Private connectivity at the edge to grow over 50% across EMEA
Global market study and independent survey shows companies are leveraging interconnection to compete in the digital economy as data explosion gets further distributed at the edge
The latest Global Interconnection Index (GXI), an annual market study published by Equinix, predicts private connectivity at the edge will grow by 51% compound annual growth rate (CAGR), and exceed a total bandwidth capacity of more than 13,300 Tbps, equivalent to 53 zettabytes of data exchanged annually.
“This is enough to support every person on earth simultaneously downloading a complete season of Game of Thrones in ultra-high definition resolution in less than a single day. “
The GXI market study finds interconnection bandwidth – the capacity for direct and private traffic exchange between key business partners – is an essential component to digital business and validates that to compete in the digital economy, companies must address growing data volumes and increasing data exchange velocity across a rising number of clouds and business ecosystems. In fact, according to a separate independent survey commissioned by Equinix of more than 2,450 global senior IT professionals, almost half (48%) of global IT decision-makers believe interconnection is a key facilitator of digital transformation.
The independent survey also reveals that in the UAE, 7 out of 10 (70%) IT decision-makers think interconnection is a key facilitator of digital transformation, with over two-thirds (68%) of IT decision-makers using interconnection to reduce the cost of connectivity. The survey also touches upon the priorities of UAE organisations that dictate their technology strategies. According to the findings, over three-quarters (77%) of IT decision-makers consider improving cybersecurity as a top priority for their organisation’s technology strategy, followed by 73% who consider improving customer/user experience to be the priority.
“The trend of digital transformation is revolutionizing the MENA market, urging businesses to take innovative approaches such as cloud adoption. says Jeroen Schlosser, Managing Director, Equinix MENA
“One of the ways businesses can use the cloud more securely is through direct, dedicated interconnections between network and cloud providers and users and data, bypassing the hacking and performance risks of the public internet. At Equinix, we see multi-cloud convergence hitting a tipping point and the cloud as a major catalyst for changing how enterprises will do business in the emerging global digital economy. As the global report shows, interconnection is key to ensure full digital transformation and for this, businesses will need to grow their interconnection bandwidth capacity (data exchange capacity). 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.”
Strong data compliance regulations across EMEA are unlocking data exchange and growth of interconnection bandwidth in Healthcare & Life Sciences, Government & Education, and Business & Professional Services. This is leading Europe (51% CAGR) to overtake North America (46% CAGR) in the race to digital growth. Latin America is leading the charge with a 63% CAGR, with Asia-Pacific not far behind (56% CAGR). When asked about moving functions to the cloud, over three-quarters (76%) of UAE IT decision-makers think their organisation will move more functions to the cloud, hoping that the transition will occur in the next 12 months. Two-thirds (66%) of IT decision-makers plan on moving databases onto the cloud.