Megaport Cloud Network Report 2025: The State of Cloud Networking
10.10.2025 01:42:00 EEST | Business Wire | Press release
Megaport Limited (Megaport) (ASX: MP1), the global leader in Network as a Service (NaaS), today released its 2025 Cloud Network Report, revealing a decisive industry shift: enterprises are going further than expansion and growth with connectivity and are virtualizing and orchestrating their networks to deliver resilience, sovereignty, and performance at scale.
The report draws on operational data from Megaport’s platform, spanning over 1,000 enabled locations across 150+ cities, and global survey insights from IT leaders. Findings show that routing and edge product deployments grew 42% year-on-year, underscoring a move from static cloud builds to programmable, intelligent fabrics.
“The future of competitiveness lies in how well enterprises can virtualize and orchestrate connectivity. Intelligent routing, segmentation, and traffic shaping are transforming networks into adaptive systems that don’t just move data, but make decisions. That’s where performance, sovereignty, and resilience converge.” – Michael Reid, CEO, Megaport
Key Global Insights
Private-First Virtualization
- Private internal connections now exceed 9,000 Gbps of VXC capacity, making them the largest and fastest-growing connection type. Internet and IX pathways have flattened as enterprises embed virtualization for predictable, sovereign performance.
Azure’s Rising Role
- Azure’s share of cloud-only capacity has steadily increased in recent years. While AWS remains the largest single provider, enterprises are turning to virtualization and routing tools to flex workloads across platforms and avoid lock-in.
Routing & Orchestration at Scale
- Adoption of Megaport Cloud Routers (MCRs) and Virtual Edge (MVEs) has surged, with 42% annual growth in deployments. Routing and orchestration are now critical for cost optimization, segmentation, and enabling new workloads such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT).
Traditional Industries Gain Momentum
- Finance added more than 3,500 Gbps of VXC capacity, the largest increase of any sector. Healthcare & Government workloads grew by 20–40% year-on-year, and Energy & Industrial added 1,500 Gbps, driven by IoT telemetry and regional operations. Once seen as laggards, these industries are now setting the pace for virtualization and routing adoption.
Cloud Spend vs Complexity
- 61% of IT leaders cite unpredictable costs as their top barrier. In North America, 62% say reliability outweighs price, underscoring the role of orchestration tools in controlling costs and ensuring predictable outcomes.
Edge Economics & Secondary Metros
- VXC capacity growth is strongest in sovereignty-driven hubs: Paris (+177%), Quebec (+200%), and Singapore (+68%). In the U.S., metros such as Dallas, Chicago, and Ashburn continue to expand as enterprises distribute workloads closer to users to improve latency and compliance.
“Network virtualization is now the defining trend,” said Cameron Daniel, CTO of Megaport. “With routing and edge platforms like Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE), enterprises are orchestrating networks in software: segmenting traffic, automating compliance paths, and shaping performance for AI and GPU-driven workloads. This isn’t just connectivity anymore. It’s the intelligent control plane of the enterprise.”
About the Report
The Megaport Cloud Network Report 2025 combines anonymized platform data from Megaport’s global NaaS footprint with a survey of IT leaders worldwide. It provides a vendor-neutral, cloud-agnostic perspective on how enterprises are designing networks for a virtualization-driven future. View the Megaport Cloud Network Report 2025.
About Megaport
Megaport is changing how businesses connect their infrastructure, with one smart and simple platform to manage every connection. Build secure, scalable, and agile networks in just a few clicks, accessing global endpoints and creating private paths in minutes. Trusted by the world’s leading companies, Megaport partners with global service providers, DC operators, systems integrators, and managed services companies, and operates in 1000+ enabled locations worldwide. Megaport is ISO/IEC 27001 certified. Join the network revolution at megaport.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251009268447/en/
Contacts
Media Enquiries
Adam Hennessy, Senior Director - Brand & Communications, Megaport
Phone: +61 7 3088 7400
media@megaport.com
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