The Interconnection Index: Breaking Down Latin America

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FUELING THE EXPLOSION OF THE DIGITAL ECONOMY IN LATIN AMERICA All around the world, Interconnection is changing the face of digital infrastructure and enabling businesses to serve customers in unprecedented ways. To succeed in today’s rapidly transforming economy, every business must understand—and leverage—Interconnection.

Transcript of The Interconnection Index: Breaking Down Latin America

Page 1: The Interconnection Index: Breaking Down Latin America

FUELING THE EXPLOSION OF THEDIGITAL ECONOMY IN LATIN AMERICA

All around the world, Interconnection is changing the face of digital infrastructure and enabling businesses to serve customers in unprecedented ways. To succeed in today’s rapidly transforming

economy, every business must understand—and leverage—Interconnection.

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INTERCONNECTION: /IN•TER•KUH•NEKT•SHUN/ [NOUN]

The deployment of IT tra�c exchange points integrating direct private connections between counterparties, hosted in carrier-neutral data center campuses, with distributed IT components colocated.

INTERCONNECTION: /IN•TER•KUH•NEKT•SHUN/ [NOUN]

The deployment of IT tra�c exchange points integrating direct private connections between counterparties, hosted in carrier-neutral data center campuses, with distributed IT components colocated.

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62%CAGR BANDWIDTH USAGE

20202016

626Tbps92 Tbps

INTERCONNECTION BANDWIDTH GROWTHIN LATIN AMERICA BY 2020

MRIBrain Scans

1.1B

DNASequences

620M

AutonomousVehicles

6.6M

E-BookDistribution

750B

SharedWeb Pages

106B

AppUpdates

Distribution

1.5B

*Interconnection Bandwidth is defined as the capacity to transfer tra�c via direct private interconnections

at tra�c exchange points hosted inside carrier-neutral colocation data center campuses.

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Digital technology use can create $1.36 trillion in additional economic output in the world’s top 10 economies in 2020.

GROWING IMPORTANCE OF THE DIGITAL ECONOMY

* Accenture Digital Density Index

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68% Projected Growth&213 Tbps

Bandwidth

BUENOS AIRES

HIGH GROWTH

LARGEST VOLUME

SÃO PAULO

60% Projected Growth&63 Tbps

Bandwidth

MEXICO CITY

STRONG VOLUME

58% Projected Growth&87 Tbps

Bandwidth

RIO DE JANEIRO

RAPID GROWTH

65% Projected Growth&102 Tbps

Bandwidth

INTERCONNECTION IN LATIN AMERICA2020 PROJECTION

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TOP 3 INDUSTRY SEGMENTS IN LATIN AMERICATOTAL PROJECTED INTERCONNECTION BANDWIDTH

Get the rest of the list—and see growth rates.

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CLOUD & IT PROVIDERS

121 Tbps2020 PROJECTION

BANKING & INSURANCE

169 Tbps2020 PROJECTION

CONTENT & DIGITAL MEDIA

96 Tbps2020 PROJECTION

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181% GROWTH*

ENTERPRISES INTERCONNECTING TO CLOUD & IT PROVIDERS

An enterprise is a company operating in banking and insurance, manufacturing, securities and trading, business and professional services, energy and utility, retail, healthcare or government.

*Compound Annual Growth Rate

FASTEST GROWING ENTERPRISE SEGMENT IN LATIN AMERICA2020 PROJECTION

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SERVICE PROVIDERSINTERCONNECTING TO NETWORKS

A service provider is a company operatingin telecommunications, cloud and IT, or content and digital media.

LARGEST SERVICE PROVIDER SEGMENT IN LATIN AMERICA2020 PROJECTION

180 Tbps

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The need for Interconnection Bandwidth increases as companies grow larger, become more geographically distributed and o�er more distributed IT services.

See how you compare to your peers:

HOW DO YOU STACK UP?

PROJECTED AVERAGE INTERCONNECTION BANDWIDTH

BY NUMBER OF EMPLOYEES

PROJECTED AVERAGE INTERCONNECTION BANDWIDTH

BY NUMBER OF LOCATIONS

SERVICES

PROJECTED AVERAGE INTERCONNECTION BANDWIDTH

BY NUMBER OF SERVICES

1-50 51-100 101-500Number of Employees

501-1000 1000+ 1-2 3-5 6-10Number of SaaS Providers

11-14 15+

150

1-2 3-5 6-10Number of Sites

11-20 21+

USERS LOCATIONS

32

23

Interconnection Bandwidth Gbps

1714

10

30

12

20

Interconnection Bandwidth Gbps200

50

100

178

123

6459

180

104

5227 41

Interconnection Bandwidth Gbps

50

100

150

200

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FURTHER INSIGHTS

TAKING THE LEADConsistently across both

Enterprise and Service

Providers, the primary use case

for Interconnection Bandwidth

is to connect to Cloud and IT

Service Providers

BANKING & INSURANCE

Banking & Insurance is

expected to overtake Cloud

and IT Services as the largest

segment, accounting for 27% of

LATAM Interconnection

Bandwidth in 2020

FASTEST CAGR

All industry verticals are

expected to witness a high

double-digit (>50%) CAGR

except Telecommunications,

which started at a high base.

Energy & Utility is expected to

lead all segments, growing by

21X from 2016 through 2020

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THE GLOBAL INTERCONNECTION INDEX

Every business can and should leverage Interconnection to stay competitive in the digital age. Start with the Global Interconnection Index, a new global baseline to track, measure and forecast Interconnection Bandwidth. See all the detailed trends, insights and implications of Interconnection among your peers and around the world—and then take the next step.

SEE THE INDEX