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Enterprises need subscription-based models to meet edge computing demands, GXI report says

Enterprises need subscription-based models to meet edge computing demands, GXI report says

The Global Interconnection Index (GXI) 2024 report (published by Equinix) unveils that by 2026, 80% of new enterprise digital infrastructure investment is forecast to be operated through a subscription-based model.

GXI 2024 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.

This shift from CAPEX to OPEX started with multicloud adoption but is now becoming the norm across all infrastructure out to the edge, the report notes.

“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 & 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.”

The report also notes that overall, the digital economy continues to expand, with global interconnection bandwidth forecast to grow at a 34% five-year compound annual growth rate (CAGR), reaching 33,578 terabits per second (Tbps) by 2026.

Organizations are connecting with 30% more business partners in twice as many locations, and according to the report, edge infrastructure has shown the highest growth rate, and is expected to expand at over two times the rate of core through 2026.

“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,” adds Elias Khnaser, chief of research at EK Media Group.

Read more:

HPE expands GreenLake private cloud portfolio at Equinix IBX data centers

Equinix, Aviatrix to help streamline multicloud at the network edge

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