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By 2026, 80% of Companies Will Be Using Digital Infrastructure in a Subscription Model

TECHNOLOGYBy 2026, 80% of Companies Will Be Using Digital Infrastructure in a Subscription Model

The GXI 2024 report published by Equinix, a company specializing in digital infrastructure, reveals that by 2026, 80% of companies will be using digital infrastructure in a subscription-based model[1]. The development and increased availability of such solutions may provide significant support for Polish entrepreneurs in connection with the EU NIS2 Directive, which will come into effect in October 2024 and impose obligations related to cybersecurity on organizations.

With the introduction of the NIS2 Directive, companies’ cybersecurity expenditure will increase by about 22% over the next 3-4 years [2]. Such significant expenditures will be incurred by companies that need to build secure infrastructure from scratch in accordance with the Directive’s guidelines. This may prompt IT managers to look for solutions that will help them comply with the new regulations and optimize operational costs, which would include not only the purchase of new equipment and software but also necessary team training.

The solution recognized by an increasing number of managers, according to the Equinix report, is the use of digital infrastructure in a subscription-based model. The brand predicts that such an approach is becoming more common as it affords companies greater flexibility in accessing the latest, secure, and efficient server spaces.

The successful digital transformation of companies is guided not only by access to the most advanced data centers and digital infrastructure but also the ability of managers to make sound business decisions in changing circumstances. Many companies that have already successfully undergone this process can now participate in the digital economy as they have mastered the strategy of using automated digital infrastructure ranging from cloud services to edge computing.

“Experience shows that the traditional practice of purchasing one’s own IT equipment, unless it is a company’s core activity, is becoming disadvantageous from a competitive point of view. An additional factor diminishing the attractiveness of such a solution is the increasing pace of hardware innovation, particularly in the case of GPU technology. Global digital transformation demands greater flexibility from companies. Given the ever-changing technological environment, the subscription-based digital infrastructure model, rather than physical equipment owned by a company, will be a much more financially effective solution. Subscription-based access to a thriving ecosystem is the only way organizations will be able to build and scale digital infrastructure capable of sustaining business transformation resulting from artificial intelligence, 5G development, or edge computing technologies. Changing legal norms also play a significant role as they impose additional obligations on entrepreneurs and managers. With their own physical infrastructure, a company would need to implement changes each time, potentially requiring significant financial expenditure, which under other circumstances could have been allocated to the company’s operational activities,” emphasizes Sylwia Pyśkiewicz, Managing Director of Equinix in Poland.

Scaling data transmission with a subscription-based digital infrastructure

Companies keen to maximize the benefits of digital transformation must be prepared to collect data from multiple sources and transport them to secure locations for further processing and storage. Making use of inter-network connections in a subscription-based model facilitates this task. An additional argument for using this solution is the global bandwidth of these connections, which is growing twice as fast as internet speed.

Moreover, the increased demand for data from new technologies such as artificial intelligence, 5G, and edge computing is creating a scenario where companies require dynamic access to the most powerful computational resources with the highest performance. With the rapidly evolving use of public and private artificial intelligence, companies can no longer accurately predict hardware requirements, leading to increased demand for the deployment of the latest and continuously improved digital infrastructure. For most companies, a subscription-based model will be a beneficial solution.

This scenario is not only optimal in terms of operating costs but also enables companies to achieve sustainability goals more quickly, and they can use more efficient computational resources. Equinix shares this approach, hence its long-standing mission to create data centers that enable organizations to scale digital operations sustainably.

Access to know-how and expert support

Utilizing digital ecosystems involves not only access to secure and efficient data centers but also the ability to rely on the knowledge of external experts without having to learn and implement the entire process independently. This takes the responsibility for proper data center operation off managers as it is the external provider who ensures the delivery of a quality service.

Many IT industry leaders are already turning to a subscription-based digital infrastructure model. Managers are discovering that this can be a more profitable and flexible solution compared to the traditional approach requiring ownership of local physical infrastructure. Companies that arrived at similar conclusions earliest are now leading the way in terms of digital transformation and increasing their market competitiveness. They have continuous access to the latest technology without having to allocate increased budgets for this purpose because optimizing or purchasing additional server space does not involve buying physical carriers for them. Instead, delivering the best and most efficient server infrastructure falls to the subscription service provider. This is particularly important in light of the NIS2 Directive, which will take effect in October this year. Companies covered by the new regulations will have to strictly adhere to them. In addition to appropriate security procedures, using the right software and server spaces will obviously be key. Consequently, we predict that the coming years will see a growth in interest in outsourcing data security services,” emphasizes Sylwia Pyśkiewicz, Managing Director of Equinix in Poland.

The present economic reality encompasses an environment subject to frequent changes. IT managers face not only purely technical challenges but also have to consider evolving laws in the field of cyber protection. The GXI 2024 report by Equinix predicts that increasing demand for professional services related to digital infrastructure will result in the growth of outsourcing and subscription-based models. Companies that plan and implement the necessary changes now will not only improve data security but also ensure faster development within the digital economy.

About GXI

The Global Interconnection Index (GXI) 2024 report, published by Equinix, is a source of information about interconnections and their growing influence on digital leaders. The report provides a comprehensive analysis of the evolving landscape of the digital economy. The GXI forecast combines Equinix data on interconnections with market research to develop a forecast for the entire industry.

[1] Global Interconnection Index – Digital Economy Growth | Equinix

[2] Due to NIS2, company cybersecurity expenditure will increase by 22% – CRN

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