This website will be retiring soon, please use our language selector to view our websites or visit our Swiss German-language site. ›

October 15, 2019

Hong Kong’s Private Connectivity at the Edge Forecast to Grow by 55 Percent Annually

Market study shows Cloud & IT is the largest industry leveraging interconnection as data explosion gets further distributed at the edge

HONG KONG – October 15, 2019 – The latest Global Interconnection Index (GXI), an annual market study published by Equinix, predicts global private connectivity at the edge will grow by 51 percent compound annual growth rate (CAGR), and expected to exceed a total bandwidth capacity of more than 13,300 Terabits per second (Tbps), which is equivalent to 53 zettabytes (ZB) of data exchanged annually.  This is enough bandwidth 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 that interconnection bandwidth 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 Asia-Pacific, interconnection bandwidth is expected to grow at 56 percent CAGR to exceed 3,825 Tbps by 2022, contributing 29 percent of the global capacity. Among industries, Cloud and IT services is expected to consume the most interconnection bandwidth, reaching 914 Tbps in Asia-Pacific, which is forecast to outpace growth (50 percent CAGR) of clouds in all other regions. Hong Kong is expected to see the second fastest interconnection bandwidth growth in the region, increasing at 55 percent CAGR from 2018 to 2022.

In addition, a separate independent survey commissioned by Equinix of more than 2,450 global senior IT professionals, including more than 100 senior IT professionals in Hong Kong, shows that 60 percent of Hong Kong organizations are currently expanding into new regions, countries or metros, and 66 percent of them plan to use virtual connections to support their expansions.

“People, software and machines are creating and consuming data faster and in all the places where we work, play, and live,” said Rick Villars, Research Vice President, Datacenter & Cloud, IDC. “The significant increase in data created, aggregated and analyzed in these new locations is contributing to a major shift away from deploying IT in traditional corporate datacenters. Enterprises need access to robust, modern datacenter facilities near the edge locations where businesses want to deploy dedicated infrastructure and interconnect to the increasing number of clouds, customers and partners that are at the core of digital transformation efforts.”

Key Findings
The GXI Vol. 3 delivers insights by tracking, measuring and forecasting growth in interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic, with a diverse set of partners and providers, at distributed IT exchange points inside carrier-neutral colocation data centers. The GXI finds:

The ability to exchange large volumes of data through interconnection is essential to compete in the digital economy

  • The GXI forecasts that in order to manage the growing volumes of data, global enterprise consumption of interconnection bandwidth will grow at a 64 percent CAGR (68 percent in Asia-Pacific), outpacing other forms of business data exchange.
  • The GXI shows that to manage increasing volumes of data, enterprises globally are on average deploying in nine locations, with a total of 340 interconnections to networks clouds and business partners.
  • The Equinix survey found that almost half of global IT decision-makers (46 percent in Hong Kong) believe interconnection is a key facilitator of digital transformation, and nearly half of all global IT decision-makers (45 percent in Hong Kong) believe interconnection can help their business to gain competitive advantage within the marketplace.

Distance is the biggest performance killer for digital business

  • Deploying direct, private connections at the edge propels both application performance and user experience.
  • According to the GXI, today’s latency-sensitive workloads require response times ranging from <60 to <20 milliseconds, forcing IT infrastructure closer to the points of consumption.
  • According to the Equinix survey, more than one-third of global IT decision-makers (40 percent in Asia-Pacific and 50 percent in Hong Kong) are using interconnection to increase speed of connectivity.

Leading businesses are gaining competitive advantage using a combination of key interconnection deployment models

  • Interconnecting to multiple network providers across multiple edge locations is the most prominent use case for interconnection bandwidth and is expected to grow 4x by 2022.  
  • Interconnecting to multiple clouds and IT services across multiple edge locations and cloud regions represents the next largest and fastest use of interconnection bandwidth and is predicted to grow 13x by 2022.
  • Interconnecting to digital business partners for financial services, content and digital media and supply chain integration makes up the remainder of interconnection bandwidth use cases and is forecasted to grow 5x by 2022.

Quotes

  • Sachin Gupta, Senior Vice President, Product Management, Enterprise Networking Business, Cisco

“As enterprises embrace the imperative of digital transformation, they increasingly adopt multiple cloud-based applications to meet their objectives. This places pressure on the network to deliver a fast and secure application experience to users located anywhere in the world. With both applications and networks becoming more distributed, enterprises today will continue to require a low-latency, interconnected architecture to securely connect end users with business-critical applications.”

  • Jeremy Deutsch, President of Asia-Pacific, Equinix

    “As one of our most vibrant markets, Asia-Pacific has become a fertile ground for technological development. We are excited to see the proliferation of 5G, IoT, VR and AR provide the impetus for the enormous growth of interconnection bandwidth in the region. Being interconnected has never been so important for enterprises seeking to keep up with customer expectations which often require massive volumes of data to be processed and analyzed at the edge, within a matter of seconds. That is why Equinix continues to be committed to staying ahead of evolving customer needs and supporting them in accelerating their digital transformation journey. With the latest GXI report indicating that interconnection bandwidth is set for continuous growth in the region, we are here to help businesses embrace digitalization for success.”

About the Global Interconnection Index (GXI)
The Global Interconnection Index, published annually by Equinix, delivers insights that drive digital business advantage by tracking, measuring and forecasting growth in interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points. The Global Interconnection Index is the industry’s only market study that projects how interconnection bandwidth growth will unfold through 2022. The report serves as a market baseline that analyzes the deployment profile of thousands of ecosystem participants using carrier-neutral colocation data center providers globally. This data was combined with local and regional market data (including macroeconomic trends, market demographics and industry concentrations) to form a weighted demand multiplier to assist in predicting growth and assess impact on digital business transformation. A detailed methodology description is included in the Global Interconnection Index.

About the Equinix independent survey
As part of a separate independent study commissioned by Equinix, APCO Insight surveyed 2,485 IT decision-makers from a diverse enterprise set across North America, Latin America, Europe and Asia-Pacific. Respondents were selected for participation from Dynata’s online panel. The survey was conducted online between August 1-16, 2019.

About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. Equinix.hk

Additional Resources 

Forward-Looking Statements 
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, unanticipated costs or difficulties relating to the integration of companies or new ventures we have acquired or will acquire into the Equinix platform; unanticipated costs or difficulties relating to expansion into new markets; the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix services; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
 

Media Contact (Asia-Pacific)
Annie Ho
Equinix
+852 2970-7761
annho@ap.equinix.com

Media Contact (Hong Kong)
Miranda Xie
LEWIS
+852 3944-5014
equinixHK@teamlewis.com