Survey: Digital transformation can reveal network weaknesses

Survey: Digital transformation can reveal network weaknesses

When enterprises embraced digital transformation, some found their existing networks had a limited ability to address cloud connectivity or access for mobile users.

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Digital transformation is a catch-all phrase that describes the process of using technology to modernize or even revolutionize how services are delivered to customers. Not only technology but also people and processes commonly undergo fundamental changes for the ultimate goal of significantly improving business performance.

Such transformations have become so mainstream that IDC estimated that 40% of all technology spending now goes toward digital transformation projects, with enterprises spending in excess of $2 trillion on their efforts through 2019.

Every company’s digital transformation project is unique. Whether it’s transforming a company’s marketing and sales processes by using machine learning to garner deep insights on each and every customer, or building a seamless experience across sales channels and revamping distribution channels to provide the best products and resources to customers, a digital-transformation project is going to be dependent on as well as have an impact on the enterprise’s network infrastructure.

Many companies assume their networks can handle these changes. But can they? Do these new ways of working strain the existing network infrastructure by imposing new requirements for agility, cloud access, security and mobility?

Gauging Confidence in the Network Post-Digital Transformation

A recent survey of more than 1,300 IT professionals dared to ask about the impact of digital transformation on each respondent’s enterprise network. Having just conducted its fourth annual state of the WAN survey at the end of 2019, Cato Networks issued the report, Networking in 2020: Understanding Digital Transformation’s Impact on IT Confidence in Enterprise Networks. Steve Taylor, publisher and editor-in-chief of Webtorials.Com, and Dr. Jim Metzler, principal at Ashton, Metzler, and Associates, were instrumental in designing and the analyzing the results from the portion of the survey relating to digital transformation. There are some worthy observations here for network managers.

The study looked at networking and security priorities for IT professional in 2020. As part of that process, the study sought to identify how ready enterprise networks are for the digital era. According to the report, “The modern business has data and users residing everywhere. And just as the enterprise network provided performance and security to data centers and branch offices in the past, so, too, it must provide performance and security to the cloud and mobile users—both hallmarks of digital initiatives.” Without a network that delivers the right infrastructure with the right performance and security levels anywhere, digital transformation efforts can run aground.

1,333 respondents took part in the survey in late 2019. Qualified respondents were those who work in IT and are involved in the purchase of telco services for enterprises with an SD-WAN or MPLS backbone (or a mix of MPLS and Internet VPN). The vast majority of the respondents say they are moderately or extremely involved in their organization’s digital transformation initiatives.

More than half of respondents identified working for companies with a global or regional footprint. Nearly half of respondents work for companies with more than 2,500 employees. The vast majority said their organization spans 11 or more locations, with a quarter of the respondents from companies with more than 100 locations. All respondents’ companies have some cloud presence and most have two or more physical data centers.

To gauge the impact of digital transformation on the network, the survey asked a number of qualitative questions pertaining to network characteristics that include agility, security, performance, and management and operations. For each characteristic, the study looked at the “network confidence level”; that is, whether the respondent feels more or less confident in the network’s capabilities in that area following the deployment of the transformation project. The study segmented respondents by the type of network they operate—MPLS, hybrid (MPLS and Internet-based VPN), SD-WAN, or SASE (secure access service edge, pronounced “sassy”). SASE converges SD-WAN and other networking capabilities and a complete security stack into a global, cloud-native platform. (Disclosure: Report publisher Cato Networks delivers an SD-WAN service and also bills itself as the world’s first SASE platform.)

Overall Findings

I’ll get to the results about network confidence level in a moment. First let’s look at some general information disclosed in the report:

  • Budgets are growing in 2020. Respondents report that both their network and their security budgets are expected to grow in 2020. That’s good news, considering both areas are being asked to do more.
  • Site connectivity continues to drive the major networking challenges for 2020. This includes bandwidth costs, performance between locations, and managing the network.
  • Mobility is becoming strategic for network buyers. The importance of managing mobile and remote access grew significantly since the last annual survey. Addressing this need has become another top networking challenge.
  • Security is an essential consideration for WAN transformation. Enterprises must have a multi-edge security strategy that includes defending against emerging threats like malware/ransomware, enforcing corporate security policies on mobile users, and full awareness of the cost of buying and managing security appliances and software.
  • The most critical applications are now in the cloud. More than half (60%) of all respondents indicate that their organization’s most critical applications will be hosted in the cloud over the next 12 months. This has a huge impact on how users will access the cloud via their WAN.
  • Digital initiatives are driving a rethinking of legacy networks. More than half of the respondents whose organizations still rely on MPLS say their organizations are actively planning to deploy SD-WAN in the next 12 months to lower costs and support new business initiatives.

Read more on the next page...

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