70% of CEOs Claim Their Network is Slowing Business Growth

NTT booth

According to a new study published by NTT, 70% of CEOs claim that their network is hindering corporate development. On a global level, 70% of CEOs claim that the maturity of their networks is impairing business delivery.

Enterprises are embracing hybrid, distributed work environments with numerous connected devices. Yet despite expenditures, just 2 in 5 companies claim they are extremely pleased with their present network capabilities. As a result, a new age of network modernization has begun, with the majority of executives depending on it to support artificial intelligence (AIOps) and allow business growth (>90%).

More than 1,300 enterprise networking specialists were questioned for NTT’s 2022 Global Network Report, which revealed the need for network modernization to support company development.

Hybrid Security, Network-as-a-Service Models

Amit Dhingra, EVP at NTT Ltd. Network Services
“Businesses should consider security, skills competency, ability to scale, private 5G, and software defined networking when selecting a network service provider,” said Amit Dhingra, EVP at NTT Ltd. Network Services.

The significance of network security has grown as a key component of network design as dispersed hybrid work patterns offer far more attack chances for hostile actors. This has motivated businesses to increase their spending in network cybersecurity as well as migrate to more centralized, cloud-based security solutions and a managed endpoint security model. A higher degree of access control and inspection would be necessary for their company network due to emerging dangers, according to the majority of business executives (93%).

Security, modernization, and access to a full range of services from their provider were cited as respondents’ top concerns, above even cost, according to NTT’s market research. More than 90% of senior executives choose the Network-as-a-Service model for network management, citing the ability to scale up and down as a key advantage. The Network-as-a-Service approach is also more appealing due to the difficulty in installing efficient AIOps and automation technologies, which ease ongoing network operations but are difficult to establish initially.

“As new ways of working drive transformation, high performing enterprises realize the value of investing in strategic technologies – core enterprise networks, 5G, edge and artificial intelligence,” said Chris Barnard, Vice President at International Data Corporation (IDC). “To support the networking requirements of emerging digital services and applications, organizations are modernizing their enterprise networks, allowing for more efficient use and management of the networks that underpin their enterprises. Enterprises that have not invested risk negatively affecting their growth opportunities. As the network plays a fundamental role in digital transformation strategies and distributed working and processing, we can expect to see more enterprise network upgrades as technologies such as AI and security defenses are layered on to mainstream enterprise networking.”

“Levels of investment in the network have surged, with the results of this research showing many organizations are leaning towards key partners and managed service solutions to fulfil their requirements. This is primarily to drive security and gain access to skills that can both optimize capability and accelerate innovation-based advances,” said Amit Dhingra, Executive Vice President at NTT Ltd. Network Services. “We are in the midst of a modernization of network services, however, many of the solutions that are currently in play for a minority will become standard within just two years. Instead, organizations should turn their attention to a network as a service model. Businesses should consider security, skills competency, ability to scale, private 5G, and software defined networking when selecting a network service provider. In the long term, blockchain, further AI and automation, AR and VR, quantum networking, 6G and photonic computing will affect how networks are delivered.”