How are companies using Interconnection to scale as digital businesses? That is just one of the many things that the “Global Interconnection Index” market study was created to find out.
The Global Interconnection Index is a living tool that provides digital businesses with a methodology to measure and predict their Interconnection Bandwidth capacity requirements over time. Interconnection Bandwidth is a measure of the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points.
It also provides a projection of how different industry segments and business use cases could deploy Interconnection, which can help enterprises and service providers create tailored strategies to better leverage Interconnection to scale and succeed as digital businesses.
6 top industries will drive the need for greater Interconnection
The Global Interconnection Index identifies the top six industries segments that, by 2020, are projected to have the greatest Interconnection Bandwidth capacity.
- Banking and Insurance – The companies in this sector are on a strong path toward digitalization. They are actively using Interconnection to scale so they can better serve all the players and consumers that need to interact in real-time within the growing banking and insurance industry, along with the mobile digital payments industry.Use Case: A global digital payment company leveraged greater Interconnection with multiple cloud services and business partners (e.g., banks, credit card companies) to increase its real-time fraud protection capabilities via faster exchanges between data and analytics.
- Telecommunications – Communications carriers have been the legacy providers of connectivity and as such, need to create new types of Interconnection services to fight commoditization and scale those services to remain relevant in a more competitive marketplace. Among service providers, the Global Interconnection Index predicts that interconnecting to network providers could make up the largest percentage (an estimated 70% CAGR) of their total Interconnection Bandwidth capacity volume by 2020.Use Case: Telnyx, a worldwide network service provider, expanded its global reach for its new cloud-based, voice-over-IP service by establishing multiple points of presence in different regions. Greater proximity to its global customers and lower Interconnection latency reduced its jitter rates by 62%, significantly enhancing the customer call experience.
- Cloud and IT Services – These service providers have the most to gain by scaling the global access to their digital services using a variety of Interconnection options between networks, business partners and customers. By 2020, the Global Interconnection Index estimates that enterprises interconnecting to cloud providers could be the fastest growing Interconnection Bandwidth use case by volume at projected 160% CAGR.Use Case: ServedBy the Net, an Infrastructure-as-a-Services (IaaS) provider headquartered in Seattle, wanted to increase its global presence and customer access to its IaaS service. It expanded its virtualized Interconnections between multiple networks, clouds and users, increasing its Interconnection Bandwidth capacity by 100x and enabling optimized, high-speed routes to its cloud services for its enterprise clients worldwide.
- Manufacturing – New segments in this traditional market, such as the Industrial Internet and the Internet of Things (IoT), are driving the need for greater Interconnection that allows manufacturers and their customers to gain new efficiencies by scaling the digital capabilities of their IT infrastructures and reducing costs.Use Case: International car manufacturer, Ford Motor Company, optimized its global network to interconnect with digital business partners and cloud technologies.
- Securities and Trading – Controlled within a regulatory environment and measured by the speed in which they can handle a growing number of transactions, financial services companies are leveraging Interconnection to scale their digital platforms to do more trades faster, while maintaining strict compliance regulations.Use case: The Mexican Stock Exchange wanted to expand access to its global market data for its U.S. customers. It placed an Interconnection point of presence right in the heart of the U.S. financial district in New York City to directly interconnect with the existing ecosystem of financial market participants. This allowed the company to reduce its data delivery latency by 75% and accelerate its multicast data feeds to its clients.
- Content and Digital Media – According to Cisco’s Visual Networking Index report, global IP video traffic is estimated to be 82% of all IP traffic by 2021. High-bandwidth, low-latency Interconnection to this massive amount of media content is a high priority with media producers and distributors worldwide.
Use case: Global content and broadcast network Discovery Communications reduced its media content distribution channel development from weeks to hours by placing Interconnection hubs in major metros in the U.S. and Europe.
These are just a few examples of how digital businesses are scaling their Interconnection Bandwidth capacity to extend their global presence in new markets. Interconnection can provide the transformative power for any business in any industry to better compete in a global digital economy.
There is no question that Interconnection is enabling businesses to scale their digital platforms so they can best compete in the growing global digital economy. This is why the Global Interconnection Index is so valuable. It helps enterprises and service providers see how transformative Interconnection can enable them to evolve as digital businesses and which industries are expected to lead the way.
Read the Global Interconnection Index today to accelerate your company’s transformation toward digital.
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