Aruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19

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  • 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

HONG KONG, CHINA – Media
Outreach
 – 14 August 2020 –
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.

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.

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“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:

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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.


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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).
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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
find more about Aruba’s flexible IT solutions go to: https://www.arubanetworks.com/solutions/technology-solutions/

Additional
Resources

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 a leading
provider of next-generation networking solutions for enterprises of all sizes
worldwide. The company delivers IT solutions that empower organizations to
serve the latest generation of mobile-savvy users who rely on cloud-based
business apps for every aspect of their work and personal lives.

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

Aruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19

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Aruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19 - Brand SpurAruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19 - Brand Spur

Latest News

Hong Kong Productivity Council Theme of the Year 2021: “Make Smart Smarter”

  • Smarter Era of Intelligent Manufacturing Launch Ceremony
  • Witnesses New Milestone for Reindustrialisation in Hong Kong


HONG KONG SAR - Media OutReach - 26 February 2021 - The Hong Kong Productivity Council (HKPC) launches a series of activities in 2021 themed "Make Smart Smarter". The campaign with "Smarter Era of Intelligent Manufacturing Launch Ceremony" was kicked off today, revolving around the theme of "reindustrialisation".


Aruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19 - Brand Spur

The "Smarter Era of Intelligent Manufacturing Launch Ceremony" was officiated together by Dr David Chung, Under Secretary for Innovation and Technology, HKSAR Government (fourth from left); Mr Clemente Contestabile, Consul General of Italy in Hong Kong (third from right); Ms Rebecca Pun, Commissioner for Innovation and Technology, HKSAR Government (second from right); Dr Daniel Yip, Chairman of the Federation of Hong Kong Industries (third from left); Mr Roberto Leone, Managing Director of NiRoTech Limited (first from right); Mr Willy Lin, Chairman of HKPC (fourth from right); Mr Mohamed Butt, Executive Director of HKPC (second from left) and Mr Edmond Lai, Chief Digital Officer of HKPC (first from left).


Co-organised by the Federation of the Hong Kong Industries (FHKI), this spotlight event exhibited and introduced an excellent example of reindustrialisation whose research and development were undertaken by HKPC. Gaining support from the Innovation and Technology Bureau and funding support from the R&D Cash Rebate Scheme of the Innovation Technology Commission of the HKSAR Government, production has been successfully commenced in NiRoTech Limited (NiRoTech), a local intelligent security product manufacturer.


This smart production line, named the "OWL" intelligent production line, gives into full play the characteristics of an owl's wisdom, piercing eyes, flexible body, soft neck (360o vision) and agile movement. These perfectly echo the key features of this intelligent production line which has high flexibility, excellent agility to cater for different production needs, stringent and precise production capacity, as well as non-stop operation. Five key "S.M.A.R.T" elements: Speed, Multi-function, Accuracy, Reliability and Traceability, can be seen in this production line offering edges of intelligence and efficiency enhancement.


In order to effectively respond to Hong Kong manufacturers' demands on production space, the "OWL" production line adopts a U-shape compact layout design and incorporates the beauty of the "Industry 4.0" (i4.0) lean manufacturing "vision", significantly reducing the factory area to meet the unique land constraints of Hong Kong. NiRoTech's smart factory only occupies 10,000 square feet, saving 50% of the land. It is also equipped with 12 robots and large amount of customised intelligent automation systems and digital technologies. Compared with traditional manual production, the overall production capacity increases by 1.5 times.


Mr Willy Lin, Chairman of HKPC, and Dr Daniel Yip, Chairman of FHKI, were joined by Mr Clemente Contestabile, Consul General of Italy in Hong Kong; Dr David Chung, Under Secretary for Innovation and Technology, Ms Rebecca Pun, Commissioner for Innovation and Technology; Mr Roberto Leone, Managing Director of NiRoTech; as well as Mr Mohamed Butt, Executive Director of HKPC and Mr Edmond Lai, Chief Digital Officer of HKPC, for the launch of the ceremony.


