The rapid integration of artificial intelligence (AI) and cloud applications into modern business operations has shifted the focus towards smarter, more adaptive networks. However, as companies strive to leverage these advanced technologies, they are facing significant challenges. A recent study commissioned by Expereo and conducted by IDC InfoBrief reveals that network instability is becoming a critical concern for UK businesses, with a staggering number reporting substantial revenue losses due to outages and performance issues.
The Financial Impact of Network Instability
According to the findings, more than a quarter (33%) of UK organizations reported revenue losses of up to £4 million as a direct consequence of network outages or poor connectivity. Alarmingly, an additional 18% experienced losses exceeding £4 million. These figures underscore the serious financial implications of network failure, highlighting its potential to hinder not only current operations but also long-term growth and sustainability.
This trend has led many companies to re-evaluate their technology infrastructure. Following a series of high-profile IT disruptions, including cyber security breaches and connectivity failures, half (50%) of organizations have been prompted to reassess their networking strategies. The study notes that 35% of tech leaders in the UK now prioritize networking and connectivity at the C-suite level, reflecting a shift in focus after AI previously dominated technology investment discussions.
Prioritizing Connectivity and Cyber Security
The current landscape indicates that businesses are prioritizing investments in networking over AI and other technological areas. Over the next 12 months, 40% of UK organizations plan to allocate resources to enhance their networking capabilities, followed closely by cyber security (39%) and AI (35%). This marks a notable shift from last year’s priorities, where AI held the top spot.
The urgency to improve network performance is evident, with 27% of organizations claiming that inadequate connectivity is actively hindering their growth plans for the upcoming year. Nearly half (49%) of respondents pointed out that their networks are not equipped to support large-scale data and AI initiatives effectively. In fact, only 5% of businesses believe their networks are fully prepared to handle the demands of AI without encountering barriers.
Some 94% of companies reported that their networks limit their ability to implement significant data and AI projects, with scalability, flexibility, and performance being the main issues. As the complexity of data workloads increases, addressing these limitations has become paramount for businesses aiming to compete in a data-driven environment.
The Need for Skilled Networking Professionals
In addition to improving their infrastructure, organizations recognize the importance of having skilled professionals to manage and maintain these advanced networks. However, the study suggests that the labor market presents challenges in this area. Cyber security roles are currently the most difficult to fill, with 44% of organizations reporting difficulties, followed closely by networking positions at 40%. In response, many UK businesses plan to increase their dependence on external partners, such as vendors or managed service providers, to help close the skills gap in networking.
Expereo highlights the necessity for companies to adopt networks that can dynamically scale their capacity to accommodate unpredictable data workloads. “To drive a sustainable competitive advantage, connectivity is no longer an IT concern – it’s a strategic business imperative,” emphasized Ben Elms, CEO of Expereo. He notes that technology leaders are increasingly recognizing the critical role connectivity plays in the overall business strategy.
Community and Industry Response
The findings of this study resonate with broader trends within the technology and business landscapes. As companies recognize that connectivity is foundational to their operations, there is a concerted push to align networking with core business strategies—reflecting a shift in how technology is perceived at the executive level.
The need for resilient networks is echoed by industry experts and organizations. For instance, a recent report by Forbes emphasizes that as businesses increasingly rely on IoT and cloud technologies, robust networking becomes essential to ensure operational efficiency and security. Moreover, analytics firm Statista projects that global investment in networking is expected to surge, further indicating a critical need for advancements in this area.
As organizations navigate these challenges, it is clear that addressing connectivity issues and investing in robust networking solutions will be vital for maintaining a competitive edge in a rapidly evolving technological landscape. As Ben Elms aptly states, without a reliable network, businesses simply cannot thrive in today’s data-driven world.