Network Failures Cost UK Businesses £4m Annually

As artificial intelligence (AI) and cloud applications drive increased workloads, the demand for modern networks to be smarter, more secure, and adaptable is at an all-time high. However, network outages are becoming more frequent. A recent study by IDC InfoBrief, commissioned by Expereo, has revealed that network instability is costing UK businesses significantly, with over a third (33%) reporting revenue losses up to £4 million due to outages or poor performance. An additional 18% have suffered losses exceeding £4 million.

This study highlights the challenges faced by technology leaders, which include macroeconomic conditions, business priorities, investments in AI and networking, as well as the skills gap in digital technologies. Following notable IT disruptions over the past year—ranging from cybersecurity breaches to connectivity failures—nearly half (50%) of UK businesses have reassessed their technology infrastructure. Moreover, 35% of tech leaders indicate that networking and connectivity have risen higher on the agenda of executive decision-making.

Consequently, the report states that networking and connectivity are now the top priority for financial investment among UK businesses, with 40% planning to allocate more funds in the coming year. This is a notable shift from previous priorities where AI led at 42% last year.

Unfortunately, more than a quarter (27%) of UK organizations report that inadequate network performance threatens their growth plans for the upcoming year. Nearly half (49%) face limitations in supporting large-scale data and AI initiatives due to poor network performance. In fact, only 5% feel their networks are fully equipped to support AI initiatives without any obstacles.

The findings underline a significant concern; 94% of businesses acknowledge that their networks hinder their capacity to undertake extensive data and AI projects in various ways. Key challenges include scalability, flexibility, and network performance.

Recruiting and retaining the right talent is also viewed as essential for establishing and sustaining robust connectivity infrastructure. However, findings indicate that this is increasingly difficult, particularly in cybersecurity (44%) and networking (40%). Consequently, 40% of UK businesses intend to rely more on external partners, such as vendors or managed service providers, to address the skills gap in networking.

Expereo emphasizes the necessity for companies to adopt new networks that can adapt capacity to meet variable data workloads effectively. “Connectivity is now a strategic business imperative,” stated Ben Elms, CEO of Expereo. “This research reinforces the reality that connectivity underpins organizational success. As companies adopt new AI solutions, network performance must receive the same urgency as cybersecurity and AI itself.”