Final month, I had the pleasure of talking at Cairo ICT about colocation and connectivity traits.
I lined world 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 under.
[Transcription starts at 04:43]
If we watch submarine cables, we sort of have an concept the place hyperscalers wish 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 satisfy the demand, business elements like decreasing unit prices. A vital facet for hyperscalers is to reinforce route variety as a result of, as we noticed with what occurred in Africa, Center East in the beginning 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 facet—long-haul cables—that go all the best way down, the hyperscalers see this, they usually say, “oh, we want extra connectivity, extra resiliency.” So we’ll be seeing much more cables coming in.
Additionally, a variety of the cables are growing older out, totally on the Africa facet. Lots 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 exhibits the latest cable techniques in pink, the deliberate cables in grey, after which all of the blue dots are mainly what number of landings per location. In case you look carefully, the place do you see a ton of landings over the subsequent few years?
Lots of 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 exhibits the place all of the deliberate knowledge facilities, hyperscaler cloud knowledge facilities have been introduced to be constructed. And should you look as soon as once more it’s very dense across the peninsula, Arabian Peninsula, and in Africa.
Now, a few issues which might be vital after we’re speaking concerning 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 pink 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 pink is a gradual fee of decline and the inexperienced is a quick fee 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. Hold that in thoughts as we go ahead.
Need a copy of Patrick’s slides?
Obtain his full presentation over right here.
