Philippine companies are finding it difficult to prepare their IT systems for artificial intelligence (AI) because of high costs, outdated technology, and network limitations, according to Max Parry, VP of Growth and Emerging Markets, Asia-Pacific, Equinix.
Parry said many businesses still see IT infrastructure as an expense instead of an investment, making them hesitant to spend on upgrades needed to support AI.
“The challenges primarily revolve around cost, physical capacity, and connectivity requirements,” Parry told Back End News in an email interview.
AI requires more powerful computers, especially servers with graphics processing units (GPUs), as well as more electricity and cooling than traditional business applications. Many companies are still using server rooms that were not built to handle these demands, making upgrades difficult and expensive.
Older networks are also slowing AI adoption. Parry said many businesses still rely on outdated network systems that were not designed to handle the large amounts of data AI needs to process. Sending AI data over the public internet can also lead to delays and inconsistent performance.
“Traditional systems were not designed for the dynamic and data-intensive nature of AI workloads,” he said. “Using the public internet for high-volume AI data transfer can lead to congestion, latency, and inconsistent performance, resulting in lost productivity and diminished user experiences.”
Another challenge is limited network choice. Parry said many organizations cannot easily connect to different telecommunications providers, cloud platforms, and technology partners, making it harder to expand AI projects as their needs grow.
Despite these challenges, Parry said companies do not need to replace their entire IT infrastructure before adopting AI.
“Rather than a costly rebuilding of their entire network, enterprises can modernize strategically by adopting vendor-neutral connectivity that enables them to connect to new AI services, cloud providers, and infrastructure partners as business needs evolve,” he said.
He added that preparing for AI is not just about buying new hardware. Businesses also need fast and secure connections to the cloud services, data, and technology partners that support AI.
Parry said Equinix operates three carrier-neutral data centers in the Philippines (MN1, MN2, and MN3) with more than 1,000 cabinets available for local and international businesses.
For companies with limited budgets, he recommends first identifying where AI can deliver the most value and checking whether their existing servers, storage, networks, power, and cooling systems can support those projects.
Instead of replacing everything, businesses can gradually upgrade their systems and combine their existing infrastructure with cloud-based AI services. He also recommends a hybrid multicloud approach, where sensitive data stays on private systems while AI workloads that need more computing power run in the cloud.
Power consumption is another issue, as AI uses much more electricity than traditional business software. Companies should make sure their facilities can provide enough power and cooling before expanding AI projects, Parry said.
He added that banks, financial technology companies, business process outsourcing (BPO) firms, e-commerce companies, government agencies, and healthcare organizations are under increasing pressure to modernize their IT systems as AI adoption grows.
Banks and fintech companies need fast and secure connections for real-time transactions. BPO companies require reliable networks to serve clients around the world. E-commerce businesses need fast systems to prevent customers from abandoning online purchases, while government agencies and healthcare organizations must protect sensitive data while improving digital services.
Equinix recently introduced Equinix Fabric Intelligence, an AI-powered platform that helps automate network management.
Parry said many IT teams still rely on manual processes that slow AI deployments as networks become larger and more complex.
“Omdia research shows 93% of organizations agree that network automation will be essential for keeping pace with future change, and 88% also agree that AI itself will be required for effective network automation,” he said.
Parry expects more Philippine businesses to adopt hybrid cloud systems, automated networks, and data centers built for AI as they expand their AI projects while keeping costs under control.
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