What Businesses need to know about Interconnection

You probably have heard the term, Interconnection used severally, but what does it mean for your business to be interconnected to a global ecosystem? Let’s find out.

Interconnection is the private exchange of data between businesses. More specifically, it is the deployment of IT traffic exchange points that integrate direct, private connections between counterparties. It is best achieved in carrier-neutral data center facilities, where distributed IT components are colocated.

In an age when reams of information race around the world with the click of a finger and massive transactions routinely occur several times faster than the blink of an eye, interconnection powers digital business allowing for the seamless exchange of information, resources, and services, to enable modern businesses, organizations, and societies function efficiently and effectively.

To advance the digital transformation journey of your business, some of the key features to look out for in interconnection include:

1.Digital ecosystem density

Interconnection links numerous discrete entities and makes them not only capable of uniting with each other in digital ecosystems, but also of connecting as a unit with other individual entities, ecosystems, and groups of ecosystems.

This is the many-to-many connectivity that’s required in this interconnected era, when companies create value by connecting to partners, customers, and employees globally to collaborate or exchange data. These entities must be able to connect instantly and simultaneously over a variety of devices and through various sources to execute the ultra-fast transactions essential to business today

2. Proximity

Bringing together global players (including cloud providers, data, companies, digital ecosystems, and individuals) in an ecosystem is just one hallmark of interconnection. These interconnected parties must also be as close to each other as possible. Distance creates latency, and shrinking the distance between counterparties is the only way to minimize it and offer the greatest user experience possible. In addition, closer connections (via cross connects or exchange ports) are typically far less expensive than connections over long-haul networks which helps interconnected partners overcome latency.

3. Direct connectivity

Direct connections that do not need to traverse the public internet are another key characteristic of interconnection. Direct, private, one-to-one or one-to-many connections are the fastest connections. They not only deliver the best performance, they’re also the most secure. Moreover, interconnection is becoming increasingly important in the age of cloud computing, as more and more organizations are moving their applications and data to the cloud. Interconnection provides a secure and reliable way for organizations to access and use cloud-based services and resources, without having to rely on the public internet. This helps to improve performance, reduce latency, enhance security and privacy and is important in a time of expanding digital borders and expanding vulnerabilities.

4. Global reach

Businesses, cloud providers and digital communities need a place to gather to be close enough to each other to make their myriad direct connections. These places must be close to dense population centers, or high latency will degrade the user experience. In the global digital economy, interconnection must happen at distributed exchange points like the carrier-neutral colocation facility which MDXi Data Center, an Equinix Company operates. We provide a rich interconnection environment within our Data Centers that allows colocated customers connect to themselves, multiple telecom and ISP networks, cloud, payment and content providers while significantly reducing the cost of multiple links to various network providers. The alternative is backhauling traffic to a central data center, which is costly and can’t provide the connectivity that users demand.

In our hyperconnected world, interconnection isn’t optional. As digital transformation continues to accelerate, businesses must be interconnected to compete and grow in the digital economy. You can also get more details on the advanced importance of interconnection here.