ADRIAN TAYLOR at A10 Networks argues that cloud computing, secure hybrid working and Artificial Intelligence should be the main investment priories for enterprise.
Business resilience is now a board-level discussion with business continuity prioritised highly on the corporate agenda. Over the last two years, IT teams have come under immense pressure, having to quickly rethink their architecture to deal with home working, and best prepare for a hybrid-working model in the future.
As a result, IT spending has never been higher with a total projected spend of US$4.4 trillion in 2022, an increase of 4 per cent on spend in 2021.
Widely accepted hybrid working practices and a reduced intensity of digital transformation projects have been reflected in IT investment decisions. According to A10 Networks’ recent Enterprise Perspectives research, investment in the cloud is a standout priority.
Another priority is strengthening the cyber security practices that must accompany the shift to the cloud, such as Zero Trust. Artificial intelligence (AI) and machine learning (ML) also scored highly as C-suite executives look at solutions that will give them a competitive edge.
A clear investment in work-from-home models
One of the main operational shifts post-pandemic has been towards a hybrid-working model, whereby employees expect a certain degree of flexibility in their working practices. To attract and retain talent, enterprises need to adapt to this ‘new normal’.
Our research found that only 14 per cent of global respondents say a minority will work from home, or no employees will work from the office, 24 per cent believe there will be a home/office split of 50/50 and the majority (62%) envision their workforce will be based in the office.
As a result, businesses have started investing in private and public cloud to fulfill this requirement of hybrid working. Our research underlined private cloud as the most popular choice, (outside of the US and eastern Europe), to host organisations’ environments, with 30 per cent of global respondents using this method.
Private cloud is also the preferred cloud environment for organisations dealing with sensitive information, i.e., government bodies and financial institutions, as it enhances the ability to control and monitor their applications, users, and data.
These findings are further reflected in a recent Gartner report, which indicates that cloud-based services are largely responsible for the 11 per cent growth in enterprise software spending.
With cloud services, the long-term reduction in IT spending upon implementation clearly outweighs the upfront cost. This trajectory follows the popular software-as-a-service model that facilitates hybrid working, wherein organisations adopt services that allow flexibility, and ease of access.
Cloud strategy is key for providing flexible, efficient services that enable growth and innovation. However, cloud services have to be layered with appropriate security measures to ensure information does not fall into the wrong hands.
Heightened security fears
The report also analyses how enterprises are balancing security and efficiency. The transition to the cloud introduces increased cyber security concerns as the network attack surface expands and becomes increasingly complex to secure.
In fact, nearly half of global respondents (47%) reported that their cloud service providers are not meeting service level agreements. This coincides with resulting cyber threat concerns surrounding data loss and downtime and the regulatory fines and lawsuits that follow, a concern which 51 per cent of UK respondents share.
Organisations have started to act on these security concerns with just under one-third (30%) of global respondents already adopting a Zero Trust model. This approach strengthens general cyber security and eliminates implicit trust from information technology systems, and is embodied by the maxim ‘never trust, always verify’. Every device, user, network, and application flow should be checked to remove excessive access privileges and other potential threat vectors.
Therefore, if they have not already, budgets should be targeted at migrating to a Zero Trust security architecture. This includes implementing micro-perimeters and micro-segments which will work to create zones in your cloud environment and secure sections individually. Furthermore, organisations should implement a principle of least privilege, ensuring access is only provided where necessary.
Any regulatory fines for data compliance breaches will drastically limit available investment funds, so shifting to a more enhanced, proactive cyber security posture has never been more vital.
What do future investment priorities look like?
With the shift to cloud, more flexible licensing and pay-as-you-go models mean organisations can gain more value from budgets to drive innovation, a priority highlighted in the enterprise research. When asked about technologies respondents deployed over the past 12 months and which are vital to future competitiveness and resilience, AI and ML ranked highest with 16 per cent of respondents underlining their importance.
Deploying AI technologies is a key priority for businesses, and the market is forecast to grow 19.6 per cent year-over-year in 2022 to US$432.8 billion, according to IDC. Both AI and ML can automate manual tasks such as configuring rules, delivering applications, lifecycle management, and orchestrating workflows between on-premises and cloud services. This enables IT teams to concentrate on projects that will deliver a competitive edge.
Ultimately, investment should be directed at products and solutions that proactively defend networks, make IT teams more agile, and enable organisations to provide customers with a competitive advantage. Companies have now moved past the initial shock of the pandemic, giving them the opportunity to redirect budgets to focus on service optimisation and delivery.
Going forward, implementing effective and secure hybrid cloud solutions will enable organisations to have the flexibility to scale in the post-pandemic world, empowering them to focus on meeting and surpassing employee and customer requirements, regardless of the shape of the post-pandemic world.
- Taylor is Regional VP of Sales at A10 Networks
