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The Energy Crisis: A Wake-Up Call for Business Leaders and Network Sustainability
[May 02, 2023]

The Energy Crisis: A Wake-Up Call for Business Leaders and Network Sustainability

TMCnet News

Global connectivity solutions provider Arelion's recently released report has revealed that escalating energy prices are causing significant concern among business leaders, with 53% citing this issue as their primary worry. 43% of respondents are also anxious about potential energy supply shortages, despite it not being categorized as a more significant priority. The situation has actually even caused sleepless nights for 14% of surveyed leaders (particularly those in the U.S., where 29% have reported suffering from insomnia).

It's key to remember that these aren't just numbers with a % attached. These are real people affected. More information below:

The study 'The Energy Crisis: Is it Hurting Enterprise Networks?' explores the effects of the energy crisis on network operations and the wider network sustainability agenda. It was conducted in the U.S., the U.K., France, and Germany.

Arelion's findings indicate that 35% of leaders are worried about the ongoing impact of high costs for the year ahead. This concern is most evident, per Arelion, in the banking industry; there, 50% of leaders are apprehensive about the continuing effects on their operations.

Additionally, the research shows that 82% of leaders cite how increased energy costs have had a medium or high impact on the way they price their services. 69% have raised their own prices to pass on their increased costs to customers.

Interestingly, 18% of decision-makers have actually reduced prices to their customers, potentially absorbing the extra costs to maintain competitiveness in a challenging business environment.

Despite the negative implications, the energy crisis has prompted 61% of businesses to increase investment in their network operations to improve energy efficiency. (i.e. one of those benefits that is indeed beneficial, but the how-we-got-there of it perhaps was less enthusing) In addition, 52% of companies have accelerated and strengthened their network sustainability efforts. U.S. businesses seem to be leading the way in this regard, with 65% of decision-makers saying they are boosting their sustainability initiatives.

When it comes to sustainable energy sources for powering network operations, 40% of respondents believe that clean, renewable solar power has the greatest potential. However, in France, 51% of leaders see nuclear power as having the most potential, reflecting the country's long history of investment in nuclear power production and its cultural pro-nuclear acceptance.

Mattias Fridström, Chief Evangelist at Arelion, commented on the survey results, stating that the energy crisis has accelerated the transition towards more sustainable networks and investments in power efficiency, thereby shortening the upgrade cycle for network infrastructure.

The research was conducted by Savanta on behalf of Arelion and included 324 industry representatives internationally, all of whom are involved in decision-making regarding their company's network development strategy.

Edited by Alex Passett

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