According to the Global Interconnection Index 2024, a substantial 80% of forthcoming enterprise digital infrastructure investments are projected to be conducted through a subscription-based framework by the year 2026.
The Global Interconnection Index (GXI) 2024 anticipates that to effectively address the escalating demands posed by data-intensive technologies like AI, 5G, and edge computing, decision-makers in the IT sector are progressively steering away from extended commitments to physical equipment, such as servers, routers, and storage arrays. Instead, they are favoring adaptable subscription models. This transition from capital expenditures (CAPEX) to operational expenditures (OPEX) initially began with the adoption of multicloud solutions but is now becoming the standard across all infrastructure, extending to the edge. This approach grants enterprises enhanced flexibility in structuring their infrastructure across various locations while ensuring access to the most advanced and 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:
- Global interconnection bandwidth is forecast to grow at a 34% five-year CAGR, reaching 33,578 terabits per second (Tbps) by 2026.
- Organizations are connecting with 30% more business partners in twice as many locations.
- Edge infrastructure has shown the highest growth rate, and is expected to expand at over two times the rate of core through 2026.
Elias Khnaser, Chief of Research, EK Media Group said:
“In the current dynamic environment, subscription-based access to thriving ecosystem is the only way organizations will be able to build and scale a digital infrastructure capable of sustaining the business transformation resulting from AI, edge and other technologies.”