The internet is growing faster than ever, driven by surging content growth across streaming, gaming, social media and other data-intensive services.
Global internet traffic grew by 17% in 2024 according to Cloudflare Radar, and 2025 has seen a new global peak traffic record of 25 Tbps, measured by DE-CIX. At the same time, e-commerce, digital banking, fintech, AI, and enterprise applications like Microsoft Azure Peering Service (MAPS) are powering digital economy expansion worldwide.
Enterprise connectivity is evolving rapidly, with no signs of slowing down. Growing trends like cloud and edge computing, SaaS platforms, real-time applications, and distributed workforces are placing growing demands on networks across the globe. Service providers and enterprises need reliable, low-latency connections to partners, platforms and services, whether they be cloud providers, content delivery networks, or other global partners.
However, balancing performance, cost and global reach continues to be a persistent challenge. For service providers, these challenges are amplified by the need to manage large-scale traffic efficiently, maintain SLAs for multiple clients, and rapidly scale network reach across regions while controlling operational costs.
From Direct to Remote Peering
Peering at Internet Exchange Points (IXPs) has become an essential tool for meeting growing connectivity demands. By exchanging traffic directly, organisations can improve performance, reduce transit costs, and gain more control over how data flows across networks. Service providers have long used peering to scale efficiently across the globe, and a growing number of enterprises in high-demand sectors like finance, gaming, broadcasting, research and travel are incorporating it into their digital transformation strategies too.
Traditionally, peering required direct connections and involved the physical deployment of infrastructure, including routers and cross-connects at an IXP, typically with large networks and heavy traffic at specific exchange points. Direct peering delivers strong performance, but it often comes at the expense of significant costs, setup time, and operational complexity.
In contrast, remote peering provides a virtual presence at one or more IXPs, leveraging a third-party provider’s infrastructure. This removes the complexity of installing and managing physical hardware locally, since the chosen provider carries traffic from the organisation’s point of presence to the IXP, over its own backbone.
In addition, where direct peering requires upfront investment for on-site equipment and weeks or months of time for installation, the virtual nature of remote peering means lower costs and a speedier setup process due to a service-based model.
The Path to Peering Success
With the right remote peering partner, enterprises and service providers can gain a wide range of benefits:
- Extensive Global Reach – Direct interconnectivity with leading global IXs via a selection of on-ramp locations, with access to an extensive network of peering members.
- Cost Optimisation – Virtual presence removes the need for substantial upfront infrastructure investments. Just pay for the required bandwidth and connections, with short contract terms.
- Fast Deployment – Preferred peering partners can be accessed through a single interconnection port at a convenient location, saving time and money.
- Flexibility & Scalability – Multiple IXPs can be accessed remotely and on-demand, with the flexibility to scale bandwidth according to demands.
- Enhanced User Experiences – Optimal performance and ultra-low-latency connectivity for bandwidth-sensitive applications.
- ·Simple Management – An expert partner can simplify management by handling IX memberships and onboarding, with one single contract for connectivity and peering services.
For service providers, these benefits translate into greater agility and improved customer experience. For enterprises, it means accelerated digital transformation and the ability to compete globally without being bound by physical network constraints.
Breaking the Barrier to Global Expansion
With the ongoing surge in global internet traffic and the rise of cloud-first strategies, it is impractical for many organisations to deploy and manage physical infrastructure in every market they serve. Remote peering removes those barriers, enabling enterprises and service providers to scale and respond to evolving demands more quickly and without high upfront investment.
The shift from direct to remote peering is a necessity in today’s digital economy, where service providers and enterprises need to deliver high-quality connectivity across borders, without being held back by the cost and complexity of physical infrastructure. Remote peering offers a faster, more flexible and cost-efficient route to achieving that goal.
About the Author
Mark Daley is Director, Product, Digital Strategy & Business Development at Epsilon. Epsilon is a global connectivity provider that is making the need for connecting applications and data in the cloud and around the world simple through its Network as a Service (NaaS) platform, Infiny. Epsilon Telecommunications was founded in early 2003 in London. In 2009, Epsilon moved its headquarters to Singapore and incorporated the group holding, Epsilon Global Communications. The company has been acquired by KT Corporation (KT), South Korea’s largest telecommunications company, in 2021. Epsilon’s offices are located in Singapore, the United Kingdom and Bulgaria.
