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Measuring the ROI of Software-Defined Interconnection

· 1 min read · Peer1IX Team

Measuring the ROI of Software-Defined Interconnection

A simple framework to quantify what a connectivity hub saves in recurring cost, engineering time and project delays.

Three kinds of cost

When evaluating software-defined interconnection, look at three cost categories.

1. Recurring connectivity cost

Add up the monthly charges for every cross-connect and dedicated circuit to clouds, partners and sites. Compare that with the cost of a hub port plus virtual circuits for the same connections.

2. Engineering effort

Each physical connection needs to be ordered, tracked, installed, tested and maintained. Estimate the hours your team spends per connection per year. Virtual circuits reduce much of that work to configuration.

3. Time to deliver

How long do projects wait for connectivity today? If a new partner integration or cloud migration is held up for weeks waiting for a circuit, that delay has a business cost — deferred revenue, extended dual-running of systems, or missed deadlines.

Building the comparison

ItemTodayWith a hub
Physical connectionsManyOne or two ports
Time to add a destinationWeeksDays or less
Changing bandwidthNew orderConfiguration change
VisibilityPer providerOne place

The intangible

Being able to say yes to a new partner or cloud project quickly is a competitive advantage. Factor it in.

Ask us for a cost comparison based on your current connections.

ROIinterconnection costsbusiness case