Tech adoption drives surging demand for critical resources
Beaming research reveals that accelerating adoption of new technologies by UK businesses will increase demand for energy, computing power, and network capacity by as much as 30 per cent this year.
A survey of business leaders, commissioned by Beaming and undertaken by researchers at Censuswide, indicates the proportion of UK businesses using transformative new technologies such as AI, Automation, Cloud Computing, and Data & Analytics will almost double this year, from 22 per cent to 40 per cent.
Almost a fifth (18 per cent) of companies are introducing technologies to transform their products, services and operations in 2024, driving up demand for critical resources. Beaming’s study suggests that:
- Computing Power: UK businesses will require 19 per cent more computing capacity in 2024 than in 2023. One in six small, medium and large firms anticipate their demand for computing power will at least double this year. Demand looks set to increase most in the Manufacturing, Finance & Accounting, Hospitality & Leisure sectors.
- Energy Consumption: UK businesses will use 21 per cent more energy for IT needs this year, with large companies predicting a 98 per cent rise. The Finance & Accounting and Hospitality sectors forecast nearly double their current energy consumption. Just 11 per cent of firms told researchers that reducing environmental impact was a consideration in their IT investment plans.
- Internet / Network Capacity: Demand for internet and network capacity will increase by 30 per cent to handle the extra data and communications traffic associated with digital transformation. Large businesses anticipate a 95 per cent increase in network traffic, while small and medium enterprises project increases of 76 per cent and 75 per cent, respectively.
Around one in seven companies progressing digital transformation initiatives could not say how their technology adoption plans would affect their need for computing resources, energy and connectivity.
Sonia Blizzard, Managing Director of Beaming, said: “Digital transformation represents a fundamental shift in how businesses operate, and that shift is accelerating. Our research shows that while many businesses are making significant strides with technology, there’s a pressing need for additional resources to support them to make cost-effective, sustainable and humane choices.”
“The growing demand for energy, computing power and network capacity could place
significant strain on existing infrastructure and resources, potentially leading to higher costs, environmental impact, and the risk of overburdening current systems.
“Digital transformation should align with your broader business strategy and consider the impact for both IT and people. Approaches to new tech, like Generative AI, must reflect company values and consider staff and customer needs. With thoughtful planning and expert support, businesses can harness digital transformation to stay competitive.”
Additional Resources Required Due to Digital Transformation in 2024
| Average change in resources required % | % companies needing more |
% companies expecting demand to double |
|||||||
| By Size | Computing Power | Energy Use | Internet Capacity | Computing Power | Energy Use | Internet Capacity | Computing Power | Energy Use | Internet Capacity |
| All | 19% | 21% | 30% | 76% | 36% | 32% | <1% | 3% | 5% |
| Solo (1 person) | 8% | 12% | 22% | 26% | 74% | 65% | <1% | 18% | 18% |
| Micro (2 to 10 people) | 45% | 42% | 45% | 64% | 88% | 89% | 7% | 23% | 21% |
| Small (11 to 50) | 76% | 74% | 76% | 90% | 61% | 56% | 15% | 5% | <1% |
| Medium (51 to 250) | 83% | 80% | 75% | 87% | 75% | 85% | 18% | 8% | 20% |
| Large (251+) | 86% | 98% | 95% | 92% | 82% | 88% | 16% | 12% | 12% |
| Average change in resources required % | % companies needing more |
% companies expecting demand to double |
|||||||
| By Sector | Computing Power | Energy Use | Internet Capacity | Computing Power | Energy Use | Internet Capacity | Computing Power | Energy Use | Internet Capacity |
| Business Services | 54% | 60% | 54% | 66% | 63% | 63% | 6% | 11% | 6% |
| Construction | 87% | 77% | 63% | 79% | 85% | 87% | 15% | 13% | 21% |
| Education | 25% | 44% | 22% | 66% | 56% | 63% | 6% | 6% | 3% |
| Finance & Accounting | 94% | 99% | 91% | 93% | 91% | 90% | 22% | 22% | 19% |
| Hospitality & Leisure | 98% | 98% | 145% | 83% | 83% | 71% | 25% | 21% | 33% |
| IT & Computing | 82% | 84% | 88% | 88% | 90% | 90% | 18% | 9% | 18% |
| Manufacturing | 79% | 55% | 69% | 89% | 79% | 86% | 6% | 6% | <1% |
| Retail | 31% | 18% | 26% | 63% | 60% | 60% | 14% | 15% | 19% |
Source: Beaming & Censuswide
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