Increasing compute demands of data-dense technologies such as AI, 5G and edge computing, see IT decision-makers shifting away from long-term purchases in favour of subscription-based models that offer better price-performance ratios.

By 2026, 80% of new enterprise digital infrastructure investment is forecast to be operated through a subscription-based model, according to the Global Interconnection Index (GXI) 2024. This is 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. 

“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.”

This shift from CAPEX to OPEX started with multi-cloud adoption but is now becoming the norm across all infrastructure out to the edge, providing enterprises with greater agility in architecting their infrastructure everywhere while ensuring they have access to the most efficient technologies.

“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,” said Steve Madden, Vice President of Digital Transformation & Segmentation, 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.”  

According to Equinix’s South Asia Managing Director, Yee May Leong, the shift towards subscription-based services signals organizations’ readiness to adapt to AI, 5G, and edge computing growth. This requires a strong interconnection fabric that fits the changing environment and creates an agile digital ecosystem that drives Singapore’s National AI strategy forward.

Other Forecast and Trends from GXI 2024

• Digital economy continues to expand: Global interconnection bandwidth is forecast to grow at a 34% five-year compound annual growth rate (CAGR), reaching 33,578 terabits per second (Tbps) by 2026. Singapore’s interconnection bandwidth is forecast to reach 1,826 terabits per second (Tbps) by 2026, representing a CAGR of 33%.
• Accelerating growth of ecosystems: Organizations are connecting with 30% more business partners in twice as many locations.
• Digital proximity drives business at the edge: Edge infrastructure has shown the highest growth rate and is expected to expand at over two times the rate of core through 2026.

About the GXI

The Global Interconnection Index (GXI) 2024 report, published by Equinix, is a source of insights on interconnection and its increasing impact on digital leaders. The report offers a comprehensive analysis of the digital economy’s evolving landscape. The GXI forecast combines Equinix data on interconnection along with market intelligence research to produce an industry-wide forecast.  

 About Equinix

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.