Digital transformation held back by legacy networks

Networks Asia staff
Networks Asia

As the world becomes more digital, enterprise networks are being stretched by more data traffic, a growing mobile workforce and cloud-based applications and tools that need to work reliably for customers and employees anywhere and anytime, according to Verizon.

Traffic on the US-based operator's public IP network grew nearly 300% over the past four years, a compound annual growth rate of 44%, the company said in a new report.

The report looks at issues facing enterprises as the digital evolution unfolds, then outlines key drivers of digital transformation, encouraging CIOs and leaders across organizations to rethink their network in order to drive results.

More than two-thirds (67%) of IT leaders surveyed for the report told Verizon that legacy networks can be a bottleneck to success.

Nearly 80% said that it was IT’s responsibility to ensure the network can support a company’s digital transformation plans, and a vast majority of respondents said that the network is integral to the competitive advantage of a connected business.

The report states that preventing network failures is imperative, as it is estimated that just an hour of critical application failure can cost a large enterprise up the $1 million.

Cloud, mobile, the internet of things, big data and advanced analytics and virtual reality and collaboration solutions are critical considerations when doing network planning, it adds.

“Customers and employees demand responsiveness and speed in every interaction, making it even more important for enterprises to reinvigorate their interest in building and maintaining flexible, robust and reliable networks or finding the right managed network services partner,” said Chris Formant, global president for Verizon Enterprise Solutions.

“The network is at the core of any digital initiative. So when it comes to what any company’s network has to deliver, performance, reliability and security are key.”

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