skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view

Summary

The co-location and interconnection market is witnessing rapid growth, driven by the shift from fat core and thin edge computing to fat edge and thin core computing. To understand this shift we must look back five years when only the financial trading markets were really latency-sensitive, while today everything is latency-sensitive.

Latency is the enemy in cloud computing

Equinix is addressing this market shift through its investment strategy, which five years ago recognized the importance of cloud computing. Its heritage in network interconnectivity is fundamental to how it viewed the cloud opportunity. Over the past 17 years it has invested $13bn in building out its capability and it now has 145 data centers on five continents, with 176,000 cross-connects. Ovum research (global service provider survey 2014/15 n=700) shows that relationships and trust were the biggest factor in end customers selecting a supplier. However, the reputation and scale of the supplier were a close second. Equinix has a 14% share of the co-location market, twice as much as its nearest competitor.

The shift to edge computing is a central tenet of the leading technological advances we are witnessing today. IoT and the whole concept of interconnected devices will not work without intelligent local computing. A smart city cannot wait for seconds just for data to be uploaded before changing a traffic light based on traffic congestion, and only milliseconds will suffice. This think-local act-global mindset requires the three rings of computing (a central core, regional, and local) to be adopted. The glue that holds these together, and is a core differentiator for Equinix, is the network built on interconnection.

The old traditional hub and spoke network architecture is the problem that is acting as a brake or exposing performance bottlenecks, frustrating organizations looking to expand rapidly. Equinix with its interconnection-oriented architecture supports a grid-like approach and reduces performance pinch points by distributing resources.

Appendix

Author

Roy Illsley, Principal Analyst, Infrastructure Solutions

roy.illsley@ovum.com

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Enterprise Decision Maker, Enterprise IT Strategy and Select...

    2017 Trends to Watch: Big Data

    By Tony Baer 21 Nov 2016

    The breakout use case for big data will be fast data. The Internet of Things (IoT) is increasing the urgency for enterprises to embrace real-time streaming analytics, as use cases from mobile devices and sensors become compelling to a wide range of industry sectors.

    Topics Big data and analytics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 7770704398 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now