Technology trends

Equinix Global Technology Trends CIOs Need to Know

The need for an efficient IT infrastructure has never been greater than it is today, with digital businesses growing and globalizing at a rapid pace. The rise of digital technologies has created an opportunity for innovative leaders who are ready to take bold steps with future-proof models built on platforms that will allow them to do things differently than before. The global pandemic has accelerated the pace at which businesses must reinvent themselves. As a result, those who take advantage of this opportunity by improving their technologies and ensuring they are future-proof will be able to not only survive, but thrive in these changing times.

Equinix’s Global Technology Trends Survey explores what global digital leaders are saying about the latest digital technology trends, challenges and opportunities shaping businesses around the world. The IT strategies discussed here are broken down into key themes, including 5G and the edge, cloud and interconnection, technology evolution, impact of COVID-19, IT spending, sustainability and talent. technologies.

Three-year technology strategies

The next five years are going to be incredible for technology! 5G network infrastructure, personal data and privacy rights, and IoT applications are all on the minds of most organizations when it comes to developing a three-year strategy. 5G network infrastructure is a particular priority in the United States, with 50% of IT decision makers reporting it as part of their organization’s technology strategy. The image below shows the organization’s technology strategy for the next three years.

1. Embrace the cloud for interconnection

As the digital economy grows, businesses are increasingly using cloud services. Most companies use a hybrid cloud model. However, there are some differences in how different regions use the cloud. Private cloud adoption is most common in America, Europe, and Middle East Asia, while public cloud is preferred in the Asia-Pacific region. Enterprises are deploying multicloud architectures to achieve greater connectivity and agility to meet changing demands.

For an organization to digitally transform, it must use technology to connect to the digital economy. This will help improve the functioning of the organization and create a better experience for customers. IT decision makers see the primary benefits of interconnect as improved network performance, easier transformation, and greater flexibility with connectivity.

interconnection

Benefits of interconnection for organizations

2. More benefits data centers with 5G adoption

According to IT decision makers, the biggest impact of a powerful 5G network is to enable their organizations to take advantage of new technologies. According to the survey, respondents want to revamp their IT infrastructure to support 5G capabilities (38%) and its role in driving new product development (37%).

The amount of data generated by machines, businesses and people is growing rapidly. IT decision makers use the digital edge to improve process efficiency and address security threats. The image below shows what organizations will use the digital edge for, given the proliferation of data and the growing need to operate at the edge and adopt edge services.

advanced computing

3. Evolving Technology – Web3 and XaaS

With changing business models and consumer demands, it will be interesting to know what the future of the internet might be. 47% of IT decision makers worldwide expect Web3 to replace Web2 within one to five years. However, 28% of global digital leaders do not see the implementation of Web3 for six years or more.

Enterprise IT architectures are becoming increasingly complex, with cloud, colocation, and everything-as-a-service (XaaS) offerings. Additionally, virtual network functions replacing or supplementing traditional on-premises data centers and physical network infrastructure add complexity. 71% of IT decision makers worldwide say they are moving towards an XaaS model.

The main reasons for the XaaS model are cited as the way it simplifies IT infrastructure (65%), the belief that it is more flexible (56%) and that it improves the user experience (54%). The benefits of moving to an XaaS model are widely recognized, however, IT decision makers around the world are also reporting some hesitation. This can be visualized in the figure below.

XaaS model

4. Impact of Covid-19 on organizations

The pandemic continues to have a significant impact on digital strategies. 52% of global technology leaders say their IT strategy has become more ambitious due to the COVID-19 crisis. 61% believe that the technological changes and investments already made will remain in the future. However, 26% admit that they are working on editing some elements put in place during the pandemic.

As the pandemic evolves, different countries are exploring how best to live with COVID-19. Some companies specify their expectations regarding the work habits and workplaces of their employees. See image below.

Impact of Covid 19 on work environments

5. Increase in colocation and interconnection expenses

41% of IT decision makers worldwide say their spend on carrier-neutral colocation increased in 2021 compared to 2020. This share is even higher in AMER (49%). 47% of IT decision makers globally say their spending on carrier-neutral colocation could increase further in 2022. This share is even higher in AMER, with 56% of respondents believing so.

Globally, organizations are using interconnect bandwidth and distributed infrastructure to shape and scale the global digital economy. 59% of IT decision makers worldwide expect interconnect spending to increase further in 2022 compared to 2021. This share is higher in the Asia-Pacific (70%) and AMER (64%) regions.

6. Sustainability becomes an essential part of IT strategies

All IT decision makers understand that they need to consider environmental sustainability when creating or revising their IT strategies. 65% of global respondents will only work with IT partners who can meet key carbon reduction targets.

73% of IT decision makers worldwide say reducing their environmental impact is a priority in their organization’s technology strategy. This percentage is highest in the AMER region, 79%.

Sustainability7. Closing the skills gap

The technology industry is changing rapidly, which creates both opportunities and challenges for people with specialized skills. Employers are finding it increasingly difficult to attract and retain talented workers. It’s become the biggest skills challenge, with 61% of global IT decision makers reporting it as a concern. To be ready for the future, teams must have a variety of skills. This involves having people with different areas of expertise who focus on different aspects of technology.

Skills gap

Companies are looking for multiple ways to attract and retain talented workers. 62% of IT decision makers worldwide say their organization reskills workers in IT and other related industries. But 34% are looking beyond IT and related industries and reskilling workers from completely different industries.

Another way to address the talent shortage is to select talent directly from education pools. Globally, IT decision makers report that their companies are partnering with higher education institutions to attract technology talent to the business. Refer to the figure below.

education partnership for skilled workers

We have seen that the need for an efficient IT infrastructure has never been greater than it is today. The trends we’ve outlined here will empower you to make decisions about the future of your business and thrive in an ever-changing technological age.

Image and source credits: equinix

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