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  • The Global Interconnection Index (GXI) Volume 4

Vol.4

See How Digital Leaders Are Prepared for Whatever Is Next

GXI Vol. 4 tracks shifts in the digital economy and their impacts on digital business. Explore how leaders use their digital infrastructure to fuel growth, where it’s happening and how you can use interconnection to stay competitive.

Sudden, Significant Demands for Interconnection Across Businesses

The COVID-19 pandemic has forced businesses to transform how they operate, driving extraordinary demand for digital service providers and a need for increased interconnection—private data exchange. Organizations that lack a robust digital foundation
have struggled with this rapid shift in demand.

Service provider interconnection bandwidth growth is accelerating, surpassing enterprises that are typically still undergoing digital transformation. Enterprises have prioritized immediate connectivity issues and cost reduction, but the leaders—those that have built a foundation to fully digitize—have accelerated their plans and are extending their advantage.

Major macro trends are driving today’s transformation challenges

Moving to fully digitized services is now more crucial than ever

As new demand for distributed digital engagement rises, businesses need to solve remote workforce, network efficiency and workflow latency issues.

70%
70% of new value created over the next decade will be based on digitally enabled business models.
World Economic Forum’s Shaping the Future of Digital Economy and New Value Creation Platform

Businesses need wider distribution of services to enhance local interaction

As population centers grow, businesses will have greater demands for distributed compute, and will need to manage the complexities of localization.

Urbanization
By 2030, urban areas are projected to house 60% of people globally, and the number of cities between 1 and 5 million people will grow to nearly 600.
United Nations’ The World’s Cities in 2018 Data Booklet

Cyberthreats are accelerating

As the number of user devices and cloud resources increases, organizations must solve for distributed security risks.

Cybersecurity
DDOS attacks have grown over 270% year over year.
Nexusguard’s DDoS Threat Report 2020Q1

Growth of localized data is outpacing the ability to manage it

A majority of the world’s ever-increasing data volumes are not being leveraged for actionable insights.

Data Volumes 3%
Less than 3% of the data currently created is being analyzed for enterprise intelligence.
IDC’s Revelations in the Global DataSphere Report

Connectivity to multiple ecosystems is key to growth and innovation

API-driven application exchange issues, real-time engagement, multiparty workflows and dynamic service chains require on-demand connectivity to a variety of ecosystems at the lowest latency.

Business Ecosystems 80%
By 2025, 80% of digital leaders will see the positive impact of connecting to multiple ecosystems, including improving their value to end customers.
IDC’s Futurescape 2020 Predictions Report

5 Trends to Build a Strong Digital Foundation

Leverage digital interconnection on a secure, agile global business platform and solve your digital transformation challenges.

Digital

The digital economy is not dependent on the physical economy

The GXI predicts interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic—to grow, even as the overall economy slows down. This shows that digital economy growth is not directly tied to the physical economy and cannot be estimated based on traditional economic trends (such as the GDP).

Get the Forecast Insights

Interconnection bandwidth continues to grow at a robust 45% CAGR

Global interconnection bandwidth is forecast to grow at a 45% CAGR—translating to 16,300+ terabits per second (Tbps).





Global chart
Global

North America leads globally, and service providers lead the growth, showing a greater than 4x increase in interconnection bandwidth.




North America
North America

In Asia-Pacific, Cloud & IT Services is forecast to have the largest growth of any region in this sector. Healthcare & Life Sciences and Government & Education both show an acceleration in interconnection bandwidth adoption as both industries prioritize digital initiatives.




Asia Pacific
Asia Pacific

Europe is predicted to grow at a steady rate as Telecommunications and Cloud & IT Services contribute to 54% of the interconnection bandwidth growth, outpacing many industries.




Europe
Europe

Latin America is predicted to grow at an impressive rate. Content & Digital Media is expected to grow at a 62% CAGR, making it the highest growth rate of any sector in any region.




