The GXI report also predicts that the direct Interconnection with Cloud & IT Services will proliferate at a 98% CAGR, as both private and public sector industries leverage hybrid multicloud architectures for digital business scale and agility.
The financial services industry in particular is centered in Brazil’s vital metro São Paulo, making it the largest financial hub in Latin America (LATAM). And the convergence of submarine cable systems, such as Monet and Globenet, makes Brazil a growth hot spot for telecommunications and hyperscale cloud providers such as Microsoft Azure, AWS and Google.
To succeed as a digital business, companies are adopting private Interconnection at accelerated rates to build an underlying digital-ready infrastructure. The Global Interconnection Index (the GXI) Volume 2, a market study recently published by Equinix, analyzes global Interconnection—the direct and private traffic exchange between businesses.
Between 2017-2021, the GXI projects a 48% compound annual growth rate (CAGR) in Interconnection Bandwidth, the total capacity provisioned to privately and directly exchange traffic with a diverse set of participants at distributed IT exchange points. Europe is expected to contribute 23% of installed Interconnection Bandwidth capacity globally by 2021, an estimated 1,921 Terabits per second (Tbps).
The U.S. was an early adopter of digital business, which is a big reason it’s led the way in expanding access to the Interconnection that powers it. The U.S. is also the home base for the largest number of multi-national enterprises.
For distributed application architectures, especially those leveraging the cloud, performance issues can be hard to track down because it’s not easy to observe all the components in the system simultaneously. Performance issues are typically diagnosed from the application perspective and fall into two big buckets: storage and network.
The GXI Vol. 2, a market study by Equinix, makes the case that Interconnection – the direct and private data exchange between businesses – is enabling enterprises to build their digital ecosystems by seamlessly integrating a myriad of service providers and business partners.
The GXI demonstrates how you can combine four Interconnection use cases, along with a maturity model, to master the delivery of distributed IT services in an increasingly digital world. The first step is understanding the critical interrelationship between the growing number of distributed IT services and Interconnection growth.
Our newly released market study, the Global Interconnection Index (the GXI) Volume 2, offers some striking projections that illustrate how essential Interconnection is becoming to digital business.
The GXI tracks, measures and forecasts growth in Interconnection Bandwidth, which is the total capacity provisioned to privately and directly exchange traffic with a diverse set of participants at distributed IT exchange points. As the fuel for all these business-critical interactions, Interconnection Bandwidth is a powerful barometer for how companies are leveraging Interconnection to grow, scale and ultimately succeed as digital businesses.