November 13, 2018

5 Trends to Dominate the Digital Future of Enterprises in 2019

Equinix predicts 5G, Artificial Intelligence, Blockchain, Data Privacy and Cloud to undergo major architectural changes

SYDNEY, Australia November 13, 2018 Evolving technology and data trends such as 5G, artificial intelligence (AI), blockchain, data privacy and cloud are paving the path for significant IT and network architecture changes in 2019, according to Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data centre company, which today released its top five predictions for 2019. With an unmatched geographic footprint across 52 global markets and nearly 10,000 customers, Equinix has developed unique insights into the key drivers pushing enterprises to succeed in the digital economy. This special vantage point is enabled through a platform that connects established and emerging ecosystems of enterprises and cloud and network service providers.

Equinix's 2019 predictions include:

1) Paving a Path to the Promise of 5G Tomorrow’s high-speed wireless networks will accelerate today’s network transformation

Equinix anticipates that 5G will open up endless possibilities of digital transformation, especially in an IoT and AI-connected world. Australian 5G networks will be switched on in 2019 with leading telecommunications companies committing to selling commercial 5G services by 2019 or 2020.

To attain the high radio density required for 5G, operators are looking to optimise costs through the use of open-source commodity networking hardware and virtualisation of the wireless networking stack. These efforts will pave the way for an Edge architecture to solve for cloud radio networks that will power several radios through pools of virtualised network software. Equinix anticipates increased investments in 2019 in the revamping of existing cellular building infrastructure and building of new edge infrastructure, as well as innovation in hardware and virtual wireless networking stacks for both performance and cost optimisation.

2) Riding the Rise of Distributed Artificial Intelligence Architectures Next-generation architectures will break free from centralised locations

Equinix predicts that the growing use of AI in business and society will increase data usage exponentially. Australian companies are already investing in AI to further improve customer experience and enhance digital innovation.

While first-generation AI architectures have historically been centralised, Equinix predicts that in 2019 enterprises will enter the realm of distributed AI architectures, where AI model building and model inferencing will take place at the local edge, physically closer to the origin source of the data. To access more external data sources for accurate predictions, enterprises will turn to secure data transaction marketplaces. They will also strive to leverage AI innovation in multiple public clouds without getting locked into a single cloud, further decentralising AI architecture.

3) “Un-Blocking” the Chain A network of networks will mature blockchain for greater business security and monetisation

Blockchain investments are growing at a CAGR of 73%, with a projected total spending of US$11.7 billion by 2022, according to IDC.1 Investments in Asia-Pacific (excluding Japan) are also forecast to reach US$2.1 billion in the same period. Equinix predicts that:

  • Enterprises will start to participate in multiple blockchain networks (e.g. food safety, financial services, global container shipment), thus creating a network of networks — something that allows them to simultaneously interact with multiple blockchain ecosystems.
  • Blockchain performance will become a more important requirement within the enterprise space, driven by the need to accommodate more than simple transaction data or as an element in applications where real-time performance and linkage with other data sources matter.  Examples of performance-sensitive blockchain applications include track & trace (supply chain), machine-to-machine (IoT) communication/exchange, and cross-border currency settlement, just to name a few.   
  • Integration will become a huge challenge as enterprises combine their legacy applications with multiple blockchain networks, necessitating the deployment of exchange points for blockchain participants to directly connect and collaborate.

4) Manoeuvring the Data Privacy Maze Changing data protection laws and heightened privacy concerns will inspire more progressive and distributed security processes

Many enterprises and SaaS providers are deploying mini-clouds in multiple regions in order to adhere to local data residence and compliance requirements. They are also looking at distributed data management architectures that require global networks and data fabrics in order to coherently manage these distributed mini-clouds.

Equinix predicts that in order to prevent data breaches and retain control over their data, enterprises will consider:

  • New data management techniques that operate seamlessly on encrypted data (for example, limited forms of data querying on homomorphically encrypted data).
  • New hardware-based virtualisation technology that will prevent service providers from surveiling their customer’s data.

5) Tapping Interconnection to Tame Cloud Complexity Hybrid multi-cloud environments will increase the relevance of interconnection

Enterprises are now accessing SaaS, IaaS and PaaS solutions from multiple providers, and Equinix anticipates that 2019 will see the next level of challenges associated with hybrid-cloud and multi-cloud approaches. According to an IDC report, 66% of Australian enterprises see cloud technology as a tool for competitive advantage and more than 60% of Australian enterprise IT organisations will commit to multi-cloud architecture before the end of 2018, driving up the rate and pace of change in their ICT architectures.2

Equinix believes enterprises will struggle with expanding their security perimeters, as well as integration and management issues as they pursue hybrid multicloud architectures. These predicted trends indicate that enabling capabilities such as security, analytics and data exchange in close proximity to the cloud is a must for seamless cross-border data flow, and the right interconnection partner can help organisations navigate through the complexity of cloud.

According to the Global Interconnection Index, a market study published by Equinix, Interconnection Bandwidth between Enterprises and Cloud and IT Providers in Asia-Pacific is projected to grow 99% CAGR through 2021, supporting businesses building out new digital services and migrating existing workloads to third-party cloud platforms.

Quotes

  • Brian Lillie, Chief Product Officer:

“The market is at an inflection point, where the right digital strategies become the differentiator and source of competitive advantage for organisations. And for the first time in history, the technology to fully enable digital business is available to everyone. As a trusted advisor to thousands of customers around the world, we closely track the market trends that will shape the future of digital enteprise, and help bring customer inspired innovation to life on Platform Equinix.”

  • Samuel Lee, President, Equinix Asia-Pacific

“In the year ahead, multiple technology macro trends will hugely impact the Asia-Pacific region. To succeed in today’s fast-paced digital world, it is crucial for companies to ensure they have the infrastructure required to support the continuous evolving technology landscape and are highly interconnected to keep pace with the performance, scalability and security it demands. Interconnection is central to enabling businesses to embrace new trends and build their digital future. Equinix will continue to play a fundamental role in connecting and powering the digital economy in the coming year.”

  • Jeremy Deutsch, Managing Director, Equinix Australia

“Equinix has identified a number of technology trends that will impact the way in which businesses operate in Australia. In our ever-evolving digital world, it is important for companies to be prepared to support their organisations through the consistent shifts in technology. Businesses need to move closer to the digital edge and architect the cloud infrastructures their organisation needs. Equinix Australia is committed to continuously supporting our customers through our interconnection capabilities.”

Additional Resources

About Equinix

Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centres. In 52 markets worldwide, Equinix is where companies come together to realise new opportunities and accelerate their business, IT and cloud strategies. Equinix.com.au

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX data centres and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centres; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

###

 

Media Contact (Asia-Pacific)

Annie Ho

Equinix

+852 2970-7761

annho@ap.equinix.com

 

Media Contact (Australia)

Christy Seddon

Howorth Communications

+61 413 890 819

christy@howorth.com.au

 

1 Blockchain: Worldwide Technology Market Update and Spending Outlook, September 2018, Doc #US44268418, IDC.
2 IDC - Breaking the digital deadlock to thrive in the Australian Market