E N T E R P R I S E W H I T E PA P E R

2020 ENTERPRISE TECHNOLOGY OUTLOOKWHAT’S IN STORE FOR THE STACK

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I N T R O D U C T I O N

Forward-looking organizations are radically rethinking how they use technology, people and processes to fundamentally improve business performance. The effort to digitize organizations — many of which have been around for decades — requires cross-departmental collaboration in pairing business-focused philosophies with rapid-application development models. Driven by evolving customer expectations, as well as the pursuit of new business models and revenue streams, organizations are now looking to IT departments to lead the way.

No longer a function that takes place behind the scenes, IT is set to become the very core of enterprise operations and growth. To keep pace with technological innovation, CIOs must shift their role from delivery executive to business executive, helping organizations move beyond digital experimentation and pilots and bring best practices to scale.

At its core, digital transformation deals with changing how a business interacts with customers using technology, as well as how to use technology to improve internal processes and significantly increase organizational efficiencies. Whether it’s Walmart upping its online sales and mobile app game to compete with Amazon, Disney World using wristbands embedded with RFID technology to improve the user experience or enterprise software-maker Atlassian’s shift to an SaaS subscription-based billing model, companies across all industries are seeing significant growth thanks to digital transformation.

The state of enterprise technology is constantly in flux. Here’s where it’s headed.

“From finance to retail to healthcare, every industry is being transformed by technological innovations. In the global marketplace of the future, organizations need to become very comfortable with change. Those that face disruption head-on will win the day, while those that fear it risk obsolescence.”

— Marcelo Oliveira, Vice President of Commercial New Products, Frontier Communications

D I G I TA L T R A N S F O R M AT I O N B Y D O L L A R S

From a technology perspective, hardware and services investments will account for more than 75% of all DX spending in 2019. Services spending will be led by IT services ($154 billion) and connectivity services ($102 billion). Hardware spending will be spread across several categories, including enterprise hardware, personal devices and IaaS infrastructure. DX-related software spending will total $253 billion in 2019. The fastest-growing technology categories will be IaaS (35.9% CAGR), application development and deployment software (26.7% CAGR), and business services (26.5% CAGR).

— IDC, “Worldwide Semiannual Digital Transformation Spending Guide”

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The IoT experts at Juniper Research estimate 50 billion devices will be connected to the Internet by 2022. Add to that the rise of BYOD initiatives of an increasingly mobile workforce, and it’s no surprise that both bandwidth and mobile connectivity demand will continue to escalate year over year.

The growing number and diversity of devices and applications will create complexity capable of overwhelming network resources. Burdened with keeping the business operating, network teams are often stretched too thin to provide innovative support for new IT and business capabilities.

One solution to this strain on resources is to modernize IT infrastructure and improve operational efficiency. By adopting cloud-based infrastructure and cloud-native design practices — such as building and running applications in the public cloud as opposed to on-site — delivery teams can leverage modern methods of application deployment to rapidly iterate using repeatable automation and orchestration.

However, there are a few obstacles to scaling an organization’s footprint and becoming a multi-site enterprise. CIOs must learn to balance both new and emerging technologies while supporting business growth at scale. Many business leaders and IT teams are hampered by legacy infrastructure that no longer serves the needs of the organization, especially

COMBATING NETWORK COMPLEXITY

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as larger amounts of data are being transferred between and among businesses.

Given the lags associated with legacy systems, it’s natural that executives are itching to jump on the “disruption” bandwagon. But the reality is that businesses cannot wholly abandon the investment in legacy technology they’ve made over the years. Instead, they must find new ways to modernize and extend these systems to address transformation mandates. However, IT cannot simply retrofit most of these systems into the new digital ecosystem. Companies will need to make incremental, cloud-based upgrades to their legacy systems to stay competitive. This requires a strategic road map for how to get there.

According to an Oracle Communications survey of global IT, telecom and network decision-makers, 76% stated that the breadth and reach of their enterprise network is expanding and agreed that they require new solutions to improve visibility and control over their entire network.

“A digital enterprise is one that’s continually evolving and always seeking to apply and maximize the value of digital technologies to reinvent itself.”

