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New Study Published by Equinix Shows Pace at Which COVID-19 Is Accelerating Digital Transformation

Digital Service Providers Forecast to Increase Private Connectivity 5x Between 2019 and 2023, Driven by Greater Demands from Enterprises to Close Digital Gaps at the Edge

The latest Global Interconnection Index (GXI), an annual market study published by Equinix, shows that the COVID-19 pandemic has already had a dramatic effect on how businesses are planning their digital infrastructure initiatives over the next three years. According to the report, digital service providers, within industries like telecommunications, cloud & IT services, content & digital media and technology providers, are forecast to increase private connectivity bandwidth 5x by 2023, driven by greater demands from enterprises to close digital gaps at the edge.

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“As interconnected services, cloud providers, distributed cloud, edge services and SaaS offerings continue to proliferate, the rationale to stay only in a traditional data center topology will have limited advantages. This is not an overnight shift, but an evolutionary change in thinking how we deliver services to our customers and to the business. This trend, coupled with the new reality that outside factors might limit physical access to the data center (such as emergency quarantine), is driving new thinking in infrastructure planning,” wrote David Cappuccio, Distinguished VP Analyst, Gartner and Henrique Cecci, Senior Director Analyst, Gartner.1

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The report also forecasts that overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, will achieve a 45% compound annual growth rate (CAGR) from 2019 to 2023. The expected growth is driven by digital transformation, and specifically by greater demands from enterprises extending their digital infrastructure from centralized 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.

“Digital leaders have to prepare for post-pandemic recovery by planning and implementing the right digital transformation initiatives now,” said Claire Macland, Senior Vice President of Marketing, Equinix. “We believe those that have a foundational infrastructure which helps bring together all the right places, partners and possibilities will gain a business advantage over the long term.”

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