The ubiquitous nature of the cloud has made it a prerequisite for companies in every industry – whether you’re an enterprise or service provider. IDC’s 2018 CloudView Survey reported that 84% of the respondents have embraced multicloud, “with the number rising to 94% when respondents were asked about their multicloud orientation within the next 12 months.” Organizations responding to the survey also said that they are using “five or more cloud architectures.” In their multicloud deployments.[i]
Deciding which cloud platform to place your application on is generally determined by which cloud service provider (CSP) delivers the best service for your specific workload. This freedom of choice makes it a no-brainer for IT organizations to experiment with different cloud platforms to see which delivers the best quality of service (QoS) at the best price.
Connectivity approaches between businesses and CSPs can also vary based on an organization’s best-in-class services, performance and security requirements. Many companies leverage the public internet to enable low-cost user access to cloud platforms for applications that do not require low-latency or high security. However, for latency-sensitive workloads or those that require increased protection against cyberattacks, the internet’s data congestion and security issues can’t ensure the high QoS and protection many digital businesses require.
Private interconnection to Cloud & IT Services is the growing annually by 112% for enterprises and 60% for service providers between 2018 and 2022 worldwide.
In cases where you must deliver the best possible user experience and the highest level of security, private interconnection via direct and secure, software-defined connections is the optimal approach. Proximate high-speed, low-latency connections (<60 – <20 milliseconds) are necessary for companies to materially close the “distance gap,” between their application and data workloads and CSPs. Bear in mind that in many cases, your cloud service of choice does not reside in the same location as your IT infrastructure or your users. So you need to place private interconnection hubs at edge locations where there is a high concentration of network, cloud, partner and customer ecosystems.
According to the Global Interconnection Index (GXI) Volume 3, an industry study published by Equinix, direct and secure interconnection to Cloud & IT Services is growing annually by 112% for enterprises and 60% for service providers between 2018 and 2022 worldwide.
Interconnection to Digital and Business Ecosystems by Enterprises and Service Providers
Private interconnection in action
South Korea’s leading IT infrastructure and cloud services provider, NAVER Business Platform (NBP), leveraged private interconnection to accelerate its global expansion. NAVER Cloud Platform offers over 100 cloud services around the world on Platform Equinix®, including the following key countries: Germany, Singapore, Japan and the United States. NBP needed to scale its global platform while maintaining a high-level of QoS and zero downtime for its users. This required the service provider to deploy its unique IT infrastructure and rapidly growing portfolio of cloud services on a single, vendor-neutral interconnection and data center platform across all of its worldwide locations. NBP deployed a hybrid multicloud infrastructure that empowered the company to provision connectivity between its customers, network providers and CSPs in just minutes. Leveraging the Equinix Cloud Exchange Fabric™ (ECX Fabric™), NBP’s average network bandwidth usage became 20 times greater, enabling NBP’s customers to exponentially increase their consumption of cloud services.
Reduction in cloud network connectivity costs
Global food services provider, Sysco needed to keep pace with its massive influx of operational and customer data, as well as provide users with access to that information from anywhere at any time. The company built a high-speed network backbone on Platform Equinix to more cost-effectively interconnect its multiple U.S. data centers and leverage a dense network peering ecosystem via Equinix Internet Exchange. The company harnessed ECX Fabric as a hybrid/multicloud gateway for its server/application migration and data analytics in the cloud. Sysco also mirrored data from its private data centers to Equinix International Business Exchange™ (IBX®) facilities in two different U.S. regions.
“Between our internal network and outsourced data centers and our cloud providers, we saw Equinix as the right partner to connect all of those different platforms together,” said Frank Meril, vice president of infrastructure at Sysco. Sysco’s more optimized network backbone enabled it to not only connect several disparate systems, but the company is also seeing a boost in orders from mobile users. “We’re placing more orders through our mobile ordering systems,” said Meril. “The backbone makes it faster to get data from different systems in order to make the end-user response time acceptable.”
In addition to increased performance, scalability, security and resiliency, digital businesses such as NBP and Sysco are benefiting from the agility of software-defined interconnection between their users and network and cloud services. It’s just not efficient or cost-effective for IT organizations to provision individual point-to-point connections to each CSP to consume their services. Instead, they are leveraging programmable interconnection fabrics with open APIs, such as ECX Fabric, to easily provision connections to multiple clouds across global metros in minutes, for as much as 70% less network connectivity costs.[ii]
Learn more about how private connection is powering enterprises and service providers in multiple industries around the world by reading the Global Interconnection Index Vol 3.
You may also want to read “The Total Economic Impact™ of Equinix.”
[i] IDC Market Note, Equinix Expands ECX Fabric’s Global Footprint to Meet Growing Needs at the Digital Edge, doc # US45014619, April 2019