How Data Center Interconnections Drive Business Success

In today’s digital world, the ability to move data quickly, securely, and reliably between networks, cloud providers, and business partners has become a competitive necessity.

Data center interconnections play an important role in this need for connectivity. This specialized infrastructure enables direct, private connections between different networks and systems without relying on the public internet.

In this article, we’ll revisit what data center interconnections are—and their key benefits for modern businesses. We’ll also look at DataBank’s new Interconnection Marketplace to show how this platform helps customers research, compare, and connect with hundreds of network cloud providers in one place. This solution turns what was once a complex, time-consuming process into a streamlined experience.

Understanding Data Center Interconnections

As a quick refresher, data center interconnection refers to the process of establishing direct connections between networks, systems, or devices to enable seamless communication and data exchange. (For even more information, read our detailed blog article, Understanding Interconnections.)

Unlike traditional internet-based connections that route traffic through multiple intermediaries, interconnections create dedicated pathways that dramatically improve performance, security, and reliability.

These connections take several forms, each serving specific business needs. These include:

• Cross-connects that provide direct physical links between different networks within the same data center facility, enabling instant data exchange without external routing.
• Cloud on-ramps that offer dedicated pathways to major cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, bypassing the unpredictable performance of public internet connections.
• Internet exchange points that allow multiple networks to interconnect and exchange traffic directly, reducing latency and improving overall network performance.

Each of these interconnection types offers clear benefits for businesses.

Why Direct Connections Matter: The Business Case for Interconnections

Speed is the first advantage most businesses experience. Latency drops dramatically when data doesn’t need to traverse multiple network hops across the public internet. This can reduce response times from hundreds of milliseconds to single digits.

Security is better with private, dedicated channels instead of shared public infrastructure. This approach eliminates many potential attack vectors and compliance concerns. Reliability also increases since businesses aren’t dependent on the varying performance and potential outages of multiple internet service providers.

Cost savings are often the biggest benefit. Organizations can reduce their reliance on expensive bandwidth purchases from multiple carriers. Direct interconnections can eliminate costly data egress fees from cloud providers, reduce the need for redundant internet connections, and lower overall networking expenses. For businesses running bandwidth-intensive applications like video streaming, large-scale data analytics, or real-time collaboration platforms, these cost reductions can make a real difference.

The benefits extend beyond technical improvements. Faster applications mean happier customers and fewer complaints. Reduced outages translate to less lost revenue, higher employee satisfaction, and improved business value.

The Challenge of Interconnection Complexity

Despite these advantages, implementing interconnection strategies has traditionally been a complex, time-consuming process. Businesses faced the daunting task of researching hundreds of potential network providers, cloud services, and connectivity options without clear visibility into what was available at their chosen data center locations.

The process typically involved too many phone calls, emails, and negotiations with different carriers and service providers. IT teams struggled to compare options, understand pricing models, and determine which connections would best serve their specific requirements. This complexity was particularly challenging for businesses operating across many geographic markets, where interconnection options could vary dramatically between locations.

Traditional data center environments created their own additional barriers. Restrictive policies, complex cross-connect procedures, and little information about available providers made it even harder for businesses to implement the best connectivity strategies. Many organizations found themselves making poor decisions simply because they lacked detailed information about their options.

DataBank’s Interconnection Marketplace: Simplifying the Complex

Recognizing these challenges, DataBank recently launched our Interconnection Marketplace, a dynamic platform that changes how businesses make connectivity decisions. This self-service tool gives clear visibility into DataBank’s network, cloud, and SaaS providers across 67 data center locations.

The marketplace solves the information problem that has made interconnection planning so difficult. Instead of making dozens of phone calls and emails, customers can now see all available options in one place. The platform lets users filter by region, provider type, and data center location to find the right partners faster.

DataBank created the Interconnection Marketplace to simplify the process of researching and building connections that drive business success. Whether a customer business is trying to reduce complexity, scale operations, or improve latency and redundancy, this tool empowers users to navigate our ecosystem and create a customized interconnection plan that meets its specific needs.

The marketplace’s value extends beyond simple provider discovery. By offering visibility into more than 200 network, cloud, and SaaS providers, businesses can make better decisions about their connectivity. Companies can find backup connection options, identify the fastest paths to important resources, and improve their overall network setup.

A Better Way Forward

DataBank’s Interconnection Marketplace represents more than just a convenience. It’s an important tool for businesses that need better connectivity solutions. In an era where application performance, data security, and network reliability directly impact business outcomes, having clear visibility into connectivity options gives companies a real advantage.

The platform eliminates guesswork from interconnection planning, reduces time needed for new connections, and ensures businesses can make informed decisions based on complete information rather than limited research. For organizations supporting AI workloads, hybrid cloud setups, or demanding real-time applications, this level of connectivity information is increasingly important.

As businesses continue to evolve their infrastructure needs, tools like DataBank’s Interconnection Marketplace become more valuable. By combining comprehensive provider visibility with easy self-service capabilities, it transforms interconnection from a complex technical challenge into a manageable decision that can improve performance, enhance security, and reduce costs.