DataCenterNews Asia logo
Specialist data center news for Asia
Story image

Private connectivity at the edge to experience explosive growth in Sydney

By Catherine Knowles
Wed 16 Oct 2019
FYI, this story is more than a year old

A new market study states Sydney’s private connectivity at the edge is forecast to grow by 49% annually, with total bandwidth capacity expected to exceed 13,300 Terabits per second (Tbps), which is equivalent to 53 zettabytes (ZB) of data exchanged annually.

According to the latest Global Interconnection Index (GXI) published by Equinix, cloud and IT is the largest industry leveraging interconnection as data explosion gets further distributed at the edge.

The GXI market study also finds that interconnection bandwidth is an essential component to digital business and validates that, to compete in the digital economy, companies must address growing data volumes and increasing data exchange velocity across a rising number of clouds and business ecosystems.

In Asia-Pacific, interconnection bandwidth is expected to grow at 56% CAGR to exceed 3,825 Tbps by 2022, contributing 29% of the global capacity.

Among industries, cloud and IT services is expected to consume the most interconnection bandwidth, reaching 914 Tbps in Asia-Pacific, which is forecast to outpace growth (50% CAGR) of clouds in all other regions. Sydney is one of the top metros in the region, and is expected to grow at 49% CAGR from 2018 to 2022.

In addition, a separate independent survey commissioned by Equinix of more than 2,450 global senior IT professionals, including more than 100 senior IT professionals in Australia, shows that 48% of Australian organisations are currently expanding into new regions, countries or metros, and 73% of them plan to use virtual connections to support their expansions.

“People, software and machines are creating and consuming data faster and in all the places where we work, play, and live,” says IDC research vice president, data center and cloud Rick Villars.

“The significant increase in data created, aggregated and analysed in these new locations is contributing to a major shift away from deploying IT in traditional corporate data centers.

“Enterprises need access to robust, modern data center facilities near the edge locations where businesses want to deploy dedicated infrastructure and interconnect to the increasing number of clouds, customers and partners that are at the core of digital transformation efforts,” says Villars.

Key findings of the GXI are around interconnection, performance and deployment models.

According to the report, the ability to exchange large volumes of data through interconnection is essential to compete in the digital economy. The GXI forecasts that in order to manage the growing volumes of data, global enterprise consumption of interconnection bandwidth will grow at a 64% CAGR (68% in Asia-Pacific), outpacing other forms of business data exchange.

The GXI shows that to manage increasing volumes of data, enterprises globally are on average deploying in nine locations, with a total of 340 interconnections to networks clouds and business partners. The Equinix survey found that almost half of global IT decision-makers (44% in Australia) believe interconnection is a key facilitator of digital transformation, and nearly half of all global IT decision-makers (40% in Australia) believe interconnection can help their business to gain competitive advantage within the marketplace.

When it comes to performance killers, distance was cited as the biggest problem for digital business. The report showed that deploying direct, private connections at the edge propels both application performance and user experience.

According to the GXI, today's latency-sensitive workloads require response times ranging from <60 to <20 milliseconds, forcing IT infrastructure closer to the points of consumption.

The Equinix survey showed that more than one-third of global IT decision-makers (40% in Australia) are using interconnection to increase speed of connectivity or reduce latency.

The GXI finds that leading businesses are gaining competitive advantage using a combination of key interconnection deployment models. Interconnecting to multiple network providers across multiple edge locations is the most prominent use case for interconnection bandwidth and is expected to grow four times by 2022.

Interconnecting to multiple clouds and IT services across multiple edge locations and cloud regions represents the next largest and fastest use of interconnection bandwidth and is predicted to grow thirteen times by 2022. Interconnecting to digital business partners for financial services, content and digital media and supply chain integration makes up the remainder of interconnection bandwidth use cases and is forecasted to grow five times by 2022.