— David Schatsky, Managing Director, Deloitte LLP

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While the cloud is the way of the future, it’s not necessarily the first step. Before a company can be cloud-based, it must first become cloud-ready. This requires a fast, reliable and secure network connection.

One solution for organizations operating in or looking to migrate to the cloud is Carrier Ethernet. It’s an ideal option for multi-site enterprises looking to improve interoffice connectivity, or for businesses ready to

upgrade legacy networks to increase bandwidth and performance. In addition, the technology has a proven track record of increasing data transfer speeds throughout LAN and enterprise WAN, reducing network congestion and supporting high-bandwidth and low-latency applications like video collaboration. Here are some ways Carrier Ethernet helps organizations face these mounting pressures.

CENTRALIZING MANAGEMENT

E N H A N C E D P E R F O R M A N C E

With low latency and high redundancy, Ethernet solutions enable real-time applications to run with greater ease than a traditional broadband connection can offer. An Ethernet WAN solution provides a high-speed, low-latency dedicated or virtual connection that can support data center-to-HQ connectivity for government agencies. It also provides connectivity to a secondary backup storage facility or alternate site or data center on a secure network. This eliminates the possibility of a single point of failure while simultaneously reducing cost.

I M P R O V E D P R O D U C T I V I T Y

With fast data transfer rates, Ethernet solutions transmit large data sets quickly and securely between locations — whether they number two or 200. For financial services organizations, Ethernet solutions can enable low-latency financial applications, which require millisecond response times. They can support data streaming, financial transaction reconciling and live trading.

I N C R E A S E D F L E X I B I L I T Y

Ethernet solutions are highly scalable, allowing businesses to increase bandwidth in hours rather than days or weeks, making it easy to manage resources. Enterprise software companies like Salesforce.com, Google and Oracle are increasingly selling their technology in a pay-per-use model. Ethernet solutions offer high-speed connections that can scale very rapidly. Often, they can also be configured for the bursting of traffic at higher rates or enable customers to self-provision additional bandwidth.

R E D U C E D R I S K

Ethernet solutions allow a business to determine the exact path traffic will take between locations and endpoints. This type of precision leads to greater security and compliance. Healthcare organizations that require the secure transfer of patient records to multiple specialists for analysis can benefit from adopting a secure Ethernet solution.

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In the next section, we’ll dive deeper into the topic of security, including challenges faced by growing digital organizations in possession of an ever-increasing amount of data.

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SECURING WIRELESS COMMUNICATIONS

Massive security breaches like the ones seen at The Home Depot and Equifax are prime examples of what can happen when consumer data is vulnerable. Organizations must become thoughtful regarding big data, asking, “How secure is it? What steps have been taken to ensure its safety?”

Smaller and mid-size businesses, too, must be savvy about how they scale and secure their data. As organizations grow, leaders can see the tangible pieces of the business, such as increased revenue, cost savings and faster time to market. What they can’t see are packets. They also can’t see the growth of the network. Yet, they are tasked with protecting it. Therefore, it’s critical to know exactly what’s going on in the IT server room.

Modern companies need to capture insight from a variety of data sources, including legacy data, operational data and third-party data — from the edge to the core to the cloud.

At the same time, they must strive to create personalized user experiences and more intelligent interactions that delight customers and allow the business to generate higher economic surpluses. The sheer volume, variety and velocity of big data only magnifies security and privacy issues. The diversity of data sources, formats and data flows, combined with the streaming nature of data acquisition and high volume, also creates unique risks.

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More connected devices — a trend that began with BYOD and guest access scenarios, then expanded to IoT-connected devices — means that businesses need to make sure their wireless infrastructure keeps up with demand. Increasing need for secure connectivity is a significant driver for managed wireless local area network (WLAN) growth. Wireless LAN has quickly moved well beyond “nice to have” connectivity to the user’s first or primary connection with the enterprise network.

“Adoption of cloud-managed networks by businesses of all sizes will double, from less than 10% in 2018 to more than 20% by year-end 2023.”

— Gartner, “Magic Quadrant for the Wired and Wireless LAN Access Infrastructure”

“At Frontier, we grasp that it’s critical to become a fully automated enterprise. This extends to both customer-driven processes and internal operations. But, with an intense utilization of IT comes big responsibility — security is an increasing priority, and perhaps the most important one we need to focus on to support evolving data systems.”

