Today, data is at the center of nearly every human interaction and organizations are managing higher volumes of data than ever before. In addition, the speed at which we conduct business has increased causing pressure to transmit that data at increasingly faster speeds. As such, organizations are reevaluating their technology and seeking alternatives that will enhance agility and increase productivity so they remain competitive. Networks are the backbone of this digital transformation.
Historically, the network was thought of as a legacy commodity service driven by carriers. But over the last five years, the introduction of software-defined networking led by service providers has resulted in a big shift – changing perception of the network from rigid and inflexible to transformational and strategic. The rise of next-gen technologies like private wireless, edge computing and cloud networking in 2023 will allow more enterprises to modernize their network strategy and rapidly evolve networks to meet changing business needs. Here are three network transformation trends to watch:
#1: 5G private wireless will move beyond industry 4.0 with retail as the next big frontier.
As organizations implement more Internet of Things (IoT) applications and robotics into their environment, there is an increasing need for those devices to operate on a flexible, secure network. Private wireless is the best network option to provide low-latency, high-capacity and high-speed connectivity.
In the manufacturing, petrochemical, gas and energy sectors – where traditional Wi-Fi networks lack frequency, power and range – many companies like Dow Chemical have already been successfully deploying private wireless to drive business efficiencies and cost savings. These privately-owned and controlled networks can provide much broader coverage and reliable connectivity in remote areas, helping to improve workplace safety and network efficiency by allowing employees to conduct visual inspections and record data immediately.
Other industries will soon follow with retail leading the pack. Across the retail industry, private wireless and edge will be key to unlocking the next generation of the customer experience by making it possible to collect data faster. Edge computing will enable brands to implement asset tracking and supply chain optimization through technology such as radio-frequency identification (RFID). More stores will be able to set up cashierless payments, such as mobile self-checkout with ApplePay and GooglePay – a benefit for both retailers facing staffing shortages and customers who prefer contactless checkout. Faster data collection also enables real-time analytics which will allow retailers to push out more personalized promotions. Not only will this drive up sales but also increase revenue per square foot. In-store smart technology enabled by the cloud network, such as smart mirrors, will also grow in popularity in 2023 as metaverse experiences continue to seep into our day-to-day lives.
#2: Traditionally slower technology adopters will become early adopters of private networks.
From manufacturing to retail, early innovation use cases of private wireless are emerging, including connected cameras, IoT sensors, robotics and real-time analytics – all of which increase productivity and worker safety and lower business costs and the carbon footprint.
Other industries positioned to adopt 5G private wireless and edge include transportation, logistics, industrial and healthcare. These sectors will benefit from the higher reliability and better security that private wireless offers compared to traditional Wi-Fi networks.
In industrial settings, for example, traditional wireless solutions are difficult to deploy and can lead to black spots if a signal is too weak or unstable to maintain connectivity. Since black spots are caused by interference, physical obstruction and distance, private networks will be especially useful in heavily reflective industrial environments or sites that are difficult to reach with traditional networks.
In healthcare, private wireless can enable clinicians to pull patient medical images and test results in real-time, meet HIPAA compliance requirements and better manage patient data. Private networks allow organizations to apply more robust security measures, such as SIM-based authentication methods and strong air interface ciphering, to protect their mission-critical data. Private wireless solutions also enable the allocation of security roles by devices, which make it easier for enterprises to control their systems, stay secure and block hacking attempts from malicious actors.
To facilitate wider and seamless adoption across industries, organizations must first understand the spectrum frequencies they’re going to use and ensure they align with the technologies they need to deploy. For the best results, they should work with a partner who can help secure the right spectrum based on region and integrate it with the local area network (LAN), wide area network (WAN) and public cloud to transfer and analyze the data.
#3: We will see explosive growth in cloud networking.
With the last decade defined by cloud migration, most enterprises have already shifted their workloads and businesses to the cloud. Across industries, we’re seeing the emergence of network as a service (NaaS) as enterprises look to eliminate network hardware and improve performance.
Thanks to the rise of hyperscalers such as Amazon Web Services (AWS), Google Cloud and Microsoft, there has been an influx of companies virtualizing network infrastructure and providing it as a service to enterprises. This helps companies manage their workloads more efficiently, integrate additional cloud-based software-as-a-service (SaaS) applications and easily scale their resources up or down according to demand. However, a lot of these companies are lacking a solid direct-to-enterprise channel. That’s where cloud networking comes in as a crucial way to know how and where to deploy applications. In a multi-cloud environment, cloud networking provides organizations with ubiquitous cloud access to enable connectivity anytime, anywhere, for any reason – while staying vendor agnostic.
Over the next year, there will be an increasing demand to integrate connectivity with managed services so that enterprises can manage multi-cloud networks and improve performance while maintaining a strong focus on security.
Getting started: Co-creating the enterprises of tomorrow
Advanced technologies such as private wireless, edge computing and cloud networking are the building blocks for a long-term investment in digital transformation. Since networks are constantly evolving, companies must adapt and transform to remain cost-competitive or risk falling behind.
To succeed at digital transformation, leaders also need to invest in their people and teams and create a culture focused on meeting the unique needs of their customers.
The payoff for those who take the time to make the right investments will be tremendous. Early adopters of these emerging technologies stand to unleash network growth and get ahead of the competition.
