2017 Trends in the Enterprise

Some people will mourn the end of 2016, while others will celebrate the excitement that 2017 will bring. Enterprises may be feeling a mixture of both emotions as changes in the new year bring uncertainty. But the thrill comes with new technologies and opportunities. Ed Solis takes us through some of the expected trends in 2017 that will hopefully ease any doubts about the opportunities ahead.

Data_Center_BrandfolderWith changes and uncertainty in the global landscape – Brexit, President-elect Donald Trump, country leaders resigning – 2017 could be the year of massive change as businesses loosen their purse strings and invest, or organizations reduce spending while waiting to gauge the impact of changes. Even with these two different scenarios, we see a few trends for the coming year in business enterprise network infrastructure.

Cloud Migration

Service providers, enterprises and data center owners began a migration of applications to the cloud and we see this increasing over the next year.

A recent IDC survey indicates that currently 41 percent of a company’s IT budget is allocated to cloud versus outsourcing or in-house. The survey indicates that in 24 months, that will increase to 47 percent.

We believe there also will be a build out of private clouds for those industries that have regulatory requirements or their legacy networks do not allow them to go to a full public cloud at this time.

Capital Decisions

The lease versus buy and capital expenditure versus operating expenditure debate is ongoing with businesses. Throughout the next year, we see service providers and enterprises looking at options to building their own networks as they explore colocation (or multi tenant) options for data centers and leasing office buildings.

IDC predicts that 60 percent of ICT spend will be a mix of colocation, hosted cloud and public cloud datacenters by 2018; this has been a consistent and ongoing trend for the past couple of years but we see the gap closing in 2017 as enterprises shift from ‘build you own’ to multi tenant data centers.

Security

Security is part of every business and IT discussion these days and it will only become more intense in 2017. We see an increase in the demand for video for surveillance, both for government and private businesses. This issue includes physical security—securing the building, people and assets—as well as network and data security.

Network Convergence

The trends of capital investments and security are also impacting another area that we see as big trend in 2017—network convergence. Take buildings, for example. What was traditionally just hardwired for data and voice is now being retrofitted or designed new with wireless in mind. Building owners and operators are looking at the co-existence of wireless and wireline for the coming year but will consider the new radio spectrum, both licensed and unlicensed, that is coming available as well as new technologies that enable the universal ceiling.

As this convergence happens, we see a greater focus in 2017 on consolidation and partnerships (creating an ecosystem) to address these needs.