Current supply chain constraints and geopolitical and economic instabilities are not slowing the pace of digital infrastructure investment for the most connected companies, according to a new report which also found that Ireland’s healthcare and life sciences industry is an EMEA leader for digital infrastructure and private data transfers.
The latest Global Interconnection Index (GXI) 2023, an annual market study published by Equinix, found that the most ecosystem-connected businesses – those directly interconnecting with partners to provide their own digital services – have expanded their digital operations more in the past five quarters than in the previous five years.
On average, organisations are connecting to three times as many business ecosystem partners and metros, consuming more than twice the amount of interconnection bandwidth.
As businesses reinvent themselves in the aftermath of the global pandemic, ecosystem density has become a catalyst for digital innovation, which continues to fuel the growth of interconnection bandwidth.
According to GXI 2023, global interconnection bandwidth is forecast to reach 27,762+ terabits per second (Tbps) by 2025, representing a five-year compound annual growth rate (CAGR) of 40%, equivalent to 110 zettabytes of data exchanged annually, or enough bandwidth to support over 50 million autonomous cars each exchanging over 2,000 terabytes (TB) of data per year. This forecasted growth shows how organisations are rethinking their business to implement future-proof infrastructure on technology platforms.
Increasingly, organisations are choosing interconnection to connect to digital ecosystems while avoiding the risks and inefficiencies associated with the public internet. The Equinix report provides insights into how the healthcare & life sciences; manufacturing; and cloud & IT services industries in Ireland have become leaders in the use of digital infrastructure to innovate and keep data secure.
Ireland is the third-highest consumer of interconnection bandwidth in EMEA’s healthcare and life sciences industry, while it is the fifth-highest consumer for the manufacturing and cloud & IT industries. Overall, the report projects that Ireland’s interconnection bandwidth will grow by a CAGR of 45% to 2025.
John Shorten, senior director of operations, growth and emerging markets, Equinix, said: “Today’s enterprises are sophisticated power-users of data. In Ireland, we house some of the world’s largest healthcare, medical device and pharmaceutical companies. The pace at which they have adopted and revolutionised technology to benefit patient outcomes is extraordinary. At the same time, they are subject to extremely stringent data regulations, so they must connect to digital ecosystems privately to ensure compliance while also charging ahead with innovation.
“Modern enterprises are using digital infrastructure to innovate and compete. It is exciting to see that Ireland is an EMEA leader in three industries and it reflects the exciting opportunities businesses in Ireland are creating for their customers, employees and the world around them.”
“In today’s dynamic setting, every business is becoming a digital provider, which requires a new type of digital infrastructure built sustainably around leveraging ecosystems to deliver seamless digital experiences,” said Steve Madden, vice president of digital transformation & segmentation at Equinix. “Those with a digital-first strategy in place, investing in a robust, future-looking business model and interconnecting to rich ecosystems, are prepared to scale, adapt and thrive.
“As companies increasingly adopt digital-first strategies and look for new ways to drive differentiation, the ecosystem plays an even more critical role,” said Steve White, program vice president, channels & alliances, IDC. “Organisations are relying on ecosystems and digital infrastructure as the foundation to sustainably scale and deliver business value. In order to achieve these business outcomes, companies are interconnecting to customers, partners and vendors to accelerate collaboration and co-creation, as well as meet sustainability commitments.”
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