Final month, I had the pleasure of talking at Cairo ICT about colocation and connectivity tendencies.
I lined world bandwidth first, adopted by a rundown on bandwidth within the Center East and Africa.
Subsequent up, information 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’ll be able to catch a video of this presentation and obtain my slides beneath.
[Transcription starts at 04:43]
If we watch submarine cables, we sort of have an thought the place hyperscalers wish to go, or transfer, or construct their submarine cables, or their consortium cables to attach these information facilities.
So within the subsequent three years, we’re seeing $11 billion of funding. It is an enormous, large 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 satisfy the demand, business elements like lowering unit prices. An important facet for hyperscalers is to reinforce route range as a result of, as we noticed with what occurred in Africa, Center East at the start of the 12 months—the cable cuts within the Crimson Sea and off the coast of Côte d’Ivoire—we noticed a variety of issues with connectivity.
So despite the fact that there are three or 4 cables per facet—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 facet. Numerous the cables got here in round 2010, about 2008, 2012. These cables are beginning to grow old, economically nearly finish of life, so it is getting nearer.
That is only a map—as a result of TeleGeography is maps—that reveals the newest cable methods in crimson, the deliberate cables in grey, after which all of the blue dots are principally what number of landings per location. In case you look intently, the place do you see a ton of landings over the subsequent few years?
Numerous it across the peninsula within the Center East and the northeast facet of Africa, after all, together with Egypt. And that is why we’re right here.
This picture reveals the place all of the deliberate information facilities, hyperscaler cloud information facilities have been introduced to be constructed. And for those who look as soon as once more it’s very dense across the peninsula, Arabian Peninsula, and in Africa.
Now, a few issues which are necessary after we’re speaking in regards to the progress and the connectivity is pricing.
That is the weighted median of 100 GigE IP transit, principally shopping for web, on this 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 fee of decline and the inexperienced is a quick fee of decline.
India is declining somewhat 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. Preserve that in thoughts as we go ahead.
Desire a copy of Patrick’s slides?
Obtain his full presentation over right here.
