Enterprise digital infrastructure expected to shift to subscription models

By 2026, 80 percent of new enterprise digital infrastructure investment is forecast to be operated through a subscription-based model.

The Global Interconnection Index (GXI) 2024, released today from Equinix, 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 favor of flexible subscription-based models.

"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," says Steve Madden, vice president of digital transformation and segmentation at 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."

Among other findings of the report global interconnection bandwidth is forecast to grow at a 34 percent five-year compound annual growth rate (CAGR), reaching 33,578 terabits per second (Tbps) by 2026.

Organizations are also connecting with 30 percent 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.

The full report is available on the Equinix site and you can read more on the company's blog.

Image credit: Wayne Williams