Data Gravity Index DGx€¦ · Data Gravity ntensity Goa orecast 1,2 Giaytes er Second 139 CAR Year...

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Data Gravity Index DGx TM v1.5 – Executive Summary Data Gravity inhibits enterprise workflow performance, raises security concerns, and increases costs, all complicated by regulatory requirements and other artificial constraints. We are publishing our findings as an annual report to facilitate industry dialogue and to assist both our Enterprise and Service Provider customers as they shift their infrastructure strategy to address this emerging megatrend. Introducing the Data Gravity Index DGx™ v1.5 — an expanded global forecast that measures the intensity and gravitational force of enterprise data growth for 53 metros and 23 industries. Data Gravity Index DG x ® HIGHLIGHTS 1/ Accelerating growth across all regions and metros. Data Gravity Intensity, as measured in gigabytes per second, is expected to grow by a compound annual growth rate of 139% globally through 2024 as data stewardship drives global enterprises to increase their digital infrastructure capacity to aggregate, store and manage the majority of the world’s data. 2/ Permeating across all industry segments. No industry is immune to the effects of Data Gravity. Through 2024, Data Gravity Intensity* is expected to grow by a compound annual growth rate of 144% across almost three quarters of the 23 industry segments analyzed. Global Mergers & Acquisitions activity is expected to return to pre-Covid levels and drive accelerated growth of global enterprises 1 , including increasing the number of enterprise data sources participating in data exchange. 3/ Pairs of metros share unique attraction rate. Specific metro pairs were identified as having flows between each other, directly increasing their Data Gravity Intensity both within their metro and their high attraction between metros. This shift in importance towards digitally-enabled interactions across global enterprises will increase data exchange volumes exponentially. 4/ Approaching quantum computing levels of data creation, processing & storage. By 2024, it is estimated G2000 Enterprises across 53 metros will create data at a rate of 1.4 million gigabytes per second and will require nearly 20,000 petabytes of additional data storage annually. Data location matters to global enterprises as they look to meet compliance requirements by maintaining local copies of critical data. 5/ Requires data-centric enterprise architecture & connected community approach to address. Current backhaul architecture cannot address enterprise Data Gravity needs, including data exchange across multiple internal/external platforms, local data copies, and ability to run performant analytics across each global point of presence. Data Gravity requires a connected community approach between enterprises, connectivity, cloud and content providers integrating core, cloud and edge at centers of data exchange, implementing a secure, hybrid IT and data-centric architecture globally at points of business presence. The Data Gravity Index DGx TM is a global forecast that measures the intensity and gravitational force of enterprise data growth for 53 metros and 23 industries. 1. Goldman Sachs, BRIEFINGS Newsletter June 16, 2020 *Defined as meeting a threshold of 1 gigabyte of data per second or greater

Transcript of Data Gravity Index DGx€¦ · Data Gravity ntensity Goa orecast 1,2 Giaytes er Second 139 CAR Year...

Page 1: Data Gravity Index DGx€¦ · Data Gravity ntensity Goa orecast 1,2 Giaytes er Second 139 CAR Year 18,000.00 1. Data Gravity Intensity is calculated across 21 metros using the Gravity

Data Gravity Index DGxTM v1.5 – Executive Summary Data Gravity inhibits enterprise workflow performance, raises security concerns, and increases costs, all complicated by regulatory requirements and other artificial constraints.

We are publishing our findings as an annual report to facilitate industry dialogue and to assist both our Enterprise and Service Provider customers as they shift their infrastructure strategy to address this emerging megatrend. Introducing the Data Gravity Index DGx™ v1.5 — an expanded global forecast that measures the intensity and gravitational force of enterprise data growth for 53 metros and 23 industries.

Data Gravity Index DGx™

®

HIGHLIGHTS

1/ Accelerating growth across all regions and metros.

Data Gravity Intensity, as measured in gigabytes per second,

is expected to grow by a compound annual growth rate of

139% globally through 2024 as data stewardship drives global

enterprises to increase their digital infrastructure capacity to

aggregate, store and manage the majority of the world’s data.

2/ Permeating across all industry segments.

No industry is immune to the effects of Data Gravity.

Through 2024, Data Gravity Intensity* is expected to grow

by a compound annual growth rate of 144% across almost

three quarters of the 23 industry segments analyzed. Global

Mergers & Acquisitions activity is expected to return to

pre-Covid levels and drive accelerated growth of global

enterprises1, including increasing the number of enterprise

data sources participating in data exchange.

3/ Pairs of metros share unique attraction rate.

Specific metro pairs were identified as having flows between

each other, directly increasing their Data Gravity Intensity

both within their metro and their high attraction between

metros. This shift in importance towards digitally-enabled

interactions across global enterprises will increase data

exchange volumes exponentially.

4/ Approaching quantum computing levels of data creation,

processing & storage.

By 2024, it is estimated G2000 Enterprises across 53 metros

will create data at a rate of 1.4 million gigabytes per second

and will require nearly 20,000 petabytes of additional

data storage annually. Data location matters to global

enterprises as they look to meet compliance requirements by

maintaining local copies of critical data.

5/ Requires data-centric enterprise architecture &

connected community approach to address.

