Emergence of Interconnected Era

In a world where cloud governs and enterprises' business models are interdependent, the demand for a new common space for all ecosystems to coexist has reached a new high. The enterprises are moving into an interconnected era where machines and organizations are not only transacting but also collaborating in shared value creation. As businesses become mutually dependent and cloud-enabled, they need reliable, secure, and instantaneous connectivity to each other. They need access to many clouds and real-time data across geographies which give rise to the need for interconnection.

Colocation – Ideal Interconnection Environment

Interconnection is the opportunity to be connected to partners, customers, employees, and geographies in order for enterprises to accelerate business growth and create new opportunities. Colocation data centers have emerged as the new place for interconnection to the most vibrant ecosystem of business partners, service providers, and major networks. With options of colocation data centers available to enterprises, providing just space, power, cooling, and some form of connectivity is not sufficient. But the moment a colocation data center offers an interconnection platform, the enterprises are rooted deeper into the platform to leverage the ability to connect to other vendors within the same colocation facility, which solves issues such as latency and downtime.

Interconnectivity to public cloud platforms is emerging as a service and this is the differentiating feature for a colocation provider. Due to this shift, colocation centers are considering interconnectivity a higher priority, providing dedicated connections to the public cloud that bypass the public Internet with high performance and security. As many colocation users move toward a hybrid environment, the ability to burst into the public cloud for extra compute and storage capacity becomes more critical. For example, if a retail company expects increased compute capacity for a limited season during Diwali, it may require burst capacity for a couple of weeks, while IT team supports the remaining day-to-day activities in a colocation facility. Colocation data centers will offer not just state-of-the-art carrier-neutral colocation space but also carrier-dense interconnections, and a home to an increasing number of large enterprises, as well as long-lasting digital ecosystems for cloud, mobility, content, and other services.

Role of Interconnected Exchanges

Content, service, and colocation providers are seeking to directly connect content to end users at the edge of global networks. An Internet exchange point connects colocated enterprises customers to hundreds of major telecom and data networks on a single highly available service platform. An Internet exchange point ensures local Internet traffic is kept within the local network infrastructures, lowering costs and providing content to users more quickly. By connecting to the Internet exchange, enterprises can reduce operational costs, improve network performance, and add another layer of network resilience. Content providers and operators of content delivery networks globally are pushing service providers to connect to Internet exchange specifically to move content faster. For example, a content provider who wants to reach more consumers with their video content, connects to Internet exchange and the content provider can easily exchange traffic with ISPs also connected to that same exchange, thus increasing their audience.

Shift toward Green Energy Data Centers

Rising awareness and distress around climate change has inclined colocation customers toward green and renewable energy in colocation facilities, especially in regions where such natural resources are available and abundant. In 2017, the market will see more emphasis on green energy, as enterprises demand sustainability as a part of their requests for proposal. As much as green energy can help colocation customers with green initiatives to meet their internal requirements, it can help colocation service provider with an alternative to the electric grid.

Last Word

In a world of interconnected businesses, reliable and instant interconnection across ecosystems and geographies has opened up new paths to growth and opportunity. This kind of resilient, enterprise-strength interconnection is no longer just a source of advantage, it is a requirement to sustain businesses.


 

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