IT decision-makers are increasingly looking for flexible subscription-based models to meet the rising demands of data-dense technologies such as AI, 5G and edge computing. They are moving away from long-term purchases of physical equipment, such as servers, routers and storage arrays, the Global Interconnection Index – GXI 2024 report predicts.
This CAPEX to OPEX shift started with multicloud adoption — is now becoming the norm across all infrastructure out to the edge. It provides 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, VP of Digital Transformation and 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
- The 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 the 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. It is expected to expand at over two times the rate of the core through 2026.
- Mumbai is one of the top three fastest-growing Edge metros, with a forecasted 43% CAGR over the next five years.