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Understanding Interconnection and Its Business Benefits

Damion Lackamp, Director, Network Products

August 24, 2017

When the first lines of communication traversing oceans and connecting continents were opened, business changed irrevocably. The shift from local economies to a larger, diverse global economy had begun. As those connections have grown more sophisticated, businesses have had more opportunities to compare products and services, and as a result, more opportunities to differentiate their offerings from the competition.

In today’s cloud computing age, businesses have more powerful interconnection capabilities than ever before. Beyond the incredible utility of cloud storage, the benefits of interconnection for today’s businesses are many. Read on to learn about the basics of interconnection and the numerous ways it can benefit your business.

What is interconnection?

Simply put, interconnection is the ability to send and receive Voice and Data traffic through either a private or public connection. It’s the most effective way for businesses of all kinds to have access to important resources that support its mission critical applications and maximize the success of its daily operations.

How does it differ from simple connectivity?

Interconnection goes beyond simple connectivity in that it constitutes a many-to-many connection, rather than a one-to-one. It enables companies to connect to partners, customers, or employees globally to collaborate on or exchange data, creating new insights and adding extra value to these partnerships. Cross connects are the vehicles that enable these interconnections.

What is a cross connect?

A cross connect is a simple, direct, secure connection made between two parties within a data center. It enables businesses to connect to service providers or other partners without any “middleman” in between. Though there are different kinds of cross connects, it is generally the most secure and efficient way to connect to services. With Digital Realty, deploying cross connects is quicker and easier than ever thanks to our MarketplacePORTAL.

Utilizing the simple, customer-facing MarketplacePORTAL interface, Service Exchange customers also have access to virtual cross connects (VXC). VXC is a direct Ethernet connection allowing high speed, private connectivity. VXCs are provisioned within minutes allowing rapid deployment and time to revenue. This provides a fast, secure and affordable means of connecting to a wide range of enterprises and service providers.

Who uses interconnection, and what for?

Digital Realty customers have a wide variety of uses for interconnection. Cloud providers and other managed service companies deploy virtual cross connects to offer their services to multiple customers occupying the same Digital Realty facility. Financial institutions use hundreds of cross connects to link to market data, exchanges and institutions around the world. The functions are diverse, but the results are predictable. From connecting globally dispersed employees to deploying mission-critical infrastructure and applications, it all happens within a reliable and secure environment.

Would you like to learn more about interconnection with Digital Realty? Find out how carrier-neutral interconnection can improve application performance.