By 2026, 80% of new enterprise digital infrastructure investment is forecast to be operated through a subscription-based model, according to the Global Interconnection Index (GXI) 2024 released today.
GXI 2024 predicts that in order to meet the ever-growing demands of data-dense technologies such as AI, 5G and edge computing, IT decision-makers are increasingly shifting away from long-term purchases of physical equipment, such as servers, routers and storage arrays, in favour of flexible subscription-based models. This shift from CAPEX to OPEX started with multi cloud adoption but is now becoming the norm across all infrastructure out to the edge, providing enterprises with greater agility in architecting their infrastructure everywhere while ensuring they have access to the most efficient technologies.
“Industry patterns have shown that the traditional procurement process of buying your own IT hardware, if that is not your business, is becoming a competitive disadvantage,” said Steve Madden, Vice President of Digital Transformation & Segmentation, Equinix. “The pace of hardware innovation is increasing (especially with GPU technologies), putting pressure on price-performance ratio and infrastructure efficiency. Globally, digital transformation requires businesses to become more agile while adapting to dynamic changes. Subscription models can offer continuous improvement and easier adoption of new technologies already in place.”
Additional Forecast and Trends from GXI 2024
- Digital economy continues to expand: Global interconnection bandwidth is forecast to grow at a 34% five-year compound annual growth rate (CAGR), reaching 33,578 terabits per second (Tbps) by 2026.
- Accelerating growth of ecosystems: Organisations are connecting with 30% more business partners in twice as many locations.
- Digital proximity drives business at the edge: Edge infrastructure has shown the highest growth rate, and is expected to expand at over two times the rate of core through 2026.
- Mumbai is one of the top three fastest-growing Edge metros, with a forecasted 43% CAGR over the next five years.
Elias Khnaser, Chief of Research, EK Media Group, says, “In the current dynamic environment, subscription-based access to thriving ecosystem is the only way organisations will be able to build and scale a digital infrastructure capable of sustaining the business transformation resulting from AI, edge and other technologies.”
Manoj Paul, Managing Director, India, Equinix says, “Digital leaders have discovered that it is challenging to process the exponentially growing volumes and variety of data without interconnecting to multiple business partners. Real-time action, based on business operational data at the edge, is becoming table stakes. Fast-followers who don’t have access to digital ecosystems today are shifting quickly. They are tapping into ecosystems for the skills and foundational infrastructure to do more with less investment.”
