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Network Instability Leads to Significant Financial Losses for Global Businesses

Expereo: Global businesses are facing significant financial losses due to network instability, with 28 per cent reporting revenue declines of up to US$5 million and another 23 per cent exceeding that figure, according to the latest findings from an IDC InfoBrief commissioned by Expereo. (US$1=RM4.19)

According to BERNAMA News Agency, the report titled ‘Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility’ highlights the mounting toll of network outages or poor performance on enterprise operations. Nearly half (49 per cent) of global organisations are re-evaluating their technology infrastructure in response to recent high-profile information technology (IT) disruptions.

Networking and connectivity have emerged as the top investment priority for global businesses over the next 12 months, cited by 43 per cent of respondents, ahead of cybersecurity (38 per cent) and artificial intelligence (AI) (37 per cent). Expereo Chief Executive Officer, Ben Elms, emphasized that connectivity has become a strategic business imperative to drive a sustainable competitive advantage.

Elms stated that as organisations adopt new AI solutions, network performance must be prioritized at the same level as cybersecurity and AI to avoid falling behind. Last year, AI led the rankings at 42 per cent, followed by cybersecurity (37 per cent) and networking and connectivity (35 per cent), reflecting a shift in urgency among technology decision-makers.

The study found that 27 per cent of businesses consider inadequate network and connectivity performance a direct threat to growth plans, while 45 per cent said it is limiting their ability to scale data and AI initiatives. Only six per cent of businesses believe their networks are fully equipped to support AI without obstacles.

The report also highlights a widening skills gap, with 41 per cent of organisations struggling to hire or retain cybersecurity professionals, followed closely by networking talent (39 per cent). In response, 45 per cent of businesses plan to increase reliance on external partners, including vendors and managed service providers, to bridge critical gaps in network capability.

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