An IDC InfoBrief commissioned by Expereo found that network instability is causing significant losses for global enterprises, with over a quarter (28%) of companies reporting revenue losses of up to $5 million due to network outages or poor performance. Additionally, another 23% of respondents reported losses exceeding $5 million.
Over the past year, a series of high-profile IT disruptions—from cybersecurity breaches to connectivity failures—has led nearly half (49%) of global enterprises to reassess their network and connectivity infrastructure. According to the report, 40% of global tech leaders said this has elevated network and connectivity issues to a higher position on senior management agendas.
As a result, network and connectivity have now become the top financial investment priority (43%) for global enterprises over the next 12 months. Cybersecurity (38%) and AI (37%) rank as the second and third priorities, respectively. Last year, AI topped the list (42%), followed by cybersecurity (37%) and network and connectivity (35%).
More than a quarter (27%) of global organizations said that underperforming network and connectivity are actively threatening their growth plans for the coming year. Meanwhile, 45% of respondents reported that network limitations have hindered their ability to support large-scale data and AI initiatives. Alarmingly, only 6% of companies worldwide believe their networks are fully prepared to seamlessly support AI.
“To drive sustainable competitive advantage, connectivity is no longer an IT issue—it’s a strategic business imperative,” said Ben Elms, CEO of Expereo. “This research confirms what many tech leaders have already experienced firsthand: connectivity is now the backbone of business. As organizations race to adopt new AI technologies, senior leadership must treat network performance with the same urgency as cybersecurity and AI itself—without it, success is impossible.”
Having the right talent is also critical to building and maintaining the robust network and connectivity infrastructure businesses need to thrive. However, research shows that this may be easier said than done.
Cybersecurity remains the top area where organizations struggle to find or retain skilled professionals (41%), followed closely by networking (39%). As a result, 45% of businesses say they plan to increase reliance on external partners—such as vendors or managed service providers—to help bridge the networking skills gap.
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