Benefts of Data Center Interconnect

Over the last few years, we have seen the resurgence of the point-to-point (P2P) connectivity business in India. When we speak about P2P connectivity in enterprise networking terminology, we focus on DLC/IPLC (Domestic/International Private Leased Circuits) or Ethernet Connectivity. The need for such private point-to-point connectivity has risen due to multiple factors, but the primary catalyst for this growth has been the rise of Cloud and Hyperscalers.

Most tech giants require high-speed connectivity with ultra-low latency to connect two or more of their data centers to provide the ever-growing need for a hybrid, multi-cloud IT environment.

This is a complete reversal of fortunes for the P2P market, which saw a steady decline over the last few years before the need for data center interconnect kicked in. The general enterprise trend in network consumption is primarily geared towards MPLS (VPN connectivity) or ILL (internet leased line). Most organizations’ network requirements get fulfilled by either of the two technologies. But in the case of OTTs, Hyerscalers and Cloud Service Providers, since their scale of operations requires direct connectivity between data centers, we see a spike in the uptake of P2P connectivity business.

The rise of data center interconnect can also draw a parallel with the growth of colocation services in India. Many of the data center providers offer DCI services to their customers.

Many of the manual tasks can be automated by integrating industry-standard APIs into DCI solutions, reducing maintenance hassles.