Understanding Interconnection in Colocation Data Centers

What is interconnection? Interconnection is an over-arching term that refers to many different physical and virtual connections companies can select to exchange data, provide business continuity and customer services, and address specific business objectives. Interconnection in colocation data centers are vital for fast data exchange, reduced latency, improved network performance, and other benefits.

Yet, the term interconnection is often used in different ways. As a result, it’s easy to understand why there is some confusion related to interconnection today. It may also explain why there are so many frequently asked questions (FAQs) on this topic.

To help, this article will take a closer look at interconnection in colocation data centers. It will also include a detailed look at five different but commonly used interconnection approaches today.

Why Do We Need Interconnection?

Why do companies need interconnection? The first answer is that interconnection plays a major role in helping businesses become more agile and responsive. Interconnection services from colocation providers enables unprecedented flexibility to distribute computing resources and move intelligence closer to the point at which decisions are made.

Interconnection also enables organizations to directly connect their networks to reduce the number of hops data must take to reach its destination. This leads to reduced latency, faster data transfer speeds, and improved application performance. The right interconnection technology and strategy can be a critical advantage for latency-sensitive workloads like streaming services, real-time data analytics, and financial transactions.

It may be helpful to think of interconnection as an umbrella term to refer to many technologies capable of connecting networks to networks. However, it’s important to know the difference between each type. This can help you select the right technology for the right job to establish connectivity in the data center.

Let’s take a closer look at five types of interconnection services available in most data centers today.

Cross Connects

Cross Connects represent the most basic type of interconnection. This term generally refers to the physical and dedicated connection between two networks directly within the same data center. Cross Connects provide dedicated, point-to-point connectivity as well as the most reliable, efficient, and secure way to connect networks and infrastructure. They also deliver excellent reliability and low latency.

Internet Exchanges

An internet exchange, or internet exchange point (IXP), is essentially a network switch. Organizations connect to an IXP via a physical cross-connect, enabling them to link up with other IXP members, without the need for dedicated cabling (or cross connect) to each IXP member.

Companies use internet exchanges to set up peering with other networks linked to the IXP. They use the BGP protocol for peering sessions through a single physical link, once again eliminating the need for extra cables. This peering capability is a key advantage for interconnected entities like internet service providers, content delivery networks, other service providers, and enterprises. It helps them cut transit costs, boost capacity, and enhance network performance.

Private peering, on the other hand, occurs within a colocation facility, where two parties use separate network routers but establish a direct cross connect rather than using the IXP. This setup is advantageous when large traffic volumes are exchanged between networks, exceeding the capacity of a shared exchange point connection.

Data Center Interconnects (DCI)

A data center interconnect (DCI) is similar in theory to a cross connect but uses electronics, typically DWDM, to establish a point-to-point connection between two data centers so they can share resources or improve other operations such as load balancing. For example, a company could choose to connect two different networks in the same metro or in two different metros.

DCI can connect any data center whether it’s in close proximity or located a great distance apart. This may depend on the technology used to deliver the connectivity (Optical Networking, or Ethernet).

Internet Connectivity

As the term suggests, internet connectivity enables data center clients to access and use the internet — and vice versa — for internet users to quickly reach the websites and applications of data center clients. However, this goes far beyond a simple connection. There are several methods to deliver internet connectivity, including:

• Dedicated Internet Access (DIA) that offers basic connectivity. (Burstable Internet Access offers connectivity with a usage-based billing method.
• IP Transit, which is more sophisticated, leveraging the BGP protocol. This approach enables organizations to advertise their own IP prefixes and manage how routing information is utilized.

Cloud Connectivity

Cloud connectivity refers to a company’s ability to link its systems to a virtual environment hosted by public cloud providers such as AWS, Microsoft Azure, or Google Cloud Platform, enabling access to their data and workloads.

While businesses often have resources like computing power, storage, and services housed in a data center, their applications may reside in the cloud. For optimal performance, they require a secure, private connection between these environments to address challenges related to bandwidth, reliability, and security.

There are several approaches to establishing cloud connections:

• VPN: Businesses can link virtual private clouds to remote networks using various VPN options, such as site-to-site VPNs, cloud provider-specific VPN solutions, or third-party VPN software.
• Cloud on-ramps: These connections utilize network infrastructure deployed by cloud providers. However, they may not be universally available across all data centers due to cost constraints, especially in regions with many data centers. Companies located in facilities with cloud on-ramps can access them easily through a cross-connect.
• Network as a Service (NaaS): Organizations in data centers without cloud on-ramps can use NaaS platforms to achieve similar connectivity. NaaS operates much like an IXP, acting as a switch to connect companies to various cloud on-ramps.

All these options are designed to help companies in colocation data center environments access public cloud services efficiently, reliably, and securely.

Optimizing Connectivity for Modern Businesses

Interconnection in data centers is crucial for businesses seeking to optimize their network infrastructure and reduce operational complexity. The evolving landscape of interconnection technologies offers businesses the flexibility to tailor their connectivity solutions to meet their specific needs and improve the way they manage their business.