Tech solution giant NTT is putting further effort into validating private 5G expansion following its recent deal with the city of Las Vegas and partnership with VMware.
The company’s 2022 Global Network Report released this week surveyed 1,300 enterprise networking professionals, unveiling four major factors moving network modernization forward. Cybersecurity and private 5G are in the front seat, and the hybrid workplace structure and cloud-native platforms following close behind.
Only two in five businesses say they are very satisfied with their current network capabilities, and 70% of business leaders report network maturity levels negatively impact business and growth.
Concordantly, there is a clear move to outsource network management. Seventy two percent of top performing businesses outsource more than half of their infrastructure, and 94% of business leaders are looking to partner with a managed service provider (MSP) or single specialist provider.
“As business demands evolve, technology innovation accelerates, and digital optimization capabilities advance, there is strong linkage [with] the likelihood and depth of outsourcing increases,” NTT VP Alfonso DiGabriele told SDxCentral.
Security and Private 5G Driving the Shift
Survey responses indicated cybersecurity and private 5G to be the major impetus behind the enterprise network renovations.
The new hybrid-work model accelerated the focus on cybersecurity, according to DiGabriele, citing that 93% of respondents believe new threats will drive increased security demands, requiring a deeper level of access control and inspection.
As enterprises shift focus to delivering “employee experience, ensuring access to people, applications, and collaboration from any device in any location,” this drives a greater need for security across platform, application, and user levels, DiGabriele said.
Another clear marker of the report: 86% of respondents expect private 5G to be managed as an extension to the local area network (LAN).
“[Private 5G] enables enterprises to deliver the same capabilities and business benefits to ‘non-carpeted’ areas as ‘carpeted’ – think office building – environments,” DiGabriele explained. “[Private 5G] is better suited to certain verticals as well. For example, in manufacturing facilities, airports, logistics companies, [private 5G] delivers the ubiquitous wireless experience – access to data, access to applications, access to collaboration – as one would have in a corporate office setting."
Moving to Modernize
Despite more than 95% of report respondents stating networks are essential for business growth, 70% of CEOs say growth is slowed by their current networks. DiGabriele believes enterprises should shift investment priorities to begin addressing these deficiencies.
“For enterprises to be successful they must first align technology and network strategy directly with their business goals. No linkage yields sub-optimization of technology [or] network investment,” he explained, adding that 89% of top performing companies have their technology strategy aligned with business goals.
“Secondly, enterprises must commit to investing in their technology and network platforms to keep pace,” he continued. “In fact, over 89% of top performing respondents indicate they are accelerating investment in digital transformation versus less than half of underperformers.”
With the survey finding 76% of top performers outsourcing network management or planning to fully outsource to an MSP in the next two years, DiGabriele believes another big part of enterprise success is having a realistic view of their current network state and capability – and seeing what can be improved.
“As enterprises determine where to invest, they should be aware that the expertise is available, and enables businesses to focus on their core competencies,” he said.
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October 23, 2022 at 03:00AM
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Private 5G, Cybersecurity Drive Network Modernization, NTT Finds - SDxCentral
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