Cloud Migration Plans Surge Despite Security Concerns

Rhea-AI Summary

Equinix (Nasdaq: EQIX) reports a significant increase in companies planning to migrate their business-critical applications to the cloud, with a 15% rise to 37% compared to the previous year. The Global Tech Trends Survey highlights that 70% of IT leaders prioritize cloud migration, while 80% focus on digitizing their IT infrastructure. Despite cybersecurity threats growing, as cybercrime costs over $1 trillion globally, nearly half of IT infrastructures are now cloud-based. IT leaders express concerns over data leaks, with 52% in the Americas citing this as a major threat.

Positive

• 37% of companies plan to move critical applications to the cloud, up 15% year-on-year.
• 70% of IT decision-makers rank cloud migration as a top priority.
• 80% are focused on digitizing IT infrastructure.
• 47% of global IT infrastructure is now on the cloud.

Negative

• Cybercrime costs exceed $1 trillion globally, posing risks to organizations.
• 52% of IT leaders in the Americas see data leaks as a major threat.

REDWOOD CITY, Calif., Sept. 21, 2021 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, has found there has been a significant year-on-year leap in companies planning to move business-critical applications to the cloud, despite cybersecurity concerns.

The need to remain competitive and cater to increased user demands has prompted a 15% jump to 37% of companies saying they plan to move business-critical applications to the cloud in 2020-21, compared to the previous year. As digital leaders build robust digital infrastructures to ensure future success, it is estimated that almost half (47%) of their IT infrastructure globally is now on the cloud, despite ongoing concerns over cloud security. These findings come from Equinix's annual global study of the views of 2,600 IT decision-makers across the Americas, Asia-Pacific and EMEA—the Equinix 2020-21 Global Tech Trends Survey (GTTS).

Since the outbreak of the global COVID-19 pandemic, the risk of cyberattacks has greatly expanded at the digital edge. Cybercrime costs the world economy more than $1 trillion with the average cost to organizations estimated to be more than half a million dollars per incident. Risk has been compounded by the large number of companies quickly shifting network capacity to cater to increasing volumes of remote worker data traffic. This has prompted a surge in cloud migration and broad implementation of cloud-based digital infrastructure as part of a hybrid infrastructure strategy.

Balancing cybersecurity concerns with cloud adoption in a digital-first world

Jennifer Cooke, Research Director, Edge Strategies, IDC, states: "Shifts in population centers, the increasing occurrence of cyberattacks, rapidly expanding data volumes and compliance needs, the creation of business ecosystems, and the transformation to digital business, have been driving the need for a new approach to digital infrastructure. These market forces are driving IT leaders to consider the best strategies and prioritize investments across the digital core, edge, and exchange of data."

The GTTS found 70% of respondents believe migrating to the cloud is a top priority, with 80% focused on digitizing their IT infrastructure. This move is not being made lightly, with the threat of data leaks/cyberattacks as a result of increased cloud adoption being perceived as one of the biggest threats to organizations in all three regions: 52% AMER, 50% AP, 45% EMEA.

These concerns are not without merit. The Global Interconnection Index (GXI) Volume 4, a market study published by Equinix, revealed a growth in the number of user devices and cloud resources, meaning organizations have to be aware of distributed security risks such as DDoS attacks, which have grown over 270% year-over-year.

Michael Montoya, Chief Information Security Officer, Equinix, said: "Digital transformation is essential for business survival. Every company is becoming a software company and the pandemic has accelerated the need for digital transformation. Indeed, findings from the 2021 Gartner^® Board of Directors Survey* show 69% of boards accelerated their digital business initiatives in the wake of COVID-19.  

"Moving to the cloud is at the heart of this transformation. However, as our GTTS shows, many digital leaders remain nervous about this migration, with IT decision-makers highlighting fears around increased data leaks and security breaches.

"Cyber hygiene remains vitally important in the cloud. Equinix offers a robust and interconnected platform which allows for the direct and secure exchange of data between businesses. Equinix Fabric enables connectivity to global digital business ecosystems and a myriad of cloud service providers. As a Chief Information Security Officer, I now have the assurance that my cloud deployments avoid the public internet and the associated cyber risks."

Stacy Hayes, Co-Founder and Executive Vice President, Assured Data Protection, added: "Equinix and Equinix Fabric enabled us to deliver our Rubrik Cloud services over a fast, scalable and secure interconnection platform, with access to multiple hyperscaler clouds, that will not only protect our customers' data today, but also give them much more value from their data in the future."

Other findings of note from the Global Tech Trends Survey include:

• 80% of IT decision-makers said digitizing their IT infrastructure is a top priority, with 76% working to improve user experience.
• Almost half (48%) of respondents said they believe the threat of data leaks and cyberattacks as a result of cloud migration to be one of the biggest threats globally.
• 81% of digital leaders said they are prioritizing improving their organization's cybersecurity—a significant increase from the 70% who said this in the 2019-20 edition of the survey.

To read more about the Global Tech Trends Survey, or download a copy, please visit: https://www.equinix.com/resources/infopapers/equinix-tech-trends-survey

About the Equinix 2020-21 Global Tech Trends Survey (GTTS)
The independent study, commissioned by Equinix, surveyed 2,600 IT decision-makers in diverse enterprises across the Americas (Brazil, Canada, Colombia, Mexico, U.S.), Asia-Pacific (Australia, China, Hong Kong, Japan, South Korea, Singapore) and EMEA (Bulgaria, Finland, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, UAE, UK). Respondents were selected for participation from Dynata's online panel. The survey was conducted online between December 17, 2020, and January 8, 2021.

*Gartner, Press Release, Gartner Says 69% of Boards of Directors Accelerated Their Digital Business Initiatives Following COVID-19 Disruption, September 30, 2020.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Additional Resources

• Equinix 2020-21 Global Tech Trends Survey [Ebook]
• Keeping Critical Infrastructure Safe from Cyber Attacks [Blog]
• DDoS Extortion Attacks Are Driving Security Risks in 2021 [Blog]
• IDC InfoBrief, sponsored by Equinix, Building Digital Infrastructure to Achieve Business Advantage [doc #US47031620, December 2020]
• Global Interconnection Index (GXI), Volume 4 [Report]
• Supercharging Cloud Security, Reliability and Scalability via Interconnection [Blog]
• Equinix Vision Paper [Ebook]

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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SOURCE Equinix, Inc.

FAQ

What percentage of companies plan to migrate to the cloud according to Equinix's survey?

Equinix's survey found that 37% of companies plan to migrate their business-critical applications to the cloud.

How much has the desire to move to cloud applications increased year-on-year?

There has been a 15% increase in companies planning to move to cloud applications year-on-year.

What are the main cybersecurity concerns regarding cloud adoption?

The main cybersecurity concern is the risk of data leaks and cyberattacks, which 52% of IT leaders in the Americas identified as a major threat.

What is the estimated global cost of cybercrime?

Cybercrime costs the global economy more than $1 trillion.

How many IT leaders prioritize digitizing their infrastructure?

According to the survey, 80% of IT leaders prioritize digitizing their IT infrastructure.