Network Failures Cost Global Businesses Heavily, Prompting Urgent Tech Re-evaluation
In an era defined by digital transformation and reliance on technology, network instability has emerged as a significant threat to global businesses. According to the IDC InfoBrief commissioned by Expereo, titled “Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility,” over a quarter (28%) of businesses worldwide have reported revenue losses of up to $5 million annually due to network outages or poor performance. Even more alarming, an additional 23% have suffered losses exceeding $5 million. These staggering figures underscore the critical importance of robust networking and connectivity in today’s business landscape.
The past year has been marked by high-profile IT disruptions—ranging from cybersecurity breaches to widespread connectivity failures—that have forced nearly half (49%) of global businesses to urgently re-evaluate their technology infrastructure. As a result, networking and connectivity have risen significantly higher on the C-suite agenda, with 40% of global tech leaders acknowledging this shift. This growing awareness is reflected in how businesses are prioritizing financial investments in technology over the next 12 months.
Networking and connectivity now lead the list of technologies that businesses plan to prioritize in terms of funding, with 43% of organizations placing it at the top. Cybersecurity follows closely behind at 38%, while AI rounds out the top three at 37%. Interestingly, this marks a notable change from last year when AI took the lead (42%), followed by cybersecurity (37%) and networking/connectivity (35%). The shift indicates that while AI remains important, addressing network performance and security has become even more urgent for businesses striving to stay competitive.
The urgency surrounding network improvements is well-founded. More than one in four organizations (27%) report that inadequate network and connectivity performance is actively hindering their growth plans for the coming year. Additionally, 45% of businesses say that limitations in their networks are impeding their ability to support large-scale data and AI initiatives. Shockingly, only 6% of companies worldwide believe their networks are fully prepared to support AI without encountering any barriers. These findings highlight a pressing need for businesses to invest in modernizing their infrastructure if they hope to capitalize on the potential of advanced technologies like AI.
“To drive a sustainable competitive advantage, connectivity is no longer just an IT concern—it’s a strategic business imperative,” said Ben Elms, CEO of Expereo. “This research confirms what many technology leaders are already experiencing firsthand: connectivity is now the backbone of business. As organizations race to adopt new AI solutions, the C-suite must treat network performance with the same urgency as cybersecurity and AI itself because, without it, businesses simply cannot succeed.”
However, building and maintaining a robust network infrastructure is easier said than done. One of the biggest challenges facing businesses is finding and retaining skilled professionals capable of managing increasingly complex systems. The study reveals that cybersecurity continues to be the area where organizations struggle most to find talent, with 41% citing difficulties in recruitment or retention. Networking comes in a close second, with 39% of businesses reporting similar challenges.
To address these gaps, many companies are turning to external partners for support. In fact, 45% of businesses say they plan to increase their reliance on vendors or managed service providers to help bridge the skills shortage in networking. This trend reflects a broader recognition that collaboration with specialized experts can provide the expertise needed to build resilient and future-proof networks.
As businesses navigate the complexities of digital transformation, the message is clear: investing in connectivity is no longer optional—it’s essential. Network failures not only result in direct financial losses but also hinder innovation and growth by limiting an organization’s ability to leverage cutting-edge technologies like AI. For companies looking to thrive in an increasingly interconnected world, ensuring reliable and high-performing networks must be a top priority.
The findings from Expereo’s report serve as both a warning and a call to action. While the challenges posed by network instability are daunting, they also present an opportunity for businesses to reassess their strategies and make meaningful investments in their technological foundations. By doing so, they can position themselves for long-term success in an ever-evolving digital landscape. After all, in a world where connectivity underpins nearly every aspect of operations, there’s no room for compromise when it comes to network performance.
About Expereo
Expereo is a world-leading Managed Network as a Service provider that connects people, places, and things anywhere. Solutions include Global Internet, SD-WAN/SASE, and Enhanced Internet. With an extensive global reach, Expereo is the trusted partner of 60% of Fortune 500 companies. It powers enterprise and government sites in more than 190 countries, with the ability to connect to any location worldwide, working with over 2,300 partners to help customers improve productivity and empowering their networks and cloud services with the agility, flexibility, and value of the Internet, with optimal network performance.
