Since cloud services, distributed networks, and the Internet of Things (IoT) keep expanding, companies need to connect across more platforms and more locations every year. Standard bandwidth measures how much data a network can send. Interconnection bandwidth is a metric that measures how ready a location or industry is to maximize its interconnection potential. It’s a measure of the total capacity to privately transfer traffic via direct interconnections at distributed traffic exchange points, hosted at colocation data centers that are carrier neutral. The interconnection bandwidth measurement helps companies understand which industries can benefit the most from increased connectivity.
The interconnection bandwidth boom
In fact, interconnection increases transaction speed and provides more flexibility. The Global Interconnection Index projects that, in the years ahead:
- Private interconnection will exceed public interconnection activity.
- Specifically, Latin America is leading the way in interconnection bandwidth.
- The insurance and banking industries will lead the way in interconnection bandwidth, because demand for consumer services keeps rising along with compliance requirements and shifts in digital currency.
- Private cloud connectivity, among multiple clouds, will increase 160% by 2020.
- Interconnection bandwidth will grow for private data exchange networks ten times faster than for MPLS networks.
Reasons interconnections are increasing
Some of the current trends causing increased global interconnectivity are:
- Digital technology. Use of digital technology requires real-time interactions and, as a result, requires more connectivity.
- Urbanization. More than two billion people will move to major cities by 2035, so interconnection needs will grow denser.
- Data sovereignty. This means people can access data locally even though they can use it worldwide. Many countries already limit the transmission of financial, tax, and accounting data.
- Cybersecurity. Compared to public networks, sending data through private traffic exchanges should be more secure.
- Globalization. As companies continue to send and receive products and services across country borders, the need for connectivity will expand.
Businesses and organizations need to understand where their growth opportunities are by preparing technically for the future, as well as financially, culturally, and legally. Companies need to be able to scale their connections as their need for connectivity expands to different geographical regions and as their services and products become more digitally desirable.
Understand how to properly increase company connectivity
You can never have too many customers or clients. In addition, increased connectivity can expand your customer base and increase your revenue. Data centers are an excellent place to maximize your connections. Because connections keep growing in number and speed, companies must balance them against security concerns and expenses. To review your short-term and long-term options, please contact us and ask to speak with one of our interconnection bandwidth professionals.
• Call: (305) 735-8098
• Chat with a member of our team to discuss which solution best fits your needs.
