Pandemic Powers Digital Overdrive

Image credit: iStockphoto/Trever Brolliar

The COVID-19 pandemic has forced economies into digital overdrive, with the implementation of digital strategies moving at four times higher than pre-pandemic levels, according to the latest Global Interconnection Index from Equinix.

The study showed that overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, is forecast 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%. 

Meanwhile, Cloud & IT and Hyperscale Providers in APAC are expected to see the highest growth rates globally, making up 26% of the regional forecast. This is in line with predictions for APAC, where interconnection bandwidth is expected to grow at a 46% CAGR by 2024, reaching 6,002 Tbps or 28% of global interconnection bandwidth

The study also shows the rapid acceleration of edge computing and also interconnection with collaborators and partners.

Close to 30% of enterprise infrastructure deployed in carrier-neutral facilities has moved to the edge, in proximity to points of data consumption. Service providers are also expanding at the edge, growing their edge infrastructure two times faster than their core infrastructure and enabling them to support increasing demand from enterprises.

Digital leaders interconnect with ten times as many partners, enabling them to ride the wave of digital transformation and enjoy best-of-breed services from a vast pool of service providers and partners. This trend has been tracked across 12 industries and three regions, spanning traditional companies, those born in the cloud, service providers, and even hyperscale providers.  

Core locations, including Hong Kong, Singapore, Sydney, and Tokyo, are forecast to grow interconnection bandwidth to 3,624 Tbps by 2024, while edge locations, such as Melbourne, Mumbai, Osaka, Seoul, Shanghai, are expanding interconnection bandwidth capacity at a 51% CAGR, with several metros approaching the volume and density of core locations.

The study drills down into industry sectors and finds that the financial services sector is expected to deploy more than 50% of enterprise interconnection bandwidth in the Asia Pacific region, with manufacturing the second-largest industry in the region.

Meanwhile, service providers are forecasted to consume 65% of APAC interconnection bandwidth (3,819 Tbps), with network service providers alone making up 33% of the regional mix. 

“While COVID has forced businesses to innovate in many ways, by both expanding existing and introducing new digital services, the infrastructure underpinning these services must keep pace,” said Claire Macland, senior vice president of marketing, Equinix.

“As a result, savvy businesses are now moving four times faster than pre-pandemic levels in deploying this necessary digital infrastructure.”

Image credit: iStockphoto/Trever Brolliar