TRENDING
EMEA region . In London , interconnection bandwidth is expected to grow at the same CAGR as the wider EMEA region , to 1,337 Tbps . This growth is at least three-times higher than Paris and more than twice that of Amsterdam . This supports London ’ s vital position as a strategic interconnection hub for digital business looking to compete on a global scale , despite the UK ’ s recent departure from the European Union .
The expected growth is driven by Digital Transformation and specifically by greater demands from enterprises extending their digital infrastructure from centralised locations to distributed Edge locations . This comes as businesses scale and support real-time interactions by strategically interconnecting workflows closer to , and across people , things , locations , cloud and data . The capacity of this connectivity is equivalent to 64 zettabytes of data exchange , which is enough bandwidth for every human on the planet ( 7.8 billion ) to transmit their full DNA sequence in an hour .
Vertical / industry insights :
The GXI Vol . 4 provides insight on how global macro trends and COVID-19 have impacted certain industry segments :
• Digital adoption patterns are changing in response to massive disruptions .
• According to the GXI Vol . 4 , the digital adoption pattern has altered , with service providers now forecast to provision more
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THE EXPECTED GROWTH IS DRIVEN BY DIGITAL TRANSFORMATION AND SPECIFICALLY BY GREATER DEMANDS FROM ENTERPRISES EXTENDING THEIR DIGITAL INFRASTRUCTURE FROM CENTRALISED LOCATIONS TO DISTRIBUTED EDGE LOCATIONS .
interconnection bandwidth ( 10,284 Terabits per second ( Tbps ) by 2023 ) than enterprises , by a factor of nearly 2x .
• However , much of this service provider demand is anticipated to be in support of enterprises that are prioritising their
Digital Transformation in preparation for post-pandemic recovery .
• The report also predicts that enterprises with a digital infrastructure will extend their competitive advantage and continue to lead in business growth , while those without have struggled and are dependent on service providers to transform their business models .
• Traditional businesses are moving workloads to an Edge-first architecture .
• The GXI Vol . 4 predicts that traditional business , within industries like banking & insurance , manufacturing and business & professional services , will represent a combined 30 % of global interconnection bandwidth by 2023 . This is led by the growing need to move workloads to the digital Edge while scaling core IT infrastructure . By 2023 , these traditional businesses are expected to reach a peak interconnection bandwidth growth rate of 50 % annually .
• Healthcare & life sciences and government & education are expected to lead the traditional enterprises in their interconnection growth rate as public and private initiatives on Artificial Intelligence ( AI ) and Machine Learning ( ML ) are forecast to drive a combined 47 % CAGR in interconnection bandwidth from 2019 to 2023 .
• Organisations are benefitting from the ‘ network effect ’.
• Organisations are maximising their digital advantage by building a presence in locations with the most users , largest number of providers and the densest activities , known as the ‘ network effect ’ According to IDC , 80 % of digital leaders will see the impact of connecting to multiple ecosystems , including improving their value to end customers by 2025 .
• The need for application exchange in digital ecosystems to support real-time engagement is essential and creates a network effect for businesses . The GXI Vol . 4 predicts that connectivity from service providers to networks and cloud & IT service providers will be the two main sources of ecosystem interconnection , with an estimated 49 % combined CAGR from 2019 to 2023 .
The GXI Vol . 4 delivers insights by tracking , measuring and forecasting growth in interconnection bandwidth – the total capacity provisioned to privately and
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