Understanding Interconnection and Its Business Benefits

When the first lines of communication traversing oceans and connecting continents were opened, business changed irrevocably. The shift from local economies to a larger, diverse global economy had begun. As those connections have grown more sophisticated, businesses have had more opportunities to compare products and services, and as a result, more opportunities to differentiate their offerings from the competition.

In today’s cloud computing age, businesses have more powerful interconnection capabilities than ever before. Beyond the incredible utility of cloud storage, the benefits of interconnection for today’s businesses are many. Read on to learn about the basics of interconnection and the numerous ways it can benefit your business.

What is interconnection?

Simply put, interconnection is the ability to send and receive Voice and Data traffic through either a private or public connection. It’s the most effective way for businesses of all kinds to have access to important resources that support its mission critical applications and maximize the success of its daily operations.

Connectivity vs interconnection

Interconnection goes beyond private connectivity connecting via internet. It constitutes a many-to-many connection, rather than a one-to-one enabling companies to privately link to third party devices within the data center preventing long travelling distance. Companies can connect to partners, customers, or employees globally to collaborate on or exchange data, creating new insights and adding extra value to these partnerships. Cross connects are the vehicles that enable these interconnections. The closer these are, the faster the data transaction, the lower potential of lost business.

What is a cross-connect?

A cross connect is a simple, direct, secure connection made between two parties within a data center. It enables businesses to connect to service providers or other partners without any “middleman” in between. Though there are different kinds of cross connects, it is generally the most secure and efficient way to connect to services. With Digital Realty, deploying cross connects is quicker and easier than ever thanks to PlatformDIGITAL™, our global ecosystem allowing parties to collaborate in new ways.

Utilizing the simple, customer-facing Service Fabric™, our global virtual cross connect platform, we enable our customers to have access to virtual cross connects (VXC). VXC is a direct Ethernet connection allowing high speed, private connectivity. Connecting with a 2-layer connectivity to e.g. private clouds or mega-ports in other data centers, VXCs are provisioned within minutes allowing rapid deployment and time to revenue. This provides a fast, secure and affordable means of connecting to a wide range of enterprises and service providers, and ultimately allows the customer to have flexibility to create interconnection on demand.

Who uses interconnection, and what for?

Digital Realty customers have a wide variety of uses for interconnection. Cloud providers and other managed service companies deploy virtual cross connects to offer their services to multiple customers occupying the same Digital Realty facilities all over the world. Financial institutions use hundreds of cross connects to link to market data, exchanges and institutions around the world, however the functionality doesn’t end there. Industries within life-science, research institutions, government administration, e-commerce and gamification just to name a few all benefit from the fast data transfer of interconnectivity.

The functions are diverse, but the results are predictable.
From connecting globally dispersed employees to deploying mission-critical infrastructure and applications, it all happens within a reliable and secure environment.

Curious about interconnection with Digital Realty? Find out how carrier-neutral interconnection can improve application performance. Contact us today.

FAQ

1. What is Interconnection?
   Interconnection refers to the linking of various systems, networks, and organizations to enable seamless communication and data exchange. It has revolutionized business by shifting from local economies to a larger, diverse global economy. In the cloud computing age, interconnection provides access to important resources, improves collaboration, and enhances data exchange within a secure and efficient environment. This leads to lower latency, reduced risk, and increased opportunities for innovation and efficiency in business operations.
   
2. How do cross connects contribute to Interconnection?
   Cross connects are direct, secure connections made within a data center. They play a vital role in facilitating interconnections by ensuring that these connections are secure and efficient. By connecting via cross connects, you achieve interconnection allowing for secure and low latency data transfer between partners, customers, employees and more.
   
3. Why is Interconnectedness Important for Business?
   Interconnectedness is important because it enables global connectivity with partners, customers, and employees, facilitating collaboration and fast data exchange. This ultimately lowers latency, reduces the cost of doing business, and supports mission-critical applications. Additionally, it allows businesses to access important resources, improve application performance, and enhance data exchange within a secure and efficient environment