Private data exchange to outpace public internet: report

Equinix study says interconnection is growing at nearly twice the rate and will comprise nearly six times the volume of global IP traffic by 2020

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Private data exchange to outpace public internet: report Schlosser said interconnection is key to ensure full digital transformation.
By  David Ndichu Published  August 17, 2017

Cybersecurity risks are compelling enterprises shift to private data traffic exchange to bypass the public internet and mitigate against digital threats.

This is one of the major driving forces for expanding interconnection consumption.

According to the inaugural Global Interconnection Index by Equinix, the capacity for private data exchange between businesses is outpacing the public internet, growing at nearly twice the rate and comprising nearly six times the volume of global IP traffic by 2020.

According to the Index, 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 Global Interconnection Index analysed the adoption profile of thousands of carrier-neutral colocation data centre providers and ecosystem participants globally. It highlights how companies are translating digital transformation into action and creating entirely new ways of connecting with their customers, partners and supply chain.

Jeroen Schlosser, managing director, Equinix MENA said interconnection is key to ensure full digital transformation and for this, businesses will need to grow their interconnection bandwidth capacity (data exchange capacity). 

“Interconnection means the ability to connect in many ways to the many partners, customers, employees and geographies today's enterprises need to accelerate business performance and create new opportunities. Every MENA business must understand and leverage Interconnection Bandwidth to compete in the digital age. This will require a regional drive among IT chiefs to re-architect their companies’ IT platforms,” Schlosser added.

Equinix Dubai data centre acts as regional hub, interconnecting businesses in one place, allowing businesses to enhance performance and increase user satisfaction while reducing operational costs.

Fahad Al Hassawi, chief commercial officer, du said: “The enterprise sector in the UAE and in the region is experiencing widespread digital disruption, and firms should be looking to invest in enhancing their customers’ experience and engagement by embracing this transformation, which requires interconnections with networks, clouds, and vertical specific business ecosystems.

"Through our alliance with Equinix, we are offering a true interconnected platform for the regional enterprises, banks, insurers and electronic payments firms to colocated critical IT systems inside our data centre and interconnect to facilitate the operation of countless IT workloads.”

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