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69% of IT leaders are planning business expansion in 2023 – Equinix tech trends survey

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IT leaders

Tech teams face unprecedented pressure to drive future-proofed business strategies as IT gains prominence on the board agenda. Amid economic uncertainty, delivering a tangible ROI in new technologies is critical. The 2023 Global Tech Trends Survey by Equinix examines insights from 2,900 IT decision-makers across diverse enterprises and explores challenges and opportunities in implementing innovative tech solutions.

Here are key insights from the survey.

AI is at the forefront

IT decision-makers globally are prioritizing the integration of AI in key business areas like research and development, and customer experience.

  • IT operations (85%) and cybersecurity (81%) stand out as the top functions where companies are utilizing or planning to use AI to stay technologically competitive.
  • Digital twins emerge as a powerful solution, with 99% of respondents agreeing that it has benefited their organizations. The top benefits of digital twinning, as reported by global IT decision-makers, include improved productivity (54%), cost savings (45%), and enhanced customer satisfaction (41%).
  • However, there are certain concerns deterring IT leaders from adopting newer technologies, including AI. These include increased operational expenditure (46%), a lack of internal knowledge (42%), slow implementation (37%), and potential reputation damage (25%).

IT leaders are planning business expansion

Despite political challenges and evolving regulations, 69% of IT leaders intend to expand their organizations in the coming year. Globally, about three in 10 companies plan to explore new regions, countries, or cities, demonstrating a commitment to expansion.

  • The Asia-Pacific region is the most inclined to pursue international expansion, while EMEA exhibits a more cautious approach.
  • But strict data sovereignty laws seem to significantly impact expansion plans. 79% of IT decision-makers indicated that their strategies would be affected by these laws.
  • For over half of IT leaders, compliance with data sovereignty regulations presents a significant challenge.
  • The areas where IT decision-makers feel least prepared for compliance are in-house expertise, infrastructure readiness, and the transition of operations to in-country edge locations.

5G to bridge digital divide

Access to digital resources is now considered a fundamental human right, vital for education, employment, healthcare, and community services.

  • 59% of global IT decision-makers believe that 5G technology holds the potential to bridge the digital divide, providing faster and more widespread internet access.
  • Over 40% see affordable and high-quality wireless internet connections as a technology that could swiftly address modern equality issues.

Environmental sustainability and strategies to navigate regulations

The pursuit of responsible and sustainable IT practices is gaining importance in the race for technological advancement.

  • Notably, 65% of global businesses now exclusively partner with entities demonstrating significant progress in meeting carbon-reduction targets, reflecting a 3% increase from 2022.
  • However, the evolving landscape of environmental regulations poses challenges for tech leaders and their teams.
  • To address these challenges, 50% of IT decision-makers turn to automation tools.
  • Additionally, 45% choose to join trade associations advocating for sustainable initiatives, while 41% opt to outsource or hire external consultancies to effectively meet new requirements.

IT investment for future-proofing

Future-proofing IT infrastructure involves defining the optimal mix of technology adoption and business capabilities.

  • Over 50% of IT decision-makers intend to increase their interconnection spending in 2023.
  • Hybrid IT infrastructures, spanning on-premises, colocation, and cloud environments, are becoming more common, and over half are planning to boost carrier-neutral colocation spending in 2023, marking a 5% increase from 2022.

Source: Equinix

Read next: 52% of CIOs in the US rate security as the top concern in Gen AI adoption

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