Is your business equipped for digital transformation?
Digital Transformation is accelerating among UK businesses. Beaming’s research shows that almost a quarter of companies have already embraced multiple new technologies that enable digital transformation, and another fifth are currently implementing a range of new technologies to transform their products, services, and operations.
This acceleration in digital transformation places extra requirements on computing, energy and connectivity resources.
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
Computing Power
- Our research indicates that UK businesses will require 19% more computing capacity, on average, in 2024 than in 2023. Around 90% of those employing more than ten people expect to use more computing resources this year. One in six small, medium and large businesses anticipate their demand for computing power will at least double this year.
- Demand for computing power is increasing most in the Manufacturing, Finance & Accounting, Hospitality & Leisure industries. Over 80% of companies in these sectors expect to use more computing resources in 2024, and around a fifth anticipate demand will at least double.
Energy Consumption
- Our research suggests that UK businesses will use 21% more energy this year to meet their IT needs. Demand will almost double for Large companies employing more than 250 people, which expect to use 98% more power, on average, to meet their IT needs.
- The Finance & Accounting sector and the Hospitality & Leisure industry are projected to experience the most significant increases in energy consumption to power their digital transformation initiatives, with demand anticipated to rise by 99% and 98%, respectively, in 2024.
Internet / Network Capacity
- Finally, our research indicates that the demand for internet and network capacity will increase even faster than computing resources and energy consumption this year. On average, businesses said they would need 30% more internet capacity in 2024 to handle the extra data and network traffic associated with digital transformation.
- The most significant increases in demand for internet and network capacity will come from large businesses, which expect to generate 95% more network traffic this year. Small and medium companies expect to generate 76% and 75% more internet traffic this year, respectively.
The growing demand for energy, computing power and network capacity significantly strains existing infrastructure and resources, potentially leading to higher costs, environmental impact, and the risk of overburdening current systems. Upfront planning is vital to ensure that infrastructure can handle the increased demands of new technologies while allowing scalability and ensuring long-term sustainability.
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