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Report reveals changing work patterns spark surge in digital infrastructure investment

Report reveals changing work patterns spark surge in digital infrastructure investment

Digital TransformationHong KongMore News

A survey from Equinix has revealed IT leaders in Hong Kong have accelerated their Digital Transformation plans because of the pandemic.

Equinix has announced the findings of its annual global study of the views of IT decision-makers on the biggest technology trends affecting businesses worldwide and the impact of the COVID-19 pandemic on digital infrastructure plans. 

The study surveyed 2,600 IT decision-makers from diverse enterprises across 26 countries in the Americas, Asia-Pacific and EMEA regions. 

In Hong Kong, the study reveals: 

  • 66% of businesses have rearchitected their IT infrastructure to meet new remote and hybrid working demands, with tech budgets increasing to accelerate Digital Transformation
  • 49% of digital leaders believe there will be long-term changes to where and how people work within their organization
  • 42%of companies in Hong Kong still intend to expand into new regions, countries or metros, despite the disruption experienced as a result of COVID-19

Digitization and business investment in digital infrastructure have increased as a result of COVID-19. A total of 36% of digital leaders in Hong Kong have accelerated Digital Transformation plans because of the pandemic, while 40% said their IT budgets have increased to satisfy the growth in digital demands.

There has also been a major overhaul of IT strategies to meet the challenges emerging from the pandemic. More than two thirds in Hong Kong said they have revised their IT strategy as a result of COVID-19, while 56% said they want to invest in technology to be more agile post-COVID.

Asked about their biggest priorities for their organization’s digital strategy, 58% of respondents in Hong Kong reported digitizing their IT infrastructure was a top priority, with 57% saying they see interconnection as a key facilitator of Digital Transformation up 11% on last year’s results.

A large majority (71%) of digital leaders in Hong Kong have also prioritized to improve their cybersecurity posture. Moving infrastructure to the digital edge has become a priority for more digital leaders in Hong Kong, up from 38% in 2019 to 60% this year.

Concerns that the pandemic will have put the brakes on companies’ expansion plans – lessened

  • 42% of businesses still have plans to expand into new regions, countries or metros, according to the digital leaders in Hong Kong surveyed
  • Of that 42%, more than half (52%) plan to achieve this virtually, rather than by investing in physical IT infrastructure in-market

Utilizing interconnection for success

  • Nearly half (49%) of digital leaders in Hong Kong said they believe interconnection -the direct and private exchange of data between organizations – will help them to navigate the challenges they face due to COVID-19
  • Those stating avoiding the public Internet is critical for the daily function increased to 44%, up from 29% last year 

Jeremy Deutsch, President, Asia-Pacific, Equinix, said: “During the pandemic, Asia-Pacific has seen demands for interconnection from digital leaders to manage distributed workforce and make the best use of resources. This is reflected in the findings of our study with over 60% of IT decision-makers in Asia-Pacific confirming that interconnection will help them to navigate the challenges faced as a result of COVID-19, and 56% believing interconnection can help their business gain competitive advantage within the marketplace.

“With our global footprint, robust ecosystem and a wide array of interconnection solutions, we plan to continue to bring and interconnect the digital infrastructure to help digital leaders thrive in the new era.”

The Global Interconnection Index (GXI) Volume 4, a market study recently published by Equinix, forecasts that overall interconnection bandwidth – the measure of private connectivity for the transfer of data between organizations in Asia-Pacific will achieve a 47% compound annual growth rate (CAGR) from 2019 to 2023. The expected growth is driven by Digital Transformation, and specifically by greater demands from enterprises extending their digital infrastructure from centralized locations to distributed edge locations.

Larry Tam, Managing Director, Hong Kong, Equinix, said: “With COVID-19 significantly accelerating transformation in a broad range of industries in the Hong Kong market, enterprises are adopting emerging technologies and building future-proofing infrastructure to navigate the new normal.

“This report clearly identifies the top priorities that are of most concern to digital leaders in Hong Kong as they move to improve cybersecurity, efficiency and cost-effectiveness during the pandemic. We believe a secure and reliable interconnection platform will enable digital leaders to address concerns and move with speed and agility to stay ahead of the competition and grasp new business opportunities.”

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