The definition of “interconnection,” and “interconnection revenue” in the data center space might be changing. That is especially true as we move towards greater use of edge computing, which will both increase the demand for local and metro connections as well as add some amount of wide area network interconnection demand between data centers.
Traditionally, such functions might mostly have been applied to in-building connections between servers. In such instances, even when there was a fee for such connections, the operations fell clearly within the realm of local area networking.
Today, interconnection increasingly refers to operations and potential revenue connecting servers and buildings across public networks or wide area networks.
According to Viavi, interconnection “refers to the technology used to link together two or more individual data centers to pool resources, balance employee workloads, replicate data, or implement disaster recovery plans and provide business data closer to the edge.”
Data center interconnections, in other words, are now distinct from in-building interconnections connecting campus locations up to about five kilometers; metro connections up to 100 km or traditional WAN connections spanning hundreds of kilometers.
As always, infrastructure providers are direct beneficiaries of new needs for data center interconnections as they supply the appliances required to create the connections. Data center operators might monetize their DCI capabilities directly or indirectly, perhaps separately from in-building cross connects and peering.
Tenants might be charged for use of ports or higher-level networking protocols, for example, whether direct (cross connects) or virtual (WAN connections).
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