Megaport Reports Surge in Virtualization and Routing Adoption in Cloud Networking Industry

Reuters
Oct 10
Megaport Reports Surge in Virtualization and Routing Adoption in Cloud Networking Industry

Megaport Ltd. has released its 2025 Cloud Network Report, providing new global insights into how enterprises are transforming their network strategies. The report highlights a decisive shift from basic connectivity expansion to the virtualization and orchestration of networks, with a strong focus on delivering resilience, data sovereignty, and high performance at scale. Based on operational data and IT leader surveys, the findings reveal a 42% year-on-year growth in the deployment of routing and edge products, such as Megaport Cloud Routers and Virtual Edge solutions. Private internal connections now make up the largest and fastest-growing segment, exceeding 9,000 Gbps of virtual cross-connect (VXC) capacity. Traditional sectors like finance, healthcare, government, and energy are rapidly adopting these technologies, with finance showing the largest capacity increase. The report underscores that intelligent routing, segmentation, and traffic shaping are increasingly crucial for supporting new workloads, including AI, machine learning, and IoT, marking a new era where network orchestration is central to enterprise competitiveness.

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