Virtualization Technology News and Information
Global Cloud Xchange 2022 Predictions: Looking Back at 2021 and Looking Forward to 2022

vmblog predictions 2022 

Industry executives and experts share their predictions for 2022.  Read them in this 14th annual series exclusive.

Looking Back at 2021 and Looking Forward to 2022

By Jim Fagan, CSRO, Global Cloud Xchange

Takeaway: Growth in global demand for content and connectivity are driving favorable conditions for secure Cloud access at scale for enterprises in the fastest growing markets, supporting GCX's leadership position and solid financial performance.

GCX Outlook Sees Reach, Flexibility, Efficiency, and Security Driving Opportunity

The GCX turnaround through 2021 has been a significant story in the submarine fiber optics business and the team, in many ways, is just getting started.

The company operates the largest, neutral, privately owned network of high-capacity submarine cable systems that stretch some 66,000km, connecting 46 countries on 4 continents. Despite news of delayed new builds and challenging pricing models, the subsea telecom business is solid especially for those keeping pace with and driving innovation. Global internet and cloud capacity continues to grow, and subsea cables provide the durable backbone to support that growth. And the industry boasts seasoned teams with decades of experience to provide leadership focused on value creation.

So, what lies in store for the subsea telecom business in the year ahead and beyond? Here are a few of the opportunities and trends that GCX is eyeing.

Subsea Links for Hyperscalers and Enterprises

This past year saw continued growth in all markets GCX serves, with significant upticks in intra-Asia and Middle East capacity. This was driven by ever-increasing demands for content in these markets combined with additional in-market capacity through new builds being delayed. New build and even expansion projects are often consortium ventures, typically with one of the hyperscalers as an anchor. Timing on these projects can be impacted because all partners have to agree, and have the resources on hand, from a CapEx perspective.

In 2022, we are expecting a continued focus on Europe, the Middle East, and India as well as the Asia-Pacific driven by accelerating 5G rollouts in these markets. At the heart of this growth is increasing content consumption, including social media, IG, TikTok, streaming and gaming.

OTT Traffic and Growth

In 2022, GCX will be looking to expand our capabilities in the markets we already serve through partnerships, investments in our network, investments in new capacity and market offerings. If you look at our footprint, we are definitely a go-to for U.S. OTT companies. That includes both the Facebooks and Googles as well as the gaming companies, SaaS platforms and more.

And when you look at who is consuming subsea capacity, obviously the Big Tech firms are buying a ton, but if you go down to the next year, you see gaming, streaming, and those are the customers who are consuming more and more of the capacity. All their operations are built in the cloud. It could be their own data center, it could be an edge, or even an IoT device in some instances. We want to make sure we are connecting to all the right spots where the company's customers are.

Gaming is one of the applications that we think fits very well into our strategy. It is an enormous opportunity for us. It's already a huge market and it's getting bigger. We think that with our strengths, particularly in the Middle East, GCX can lead the industry in terms of gaming. We have the capacity and the ability to get things done in that region. Gaming is following a similar pattern to that of the cloud providers many years ago. I think we can open some doors for the gaming industry and allow them to move much faster.

We will never be an application company, nor do we want to be. But we are looking at how we can leverage our core layer 1 capacity and tie that into an intelligent IP network that gives these cloud companies the redundancy they need.

Cloud Migration Driving Edge Expansion

Digital transformation and the migration of data and applications to the cloud is a global phenomenon. We believe cloud suppliers will look to add more edge presence in developing markets where GCX already has a strong presence and high availability to bring on new services.

As hyperscalers expand markets through service at the edge, you still need persistent connectivity back to their primary cloud. That's the only way the product works. Enterprises have options on how they connect, especially in multi-cloud environments. If you're in countries where your providers don't have a cloud presence, you need to go subsea to connect.

GCX is building a unique globally accessible Cloud ecosystem further leveraging its subsea assets where customers can create, manage and connect their networks throughout the world.



Jim Fagan, CSRO, Global Cloud Xchange

Jim Fagan 

Jim is the Chief Strategy and Revenue Officer (CSRO) at Global Cloud Xchange (GCX). Jim is responsible for keeping GCX at the cutting edge of innovation. Jim is a transformative and proven technology executive with more than 20 years of experience spanning across small private and public companies, private equity-owned to large publicly traded multinational companies across the US, Asia Pacific, and China. Previously, Mr. Fagan led financial operations at Rackspace, assisting with their first IPO. Also, he was the founder and Managing Director for their Asia Pacific business, based in Hong Kong. He subsequently joined Pacnet, a subsea cable and data center provider (later acquired by Telstra), responsible for developing its product portfolio, data center business, and the build and deployment of the world's first international SDN platform. At Telstra, he was responsible for their Cloud and SDN business, and their global and Australia domestic Enterprise connectivity platform.

Published Tuesday, December 28, 2021 7:30 AM by David Marshall
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
<December 2021>