— Marcelo Oliveira, Vice President of Commercial New Products, Frontier Communications

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R E D U C E D C A P I TA L E X P E N D I T U R E

Companies simply pay a monthly or annual subscription fee on a pay-per-use model — no need to invest capital up front to set up enterprise-wide Wi-Fi.

R E D U C E D O P E R AT I O N A L E X P E N D I T U R E

Managed WLAN’s cloud-based model eliminates the need for an IT department to deploy, maintain and update the network, improving cash flow and freeing up capital for other initiatives. Organizations can also easily add access points to extend their network coverage with reduced hardware investment, because much of the Wi-Fi intelligence resides in the cloud.

M O R E R O B U S T S E C U R I T Y

Many companies are now moving to cloud services because the security capabilities of large cloud providers vastly exceed those of their organizations. Managed WLAN includes critical security features such as encryption, authentication, malware protection and more.

F L E X I B I L I T Y

Support for an increasing number of devices per user for corporate applications, video and voice services and a growing number of IoT endpoints means that organizations now require each location’s access network. WLAN offers deployment flexibility when it comes to the expansion of the network’s reach; in addition, it provides rapid internet connectivity for new users, devices and usage scenarios.

E A S Y A C C E S S T O A N A LY T I C S

Built-in Wi-Fi analytics not only monitor network performance, but also allow businesses to learn more about visitor and shopper behavior when they are connected to the network.

FACTORS AND TRENDS DRIVING MANAGED WLAN GROWTH

“WLAN will continue growing at high, single-digit compounded rates through 2022, as organizations continue to seek more network agility given proliferating numbers of devices connecting to the enterprise network due to BYOD policies and implementation of IoT initiatives.”

— Gartner, “Magic Quadrant for the Wired and Wireless LAN Access Infrastructure”

While WLAN is ideal for connecting devices, let’s not downplay the importance of connecting people. Enter UCaaS.

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SPARKING CLOUD-BASED COLLABORATION

Millennials make up 35% of the U.S. workforce, with 56 million members, according to Pew Research. That number is expected to balloon to more than 75 million workers as Millennials mature and Baby Boomers enter retirement. With the increase in employment by a younger generation raised in the digital age, there’s an expectation for organizations to adopt new technologies to suit workers’ tastes.

According to Deloitte, poor work/life balance and a lack of flexibility are to blame for why 22% of Millennials plan to leave their organization within the next two years. For this reason, remote work opportunities are likely to increase in the coming years, while in-person meetings will decline as fewer employees are in the office. As a result, video conferencing is likely to continue growing in popularity.

The increasing acceptance of cloud delivery models, coupled with the workforce becoming more mobile, virtual and distributed, is accelerating demand for and spurring the rapid uptake of Unified Communications as a Service (UCaaS) solutions. UCaaS is the new gold standard for business communications, both because of its low-cost nature and because it enables new capabilities that leverage innovation, such as AI and advanced analytics.

UCaaS offers scalability and flexibility for organizations that need to quickly add and remove communication services like voice, video and messaging, without requiring significant investments in infrastructure. Embedding communications into digital business processes and applications also improves customer engagement, drives operational efficiency and generates new revenue growth.

The growing popularity of UCaaS is part of a broader shift in the way work gets done today. The modern “office” is virtual, dispersed across state and national borders and always on the move. Enterprise CIOs are under pressure to figure out how to accommodate these new work trends while also keeping expenses under control.

“Leading-edge UCaaS providers build, operate and maintain the UCaaS stack in data centers they control. Digital workplace application leaders should focus on these types of solutions because they are expected to have the fastest pace of innovation.”

— Gartner, “Magic Quadrant for the Wired and Wireless LAN Access Infrastructure”

“By 2021, 90% of IT leaders will not purchase new premises-based UC infrastructure — up from 50% today — because future cloud UC offerings will be far ahead in terms of features, functions, portals, analytics and dashboards.”

— Gartner, “Magic Quadrant for the Wired and Wireless LAN Access Infrastructure”

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KEY DRIVERS OF UCaaS ADOPTION

D E M A N D F O R M O B I L I T Y

According to FlexJobs, 3.9 million U.S. employees work from home at least half of the time — a 115% increase since 2005. UCaaS allows employees to stay securely connected to the office and their team from anywhere, on any device, while delivering a consistent user experience.

