings accessible through the Ethernet Exchange

How Can Network and Cloud Providers Work Together to Capture Cloud Growth?

Worldwide cloud revenues are projected to reach nearly $150 billion by 2014. While network operators and cloud service providers agree it is a staggering market opportunity, the communities are just beginning to align, and best practices for “frictionless” commercial interaction remain on the horizon.

In part 2, we’ll look at all the different options for Network and Cloud providers to deploy secure, high-performance access options for cloud connectivity that fuel revenue growth and serve Enterprise needs worldwide.
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