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Definition

interconnection

Interconnection is a strategy for ensuring that businesses can privately, securely and directly exchange digital information. The approach, which emerged from attempts to solve the challenge of globally scaling the internet, involves transferring data at geographically advantageous exchange points that are hosted in carrier-neutral data centers. An important goal of interconnection is to enable extremely high bandwidth exchanges with the lowest possible latency, at the lowest cost.

Interconnection plays an important part in digital transformation (DX) initiatives and its bandwidth is characterized by the capacity to transfer traffic over direct private interconnections. Customizable interconnection hubs, also referred to as edge nodes, allow adjacent systems and controls to conduct transactions and interactions more efficiently by moving processing and peering closer to where data is created and consumed. This facilitates ISP-to-ISP and carrier-to-carrier traffic exchanges and plays an important role in content to carrier , e-commerce to carrier , service provider to cloud, enterprise to cloud, cloud to cloud and e-trading traffic exchanges.

According to the Equinix Global Interconnection Index, private data exchange between businesses is expected to outpace the public internet by nearly two times in growth and six times in volume by 2020. To that end, Equinix has created an Interconnection Oriented Architecture™ that both enterprises and service providers can use when directly and securely connecting people, locations, clouds and data.

The guiding principles of IOA are to:

  • Shorten the geographical distance between applications, data and the people that use them.
  • Reduce the amount of data that needs to travel across networks.
  • Colocate data with analytics to improve response times.
  • Take advantage of the services offered by multiple cloud and software-as-a-service (SaaS) providers.
This was last updated in May 2018

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