Megaport
Cloud Network
Report 2025
Unmatched insights from the world's most extensive network data footprint
Azure Ascending —
Shifts in Cloud Capacity
Azure's steady climb is the defining CSP story of 2025. AWS remains the largest single destination, Google Cloud maintains its data-driven role, and Oracle has found footholds in niches, but the overall trend is one of diversification, not displacement.
Azure's rise reflects enterprises optimizing, not replacing, their cloud mix. The bigger story is private-first networking as the enterprise default. What comes next is adaptive and intelligent multicloud.
VXC Capacity Share by Cloud Connection Type Over Time (June 2025)
Cloud Highways — Industry Routes & Network Choices
Every industry is carving its own “highway” to cloud, shaped by its risk profile, regulatory context, and workload mix.
Customer Voice
“Redundancy is key. The last thing you want is your link going down because then you're out of business.”
Cloud highways are defined by how they're built. Some scale capacity through private links, others reinforce resilience with redundancy, while edge-ready designs anticipate new service demands. What emerges are tailored networks engineered for performance, redundancy, sovereignty, and growth.
VXC Capacity by Industry Over Time
Industry Category
The Private Pathway — Highways for Enterprise Data
Private connectivity has become the living backbone of enterprise networks. It's scaling past 9,000 Gbps, accelerating in metro links, and shaping strategies around compliance, latency, and resilience.
Customer Voice
“Redundancy is key. The last thing you want is your link going down because then you're out of business.”
Private connectivity is evolving from a compliance tool to a design strategy. Enterprises are building around predictability and user-near performance, making the private pathway less about security and more about competitive edge.
VXC Capacity by Connection and Distance (July - September 2025)
VXC Connection Type
The Digital Leaders Index
Why it matters:Maturity isn't about being “digital-native”. Regulated and traditional industries are now setting the pace in resilience and private-first networking.
Megaport's data show clear leaders in connectivity maturity:
Leaders
Finance, Health/Edu, and Energy & Industrial are scaling fastest, with larger VXCs, more >10 Gbps ports, and redundant private-first builds.
Middle
Tech & Software and Media & Entertainment show strong service counts and big workloads, but less orchestration maturity.
Emerging
Retail & Consumer remain cost-driven and lighter on services, but growth is accelerating.
Metro Movers — Where the Cloud is Expanding Fastest
The cloud is breaking out of its North American core, with capacity growth surging in APAC and sovereignty-driven metros.
Customer Voice
“Workloads at the edge minimize latency and footprint. It's about reducing load and cost.”
Metro-level growth shows where enterprises are really placing workloads. Madrid is the standout mover, Singapore anchors APAC's low-latency demand, and Paris and Quebec reinforce sovereignty-first strategies. Around them, secondary metros are reshaping the cloud map, where proximity and regulation matter as much as cost.
Percentage Change in VXC Capacity by B-End Metro (April 2023 - June 2025)
The Economics of Connectivity — Cloud Spend & Network Complexity
Connectivity spending is scaling but so is complexity. Enterprises are paying more per service, but also wrestling with unpredictable costs and compliance burdens
The economics of cloud networking aren't just about price: they're about predictability. Enterprises are investing more per service, but budgeting headaches are driving them toward hybrid, private-first strategies. The story here is that networking spend is becoming strategic spend, as CFOs demand resilience and predictability alongside scale.
Quarterly Revenue per Service by Industry Over Time ($AUD)
Industry Category
Forecasting the Edge - What's Next in Cloud Proximity & Performance
What was once edge theory is now edge economics. Proximity, sovereignty, and performance are driving real investment decisions. The edge has become the decision point, shaping how enterprises place workloads, route networks, and deliver value in real time.
Customer Voice
“Latency and sovereignty aren't checkboxes. They decide where capacity gets built. Add GPU economics into the mix, and enterprises are re-architecting networks in real time.”
The edge is being built in real time. Enterprises are shortening paths to minimize latency, meeting sovereignty rules, and distributing workloads more widely. For journalists, the story is that the future of cloud is proximity-first: networks are being re-architected to bring performance and compliance closer to where business happens.
VXC Capacity by Connection and Distance (January - March 2025)
VXC Connection Type
