Ecosystem-Connected Businesses Expanded More in the Last 5 Quarters Than in the Past 5 Years

Hong Kong — October 20, 2022 — Global supply chain constraints and geopolitical and economic instabilities are not slowing the pace of digital infrastructure investment for the most connected companies, according to a new report.

The latest Global Interconnection Index (GXI) 2023, an annual market study published by Equinix, found that the most ecosystem-connected businesses—those directly interconnecting with partners to provide their own digital services—have expanded their digital operations more in the past five quarters than in the previous five years. On average, organizations are connecting to three times as many business ecosystem partners and metros, consuming more than twice the amount of interconnection bandwidth.¹

As businesses in Asia-Pacific reinvent themselves in the aftermath of the global pandemic, ecosystem density has become a catalyst for digital innovation, which continues to fuel the growth of interconnection bandwidth. According to GXI 2023, the Asia-Pacific interconnection bandwidth makes up 27% of the global interconnection forecast and is predicted to reach 7,552 terabits per second (Tbps) by 2025, representing a five-year compound annual growth rate (CAGR) of 40%, equivalent to 30 zettabytes of data exchanged annually. This forecasted growth shows how organizations in the region are rethinking their business to implement future-proof infrastructure on technology platforms and accommodate the exponential demand for digital ecosystems from a wide range of industries.

“In today’s dynamic setting, every business is becoming a digital provider, which requires a new type of digital infrastructure built sustainably around leveraging ecosystems to deliver seamless digital experiences. Those with a digital-first strategy in place, investing in a robust, future-looking business model and interconnecting to rich ecosystems, are prepared to scale, adapt and thrive,” said Steve Madden, Vice President of Digital Transformation & Segmentation at Equinix.

Additional Insights from GXI 2023

• Digital growth continues: Interconnection bandwidth is forecast to continue growing at over 39% CAGR across all regions and major metros through 2025. Tokyo continues to lead the region in interconnection growth, forecasted to reach 1,758 Tbps by 2025. Singapore and Hong Kong are following closely behind, predicted to reach 1,429 Tbps and 998 Tbps by 2025. This year, Shanghai also now joins these top metros due to its staggering growth at 44% CAGR.
• The move to the edge is accelerating: Both enterprises and service providers are forecast to interconnect to edge infrastructure 20% faster than the core globally.
• Businesses are becoming digital providers: GXI 2023 predicts that 90% of Fortune 500 companies will become digital providers, both selling and consuming digital services by 2025.
• The sustainable road to digitally thrive: All industries are harnessing digital to accelerate ESG objectives, where 72% of Asia-Pacific IT decision-makers in our Global Tech Trends Survey (GTTS) say they will only work with IT partners who can meet key carbon reduction targets, the highest to do so amongst their global peers in EMEA (56%) and AMER (70%).² GXI 2023 forecasts the Energy & Utility sector to lead in digital growth rate through 2025 as all organizations explore a sustainable approach to build and expand their digital presence.

Industry Perspective on the Global Interconnection Index

• Steve White, Program Vice President, Channels & Alliances, IDC

“As companies increasingly adopt digital-first strategies and look for new ways to drive differentiation, the ecosystem plays an even more critical role. Organizations are relying on ecosystems and digital infrastructure as the foundation to sustainably scale and deliver business value. In order to achieve these business outcomes, companies are interconnecting to customers, partners and vendors to accelerate collaboration and co-creation, as well as meet sustainability commitments.”

Additional Resources

• Global Interconnection Index 2023 [report]
• Making the Connection: Your Ecosystem Is Your Infrastructure [blog]
• How to Speak Like a Data Center Geek: Digital Ecosystems [blog]
• IDC – A Blueprint for DX Success—Start with Hybrid Infrastructure and Connected Ecosystems [report]
• The Future of Digital Leadership [report]

About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company™. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

Forward-Looking Statements
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