The networking industry is undergoing significant changes due to the constant evolution of technology, which is having a profound impact on businesses globally.
The key areas that are expected to undergo development include innovation driven by the major cloud providers, faster connectivity, and the demand for network transparency.
Despite the challenging economic environment, businesses can still drive innovation to improve their competitiveness.
To fully realize the potential of these technological developments, businesses must be prepared to adapt their networks to capitalize on emerging commercial opportunities. This could involve investing in new networking technologies, rethinking network architecture, or implementing new network management approaches. Ultimately, businesses that can navigate these changes will have a competitive edge in an ever-changing market landscape.
Cloud players driving the evolution of the network
Cloud computing continues to experience significant growth and adoption across various industries. Gartner forecasts that global public cloud spending will grow by over 20% this year, reaching a total of $591.8 billion.
Cloud computing offers businesses the ability to process and analyze vast amounts of data rapidly using powerful AI and machine learning algorithms. This requires significant computing power and storage, which can strain network resources. As a result, cloud providers are asking network and network service providers for more bandwidth and faster networking speeds to support their operations.
The innovation cycle within networking will continue to accelerate as cloud computing adoption grows and demand for bandwidth and faster networking speeds increases. This will lead to further development and increased deployment of new technologies, such as software-defined networking (SDN), network function virtualization, and edge computing. These technologies have the potential to revolutionize the way networks are designed, deployed, and managed, further advancing the capabilities of cloud computing and driving innovation across industries.
Network transparency: The key to world-class security
In recent years, there has been a rising threat of network-based cyber-attacks, such as distributed denial of service (DDoS) attacks, malware infections, and data breaches. As a result, businesses are becoming increasingly concerned about the security of their networks as researchers predict the cost of cybercrime to hit $10.5 trillion by 2025.
In light of this, businesses want more transparency about what’s happening on their networks but are finding that only few vendors can deliver visibility organizations crave. It’s therefore vital businesses work with managed service providers who have the expertise on the best technology to provide transparency, ensuring corporate networks can operate efficiently and securely.
Service providers can provide greater insight, beyond the IP layer, into the geographic source and types of information in customers’ networks. By helping businesses better understand what is happening on their network, managed service providers can improve their operational decision-making.
In addition to improving network security, network transparency can also help businesses to optimize their network performance and troubleshoot issues more effectively. By analyzing network traffic in real-time, service providers can identify and resolve network bottlenecks and other performance issues, ensuring that their customers’ networks run smoothly and efficiently.
Extended Reach (ZR) optical networks: Making connections faster than ever
The next big innovation in networking will be the development of Extended Reach (ZR) optical networks that can transmit data at speeds up to 400 GBs. This is a significant advancement over the current Data Centre Interconnect (DCI) infrastructure, which could go up to 200 GBs. With ZR technology, businesses can expect faster speeds at much lower cost and complexity, with less equipment needed to manage network performance.
This innovation will help businesses manage restricted IT budgets during periods of global economic instability. With faster and more efficient connectivity, businesses can improve productivity, reduce downtime, and increase efficiency, all of which can contribute to cost savings and improved bottom-line performance.
Additionally, the easing of supply chain disruption is accelerating the shipment and deployment of ZR equipment. This means businesses can expect to see these new networks deployed faster than previous generations of optical networks, further enhancing their ability to quickly adapt to rapidly changing market conditions.
A roadmap for the future
To remain competitive and achieve growth objectives, businesses must be agile in responding to market conditions. As networking technologies continue to evolve, it’s crucial for businesses to stay on top of emerging trends and adapt accordingly.
About the Author
Oliver Schwarz is VP Engineering and Architecture at GTT. GTT is a managed network and security services provider to global organizations. We design and deliver solutions that leverage advanced cloud, networking and security technologies. We complement our solutions with a suite of professional services and exceptional support teams in local markets around the world. We serve thousands of national and multinational companies with a portfolio that includes SD-WAN, security, Internet, voice and other connectivity options. Our services are uniquely enabled by our top-ranked, global, Tier 1 IP backbone, which spans more than 260 cities on six continents. The company culture is built on a customer-first service experience reinforced by our commitment to operational excellence and continuous improvement in our business, environmental, social and governance practices. For more information, visit www.gtt.net.
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