Final month, I had the pleasure of talking at Cairo ICT about colocation and connectivity tendencies.
I lined international bandwidth first, adopted by a rundown on bandwidth within the Center East and Africa.
Subsequent up, knowledge facilities and interconnection hubs, with a dialogue on the place the hubs are, what makes a hub, and the way hubs develop. Lastly, I talked about end-user demand, which is essential with the expansion of web and demand.
You possibly can catch a video of this presentation and obtain my slides beneath.
[Transcription starts at 04:43]
If we watch submarine cables, we form of have an thought the place hyperscalers need to go, or transfer, or construct their submarine cables, or their consortium cables to attach these knowledge facilities.
So within the subsequent three years, we’re seeing $11 billion of funding. It is an enormous, enormous quantity of progress. It takes going again to the early 2000s earlier than we see progress like this. So that is all introduced funding.
Why will we see this? As a result of globally, we’re seeing demand, and we’re speaking about capability rising at 20-30% a 12 months.
So, to fulfill the demand, industrial elements like decreasing unit prices. An important side for hyperscalers is to reinforce route variety as a result of, as we noticed with what occurred in Africa, Center East originally of the 12 months—the cable cuts within the Purple Sea and off the coast of Côte d’Ivoire—we noticed a variety of issues with connectivity.
So though there are three or 4 cables per aspect—long-haul cables—that go all the best way down, the hyperscalers see this, they usually say, “oh, we’d like extra connectivity, extra resiliency.” So we’ll be seeing much more cables coming in.
Additionally, a variety of the cables are getting old out, totally on the Africa aspect. Plenty of the cables got here in round 2010, about 2008, 2012. These cables are beginning to become older, economically virtually finish of life, so it is getting nearer.
That is only a map—as a result of TeleGeography is maps—that reveals the latest cable methods in crimson, the deliberate cables in grey, after which all of the blue dots are mainly what number of landings per location. For those who look carefully, the place do you see a ton of landings over the subsequent few years?
Plenty of it across the peninsula within the Center East and the northeast aspect of Africa, after all, together with Egypt. And that is why we’re right here.
This picture reveals the place all of the deliberate knowledge facilities, hyperscaler cloud knowledge facilities have been introduced to be constructed. And in case you look as soon as once more it’s very dense across the peninsula, Arabian Peninsula, and in Africa.
Now, a few issues which can be essential after we’re speaking in regards to the progress and the connectivity is pricing.
That is the weighted median of 100 GigE IP transit, mainly shopping for web, on the planet. Principally, inexperienced is a really low worth globally and crimson is a really excessive worth. So we see three areas left with very excessive costs for connectivity, or IP transit, within the Center East space, India, and Australia.
After which if we take a look at this, it is exhibiting the speed of decline. We see the crimson is a sluggish charge of decline and the inexperienced is a quick charge of decline.
India is declining slightly sooner. South Africa has been declining in a short time just lately, however the Center East and a few elements of East Asia are holding. After which within the U.S. and Western Europe there hasn’t been a lot of a drop as a result of costs are already so low. Maintain that in thoughts as we go ahead.
Desire a copy of Patrick’s slides?
Obtain his full presentation over right here.
