In today’s hyperconnected world, Data Centres are at the heart of the digital infrastructure that run our digital lives. Before we go any further, let’s spend a moment to understand what exactly are Data Centres and what makes them play such a critical role in ensuring seamless connectivity across our work-related applications as well as other entertainment-led on-demand services.
Data Centers: The building blocks of IT Infrastructure
Simply put, a Data Center refers to any physical facility such as a room or a building that’s used to store IT infrastructure for the purpose of hosting, managing and processing data. This data is used for building, maintaining and delivering critical applications and online services.
In today’s complex world, where customers expect digital services to be available on-demand, businesses may use one or multiple types of data centers, based on the workload and business requirements. The most common types of data centers are:
| Enterprise Data Centers (On-premises) |
Public Cloud Data Centers | Managed Data Center and Colocation Facilities |
| All the IT infrastructure is hosted within the company’s premises | The IT infrastructure is shared by multiple customers, who can access these services on-demand, through an internet connection. | In Managed Data Center, the business leases dedicated servers, storage and networking hardware from the Data Center provider, while the latter handles the management. |
| One of the main reasons for businesses choosing this model is due to greater control over information security. | Public Cloud Data Centers manage some of the largest Public Cloud Data Centers - ‘Hyperscale Data Centers’ | In a colocation facility, the client owns all the infrastructure but leases a dedicated space to host it within the facility. The colocation provider offers management and monitoring services for clients. |
| Large cloud service providers such as AWS, Microsoft Azure, Google Cloud Platform, IBM Cloud and Oracle Cloud Infrastructure are referred to as Hyperscalers |
Data Center Interconnect (DCI) Technology
Data Centers need to connect with each other in order to share data, content and provide back-ups. The technology that connects two or more Data Centers over short, medium or long distances is called Data Center Interconnect (DCI) Technology. Initially this technology was primarily used as part of disaster recovery or business continuity plans to ensure data could be immediately restored from another center in the event of failure or loss of data. However, over the years Data Center Interconnect (DCI) Technology is increasingly used for replication of data and backup, while optimizing the workloads across different locations.
Understanding The Data Center Interconnect (DCI) Market
The Data Center Interconnect (DCI) market is poised for massive growth due to a host of reasons including increased migration towards the Cloud, massive increase in OTT content consumption, the adoption of technologies such as AI & ML, High-Performance Computing and the rollout of 5G technology.
The size of the Data Center Interconnect (DCI) market is USD 12.28 Billion in 2023 and is projected to reach USD 24.68 Billion by 2028, at a CAGR of 14.98%.
Here’s a short analysis of the Data Center Interconnect (DCI) Market:
One of the key reasons for the growth of the DCI market is the shift in preference among businesses and organizations towards cloud-based solutions, especially post the Covid-19 pandemic.
Today, increasingly more viewers are switching towards streaming OTT content leading to a massive increase in cloud-based solutions and a staggering demand for Data Center Interconnect (DCI) services.
With more telecom service providers offering 5G connectivity, the scope for Data Center Interconnect (DCI) services will only increase exponentially.
Technologies such as Virtual Reality, Autonomous vehicles, digital twins, AI virtual assistants, Generative AI, Edge Computing, etc. will drive the adoption of cloud-based services, leading to greater demand for Data Center Interconnect (DCI).
With the growing awareness of the benefits of the Cloud such as easy access, greater convenience, highly encrypted data, lower costs, on-demand availability, etc., the Data Center Interconnect (DCI) market continues to grow.
In the following post, we will explore the challenges faced by the Data Center Interconnect (DCI) industry and how Lightstorm is helping overcome them by ensuring customers can enjoy seamless connectivity.