Equinix president of Asia-Pacific, Jeremy Deutsch, says, “As one of our most vibrant markets, Asia-Pacific has become a fertile ground for technological development. We are excited to see the proliferation of 5G, IoT, VR and AR provide the impetus for the enormous growth of interconnection bandwidth in the region.

“Being interconnected has never been so important for enterprises seeking to keep up with customer expectations which often require massive volumes of data to be processed and analysed at the edge, within a matter of seconds.

“That is why Equinix continues to be committed to staying ahead of evolving customer needs and supporting them in accelerating their digital transformation journey. With the latest GXI report indicating that interconnection bandwidth is set for continuous growth in the region, we are here to help businesses embrace digitalisation for success.”

Equinix Australia senior director IBX operations, Glenn Uidam, says, “The Global Interconnection Index Volume 3 provides incredibly useful insights into the rise of the digital economy and the subsequent growth of interconnection around the world.

“The rapid growth in Sydney demonstrates the importance of interconnection for organisations across Australia looking to digitally transform their businesses.

“With the strength of Australia’s technology growth, it’s exciting to see Sydney as one of the top locations in the region where businesses and professional services, telecommunications, cloud and IT services are utilising interconnection. This demonstrates the value of interconnection, and Equinix’s coverage across Australia and the region can help more customers on their digital transformation journeys.”

