Tuesday, 13 October 2020 23:29

New Equinix report reveals effect of COVID-19 on digital infrastructure


Carrier-neutral worldwide data centre provider, Equinix, has today released its latest annual Global Interconnection Index, revealing insights on how COVID-19 has impacted businesses and what post-pandemic recovery may look like.

Equinix began life as a meeting place for the world's network carriers, providing equal access and quickly became the place for vendors of all sizes to house their equipment for the best reach.

The company has released an annual report for the last three years tracking, measuring and forecasting the growth in interconnection bandwidth. This is the total capacity provisioned to privately and directly exchange traffic and is the industry’s only index that projects bandwidth growth for the next years.

Equinix released its fourth annual report today, showing the dramatic effect of COVID-19 on how businesses are planning their digital infrastructure over the next three years in a post-pandemic recovery.

Guy Danskine, Managing Director, Equinix Australia, said “As digital leaders prepare for post-pandemic recovery, the Global Interconnection Index Volume 4 provides incredibly useful insights as to how COVID-19 is impacting the way Australian organisations are planning their digital infrastructure over the next three years. It’s interesting but not totally unexpected to see Sydney as one of the leading metros for private connectivity in the Asia Pacific region across the healthcare, government and education sectors. This demonstrates the value of interconnection in helping more customers gain business advantage in a post-pandemic future.”

Key findings include:

  1. Overall interconnection bandwidth in the Asia Pacific region will achieve a 47% compound annual growth rate (CAGR) from 2019 to 2023.
  2. Cloud and IT services will lead the growth in this region, reaching an anticipated 1,374 Terabits per second (Tbps) by 2023, which is 29% more than North America by itself.
  3. Healthcare and life sciences and government and education are expected to lead bandwidth usage growth rate as public and private initiatives in AI and machine learning are forecasted to drive a combined 50% CAGR in interconnection bandwidth to 2023.
  4. Installed bandwidth capacity in Sydney is projected to grow from 128 Tbps in 2019 to 651 Tbps in 2023.
  5. Digital service providers, within industries like telecommunications, cloud & IT services, content and digital media and technology providers, are forecast to increase private connectivity bandwidth 500% by 2023. This will be driven by greater demands from businesses to move workloads to the digital edge putting content closer to users to minimise latency and enhance the performance of those services.
  6. Traditional business, within industries like banking and insurance, securities and trading, manufacturing, and business and professional services will represent more than 25% of interconnection bandwidth in Asia Pacific by 2023. By 2023, these businesses are expected to reach a peak interconnection bandwidth growth rate of over 50% annually.

Equinix is the world’s digital infrastructure company with the largest data centre footprint in Australia. Equinix operates more than 210 data centres globally, with 17 facilities across Sydney, Melbourne, Canberra, Perth, Brisbane and Adelaide.

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David M Williams

David has been computing since 1984 where he instantly gravitated to the family Commodore 64. He completed a Bachelor of Computer Science degree from 1990 to 1992, commencing full-time employment as a systems analyst at the end of that year. David subsequently worked as a UNIX Systems Manager, Asia-Pacific technical specialist for an international software company, Business Analyst, IT Manager, and other roles. David has been the Chief Information Officer for national public companies since 2007, delivering IT knowledge and business acumen, seeking to transform the industries within which he works. David is also involved in the user group community, the Australian Computer Society technical advisory boards, and education.

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