Demand for direct interconnections boosts Megaport's recurring revenue in Americas
Surging demand from enterprises for direct interconnections in North America has led to Megaport seeing an 80% growth in recurring revenue in the region over the last six months, the carrier has revealed.
In the North America region, Megaport has increased its monthly recurring revenue from $0.55M to $1M in the first half of Fiscal Year 2019 – a number that has doubled in the last eight months – showing the rising need for on-demand interconnectivity.
The worldwide public cloud services market is projected to grow by 17.3%, this year, to a total of $206.2bn, according to a Gartner study, with infrastructure-as-a-service (IaaS) will be the fastest-growing segment with forecasted growth of 27.6% in 2019.
Increased customer knowledge and trust of public cloud services has helped to fuel Megaport’s growth, the company said in a blog post, whilst easier access to cloud providers through the likes of Megaport has helped the company benefit from this.
Megaport’s cloud partners include Alibaba Cloud, Amazon Web Services, Google Cloud, IBM, Microsoft Azure, Oracle, and Salesforce. It connects into data centres in over 240 locations within local metros, interstate routes, and internationally, including a large footprint in the US.
Megaport CEO Vincent English said: “This is a fantastic result that we believe validates the continued substantial investment we have made in the North American market. Our investment in sales resources, as well as the continued expansion of our network footprint, has enabled us to greatly accelerate our monthly recurring revenue in the first half of Fiscal Year 2019.
“By aligning our go-to market plans with the major cloud services providers, we can continue to offer more cloud on-ramp choices than any other global interconnection fabric. This level of choice combined with the capabilities of the Megaport Cloud Router has made it easier than ever for companies to rapidly connect to the services they need on demand.”