In his welcoming address, Mr Willy Lin, Chairman of HKPC, said, "HKPC is committed to offering staunch support for Hong Kong SMEs in technology R&D and technical aspects, with the aim of creating value for the industrial development of enterprises with state-of-the-art technologies. The 'OWL' intelligent production line is an excellent example of applying innovative technologies that also fits perfectly with HKPC's theme of this year 'Make Smart Smarter'. As owl represents wisdom, by being smarter and using innovative technologies such as IoT, AI, big data, intelligent robots and smart production processes to unleash production opportunities of i4.0, it will certainly scale up productivity and contribute to successful reindustrialisation in Hong Kong, thus achieving the goal of 'Make Smart Smarter'".


He continued, "It is really encouraging to see this 'reindustrialisation' example witnessing the concerted efforts of the Government, industries, business chambers and HKPC to promote reindustrialisation in Hong Kong! HKPC sincerely urges various sectors to work together to accelerate reindustrialisation for the swift recovery of Hong Kong economy and to ensure the "Made-in-Hong Kong" brand to continue to shine bright in the international arena -- Make Smart Smarter".


Dr David Chung, Under Secretary for Innovation and Technology, said, "the Government has been actively promoting 'reindustrialisation' in recent years by providing support in infrastructure, finance, technology and talents in order to create new area of growth and great job opportunities which would help alleviate Hong Kong's competitiveness. I wish to see more enterprises 'Make Smart Smarter', and make good use of these opportunities provided by I&T, as well as the support from the Government, to work and contribute together in turning Hong Kong into an international I&T hub".


Dr Daniel Yip, Chairman of FHKI said, "This collaboration of HKPC and NiRoTech serves as a valuable reference for industrialists on how to integrate i4.0 into production lines to enhance efficiency, elevating their confidence to set up high value-added manufacturing facilities in Hong Kong. With comprehensive policy support and HKPC's professional consultative service, FHKI believes that more Hong Kong manufacturers will join the force of 'reindustrialisation' by pursuing technological advancement and setting up smart manufacturing plants locally, taking the Hong Kong industries into a new era".


The "OWL" intelligent production line integrates the smart adoption of advanced robots with machine vision, smart electrical and mechanical devices, laser processing and sensor technologies. Also, by incorporating AI, IoT, human machine interface, real-time data collection and data analytic technologies, it ensures the full automation and digitalisation of production, assembly and monitoring to achieve big data analytics. Apart from three technologies whose patents are soon to be applied, the project also assists NiRoTech's business planning in exploring the emerging markets and grasping new opportunities.


Mr Roberto Leone, Managing Director of NiRoTech, said, "Mechatronic Manufacturing in Hong Kong: our strategy was clear from the start when we sought HKPC's assistance for help to realise intelligent production. For some, this goal was still immature and very difficult to achieve, especially with Hong Kong being chosen as our operation hub. Today we can proudly say we have achieved it with the system in Hong Kong operating satisfactorily as schedule. Despite there are challenges as the COVID-19 pandemic was affecting all in 2020, the result is now vividly in front of us, and we can touch it. Yet this is only the first step of a long journey".


For more details about "Make Smart Smarter", please visit the dedicated website: https://smarter.hkpc.org/en/index.html


About Hong Kong Productivity Council

The Hong Kong Productivity Council (HKPC) is a multi-disciplinary organisation established by statute in 1967, to promote productivity excellence through integrated advanced technologies and innovative service offerings to support Hong Kong enterprises. HKPC is the champion and expert in facilitating Hong Kong's reindustrialisation empowered by i4.0 and e4.0 -- focusing on R&D, IoT, big data analytics, AI and Robotic technology development, digital manufacturing, etc., to help enterprises and industries upgrade their business performance, lower operating costs, increase productivity and enhance competitiveness.


The Council is a trusted partner with comprehensive innovative solutions for Hong Kong industries and enterprises, enabling them to achieve resources and productivity utilisation, effectiveness and cost reduction, and enhanced competitiveness in both local and international marketplace. It offers SMEs and startups immediate and timely assistance in coping with the ever-changing business environment, accompanying them on their innovation and transformation journey.


In addition, HKPC partners and collaborates with local industries and enterprises to develop applied technology solutions for value creation. It also benefits a variety of sectors through product innovation and technology transfer, with commercialisation of multiple market-driven patents and technologies, bringing enormous opportunities abound for licensing and technology transfer, both locally and internationally.

For more information, please visit HKPC's website: www.hkpc.org.


Aruba: Network as a Service Adoption to Accelerate by 38% within the Next Two Years as Businesses Adapt to Covid-19 - Brand Spur
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