A growing number of businesses are using digital methods to stay ahead. The number of organizations that are becoming digital leaders is increasing by 30%.
To be a leader, you need a good digital infrastructure. This helps you move ahead and figure out solutions for the combination of a digital core, digital ecosystems, and the digital edge.
Leaders also need to have an automated and flexible edge-to-cloud consumption model. They identify their core strengths and develop a flexible edge strategy using a platform to extend their digital infrastructure. In the last five quarters, these leaders have grown their digital infrastructure more than in the past five years.
Large-scale global trends driving a digital-first strategy
Digital Presence
Businesses are changing to provide value electronically. To compete in the digital economy, businesses need to shift to providing digital services. The investment for digital transformation for 2022-2024 is expected to be $6.3 trillion and by the end of 2024, 55% of all ICT investment will be for digital transformation.
Digital Participation
Many businesses are now exchanging goods and services in the digital economy. They are doing this by using digital infrastructure, collaborating with research communities and marketplaces, and taking advantage of the ecosystem and network effects. This means that by 2023, more than half of all businesses will earn more than 40% of their revenue from digital products and services.
Digital Proximity
Businesses are using technology to make their offices more personal and customized for customers and employees. They’re also using technology to make the physical world more intelligent so it can be optimized for commercial and environmental impact. This will require a digital infrastructure that is close to, and interconnected with, experiences, Internet of Things (IoT), and intelligent operations. It is expected that by 2028, the global infrastructure edge footprint will be 40 gigawatts, of which 63% will support healthcare, manufacturing, energy, retail, and transportation.
Sustainability
Many people are now holding companies accountable to demonstrate progress on Environmental, Social, and Governance (ESG) commitments. Sustainability has become a priority. To prove that they are committed to sustainability, organizations must include a section about it in all Requests for Information (RFIs). 90% of executives believe that sustainability is important, but only 60% of organizations have a sustainability strategy.
Interconnection strategy of digital leaders – implementing Interconnection Oriented Architecture
Leaders use connections with other businesses to improve their competitive advantage and achieve better results.
Businesses that are looking to the future have been designing their digital infrastructure around points of connection for a long time. This is called Interconnection Oriented Architecture (IOA), and it is important for business growth as interconnection becomes more important in the digital economy.
Today, it is possible to have an entirely edge-to-cloud automated system, which provides simplified management of infrastructure services. This software-defined infrastructure means businesses can reconfigure their infrastructure when demand changes.
Digital leaders can quickly move into new markets, shift capacity to where it is needed, add or reduce capacity to support revenue growth, and more. IOA remains a strong architecture during times of rapid digital business change.
Instead of connecting remotely distant things to a centralized service or cloud, IOA removes the distance and directly interconnects those services close enough for two-way traffic exchange. IOA is designed for digital business, interconnecting digital services and ecosystems close to where business happens. It also keeps pace with the growing data and offers localized control over speed, scale, choice, security, reliability, and efficiency.
Interconnection bandwidth in the Americas to reach 13,238 Tbps by 2025
The digital economy is growing globally amid economic and supply chain disruption. Global interconnection bandwidth is expected to grow at a five-year CAGR of 40% reaching 27,762 Tbps. This means that 110 zettabytes of data will be exchanged annually.
The Americas region will continue to lead the deployment of interconnection bandwidth. They are forecast to grow at a 39% CAGR through 2025. This will result in an annual exchange of data of 52 zettabytes. Enterprise sectors in the Americas are expected to reach a higher annual deployment than Services Providers.
Network, Cloud, and Financial Services ecosystems have been driving the majority of the interconnection bandwidth of which 86% is distributed across core locations. LATAM exhibits the fastest-growing core and edge locations. 35% of forecasted interconnections are in New York, most destinations are business and ecosystem partners. In D.C., Cloud & IT and Hyperscale Providers constitute 33% of the forecasted bandwidth; most destinations are Network Providers.
Sao Paulo is the fastest-growing core metro with a 46% five-year CAGR. It is followed by Silicon Valley and Dallas. In these three metros, Enterprise adoption has grown more than 20% of the forecasted interconnection bandwidth.
Hyperscale Providers continue to grow across all edge locations. While Los Angeles continues to be an edge network hub, Toronto and Mexico City are mature Financial Service hubs. Nearly 20% of bandwidth in both locations is being driven by B2B partner access.
Europe, Middle East, and Africa (EMEA) account for 25% of the global interconnection forecast. Interconnection bandwidth is predicted to grow at a 40% CAGR through 2025, reaching 6,972 Tbps. This is equivalent to 28 zettabytes of data exchanged annually. Core locations in EMEA are growing at a 40% CAGR, which makes up 77% of the region’s forecast.
Asia-Pacific (APAC) is expected to grow at a 40% CAGR through 2025, reaching 7,552 Tbps, and is equivalent to 30 zettabytes of data exchanged annually. APAC constitutes 27% of the global interconnection forecast. 78% of APAC’s forecast is from core locations, growing at a 39% CAGR.
Source: Equinix
