Across public and private sector organizations, it seems like everyone’s talking about digital transformation these days. But what does it really mean to be “digital”, and why does it matter? At Equinix, we believe that being “digital” means being able to clearly define the capabilities you need from your IT infrastructure, and then getting those capabilities with the simple press of a button.
Achieving this goal requires distributed, interconnected digital infrastructure in locations around the world. For most public sector agencies, this will be a dramatic shift away from the legacy infrastructure they’ve used in the past, which was typically built around centralized data centers in only a few strategic locations.
Transforming digital core infrastructure to enable network modernization and cloud adjacency is an important step in any IT modernization strategy. However, it’s important to remember that in today’s interconnected digital world, agencies can’t be successful working alone. They must connect with digital ecosystems of partners and service providers to assemble the digital infrastructure they need, share insights and unlock collaboration opportunities.
The Global Interconnection Index (GXI) 2023, a market study sponsored by Equinix, examines the growth of digital ecosystems using interconnection bandwidth, a measure of the amount of data exchanged between ecosystem partners inside vendor-neutral colocation data centers. The GXI forecasts that interconnection bandwidth for both enterprises and service providers will grow significantly over the next several years. In particular, interconnection bandwidth in the public sector is forecast to grow at a five-year CAGR of 51%, well above the cross-industry average of 40%. The GXI concludes that “your ecosystem is now your infrastructure,” and this seems to be especially true for public sector agencies.
According to the GXI 2023 report from Equinix, interconnection bandwidth in the public sector is forecast to increase 51% CAGR, well above the cross-industry average of 40%.
Integrating with digital ecosystems supports your mission objectives globally
At Equinix, we believe there are three main ways that public sector agencies can optimize their digital ecosystems to drive value:
- Integrating with SaaS providers
- Tapping into data marketplaces
- Collaborating with mission partners
Integrating with SaaS providers
Working with SaaS providers allows public sector agencies to add new capabilities quickly. Examples of providers that agencies might work with include Splunk for data analytics and Microsoft 365 for collaboration and productivity tools. Acquiring these capabilities through traditional methods would likely be difficult and time-consuming for public sector agencies.
In fact, an internal study summarized in the Leaders’ Guide to Digital Infrastructure found that SaaS integration helps businesses introduce new digital offerings 4x faster, laying the foundation for rapid growth and scalability. SaaS integration is also an important step in the shift from CAPEX to OPEX, thus helping public sector agencies use taxpayer resources more efficiently.
There are thousands of SaaS providers out there today that can help public sector agencies modernize their IT operations. In order to take advantage of those offerings, agencies must expand their digital presence to ensure they have proximity to the right SaaS providers in the right places.
Tapping into data marketplaces
Public sector agencies need to take a data-centric approach to IT modernization, and a big part of this is compiling data from a more diverse range of sources. That said, public sector agencies and their ecosystem partners have good reason to be cautious about how and why they share data with one another. In order to establish trust with citizens, agencies must be able to handle sensitive data without placing it at risk.
Agencies have typically been very cautious about their data sharing, which is one reason many of them have been slow to start using AI technology to its full potential. As the graphic below shows, when agencies withhold data from one another due to privacy concerns, it leads to lower-quality AI models, which in turn impedes their ability to take advantage of AI-driven innovation.
The solution is to build data marketplaces on a neutral, secure platform. This makes it quick and easy for ecosystem partners to exchange data and algorithms with one another while also minimizing risk. With data marketplaces, public sector agencies can improve data monetization 5–10x and unlock the innovation potential of advanced technologies like AI.
Collaborating with mission partners
Today’s public sector agencies often share common mission objectives, so it only makes sense for them to work together to pursue those objectives. Connecting with mission partners wherever they are in the world is the first step toward capitalizing on mutually beneficial collaboration opportunities. One example of inter-agency collaboration would be the Department of Homeland Security and the Department of State working together to zero in on legitimate threats at travel security checkpoints, without increasing wait times for all other travelers.
Agencies must also look for opportunities to facilitate intra-agency collaboration and data sharing. For instance, there are 13 subagencies that make up the Department of Homeland Security. How can they possibly meet their shared mission objectives if all 13 of them work only within their own silos?
Public sector agencies need a strategy to help them break through these silos, both internal and external. They need to look at their strategic requirements around location, performance and risk and then use both physical and virtual connections to help meet all those requirements. In addition, they can use private interconnection and WAN MACsec encryption capabilities to enable secure, standardized data sharing across their global digital ecosystems.
Take the first step toward optimized digital ecosystems with Equinix
Working with the right digital infrastructure provider is essential to finding the ecosystem partners you need and connecting with them in the right places. Platform Equinix® is home to the largest and most diverse digital ecosystems on the planet, making it the ideal place to start your IT modernization journey. We currently have more than 10,000 customers—including clouds, network providers, SaaS providers, public sector agencies and enterprises—so there’s a very good chance that any ecosystem partners you want to work with are already at Equinix.
Our footprint of 240+ data centers spread across six continents makes it easy to get the global reach you need to pursue your mission objectives wherever they may arise. Equinix Fabric®, our software-defined interconnection solution, allows you to set up new connections with your ecosystem partners and service providers with the push of a button using our self-service web portal. This enables you to bypass the public internet and move data to and from your ecosystem partners using direct, private interconnection, which offers proven benefits around performance and security.
To learn more about how Equinix can help you find and connect with the right ecosystem partners worldwide, schedule a Digital Strategy Briefing today. You’ll meet with an Equinix expert to discuss your agency’s unique requirements, and then work together to create a strategy that meets those requirements.