“Data Center Interconnect”
When Converge ICT Solutions brought its fiber broadband technology to Manila, it faced three well-entrenched rivals. Today, it boasts a 50% market share, and is expanding into internet data centers.
Expansion of enterprise data centers brings forward the need for high-capacity, high-quality, flexible, and scalable connectivity. Driven by these requirements, enterprises across different verticals are migrating towards self-built and self-managed data center interconnect (DCI).
The needs of enterprises, however, also dictate other features of evolving DCI solutions: simple and automated operations, administration, and management as well as simplification of network architecture.
As we move towards Digital Transformation 2.0, digitalization has become the foundation of enterprise survival, rather than just a means of cost reduction and efficiency improvement. In this era of digitality, data centers have become a source of value creation. According to a report of Equinix, a leading global data carrier, the compound annual growth rate of data center interconnect (DCI) traffic is 51% from 2018 to 2022, projecting a new round of exponential growth for data centers.
According to the Global Interconnection Index released by Equinix, the DCI bandwidth capacity is expected to reach 13,300 Tbit/s in 2022, with a compound annual growth rate of 51%. This will be essential, as the government, finance, telecommunications, and other industries are increasingly dependent on the digital service ecosystem, driving demand for higher interconnection bandwidths.
In modern times, the data center interconnect (DCI) domain is undergoing an innovation similar to the above-mentioned development from professional computers to PCs. Currently, the surges of DCI traffic are leading to an exponential increase in leased line costs, which severely suppresses the bandwidth requirements of various digital transformation applications. Given this, an increasing number of financial companies, governments, and large enterprises are considering building their own DCI networks.
The construction of enterprise-built DCI networks is key for the digital transformation of finance, government, and enterprise industries.
Just as steam engines, generators, computers, and the Internet revolutionized society before, new 5G, AI, and cloud-driven technologies are doing the same.
Data center interconnect (DCI) serves as the foundation of enterprise digital transformation. DCI networks carry increasing amounts of services and require higher reliability.