Current backhaul architecture cannot address enterprise

Data Gravity needs, including data exchange across multiple

internal/external platforms, local data copies, and ability

to run performant analytics across each global point of

presence. Data Gravity requires a connected community

approach between enterprises, connectivity, cloud and

content providers integrating core, cloud and edge at centers

of data exchange, implementing a secure, hybrid

IT and data-centric architecture globally at points of

business presence.

The Data Gravity Index DGxTM is a global forecast that measures the intensity and gravitational force of enterprise data growth for 53 metros and 23 industries.

1. Goldman Sachs, BRIEFINGS Newsletter June 16, 2020 *Defined as meeting a threshold of 1 gigabyte of data per second or greater

Page 2: Data Gravity Index DGx€¦ · Data Gravity ntensity Goa orecast 1,2 Giaytes er Second 139 CAR Year 18,000.00 1. Data Gravity Intensity is calculated across 21 metros using the Gravity

Solving for Data Mass and Data Activity. The size and attraction of data for each metro was created by solving

for a Data Mass number and a Data Activity number. The result was

then multiplied by the average Bandwidth and divided by the average

Latency squared.

The Data Gravity Index Score measures

the intensity and gravitational force of

enterprise data growth across 53 metros and 23 industries globally. The score provides

a relative proxy for measuring data creation,

aggregation and processing.

As a cohort, Global 2000 Enterprises have the greatest propensity to need to

address data gravity. This segment spends $2.6T annually on IT Infrastructure & Networking, operating the most complex

systems and serving millions of users and

endpoints, with coverage across many points

of presence globally.

Global Data Gravity Forecast Data Gravity Intensity, as measured in gigabytes per second, is expected to grow by a compound annual growth rate of 139%

globally through 2024.

Metro Data Gravity Forecast From 2020 to 2024, the top 6 metros with the highest CAGR (in descending order) are:

Jakarta, Singapore, Rome, Hong Kong, Melbourne, Atlanta.

We have published our findings as an industry-first report to facilitate industry dialogue and to assist both our Enterprise and

Service Provider customers as they shift their infrastructure strategy to address this emerging megatrend.

G2000 Enterprise IT Composite Profile 1,2,3,4,5,6,7,8

ACCESS THE FULL DATA GRAVITY INDEX DGxTM REPORT

Data Gravity Intensity Metro Forecast1,2Data Gravity Intensity Global Forecast1,2

1. Gartner; 2. HG Insights; 3. Intricately; 4. Synergy Research; 5. Gartner; 6. IDC; 7. Telegeography; 8. Digital Realty Market Intelligence & Analytics

DATAMASS

DATAACTIVITY

BANDWIDTH LATENCY

Figs. 1, 2 and 3. Data Gravity Index, Dec. 2020

4,000.00

2,000.00

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2020 2021 2022 2023 2024

Data Gravity Intensity Global Forecast1,2

Total

139% CAGR

Gig

abyt

es P

er S

econ

d

Year

18,000.00

1. Data Gravity Intensity is calculated across 53 metros using the Gravity Index Formula: (DM x DA x BW) / L2

2. Data Gravity Intensity is defined by the Data Gravity Index Score. See Methodology for scoring and data.

Fig. 8. Data Gravity Index, Dec. 2020

Zurich

Washingto

n, D.C.

Warsaw

Vienna

Vanco

uver

Toronto

Tokyo

Sydney

Stock

holm

Singapore

Silicon Vall

ey

Shanghai

Seoul

Seattl

e

São Pau

lo

Santia

goRome

Rio De J

aneir

oPari

sOsa

ka

New York

Munich

Mumbai

Moscow

Minneapolis

Milan

Miami

Mexico

City

Melbourn

e

Madrid

Luxembourg

Los Angele

s

London

Kuala Lumpur

Jaka

rta

Istan

bul

Hong Kong

Frankfu

rt

Dusseld

orf

DublinDall

as

Copenhag

en

Chicago

Chennai

Charlotte

Buenos A

ires

Bruss

elsBerl

in

Beijing

Barcelo

na

Bangko

k

Atlanta

Amsterd

am

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100

10

1

0.1

0.01

0.001

0.0001

Gig

abyt

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econ

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2024202053 Metros

177% CAGR

211% CAGR

175% CAGR

178% CAGR

200% CAGR

173% CAGR

Fig. 10. Data Gravity Index, Dec. 2020

1. Data Gravity Intensity is calculated by the Data Gravity Index Formula: (DM x DA x BW) / L2

2. Data Gravity Intensity is defined by the Data Gravity Index Score. See Methodology for scoring and data.

LONDON167.05

TOKYO80.32

NEW YORK79.61

AMERICAS

LONDON167.05

TOKYO80.32

NEW YORK79.61

EMEALONDON167.05

TOKYO80.32

NEW YORK79.61

APAC

Data Gravity Score

Data Gravity Score

Data Gravity Score

13+ Countries w/Business Presence (Average per Enterprise)

19K Business Units in 53 Metros

36+ Points of Presence (PoPs)

7K+ Datacenter PoPs

100M+ Employees

11M+ Applications

57K+ SAAS Applications

$2.6T+ Annual IT & Network Spend

$18B+ Annual IAAS Spend

$8B+ Annual PAAS Spend

$40B+ Annual SAAS Spend

$7B+ Annual Colocation Spend