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In the interconnected era business models are increasingly interdependent and consumers and employees alike consider anytime, anywhere, any device connectivity the standard. Organizational expansion, ubiquitous user access and the sourcing of external business and IT services to cloud-based providers are forcing enterprises to have more points of engagement with more end users and business partners across an ever-widening physical and logical footprint. Existing IT architectures were not built to support this level of dynamic engagement and distributed coverage, and the Enterprise of the Future survey shows enterprises responding with a massive strategic and behavioral shift away from centralized corporate resources to distributed, interconnection-centric IT infrastructure.
The number one business priority for nearly half of the survey respondents is to drive revenue, and interconnection was at the core of all the strategies cited as key to achieving this goal. In fact, 3-in-5 businesses believe interconnection with employees, partners and customers is "very important" to their company's ability to compete. Nearly half of the companies surveyed are currently pursuing direct connections to cloud platforms, with the vast majority (about 4-in-5) seeing this as a critical need to address within five years. And, most notably, of the enterprises already deploying interconnection strategies, more than one-third are reaping a total value of more than
Highlights / Key Facts
- More than 1,000 IT decision makers (CIOs, CTOs, chief architects and network and application vice presidents) from the following countries were interviewed for this survey:
Australia, Brazil, Canada, China, Dubai, France, Germany, Hong Kong, Japan, Netherlands, Singapore, Switzerland, U.S., and U.K.
- The survey found that the top strategies IT leaders are using to drive revenue are all dependent on interconnection. The No. 1 revenue growth strategy, cited by nearly 69 percent of respondents, is deploying infrastructures to support new product offerings. Other essential interconnection-driven strategies include: creating new channels or systems of engagement between the enterprise and its customers, partners and employees; deploying infrastructures in new geographies; and embedding or distributing intelligence (analytics, data, content) across business processes, regions or office locations to gain greater customer insights and make faster, more accurate business decisions.
- Multi-cloud interconnectivity is a prominent worldwide business strategy, with 86 percent of the companies planning to interconnect to multiple clouds across multiple locations over the next five years. Being able to directly and securely connect to cloud providers, bypassing the public Internet, eases security concerns.
- Security topped the list of enterprise IT concerns, with 64 percent of survey respondents reporting that security worries could drive them to consider re-architecting their IT infrastructure over the next 12 months.
- Analysts agree that interconnection is crucial for enterprise success. In fact, a recent
Forresterstudy, "The Total Economic Impact of Equinix Interconnection Solutions," showed that interconnection yields a 300 percent return on investment, payback of that investment within 4.2 months and a 40 percent average reduction in latency. These findings align with the Enterprise of the Future survey results, which determined that more than a third of the companies responding realized greater than $10Mvalue from interconnection via revenue opportunities (58 percent) and cost savings (42 percent).
- Executing an interconnection strategy requires an Interconnection Oriented Architecture™, which shifts the fundamental delivery architecture of IT from siloed and centralized to internetworked and colocated.
Equinix'sinterconnection platform provides the critical building blocks needed to implement an Interconnection Oriented Architecture across a global infrastructure with unmatched ecosystem density and vendor neutrality.
Lance Weaver, CTO, Cloud, GE
"Applications, employees and data are rapidly moving outside the traditional borders of the data center but the expectations for a secure, frictionless and high-performance experience are higher than ever. You can't meet those expectations without a level of interconnection that's just not available over the public Internet alone."
Jim Davis, analyst, The 451 Group
"With the rise of services that depend on network speed and reliability, we believe the demand for interconnection facilities will continue to grow, particularly globally and in markets outside of the top 10 in the U.S., as content pushes further to the edge of the Internet."
Tony Bishop, vice president vertical marketing, Equinix:
"Traditional enterprise IT infrastructures are not equipped to compete in this new interconnected era without fundamental change. With
- Download the complete Enterprise of the Future report [webpage]
- The Total Economic Impact of Equinix Interconnection Solutions,
Forresterstudy [analyst report]
- Interconnection 101, by
451 Research[analyst report]
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering
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