- 74% of organizations reported moderate to significant impact to
their employees due to the pandemic
- In response to COVID-19, 38% of IT leaders plan to increase
their investment in cloud-based networking, and 35% in AI-based
networking, as they seek more agile, automated infrastructures for
hybrid work environments
Businesses will experience profound changes as employees
transition to hybrid work environments following COVID-19, in turn
changing the way IT teams procure and consume networking solutions.
In response to the pandemic, IT leaders are now investing more in
cloud-based and AI-powered networking technologies as business
recovery plans take shape. That’s according to a global survey of
2,400 IT decision-makers (ITDMs) commissioned by Aruba, a Hewlett
Packard Enterprise company.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200812005209/en/
In response to COVID-19, 38% of IT
leaders plan to increase their investment in cloud-based
networking, and 35% in AI-based networking, as they seek a more
agile infrastructure for hybrid work environments. (Graphic:
Business Wire)
Read the full report:
https://www.arubanetworks.com/assets/eo/Hybrid-Workplace-Report.pdf
As IT leaders respond to the challenges associated with enabling
a highly distributed workforce and the emergence of the hybrid
workplace – with people needing to move seamlessly between working
on campus, at home and on the road – they are looking to evolve
their network infrastructure and shift away from CapEx investments
towards solutions consumed “as a service.” The average proportion
of IT services consumed via subscription will accelerate by 38% in
the next two years, from 34% of the total today to 46% in 2022, and
the share of organizations that consume a majority (over 50%) of
their IT solutions “as a service” will increase by approximately
72% in that time.
“With the emergence of the hybrid workplace, IT leaders are
being asked to deliver a delicate balance between flexibility,
security and affordability at the edge,” said Partha Narasimhan,
CTO and HPE Senior Fellow for Aruba, a Hewlett Packard Enterprise
company. “Every part of the workplace needs to evolve: the campus
must be embedded with technology to support social distancing and
contactless experiences, and the home office must offer
enterprise-level connectivity, security and support. It’s
increasingly clear that, to support these new needs in a
financially challenging environment, IT decision-makers are
attracted to the reduced risk and cost advantages offered by a
subscription model.”
The report, which surveyed ITDMs in over 20 countries and eight
key industries, looked at how they have responded to IT and
business demands in the wake of COVID-19, what investment decisions
are being made as a result, and the consumption models now being
considered. A number of key findings stood out:
Impact of COVID-19 has Significant Implications
ITDMs report that the impact of COVID-19 has been significant
both on their employees and short-term network investments:
- 22% describing the impact on their employees as “significant”
(widespread furlough or layoffs), while 52% considered it
“moderate” (temporary reductions in some functions), and 19% “low”
(very few jobs impacted).
- ITDMs in India (57%) and Brazil (34%) were most likely to cite
a significant impact on their employees, while those in Hong Kong
(12%) and Mexico (10%) reported the least, highlighting a massive
swing in experiences between regions.
- 77% said that investments in networking projects had been
postponed or delayed since the onset of COVID-19, and 28% indicated
that projects had been cancelled altogether.
- Project cancellations were highest in Sweden (59%) and lowest
in Italy (11%), showing there are also significant disparities
between countries within the same region, while 37% of ITDMs in
education and 35% in hotels and hospitality globally said they have
had to cancel network investments.
The Future is Bright: Investing for Emerging Needs
By contrast, future plans are aggressive, with the vast majority
of ITDMs planning to maintain or increase their networking
investments in light of COVID-19, as they work to support the new
needs of employees and customers.
- An astounding 38% globally will increase their investment in
cloud-based networking, with 45% maintaining the same level and 15%
scaling back. The APAC region was the global leader with 45%
stating increased investment in cloud-based networking, rising to
59% among ITDMs in India. With cloud solutions allowing for remote
network management at large scale, these capabilities are
particularly enticing for IT teams when being on-premises is not
possible or challenging.
- ITDMs are also seeking improved tools for network monitoring
and insight, with 34% globally planning to increase their
investment in analytics and assurance, 48% indicating that they
will maintain their level of investment and 15% reducing it. This
allows IT organizations to troubleshoot and fine-tune the network
more efficiently, as demands on it are augmented by a distributed
workforce.
