Digitally leading companies expand digital infrastructure
The pandemic is forcing companies into the digital fast lane: Those that were already digital leaders before the pandemic are now expanding their digital infrastructure even faster - by more than four times than before the pandemic.
The latest Global Interconnection Index (GXI Vol. 5), an annual market study published by Equinix, a global digital infrastructure company, shows that the pandemic has forced business into the fast lane. Companies that already had a digital-first strategy were four times faster than before the pandemic. Companies have reduced the time it takes to deploy their digital infrastructure across multiple geographies, expand to multiple edge locations or integrate multiple clouds - what would have taken two years in the past can now be done in six months.
Digitally leading companies continue to drive development
This accelerated pace of digital transformation is forecast to continue driving rapid growth in interconnection bandwidth. According to the GXI Vol. 5, total interconnection bandwidth, the measure of private connectivity used to transfer data between organizations, is expected to reach 21,485+ terabits per second (Tbps) or 85 zettabytes per year by 2024, representing a five-year compound annual growth rate (CAGR) of 44 %. The Zurich metropolitan area is forecast to grow at a CAGR of 50 % by 2024. This growth is in line with the increasing demand for the digital infrastructure needed to bring more businesses online, facilitate electronic integration with partners and supply chains, and reach more people in distributed, hybrid work environments. By industry in EMEA, Zurich already ranks as the 3rd largest metropolitan area per industry in Securities and Trading and 4th in Industrial Services.
Interconnection bandwidth higher than Internet traffic
For digitally leading companies, business and technology must be connected in order to be successful. Digitization of the back office (core), marketplaces (ecosystem), front office, and physical world (edge) is essential. Measuring digital revenue growth versus cost of sales is a key element of this strategy. Digital leading enterprises and network service providers have been following IOA (Interconnection Oriented Architecture) principles in building and scaling the Internet for 20 years. Today, digitally leading enterprises across all industries are leveraging this architecture and embracing interconnection. This is happening to such an extent that the total interconnection bandwidth is already nine times higher than the total Internet traffic.
Roger Semprini, Managing Director, Equinix, Switzerland, summarizes: "If there is a time to move to digital-first, it is now. You have to act now, or you may not be ready for what's coming. In case any further fundamental proof is needed: Interconnection bandwidth is expected to be 15 times greater than the Internet. Digital leaders here in Switzerland and around the world are using that bandwidth to accelerate transformation and reshape their businesses."
Source: Equinix
