A recent IDC InfoBrief commissioned by Expereo, ‘Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility,’ reveals the significant impact of network instability on UK businesses.
Over a third (33%) report revenue losses of up to £4 million due to outages or poor network performance, while a concerning 18% have experienced losses exceeding £4 million. These disruptions follow a series of high-profile IT incidents over the past year, including cybersecurity breaches and connectivity failures.
The fallout has prompted half (50%) of UK companies to re-evaluate their technology infrastructure, with 35% of tech leaders citing network and connectivity issues as rising higher on the executive agenda. As a result, networking and connectivity have become the top priority for future investment, with 40% of organisations planning to allocate more funds over the next 12 months — surpassing cybersecurity (39%) and AI (35%). Notably, last year, AI was the leading focus, but recent challenges have shifted priorities toward strengthening network infrastructure.
The urgency is clear: 27% of UK organisations see inadequate network performance as actively threatening their growth plans, and nearly half (49%) believe network limitations are hindering large-scale data and AI initiatives. Alarmingly, only 5% of businesses feel their networks are fully prepared to support AI without significant barriers.
“To drive a sustainable competitive advantage, connectivity is no longer an IT concern—it’s a strategic business imperative. This research confirms what many organisations are experiencing firsthand: network performance is now the backbone of business success. As companies race to adopt AI, the C-suite must prioritise network performance just as much as cybersecurity and AI itself,” said Ben Elms, CEO of Expereo.
Talent shortages further complicate the landscape. The research highlights ongoing struggles to find or retain skilled professionals in cybersecurity (44%) and networking (40%). Consequently, 40% of UK businesses plan to increase reliance on external partners, such as vendors or managed service providers, to address the skills gap and ensure robust network and connectivity infrastructure to support future growth.
