96% of Indian Businesses Plan to Expand into New Markets in the Next Twelve Months

BENGALURU, India, July 7, 2022 - Businesses in India are planning major investments in digital technologies to support ambitious expansion plans after lessons learnt from the pandemic. New findings from an annual survey of technology decision-makers, by Equinix, Inc. (Nasdaq: EQIX), suggest that 96% of IT leaders in India indicated their organization is planning to expand into new markets in the next 12 months. A majority (67%) of those planning an expansion said they are most likely to support it by deploying virtually in the short-term and then building permanent physical infrastructure when needed.

The pandemic also continues to have a significant impact on Indian businesses’ digital strategies with 63% of respondents citing that their IT strategy has become more aggressive and ambitious because of the pandemic. Indeed, 65% confirm 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, a majority of respondents (63%) believed the technology changes and investments implemented during the pandemic are here to stay.

More than half of Indian businesses (57%) surveyed for the Equinix 2022 Global Tech Trends Survey are observing a significant positive business impact from having a strong 5G network to take advantage of new technologies such as Artificial Intelligence (AI) and internet of things (IoT). At the same time, nearly half of them (43%) realized the need to rearchitect their IT infrastructure to ensure it supports 5G capabilities. With respect to Indian organizations’ three-year technology strategy, 5G network infrastructure is perceived as the most important (44%), followed by IoT applications (34%) and edge computing (32%).  

Meanwhile, 65% of respondents in India said they expect increased spending on carrier-neutral colocation solutions, while 71% said they intend to increase investment in interconnection services to increase speed of connectivity and reduce latency (53%), increase flexibility of connectivity (51%) and improve network optimization (50%).

On the other hand, a number of potentially limiting factors were also identified by Indian IT decision makers when it came to business success, with cyber attacks highlighted as a particular area of concern (78%). In addition, 76% faced challenges in working with more complex digital supply chains and 76% specified the global supply chain issues and shortages as key threats 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.

In addition, the survey revealed that in India:

• Evolution of Web 3: A majority of Indian IT leaders (52%) expect Web 3 to replace Web 2 within the next 1-5 years. 79% of respondents indicate that their business has a Web 3 strategy in place already.
• Cloud migration continues: 40% of IT leaders in India deploy public cloud, while 93% of them reported working with two or more cloud providers. 86% of Indian IT leaders said they plan to move more business functions to the cloud. Of those respondents, 79% of them plan to move their security functions to the cloud, and 60% intend to move databases to the cloud.
• Focusing on hiring talent from small towns: The technology landscape in India is experiencing a war for talent. 95% of Indian IT leaders said there are opportunities to hire from smaller towns in India to tap into fresh talent pools.
• Focusing on sustainability: While innovating, digital leaders are keeping a close eye on the sustainability of their IT infrastructure. In India, 85% said they have commitments made to science-based targets, while 84% indicated that their customers want to know they are taking steps to reduce carbon footprint of their IT infrastructure.

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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

Quotes

Jeremy Deutsch, President, Asia-Pacific, Equinix:
“We are thrilled to see business leaders in Asia-Pacific prepare for international expansion and show more determination to speed up their pace for digitization despite current financial concerns and operational constraints from global supply chains. This current trend is in line with findings from our latest study, where 85% of IT leaders in Asia-Pacific were confident about global expansion strategies. Equinix is dedicated to helping our customers and partners seize every business opportunity through our global platform and interconnected digital ecosystem, especially under the post-pandemic landscape as businesses continue to navigate their digital transformation journeys to thrive in today's digital world.”

Manoj Paul, Managing Director, Equinix India:
“The Covid -19 pandemic has accelerated the digital transformation journeys of organizations in India. The survey shows that Indian companies are extremely optimistic about the future with nearly all respondents expressing plans to expand their IT infrastructure and also into new markets. It is also overwhelming to see organizations in India adopting and evolving with latest technologies like hybrid and multicloud, SD-WAN, 5G, Web 3 and digital edge. Equinix’s digital infrastructure enables enterprises to capitalize on all these technologies in order to grow their business efficiently. Sustainability too has become a mainstream priority for most Indian organizations keeping with the nation’s goals. At Equinix, we are committed to becoming climate neutral by 2030 and our continued evolution will help our customers transform and expand their businesses sustainably.”

Rick Villars, Group Vice President for Worldwide Research at IDC noted: “Even as enterprises seek to navigate the waves of disruptions associated with inflation, supply chain disruptions, and unmet skills needs that arose in the first half of 2022, IDC consistently hears from IT leaders that timely and expansive access to innovative technology, interconnectivity, and intelligent SaaS resources is critical. Companies like Equinix, that can speed access to needed facilities and connectivity options while also enabling more effective use of hybrid and multicloud services, will play a vital role in helping IT teams make sustainable technology investment decisions and take full advantage of SaaS and digital infrastructure.”

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.

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About Equinix
Equinix is the world’s digital infrastructure company™. Digital leaders harness our trusted platform to bring together and interconnect the foundational infrastructure that powers their success. We enable our customers 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^® datacenters 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 datacenters; 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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