According to an annual market study by Equinix titled “Global Interconnection Index (GXI) 2023”, most ecosystem-connected businesses—those directly interconnecting with partners to provide their own digital services—have expanded their digital operations more in the past five quarters than in the previous five years. The report also asserted that the global supply chain constraints and geopolitical and economic instabilities are not slowing the pace of digital infrastructure investment for the most connected companies. On average, organisations are connecting to three times as many business ecosystem partners and metros, consuming more than twice the amount of interconnection bandwidth.

As Indian businesses reinvent themselves in the aftermath of the global pandemic, ecosystem density has become a catalyst for digital innovation, which continues to fuel the growth of interconnection bandwidth. According to GXI 2023, Mumbai is the fastest growing edge metro in India, with a five-year compound annual growth rate (CAGR) of 50 per cent, and is forecast to surpass other edge metros like Melbourne and Osaka in terms of interconnection bandwidth by 2025. This forecasted growth shows how Indian digital leaders are rethinking their business to implement future-proof infrastructure on technology platforms for global and regional competitiveness.

Commenting on the report, Steve Madden, vice president, Digital Transformation and Segmentation, Equinix, said, “In today’s dynamic setting, every business is becoming a digital provider, which requires a new type of digital infrastructure built sustainably around leveraging ecosystems to deliver seamless digital experiences. Those with a digital-first strategy in place, investing in a robust, future-looking business model and interconnecting to rich ecosystems, are prepared to scale, adapt and thrive.”

Additional Insights from GXI 2023:-

  • Digital growth continues – Interconnection bandwidth is forecast to continue growing at over 35 per cent compound annual growth rate (CAGR) across all regions and major metros through 2025 with Mumbai continuing be the fastest growing edge metro in Asia-Pacific.
  • The move to the edge is accelerating – Both enterprises and service providers are forecast to interconnect to edge infrastructure 20 per cent faster than the core globally.
  • Businesses are becoming digital providers – GXI 2023 predicts that 90 per cent of Fortune 500 companies will become digital providers, both selling and consuming digital services by 2025.
  • The sustainable road to digitally thrive – All industries are harnessing digital to accelerate ESG objectives, where 84 per cent of Indian IT decision -makers in our 2022 Global Tech Trends Survey say they will only work with IT partners who can meet key carbon reduction targets. GXI 2023 forecasts the Energy and Utility sector to lead in digital growth rate through 2025 as all organisations explore a sustainable approach to build and expand their digital presence.

According to Steve White, program vice president, Channels and Alliances, IDC, “As companies increasingly adopt digital-first strategies and look for new ways to drive differentiation, the ecosystem plays an even more critical role. Organisations are relying on ecosystems and digital infrastructure as the foundation to sustainably scale and deliver business value. In order to achieve these business outcomes, companies are interconnecting to customers, partners and vendors to accelerate collaboration and co-creation, as well as meet sustainability commitments.”