With 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.
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.
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
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.
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.