• Monday, June 24, 2024
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Over 40% Nigerian businesses rely on interconnection for expansion – Equinix

Over 40% Nigerian businesses rely on interconnection for expansion – Equinix

A recent global tech trend survey recently carried out by Equinix, a data centre company, has shown that over 40 percent of Nigerian Businesses are leveraging Interconnection for expansion while over 94 percent are likely to be pursuing the benefits of AI.

According to the company, this percentage is rising as organisations now seek digital-first strategies to embrace the power of ecosystems and interconnections.

However, the independent survey carried out from over 2900 IT units globally shows that despite the widespread adoption of AI across industries, only 3 in 10 (37 percent) of the IT leaders surveyed in Nigeria believe their team’s ability or existing IT infrastructure is fully prepared for the demands of artificial intelligence technology.

During the survey, 47 percent of IT leaders in Nigeria who were interviewed noted that interconnection has increased the flexibility of their connectivity in the areas of network optimisation (46 percent) and optimised end-user experience (45 percent).

This according to the infrastructure provider is consistent with the 2023 Global Interconnection Index, which forecasts interconnection bandwidth to grow at over 40 percent CAGR in EMEA and major metros through 2025. “This is a key indicator of how many businesses are relying on interconnection to enable digital acceleration”

Read also: 200 women entrepreneurs to get technology training to boost wealth creation

Funke Opeke, chief executive officer of MainOne, an Equinix Company said, “The growth of interconnection bandwidth and associated IT budgets for interconnection and carrier neutral colocation show how businesses are embracing interconnection as a critical component of their digital strategy, and how they are future-proofing their digital infrastructure to gain competitive advantage.”

On carrier-neutral colocation, the survey recorded a 35 percent increase in spend compared to the previous year, that recorded a 14 percent increase, an unsurprising result given predictions from last year, which forecasted a rise in digital deployments that will not only enhance digital transformation, but also build resilience. The survey also shows that about 29 percent of businesses plan to increase their colocation spend in the next 12 months.

The survey respondents analysing their long-term technology strategies, highlighted improving customer experience, accelerating innovation, and complying with data protection regulations amongst others as top priorities amidst their digital expansion plans.

About 100 IT leaders surveyed in 2023, 37 percent disclosed plans to expand geographically into a new region, 30 percent into a new country and another 45 percent in a new city in an existing country, with data sovereignty laws as a top deciding factor for those plans.

“As businesses expand their infrastructure to meet the constant growing need for digital services, data sovereignty laws play a critical part in their expansion plans. This is because businesses need to ensure that their data is stored and processed in accordance with the laws of the country in which they operate. However, strict data sovereignty laws can make it difficult for businesses to expand their infrastructure across borders.

“With MainOne, businesses can leverage a globally interconnected ecosystem to expand their reach and tap into new markets, scale their operations and lower latency for critical services and applications, adapt to changing market dynamics and comply with regulatory requirements”, Opeke said.

Surge in AI uptakes

The survey shows that IT leaders in Nigeria did not ignore the need to embrace artificial intelligence as they continue to see a need for colocation and interconnection.

Results from the survey confirmed AI uptake is on the rise across all industries, with 93 percent of the 2,900 IT decision-makers polled globally seeking to benefit from the advantages of AI and already using or planning to use it across multiple key functions.

“94 percent of businesses in Nigeria are likely to be using AI or planning to do so in cybersecurity, closely followed by IT operations (93 percent), and customer experience (92 percent). “