The whole point of virtual networks is that location and distance do not matter. Connections are not necessarily defined by what is connected inside the four walls of a single building; between data centers; between domains; between countries and peering points.
In principle, server-to-server connections inside a single building (cross connects); connections within a single metropolitan area; between data centers and cloud providers or between internet domains.
To be sure, many estimates of the data center interconnection market show that infra revenues (hardware and software) represent the lion’s share of revenue, as is the case for private networks generally.
Still, interconnection services revenue increasingly will be shaped by virtualization, which tends to erase or minimize physical location as a driver of service revenue.
Eventually, a growing share of “interconnection” services revenue will blur the distinction between “inside the building” and “outside the building.”
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