59% of Dutch Businesses Forge Ahead with Expansions Despite Economic Concerns and Supply Chain Challenges

Global growth underpinned by significant investment in digital; nearly half of businesses expanding into new markets virtually via the cloud

Jul 6, 2022

AMSTERDAM, Netherlands – July 06, 2022 – Businesses around the world are planning major investments in digital technologies to support ambitious expansion plans following lessons learned from the pandemic. New findings from an annual survey of technology decision-makers, by Equinix, Inc. (Nasdaq: EQIX), suggest a movement toward a less connected world could not be further from the plans of digital leaders across industries and geographies. Despite concerns of a potential looming recession and talk at the World Economic Forum in Davos about the end of globalization, businesses appear to remain bullish about their plans for further global expansion.

Cross-border expansion
Of the IT decision-makers surveyed in the Netherlands as part of the Equinix 2022 Global Tech Trends Survey, almost 6 out of 10 (59%) indicated that their organization plans to expand, whether into a new city (24%), a new country (32%), or an entirely new region (38%) in the next 12 months.

Virtualization driven by supply chain disruption
In the Netherlands, a number of potentially limiting factors were identified by businesses when it came to global growth, with supply chain challenges highlighted as a particular area of concern. 63% said their business was plagued by global supply chain issues and shortages, and 63% specified the global microchip shortage as a threat to their business.

These continued supply chain issues appear to be driving a need for more virtualization, with growth aspirations underpinned by significant planned investment in digital infrastructure. Almost one in three (31%) respondents said they plan to facilitate global expansion plans by deploying virtually via the cloud, and a quarter (25%) are doing so using a bare metal solution. Meanwhile, 37% said they expect increased spending on carrier-neutral colocation solutions to facilitate the planned rise in digital deployments, while even more (47%) said they intend to increase investment in interconnection services as they plan to progress digital transformation and build resilience.

Increased IT investment and cybersecurity concerns
The pandemic also continues to have a significant impact on businesses’ digital strategies. One third of IT leaders surveyed in the Netherlands (33%) say they are accelerating their company’s digital evolution because of the COVID-19 crisis. Indeed, 40% confirmed their IT budgets have increased as a direct outcome of its legacy—an insight into the now broadly acknowledged necessity for robust digital infrastructure to pivot to evolving business needs in an instant. Furthermore, almost half of respondents (49%) believe the technology changes and investments implemented during the pandemic are here to stay.

There remain, however, significant concerns around cybersecurity. Ensuring expansions are supported by resilient digital models is business-critical, particularly at a time of increasing volatility and emerging global threats. As part of their digital-first strategies, 82% of respondents confirmed a key priority is improving cybersecurity. 83% said complying with local market data regulations is critical, while 85% highlighted the need to futureproof their businesses. According to IT specialists, the most feared threats were cyberattacks (71%), security breaches and data leaks (both 74%).

Michiel Eielts, Managing Director for Equinix in the Netherlands, explained: “IT leaders in the Netherlands are continuing to focus on expansion, not only in their own country, but also in other global regions. These ambitions bring with them yet another confirmation of the need for robust digital infrastructure, harnessing interconnection and edge technology, in the Netherlands and beyond. At the same time, these growth plans come with great challenges, with key considerations including supply chain disruptions, growing business responsibly and crucially, sustainably. Local IT leaders consider sustainability of paramount importance, also for the partners with whom they collaborate; 59% even indicate that sustainability is one of the main drivers of their business. At Equinix, being a leader in digital infrastructure, we view it as our mission to support Dutch businesses with their digital transformation and hybrid cloud strategies, while being considerate of the world around us and supporting efforts to hit science-based targets. Only by doing so, we are able to stay a frontrunner, enlarge the Dutch footprint in the digital economy, while being conscious of resources, energy efficiency and our planet as a whole.”

Stijn Grove, Managing Director of the Dutch Data Center Association, says: "Equinix's current research confirms once again the need among IT leaders for sustainable digital infrastructure for our economy and society. The Netherlands, and Amsterdam in particular, as a digital hub, are an important gateway to Europe and the rest of the world. Therefore, as a sector, we feel responsible, together with industry players like Equinix, for ensuring that organizations can transform digitally. And facilitate IT infrastructure and ecosystems sustainably so that our resources, space and energy consumption can be dealt with sensibly."

In addition, the survey revealed that in the Netherlands:

Customer and employee experience prioritized: Recognizing digital adoption affects end users, 79% of IT leaders said enhancing customer experience was a priority. Companies also acknowledged improving employee experience is critical to their transformation journey and retention of talent, with 77% citing this.
Cloud migration continues: 61% of IT leaders said they plan to move more business functions to the cloud. Of those respondents, half plan to move more of their business-critical applications to the cloud (52%), and almost half (44%) intend to move security functions to the cloud.
Hybrid cloud dominates: Hybrid cloud models were the preferred approach for 28% of respondents, but a third (33%) of digital leaders in the Netherlands still rely on a single cloud provider or none at all. Interconnection may step in to help here, with 20% of respondents believing it increases flexibility of connectivity, and 14% reporting they use it to enable hybrid multicloud.
Investing in innovation: Many IT leaders are looking to futureproof their businesses and take full advantage of evolving technologies, such as 5G, the internet of things (IoT), and Web 3.0. 65% of respondents said they are moving to an everything as a service (XaaS) model, citing flexibility (55%), simplification of IT infrastructure (46%), and improved user experience (45%) as the key reasons for doing so.
Focusing on sustainability: While innovating, digital leaders are keeping a close eye on the sustainability of their IT infrastructure. 56% say they are measuring and actively trying to limit the environmental impact of their IT equipment, and 62% will only work with IT partners who can meet key carbon reduction targets. Indeed, 59% report sustainability is now one of their organization’s most important drivers with commitments made to science-based targets.

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To read more about the Global Tech Trends Survey or download a copy, please visit: Equinix 2022 Global Tech Trends Survey

About the Survey
The independent study, commissioned by Equinix, surveyed 2,900 IT decision-makers in diverse enterprises across the Americas (Brazil, Canada, Colombia, Mexico, U.S.), Asia-Pacific (Australia, China, Hong Kong, India, Japan, Singapore, South Korea), and EMEA (Bulgaria, Finland, France, Germany, Ireland, Italy, Netherlands, Nigeria, Poland, Portugal, South Africa, Spain, Sweden, Switzerland, Turkey, UAE, UK). Respondents were selected for participation from Dynata’s online panel. The survey was conducted online between March 1, 2022 and March 29, 2022.

Learn more about The Future of Digital Leadership.

About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company™, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

Forward Looking Statements
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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