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Oct 13, 2020
HONG KONG – October 13, 2020 – The latest Global Interconnection Index (GXI), an annual market study published by Equinix, shows that the COVID-19 pandemic has already had a dramatic effect on how businesses are planning their digital infrastructure initiatives over the next three years. According to the report, digital service providers, within industries like telecommunications, cloud & IT services, content & digital media and technology providers, are forecast to increase private connectivity bandwidth 5x by 2023, driven by greater demands from enterprises to close digital gaps at the edge.
“As interconnected services, cloud providers, distributed cloud, edge services and SaaS offerings continue to proliferate, the rationale to stay only in a traditional data center topology will have limited advantages. This is not an overnight shift, but an evolutionary change in thinking how we deliver services to our customers and to the business. This trend, coupled with the new reality that outside factors might limit physical access to the data center (such as emergency quarantine), is driving new thinking in infrastructure planning,” wrote David Cappuccio, Distinguished VP Analyst, Gartner and Henrique Cecci, Senior Director Analyst, Gartner.[1]
The report also forecasts that overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, will achieve a 47% compound annual growth rate (CAGR) from 2019 to 2023. Cloud & IT Services will lead the growth in Asia Pacific, reaching an anticipated 1,374 Tbps by 2023, more than 29% than growth in this sector in the next largest region, North America. Healthcare & life sciences and government & education are forecast to accelerate interconnection bandwidth adoption as both industries prioritize digital initiatives such as telehealth and AI. The leading metros for private connectivity within the region are expected to be Singapore, Sydney, Tokyo, Shanghai and Hong Kong.
“Digital leaders have to prepare for post-pandemic recovery by planning and implementing the right digital transformation initiatives now,” said Claire Macland, Senior Vice President of Marketing, Equinix. “We believe those that have a foundational infrastructure which helps bring together all the right places, partners and possibilities will gain a business advantage over the long term.”
The GXI Vol. 4 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.
Vertical/Industry Insights
The GXI Vol. 4 provides insight on how global macro trends and COVID-19 have impacted certain industry segments:
Regional Insights
The GXI provides insight into how growth in interconnection bandwidth is expected to accelerate in different regions of the world between 2019 and 2023:
Industry Perspective on the Global Interconnection Index
“With the pandemic creating a sudden global shift to remote and work-from-home practices, our customers have been prioritizing cloud connectivity in order to improve their global reach and seamlessly connect with the customers, partners and suppliers that matter most to their digital businesses. By enabling our customers to privately interconnect with the rich ecosystem of cloud service providers available on Platform Equinix, we can ultimately help them extract more value from the cloud and gain a competitive advantage.”
Additional Resources
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 2023. 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 Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements about interconnection bandwidth growth, the rate of adoption of digital transformation, and the benefits of the “network effect”. Actual results may differ materially from expectations discussed in such forward-looking statements and the predictions made from the Global Interconnection Index. Factors that might cause such differences include 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)
Equinix
Annie Ho
+852 2970 7761
annho@ap.equinix.com
Media Contact (Hong Kong)
LEWIS
Miranda Xie
+852 3944 5014
equinixHK@teamlewis.com
[1] “Your Data Center May Not Be Dead, but It’s Morphing,” Gartner, September 17, 2020
[2] “IDC FutureScape Webcast: Worldwide Digital Transformation 2020 Predictions,” IDC, Doc #US46287720, May 2020