Every business is increasingly becoming a digital entity, implying a significant shift online across various sectors. However, many companies are transitioning away from the internet in search of more efficient and secure ways of exchanging data.
A new report measures the astonishing growth of global data, particularly focusing on private data exchange between companies off the public internet. This has become the most dominant form of data exchange and is expected to become ten times larger than the internet while growing twice as fast.
Russell Poole, managing director for a UK-based data centre operator, highlighted the shortcomings of relying on the public internet. Businesses face persistent performance issues, security concerns, unplanned IT costs, and diminishing returns, indicating that IT architecture is struggling to keep up with digital business needs.
Bypassing the public internet offers enhanced security as companies connect within the confines of a data centre, reducing susceptibility to cyber-attacks. This shift has also mitigated fears surrounding cloud adoption, where security remains a primary concern.
The demand for high-performance, direct, and secure interconnection is rising, offering a solution beyond the capabilities of the internet. Interconnection brings the parties exchanging data closer together at the digital edge, enabling real-time interactions.
An example of the practical application of interconnection is found in the operations of an electronic stock market operator. Utilising data centres ensures that indexes and data feeds are updated in real time, which is crucial as latency of even a fraction of a second can have significant financial implications.
Despite political uncertainties, London remains the most critical market in Europe for data exchange, accounting for over 35 per cent of Europe’s private data exchange growth.
The trend of shifting from the public internet to private data exchange via interconnection reflects the evolving needs of businesses for enhanced security, performance, and real-time data handling. This significant development will likely continue to shape the future of digital business infrastructure.