Half of Asia-Pacific businesses have been forced to urgently re-evaluate their tech infrastructure following a wave of high-profile IT outages, according to Expereo, a multinational provider of managed networks as a service.
Network instability is taking a serious toll on businesses in the region, with over 50% reporting revenue losses of $5 million or more due to network outages or poor performance. The findings come from an IDC InfoBrief commissioned by Expereo, titled “Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility”.
In light of the challenges seen over the past year, ranging from cybersecurity breaches to connectivity failures, 40% of tech leaders in the region now report that networking and connectivity have risen higher on the C-suite agenda.
The broader impact is that networking/connectivity and cybersecurity now top the list of investment priorities for Asia-Pacific businesses over the next 12 months: 48% for networking/connectivity, 46% for cybersecurity, followed by AI at 38%.
Last year, AI took the top spot in the survey at 43%, followed by cybersecurity (39%) and networking/connectivity (37%). This highlights that AI is no longer the most urgent technology priority.
The urgency is well-founded. More than one in four Asia-Pacific organisations (30.7%) say that inadequate network and connectivity performance is actively threatening their growth plans for the coming year.
At the same time, 44% report that network limitations are holding back their ability to support large-scale data and AI initiatives. Alarmingly, just 8% of businesses in the region believe their networks are fully prepared to support AI without any barriers.
“To drive a sustainable competitive advantage, connectivity is no longer an IT concern — it is a strategic business imperative,” said Ben Elms, CEO of Amsterdam-headquartered Expereo.
“The research confirms what many technology leaders are already experiencing firsthand: connectivity is now the backbone of business. As organisations 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.”
Eric Wong, Expereo president for Asia Pacific, said there is now a direct correlation between network performance and bottom-line success.
With nearly a third (28.7%) of businesses in Asia Pacific experiencing revenue losses exceeding $5 million from network outages, the financial stakes are higher than ever — and it is no surprise that businesses are now prioritising investment in networking and cybersecurity more than anything else.
“This strategic shift is critical for building the robust digital foundation needed to not only support large-scale data and AI initiatives but also to drive resilient, sustainable growth across the region,” said Mr Wong.
Having the right talent in place is also critical for building and maintaining the robust network and connectivity infrastructure that businesses need to thrive. However, the research suggests this may be easier said than done.
Networking tops the list of areas where organisations in Asia Pacific struggle to find or retain skilled professionals (37.5%), closely followed by cybersecurity (31.6%).
One in four (23%) Asia Pacific businesses say they plan to increase their reliance on external partners, such as vendors or managed service providers, to help bridge this skills gap, the survey found.