Latin America
Latin America

Industries are shifting gears to adapt to global change

As digitization increases, installed capacities are forecast to grow at a tremendous rate for industries across regions.

Industry metrics

Service provider interconnection bandwidth soars to meet demands

Rapidly shifting requirements drive service provider growth to meet infrastructure needs and rising demands from enterprises.

Service Provider

Enterprises to accelerate growth over the next four years

Healthcare & Life Sciences and Government & Education lead the traditional enterprises in their interconnection bandwidth growth rate as public and private initiatives drive a combined 47% CAGR. This group is forecast to experience 4x the growth over the next four years as it adopts service provider best practices for digital infrastructure deployment.

digital

Service providers growth surges as new forces impact traditional business

Service providers, covering sectors like Telecommunications, Cloud & IT Services and Content & Digital Media, have digital traffic flows as a primary element of their business model. Their surplus network capacities are meeting their needs as well as supporting enterprises in building out digital workflows. These fully digitized companies are predicted to experience a 50% CAGR, driven by the increased demands by enterprises at the edge and a requirement to support initiatives like 5G, AI and Edge Computing.

Ecosystem density shifts as organizations mature

Enterprises and service providers are leveraging interconnection to support these processes by connecting to strategic ecosystems, both in the cloud and at the edge.

Interconnection to network providers—67% of ecosystem connectivity demand from 2019-2023

Organizations interconnecting to network providers shifts from 73% of all interconnection use cases to 67% as organizations mature and demand for additional use cases increases.



Network Providers

Interconnection to Cloud & IT Providers—16% of ecosystem connectivity demand by 2023

Interconnecting multiple Cloud & IT Providers across multiple locations and cloud regions represents the fastest growing use case of interconnection bandwidth, growing to 16% of ecosystem demand by 2023.



Cloud and IT Services

Interconnection to Financial Services Providers, Payments, Content Providers and Supply Partners—remaining 17% of ecosystem connectivity demand

Interconnecting digital business partners for Financial Services Providers, Payments, Content Providers and Supply Partners integration makes up the remainder of interconnection bandwidth use cases (17%).



Financial Service Providers

See Where Growth Is Happening

Get an in-depth analysis of what’s happening across the global interconnection landscape in the new digital economy.

Stay Competitive

Stay competitive—How digital leaders are taking action

The GXI identifies three typical paths that innovative organizations and digital leaders take by transforming through a five-step process to achieve an end state of digital-readiness. Benchmark your organization.

Create your digital advantage

Network Optimization

Transform WAN architecture by removing the distance through an initial hub deployment. Expand capabilities to the edge and optimize last-mile connectivity.

Hybrid Multicloud

Connect to multiple clouds in strategic locations with high concentrations of cloud and network providers and establish a second hub for business continuity. Scale capability across regions.

Distributed Security

Distribute secure infrastructure and edge services to support DDOS/WAF, CASB, SASE and other capabilities across hubs needed to locally secure digital interaction

Distributed Data

Deploy edge computing to support AI and machine learning solutions for local analytics of large pools of data. Establish cloud adjacent data infrastructure to leverage cloud analytics and ecosystem exchange.

Application Exchange

Build out digital infrastructure at strategic exchange points for real-time participation in data marketplaces, industry exchanges and B2B real-time processing.

Get on the fast track with an infrastructure built for competitive advantage

Digital leaders are staying ahead by using a digital infrastructure platform.

All the right places

Place digital infrastructure anywhere through a network of interconnected data centers strategically located to support the densest ecosystems.

All the right partners

Create on-demand connections to everything to succeed in the world’s most dynamic business ecosystems.

All the right possibilities

Gain agility, speed and confidence to consistently scale infrastructure and adapt to whatever is next.

Build Your Digital Advantage

Bring together and interconnect the foundational infrastructure that powers your success. Be ready for whatever is next with the world’s digital infrastructure company.