Related stories
Top stories
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Sustainability
Intel unveils new investments for data center sustainability
Intel has announced two new investments, continuing its efforts to create more sustainable data center technology.
Story image
Digital Transformation
The Huawei APAC conference kicks off with digital transformation
More than 1500 people from across APAC have gathered for the Huawei APAC Digital Innovation Congress to explore the future of digital innovation.
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Sisense
Data and analytics could be key to higher selling prices in APAC
Sisense's latest report has found that almost half of data professionals in APAC think customised data and analytics can create better selling prices for their products.
Story image
Surveillance
Genetec launches new enclosure management system for data centers
Genetec has released a new enclosure management solution that will give data centers the ability to secure, monitor and manage access to racks and cabinets remotely.
Story image
Hyperscale
SpaceDC partners with Aofei for data center sales in Asia
SpaceDC has partnered with Aofei Data International to sell Aofei's data centers, CDN and SDN in China.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Data Center
Equinix enters Africa, closing US$320 million acquisition of MainOne
The completion of the acquisition augments Equinix's long-term strategy to become a leading African carrier-neutral digital infrastructure company.
Story image
Data Center
Digital Edge to build South Korea's largest commercial data center
The project will be the largest commercial data center project in South Korea with total IT power of 120MW and a capital investment of more than KWR$1 trillion.
Story image
Infrastructure
Report - Data investment the key to better business growth
New research from Digital Realty has revealed that almost half (47%) of IT leaders globally believe their business investment in data systems and infrastructure is a key obstacle or concern.
Story image
Sustainability
AyalaLand and FLOW partner for data center development
AyalaLand Logistics Holdings Corp (ALLHC) and FLOW Digital Infrastructure have entered into a framework agreement to bolster the development of carrier-neutral data centers in the Philippines.
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Colocation
Digital Edge chooses Nortek’s StatePoint for new data center
Digital Edge will use Nortek's StatePoint liquid cooling technology in its new data center, the first commercial colocation operator in Asia to do so.
Story image
Akamai
Akamai announces new products across security, computing
Akamai has announced a series of new products and updates to existing products across its security and compute product lines, including its entry into the infrastructure as a service (IaaS) market.
Story image
Sustainability
RDA and MVGX partner for sustainable data center development
Red Dot Analytics (RDA) and MetaVerse Green Exchange (MVGX) have entered a strategic partnership to make Singapore's data center development and operations more sustainable.
Story image
Sustainability
ABB unlocks sustainable energy upgrades for data centers
ABB says its new microgrid solutions will get data centers ready for the green revolution and use their own energy sources with a reduced carbon footprint.
Story image
Tech Data
Tech Data to use Pluribus Networks’ cloud solutions in APAC
Tech Data says using Pluribus Networks' Unified Cloud Fabric solution will be a "game-changer" for its data center infrastructure customers and partners.
Story image
SD-WAN
Orange moves Siemens AG’s entire operations to a SD-WAN
Orange Business Services has migrated Siemens AG's entire global operations, 1168 sites across 94 countries, to a SD-WAN
Story image
BitTitan
Why tenant consolidation is critical to cloud success
Consolidating tenants can improve cost management, security and engagement after a flurry of reactive activity following the widespread shift to remote operations.
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
APAC
Odaseva expands in APAC and UK with more security features
Odaseva, a data platform for Salesforce, is establishing new headquarters in London as well as a new data center in India.
Story image
Telstra
Telstra expands business offerings in the Philippines
The expansion aims to offer more choice for customers and enhance connectivity into the Philippines, and within the country.
Story image
Digital Transformation
EdgeConneX enters Indonesia, plans for data center campus
EdgeConnex has announced it is expanding its presence in Asia with the acquisition of GTN Data Center in Indonesia.
Story image
Data Center
Sime Darby Berhad to use Equinix APAC data centers
Equinix has expanded its digital infrastructure services, including its International Business Exchange data centers, to Sime Darby Berhad
Story image
Digital Transformation
Multiplex, NEXTDC making strong progress on S3 data centre
Multiplex has made a significant achievement on Stage 1 of NEXTDC’s S3 data centre, ‘topping out’ the structure in the Artarmon on Sydney’s lower North Shore.
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Power / Energy
DigitalBridge makes $30 million equity investment in LEDC
Leading Edge Data Centres (LEDC) has announced it has secured an AUD$30 million equity investment in its regional edge network from an affiliate of DigitalBridge Group, DigitalBridge.
Story image
Research
New strategies for cloud-native attacks - Aqua Security
New research from Aqua Security reveals attackers are using more sophisticated techniques to target cloud-native environments.
Story image
Data Center
Tier III Ready Datacenter solutions shortlisted for major awards
"These designs will accelerate data center clients' own Tier III certification, reduce the cost, and fast-track their time to market."
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Story image
Cable
New high-performance cable in the works for Asia
A new high-performance submarine cable is being built to enhance connectivity between Hong Kong, China and Southeast Asia.
Story image
SaaS
Cisco reveals new tech, intends to prevent network issues
Cisco has revealed new technology intended to mitigate costly disruptions by aiding IT teams in learning, predicting and planning.
Story image
Talend
Talend introduces new data health solutions for businesses
Talend has announced its latest version of Talend Data Fabric, with the release of Talend Trust Score enabling data teams to establish a foundation for data health.
Story image
Cloud
Colt connectivity with AWS increases services in Asia
Colt Technology Services expands cloud connectivity to AWS Direct Connect Hosted services, with speeds of up to 10 Gbps in Asia.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Databricks
Databricks grows in APAC market, expands into Korea
Databricks officially launches a local office in Seoul, Korea, building on existing partnerships with Cloocus, Megazone and the Weverse Company
Story image
Data Center
CBRE finds record levels of investment in APAC data centers
CBRE's new report finds direct investment in the sector more than doubled in 2021, surpassing investment volumes for the past four years combined
Story image
Sustainability
AirTrunk boosts Japan presence with West Tokyo data center
AirTrunk is planning to build TOK2, a new hyperscale data center in Japan which will strengthen the company’s presence in the country.
Story image
Sustainability
Daikin and SP Group to build new energy efficient district cooling system
The project, set to be complete by 2025, will create a system with a cooling capacity of up to 36,000 refrigerant tonnes (RT). 
Story image
Disaster Recovery
Kacific launches emergency connectivity offering, CommsBox
Kacific has announced the release of a new emergency connectivity offering designed to rapidly provide broadband service in emergency or disaster zones.
Story image
Storage
Energy storage demand momentum continues, says BYD
BYD has announced an expansion of its production capacities and will deliver 250,000 units of its energy storage system, BYD Battery-Box Premium.