Reduced Confidence in Network Investments among Decision Makers

DateJun 13, 2024

Arelion’s latest report reveals that macroeconomic disruption has significantly impacted the confidence of 87% of decision-makers in network investments. In the US, 40% report a substantial decrease in confidence. Technological change, rising costs, and climate change are cited as major disruptors, with 44%, 41%, and 37% respectively.

The study, titled ‘Doubt, delay and regret: How global disruptors are impacting enterprise networks,’ surveyed leaders in the US, UK, France, and Germany.

A majority, 67%, find the rapid pace of network technology advancements challenging for decision-making regarding hardware and services. Consequently, 49% regret their networking decisions influenced by geopolitical events over the past three years. Despite the challenges, 92% of decision-makers plan to adopt AI-based tools for network management within the next 18 months, with 54% of US leaders and 67% of financial services leaders taking the lead.

AI is primarily seen as a tool for identifying cybersecurity threats, including DDoS attacks, to enable quicker response times. However, 56% in the manufacturing sector do not anticipate significant AI impact. Security concerns remain high, with 43% worried about data center and DDoS attacks, and 42% fearing state-sponsored cyber-attacks. Alarmingly, 19% of leaders lack contingency plans for geopolitical disruptions, with this figure rising to 26% in manufacturing

Sustainable Network Investments

Macroeconomic disruptions have also slowed sustainability investments for 81% of leaders over the past two years, according to Arelion’s study. However, 65% have increased investments in energy-efficient network operations since 2022, and 84% believe achieving net-zero emissions is still realistic.

Mattias Fridström, Chief Evangelist at Arelion, commented on the findings, noting the substantial impact of constant change and disruption on enterprise network decision-makers, leading to doubt, delay, and regret. He emphasized the importance of preparing for change through strategic network planning and choosing reliable network providers.

The study, conducted by Savanta on behalf of Arelion, surveyed 545 industry representatives from enterprises with over 2,000 employees in the US, UK, Germany, and France. Participants came from diverse industries, including IT services, banking, manufacturing, and financial services, and all were involved in network development strategy decisions.

The insights from this research published by Arelion highlight the need for enterprise network operators to adopt adaptive strategies and robust support systems to navigate the challenges posed by rapid technological advancements, economic instability, and evolving security threats. As the landscape continues to shift, staying ahead would require not only embracing new technologies like AI but also ensuring sustainable practices and resilient contingency planning.

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