According to 451 Research from S&P Global Market Intelligence, almost all service providers recognize the need to transform their infrastructure to meet evolving IT and business demands driven by enterprise digital transformation. However, only a few are actively executing these changes. Key challenges include modernizing legacy systems, enhancing security, and managing data growth, while staffing shortages hinder progress. Providers increasingly rely on colocation and hybrid cloud strategies to improve reliability, disaster recovery, and connectivity, adapting to diverse workload needs in a dynamic IT landscape.

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