Survey of IT decision-makers underlines long-term Channel shift from hardware to cloud services; study also finds cost-effectiveness remains top reason for enterprise to work with Channel partners
London, UK – Oct. 15, 2019 – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data centre company, today published the findings of an independent survey exploring the views of senior enterprise IT professionals on the future of the Channel industry. The results show cloud is now the number one driver of Channel engagement, with almost half (48%) of the 836 EMEA IT decision-makers surveyed, and 47% of those surveyed in the UK, using the Channel to access cloud-based services. With Gartner highlighting that by 2025, 80% of enterprises will migrate entirely away from on-premises infrastructure to colocation and the cloud1, these findings suggest companies are utilising the Channel to reduce the complexity of such a critical infrastructure upheaval.
Along with the shift driven by cloud, the study highlighted other areas where services traditionally managed in-house are beginning to move to the Channel. Security management – an area that enterprises have previously been reluctant to outsource – was the second highest-ranked service for which Channel partners are being utilised, named by 39% of respondents. More than one-third of decision-makers (34%) are using Channel partners to access interconnection, making it the third-highest priority service – an ongoing trend that is reflected in the growth of Equinix’s own Channel Partner Program. IT decision makers in the UK see things slightly differently – ranking Channel services around security management and interconnection equally, at 31%.
Enterprise IT decision-makers were also asked why they choose or might consider working with Channel partners. Cost was the number one priority across almost every market, with over half (51%) of EMEA-wide respondents overall stating they choose to work with Channel partners because it’s more cost-effective than other routes to market. This figure is even greater in the UK, rising to 59% of those surveyed. Being able to access a better breadth of services came a close second (46% of respondents overall, and 52% of UK respondents), with enterprises in the Netherlands and Turkey naming this as their main reason for working with Channel partners, while convenience was the key driver for decision-makers in France.
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Equinix,Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. www.Equinix.com
About the study
The independent study surveyed 836 IT decision-makers from enterprises across 8 EMEA countries (UK, France, Germany, Netherlands, Ireland, Finland, Turkey and the UAE). 103 of those surveyed are based in the UK. Respondents were selected for participation from Dynata’s online panel. The survey was conducted online between 01 and 16 August 2019.
About the Global Interconnection Index (GXI)
The Global Interconnection Index, published annually by Equinix, delivers insights that drive digital business advantage by tracking, measuring and forecasting growth in interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points. The Global Interconnection Index is the industry’s only market study that projects how interconnection growth and access will unfold through 2021. The report serves as a market baseline that analyzes the deployment profile of thousands of ecosystem participants using carrier-neutral colocation data center providers globally. This data was combined with local and regional market data (including macroeconomic trends, market demographics and industry concentrations), to form a weighted demand multiplier to assist in predicting growth and assess impact on digital business transformation. A detailed methodology description is included in the Global Interconnection Index.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; a failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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1 Gartner Identifies the Top 10 Trends Impacting Infrastructure and Operations for 2019 https://www.gartner.com/en/newsroom/press-releases/2018-12-04-gartner-identifies-the-top-10-trends-impacting-infras