46
INSIDE TRACK
Data exchanges hold the secret of the new super-fast internet
Private data exchanges between businesses, particularly in the finance world, will have passed the volumes of traffic carried by the public internet by a factor of nearly six by 2020
Senior Editor Bill Boyle
T
his startling prediction is made in the Global Interconnection Index, a new market study published by Equinix that analyses the adoption profile of thousands of carrier-neutral colocation data centre providers and ecosystem participants globally.
The Index forecasts the banking and insurance segment will be the largest consumer of interconnection bandwidth, as digitisation is forcing this industry to support new customer engagement models. Telecommunications is projected to be the second largest segment, with the third largest being cloud and IT services, which provide a critical building block for digital enablement.
Banking & Insurance 144 Telecommunications 319 221
Cloud & IT Services
Interconnection installed bandwidth capacity (Tbps) by industry 2016 2017 2018 2019 2020 CAGR 230 409 314
367 523 445
590 662 607
958 61% 826
27% 820 39%
The Index highlights how firms creating new ways of connecting with their customers, partners and supply chain. The Index will provide an annual baseline to track, measure and forecast the growth of interconnection bandwidth, defined as the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points.
Interconnection bandwidth is expected to grow at a 45% CAGR to reach 5,000 Tbps by 2020, dwarfing Global IP traffic in both growth (24 %) and volume (855 Tbps). It is also growing faster than Multiprotocol Label Switching (MPLS), the legacy model of business connectivity, by a factor of 10x (45 % to 4%).
The Index provides significant insight into metropolitan differences in how Interconnection is accelerating in various European
cities. Despite Brexit, London will continue to top the European leaderboard in terms of interconnection bandwidth capacity. With an average growth rate of 44%, the British capital is set to triple its private data exchange from 114 Tbps to 486 Tbps, a significant lead of 48.15% over Frankfurt, more than double the interconnection bandwidth capacity of Amsterdam and a whopping 75% ahead of Paris. However, in a sign that Frankfurt may emerge as a Brexit winner after all, the German financial centre is poised to overtake Amsterdam, with a jump from 51 Tbps to 252 Tbps in 2020:
The Index also forecasts interconnection bandwidth by use case for both enterprises and service providers. The largest use case is associated with traditional IT deployment models, in which businesses connect to network providers as an intermediary path to reach business partners and customers. However, the fastest growing use case is enterprises connecting directly to a range of cloud and IT service providers, confirming the transformational shift of IT infrastructure from centralised, enterprise-owned data centres to decentralised, physically dispersed multicloud environments.
London Frankfurt Paris
Interconnection installed bandwidth capacity (Tbps) by city 2016 2017 2018 2019 2020 CAGR 114 51
Amsterdam 59 30
Total Metro 254
159 74 83 42
357
227 110 118 59
514
330 165 168 84
747
486 252 242 120
44% 49% 42% 41%
1,100 44%
The ubiquity of digital technology is disrupting how business is done, forcing companies to invent information-centric business models. We want our information now and if we are a corporate we insist on the fastest speed. The interconnect is certainly the next move for the company that has to stay ahead of the pack at all costs.
www.ibsintelligence.com | © IBS Intelligence 2017
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
