Report highlights the cost of network failures for businesses
An IDC InfoBrief commissioned by Expereo has found that network instability is taking a serious toll on global businesses, with over a quarter (28%) reporting revenue losses of up to $5 million due to network outages or poor performance. Further, an additional 23% have experienced losses exceeding $5 million.
Following a series of high-profile IT disruptions over the past year, ranging from cybersecurity breaches to connectivity failures, the report contends that nearly half (49%) of global businesses have had to re-evaluate their network and connectivity infrastructure, and 40% of global technology leaders say it has caused networking and connectivity to rise higher up the C-suite agenda.
As a consequence, networking and connectivity are now a top priority for global businesses in terms of financial investment over the next 12 months (43%). Cybersecurity (38%) and AI (37%) are second and third priorities. Last year, AI took the top spot (42%), followed by cybersecurity (37%) and networking and connectivity (35%).
More than one in four global organisations (27%) say that inadequate network and connectivity performance is actively threatening their growth plans for the coming year. At the same time, 45% report that network limitations are holding back their ability to support large-scale data and AI initiatives. Alarmingly, just 6% of businesses worldwide believe their networks are fully prepared to support AI without any barriers.
“To drive a sustainable competitive advantage, connectivity is no longer an IT concern — it’s a strategic business imperative, said Ben Elms, CEO of Expereo. “This research confirms what many technology leaders are already experiencing firsthand: connectivity is now the backbone of business. As organisations race to adopt new AI, the C-suite must treat network performance with the same urgency as cybersecurity and AI itself because, without it, businesses cannot succeed.”
Having the right talent in place is also critical for building and maintaining the robust network and connectivity infrastructure businesses need to thrive. However, the research suggests this may be easier said than done.
Cybersecurity continues to top the list of areas where organisations struggle to find or retain skilled professionals (41%), closely followed by networking (39%). As a result, 45% of businesses say they plan to increase their reliance on external partners, such as vendors or managed service providers, to help bridge the networking skills gap.
The full IDC InfoBrief, titled “Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility”, doc #EUR253271325, March 2025, is available at www.expereo.com/enterprise-horizons-2025.
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