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Private data exchange between businesses set to surpass the internet

The bandwidth used in private data exchange between businesses will be six times that of the internet by 2020, with interconnection bandwidth outpacing growth of the internet by nearly two to one.

According to interconnection and data centre company Equinix, who have produced the Global Interconnection Index, global interconnection bandwidth – which is the total capacity required to privately and directly exchange traffic at distributed IT exchange points – will reach 5,000 tera bytes per second by 2020, compared to an expected 855 tera bytes per second for the internet.

“Interconnection supports multi-cloud consumption at scale, improves network performance, enables greater operational control and reduces security risk,” Maurice Mortell, managing director for Ireland and emerging markets at Equinix, said.

Industries which are leading the growth include banking and insurance, telecommunications, as well as cloud and IT services.

The growth is also being influenced by global trends including digital technology use, urbanisation, and cybersecurity risk.
According to Mr Mortell, Ireland will contribute significantly to interconnection growth in Europe as an increasing number of companies look to locate their data here.

“As enterprises continue to adopt a new digital way of working, we expect Ireland to become a go-to location for international businesses needing to interconnect within Europe.
The only realistic way for Irish and Irish-based companies to reach all the global markets, partners and people needed to scale and succeed is to adopt an interconnection-first strategy,” Mr Mortell said.

The Global Interconnection Index, published by Equinix, highlights the effect of digital transformation as companies create entirely new ways of connecting with customers, partners and supply chains.

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