""Network infrastructure will make or break neoclouds," warns Omdia Telco B2B Research Director Camille Mendler. "Low latency, resilient and secure connectivity from backbone to edge is table stakes for success, not least because sovereignty spans where AI workloads move.""
"Global network provider Lumen is jumping on the same bandwagon. CEO Kate Johnson issued an open letter to enterprise chiefs everywhere asking if their networks are AI-ready and pushing upgrades to support coming AI applications."
AI is significantly impacting network infrastructure demands, with many organizations, including neocloud providers, unprepared for the changes. A study by Omdia reveals that while GPU providers have expanded their compute capabilities, their networking infrastructure is becoming a critical limitation. Enterprise customers are advised to evaluate suppliers beyond just compute capacity. The performance of AI increasingly relies on effective data processing and secure movement across networks, which vary widely among neocloud operators. Many are now seeking partnerships or building infrastructure to meet these growing networking needs.
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