- There is also an emphasis on innovative technologies that
simplify the lives of IT teams by automating repetitive tasks. We
found 35% of ITDMs globally are planning to increase their
investment in AI-based networking technologies, with the APAC
region leading the charge at 44% (including 60% of ITDMs in India
and 54% in Hong Kong).
Adoption of New Consumption Models is Accelerating
As ITDMs shape their investment plans, they are looking at
alternative modes of consumption to achieve the best balance of
value and flexibility.
- 55% globally say they will explore new subscription models for
hardware and/or software, 53% managed services for turnkey
hardware/software and 30% financial leasing – all as a result of
the impact of COVID-19. This reflects the increased need for more
financially flexible models in a challenging environment.
- Networking subscription models are more popular in APAC (61%)
than in the Americas (52%) or EMEA (50%), and at a country level
the highest demands are in Turkey (73%), India (70%) and China
(65%).
- The industries most likely to be considering the subscription
model are hotels/hospitality (66%), technology and telecom (58%)
and education (57%). The impact of COVID-19 on IT behavior has made
the desire for flexibility and predictability in spending, while
reducing risk from initial capital costs, greater than before.
- In stark contrast, just 8% globally plan to continue with only
CapEx investments, though the proportion is higher in the
Netherlands (20%), US (17%), Spain (16%) and France (15%). Across
industries, 15% in retail, distribution and transport will continue
to focus solely on CapEx investments, versus just 5% in IT, tech,
education and telecoms, and 2% in hotels and hospitality.
“With the needs of customers and employees having changed so
comprehensively in recent months, it’s no surprise to see IT
leaders seeking more flexible solutions,” says Narasimhan. “They
are having to adapt fast and ensure that more complex, distributed
networks can securely support the experiences users demand. The
need for agility and flexibility in network management is now
greater than ever.”
While the pandemic has clearly negatively impacted ongoing
projects, this research suggests it will also catalyze medium-term
investment into advancing networking technologies, and a shift to
more flexible models of consumption that limit up-front capital
demands. Trends that were already taking hold will now accelerate,
including the move to the Edge and the adoption of cloud-based and
AI-driven intelligent networks.
To learn more about how Aruba is helping to architect the Hybrid
Workplace, tune into Aruba ATM Digital at 10 a.m. PT on Thursday,
August 13, 2020.
Additional Assets:
- Infographic:
https://www.arubanetworks.com/assets/infographic/Edge-Survey-Hybrid-Workplace_Infographic.pdf
- Aruba Hybrid Workplace page:
https://www.arubanetworks.com/solutions/hybrid-workplace/
About Aruba, a Hewlett Packard Enterprise company
Aruba, a Hewlett Packard Enterprise company, is the global
leader in secure, intelligent edge-to-cloud networking solutions
that use AI to automate the network, while harnessing data to drive
powerful business outcomes. With Aruba ESP (Edge Services Platform)
and as-a-service options, Aruba takes a cloud-native approach to
helping customers meet their connectivity, security, and financial
requirements across campus, branch, data center, and remote worker
environments, covering all aspects of wired, wireless LAN, and wide
area networking (WAN).
To learn more, visit Aruba at http://www.arubanetworks.com. For
real-time news updates follow Aruba on Twitter and Facebook, and
for the latest technical discussions on mobility and Aruba
products, visit Airheads Social at
http://community.arubanetworks.com/.
About Vanson Bourne
Vanson Bourne is an independent specialist in market research
for the technology sector. Their reputation for robust and credible
research-based analysis is founded upon rigorous research
principles and their ability to seek the opinions of senior
decision makers across technical and business functions, in all
business sectors and all major markets. For more information, visit
www.vansonbourne.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200812005209/en/
Pavel Radda Aruba, a Hewlett Packard Enterprise company
+1-408-398-6668 pavel.radda@hpe.com
Kathleen Keith Aruba, a Hewlett Packard Enterprise company +1
707-529-4507 kathleen.keith@hpe.com
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