E N H A N C E D P R O D U C T I V I T Y

UCaaS promotes productivity by eliminating the need for constant task-switching among disparate applications, as well as by streamlining communication among offices, suppliers and customers.

C O S T

Deploying, managing and updating legacy communications systems places a high administrative burden on IT staff and incurs significant up-front capital investment. UCaaS’s cloud-based model makes it a flexible, low-maintenance and efficient communication solution that frees up cash flow while saving capital for more strategic initiatives.

BENEFITS

1. FLEXIBILITY — UCaaS solutions are easily scaled and deployed, making them adaptable to fluctuating business conditions. Expand, change and move your communications network swiftly and nimbly with a cloud-based subscription model that charges by the seat, so you only pay for what you need.

2. SUPPORT — UCaaS provides the convenience of a fully managed solution from one single provider. It’s sold, monitored and hosted in one place: the cloud. From sales to installation and training to billing, UCaaS is managed for you at all times in geo-redundant data centers and supported by experienced engineers.

UCaaS represents a crucial driver of digital transformation for organizations seeking a simple, cost-effective and highly secure solution to launch their communication infrastructure into the future. The latest iteration of enterprise communication tools like telephony, video conferencing, IM and Unified Communications processes will continue to enable an environment of seamless collaboration across individuals, teams, organizations and industries.

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As the global economy rapidly realigns and consolidates around digital innovation, CIOs must quickly reinvent their organizations for the fast-paced, multi-site universe. IT must be reimagined around a distributed cloud infrastructure, public cloud software stacks, agile and cloud-native app development and deployment, and new holistic approaches to security at scale.

Driven largely by changes in customer expectations and behavior, we’re experiencing an unprecedented change in how enterprises operate. Organizations that capitalize on the trends presented here will experience dramatically improved performance, while those that do not disrupt will likely struggle to retain customers and margin.

CONCLUSION “IT used to be about changing the way people work; now, it’s about changing the business itself. CIOs that can get their heads around this shift and are willing to hold the fate of the organization on their shoulders will lead their companies to reap the rewards of fundamental change.”

— Marcelo Oliveira, Vice President of Commercial New Products, Frontier Communications

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S O U R C E S

1. Forbes: Walmart Doubles Down On Its Transformation Into A Technology Company https://www.forbes.com/sites/pamdanziger/2018/10/22/walmart-doubles-down-on-its-transformation- into-a-technology-company/#2708dfde404c

2. Forbes: Disney Uses Big Data, IoT And Machine Learning To Boost Customer Experience https://www.suse.com/media/report/rightscale_2018_state_of_the_cloud_report.pdf

3. IDC: Worldwide Digital Transformation Spending Guide https://www.idc.com/getdoc.jsp?containerId=IDC_P32575

4. Juniper Research https://www.juniperresearch.com/press/press-releases/iot-connections-to-grow-140pc-to-50-billion-2022

5. PR Newswire https://www.prnewswire.com/news-releases/oracle-study-reveals-increased-network-complexity-is- driving-security-visibility-and-control-challenges-for-it-leaders-300717819.html

6. IDC: The Future of the Distributed Enterprise https://www.business.att.com/content/dam/attbusiness/reports/att-ipvpn-ethernet-distributed-enterprise- white-paper.pdf

7. Exclusive Networks https://www.exclusive-networks.com/nl/wp-content/uploads/sites/14/2018/07/Gartner-Wired-en-Wirelss- LAN-juli-2018.pdf

8. Gartner https://www.gartner.com/doc/reprints?id=1-1OCJG7PI&ct=190801&st=sb

9. CIO https://www.cio.com/article/3149977/digital-transformation-examples.html?upd=1566242478630

10. Pew Research Center https://www.pewresearch.org/fact-tank/2018/04/11/millennials-largest-generation-us-labor-force/

11. Deloitte https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html#info

12. Flexjobs https://www.flexjobs.com/blog/post/state-of-the-remote-job-marketplace/

Contact Us Speak with your Frontier Business Consultant today to learn more about how to take your organization to the next level.

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