Technologies like AI and the Internet of Things (IoT) are transforming what’s possible with data and putting pressure on enterprise networks to deliver higher bandwidth, lower latency and greater resiliency. For emerging technologies, networks play a vital role, moving data from its original source to enterprise servers, clouds, AI models, service providers and users distributed around the world. Traditional centralized infrastructure simply isn’t designed for today’s connectivity needs; it can’t provide the flexibility and performance modern applications require.
For many organizations, that era of networking is already long gone. Enterprise networks that were once static, physical infrastructure have been evolving to become more flexible, integrating software-defined networking (SDN), virtual network functions (VNFs) and Network as a Service (NaaS) solutions. Very often, enterprise WANs are now distributed to many locations around the world and connect multiple clouds, on-premises and edge data centers, and colocation facilities.
As hybrid IT models become the norm, companies need to establish distributed hybrid multicloud network designs that offer the speed, capacity, observability and reliability needed for AI workloads. For many, this will require significant rearchitecting of legacy networks alongside the adoption of software-defined network capabilities.
The modernization of a network is an ongoing, iterative process of improving network performance, efficiency and reliability to meet ever-changing requirements. A decade ago, network modernization typically involved initiatives like virtualization, automation, Wi-Fi upgrades and cloud readiness. Today, it centers on things like SD-WAN optimization, zero trust security, distributed applications and edge computing. In the future, we’re likely to see more AI-driven network management, self-optimizing autonomous networks and digital twins of networks. No matter what specific initiatives it entails, optimizing networks to support AI deployments and other software-driven business operations is becoming a must.
Network modernization is a business imperative
Network performance affects nearly every aspect of business. It influences costs, the efficiency of business operations and the quality of user experiences, as well as an organization’s capacity to grow and compete. As AI becomes a differentiator, networks will be under increased scrutiny and will need to be modernized to handle its requirements.
While AI and other new technologies aren’t the only reason networks need to be optimized, they’re a major driver: According to research from Enterprise Strategy Group, 90% of IT decision-makers report that networks are becoming more critical to their organizations due to AI deployments. Similarly, 85% said their network planning and engineering will be affected by AI technologies.[1]
of IT decision-makers say networks are becoming more critical due to AI deployments.
As networks evolve, they continue to need higher bandwidth and lower latency to perform in an efficient and timely manner. They also need to be resilient to prevent outages that could have costly business impacts.
Evolving networks for an AI-driven future
Building an ideal hybrid multicloud network in the age of AI generally involves establishing network hubs in key locations near users, data sources, and key partners and service providers to maximize efficient traffic flows. For many enterprises, this approach can require substantial architectural changes, while for others, it’s about adopting modern capabilities that enhance security and flexibility.
SD-WAN optimization to increase network agility
Many organizations already use SD-WAN or are in the process of implementing an SD-WAN strategy to support distributed architectures and edge computing. SD-WAN is appealing because it delivers clear benefits for multicloud infrastructures, including better network efficiency as well as greater visibility, scalability, flexibility, transport cost reductions and improved security. SD-WAN also boosts network agility by enabling you to adjust your network as requirements change. Optimizing SD-WAN helps organizations route traffic more efficiently—and you can deploy its key structural components through a colocation facility or as a VNF.
CELSA Group, a leading multinational producer of long steel products, wanted to improve their global WAN to deliver better user experiences. Because of their hybrid multicloud architecture, they needed a modernized network backbone with cloud connectivity. CELSA deployed an agile interconnection model and updated its network backbone from MPLS to SD-WAN to scale virtual connections and lower network costs by up to 40%.
Read the Case StudySimplified hybrid multicloud networking for fast, secure connection to clouds
As IT infrastructure expands across platforms and geographies, and data volumes continue to grow, multicloud networking has become quite a challenge. For many organizations, networks designed for an earlier era haven’t evolved quickly enough. Some are spending huge sums of money on cloud egress fees and wasting network bandwidth because of inefficiencies in their network design.
Whether companies are still relying on a centralized architecture or have a messy array of network technologies they acquired ad hoc, their networks aren’t designed to help them get the most from their hybrid multicloud environment. An optimized network design can help companies securely connect between clouds, networks, partners and data centers more efficiently.
The payment technology provider Dojo needed to create a resilient hybrid multicloud infrastructure that securely accelerated access to services in multiple public clouds. Using Equinix Fabric® for connectivity to Oracle Cloud, AWS and Google Cloud, Dojo enabled a high-performance multicloud network that supports faster payment processing for customers—80% faster than the industry average.
Read the Case StudyTools to support your network modernization journey
As we speed toward the future, the benefits of optimizing enterprise networks will be many: greater reliability and uptime, better customer and employee experiences, cost efficiency, scalability and future readiness. Network optimization for AI and emerging technologies may involve putting purpose-built infrastructure in locations where business ecosystems converge. It may mean deploying VNFs like routers, firewalls and more at the edge. The options are many, but evolving networks for modern technologies is vital.
Equinix has a lot to offer when it comes to enterprise network modernization initiatives:
- Global presence where you are today and where you’re going tomorrow: 270 data centers in 75 markets and 35 countries.
- Connection to key partners and service providers: ~3,000 clouds and IT services, 2,000+ network services and 4,800+ enterprises in our ecosystem. More than 60% of the Fortune 500 are in the Equinix ecosystem.
- Flexible infrastructure choices including on-demand virtual networking: Colocation facilities where you can deploy your own equipment, as well as Equinix Fabric® and Equinix Network Edge ready-to-consume solutions.
Taking the next step
As you plan for an AI-powered future, you need a network that supersedes traditional technology limitations and enables innovation. Whether you’re rearchitecting your network for greater efficiency, optimizing SD-WAN or taking steps to improve multicloud networking, network modernization is an important investment in your future success.
Learn more about hybrid multicloud networking for AI in the Enterprise Research Group report Refitting Hybrid, Multicloud Networks for the AI-native Era.
[1] Jim Frey, Refitting Hybrid, Multicloud Networks for the AI-native Era, Enterprise Strategy Group, now part of Omdia, May 2025. Commisioned by Equinix and distributed under license from TechTarget, Inc.
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