Author: Jeremy Nees, Chief Product & Technology Officer – The Instillery
Our connectivity from NZ to the rest of the world is becoming an increasingly vital part of our economy. You could think of it like shipping trade routes of old – without them, you simply couldn’t trade. Similarly
So why have the last 12 months have been so important for NZ’s digital future?
Increased capacity to Australia
In March 2017 the Tasman Global Access (TGA) cable went live. TGA was a joint venture between Spark, Vodafone and Telstra to put another international cable between NZ and Australia. Before TGA, the only high capacity offshore link was via the Southern Cross cable. 10yrs ago – 5 even – a lot of NZ’s internet traffic went from over the Southern Cross straight into the West Coast of the US. This was roughly a ratio of 2:1 in terms of destination vs Australia. That ratio has changed and roughly reversed. The biggest changes have come about through the significant and growing presence of cloud providers in Australia, particularly Sydney. When AWS builds a data centre, it brings all sorts of other services that run on its platform. Similar to Azure. Similar with Google Cloud Platform. In Feb 2018 the Hawaiki cable landed at Mangawhai Heads, Northland, and adds capacity both into Australia and to the US.
While the Southern Cross cable was incredibly reliable
When I first started working in the ISP industry over 10yrs ago, 1Mbps of International bandwidth would cost a business around $600-800 per month! Now you can get a 1Gbps business broadband connection with unlimited bandwidth for around $200 per month. While that isn’t an
What is particularly interesting about this is that you may now get a better service, at a better price, connecting to international content and services
With companies like Megaport, we have also seen extremely flexible ways to set up and buy international bandwidth become available. Megaport will allow you to establish a private connection to the major cloud infrastructure providers and integrate this directly into your local WAN or data centre network. Driven by their software-defined platform, you can simply dial up and down the amount of connectivity you need, plus establish connections to new cloud platforms in minutes.
NZ is better connected internationally than it has ever been, underpinning the reliance of our economy on offshore cloud-based services. Put this together with the awesome UFB services we have in this country, and the picture looks far better than few would have imagined 10yrs ago.
From our perspective at The Instillery, we have seen some of the last big hurdles well and cloud-based leapt for companies looking to use public cloud services.
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