• 74% oforganizations reported moderate to significant impact to their employees due tothe pandemic
• Inresponse to COVID-19, 38% of IT leaders plan to increase their investment incloud-based networking, and 35% in AI-based networking, as they seek more agile,automated infrastructures for hybrid work environments

HONG KONG, CHINA - MediaOutreach - 14 August 2020 -Businesses willexperience profound changes as employees' transition to hybrid work environmentsfollowing COVID-19, in turn changing the way IT teams procure and consume networkingsolutions. In response to the pandemic, IT leaders are now investing more incloud-based and AI-powered networking technologies as business recovery planstake shape. That's according to a global survey of 2,400 IT decision-makers (ITDMs)commissioned by Aruba, a Hewlett Packard Enterprise company.

AsIT leaders respond to the challenges associated with enabling a highlydistributed workforce and the emergence of the hybrid workplace -- with peopleneeding to move seamlessly between working on campus, at home and on the road --they are looking to evolve their network infrastructure and shift away fromCapEx investments towards solutions consumed 'as a service'. The average proportionof IT services consumed via subscription will accelerate by 38% in the next twoyears, from 34% of the total today to 46% in 2022, and the share oforganizations that consume a majority (over 50%) of their IT solutions 'as aservice' will increase by approximately 72% in that time.

"Withthe emergence of the hybrid workplace, IT leaders are being asked to deliver a delicatebalance between flexibility, security and affordability at the edge," said ParthaNarasimhan, CTO and HPE Senior Fellow for Aruba, a Hewlett Packard Enterprisecompany. "Every part of the workplace needs to evolve: the campus must beembedded with technology to support social distancing and contactlessexperiences, and the home office must offer enterprise-level connectivity,security and support. It's increasingly clear that, to support these new needsin a financially challenging environment, IT decision-makers are attracted tothe reduced risk and cost advantages offered by a subscription model."

Thereport, 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 consumptionmodels now being considered. A number of key findings stood out:

IMPACTOF COVID-19 HAS SIGNIFICANT IMPLICATIONS

ITDMsreport that the impact of COVID-19 has been significant both on their employeesand short-term network investments:

• 22%describing the impact on their employees as 'significant' (widespread furloughor layoffs), while 52% considered it 'moderate' (temporary reductions in somefunctions), and 19% 'low' (very few jobs impacted).
• ITDMsin India (57%) and Brazil (34%) were most likely to cite a significant impacton their employees, while those in Hong Kong (12%) and Mexico (10%) reported theleast, highlighting a massive swing in experiences between regions.
• 77%said that investments in networking projects had been postponed or delayed sincethe onset of COVID-19, and 28% indicated that projects had been cancelledaltogether.
• Projectcancellations were highest in Sweden (59%) and lowest in Italy (11%), showing thereare also significant disparities between countries within the same region,while 37% of ITDMs in education and 35% in hotels and hospitality globally saidthey have had to cancel network investments.

THEFUTURE IS BRIGHT: INVESTING FOR EMERGING NEEDS

Bycontrast, future plans are aggressive, with the vast majority of ITDMs planningto maintain or increase their networking investments in light of COVID-19, asthey work to support the new needs of employees and customers.

• Anastounding 38% globally will increase their investment in cloud-basednetworking, with 45% maintaining the same level and 15% scaling back. The APACregion was the global leader with 45% stating increased investment incloud-based networking, rising to 59% among ITDMs in India. With cloudsolutions allowing for remote network management at large scale, thesecapabilities are particularly enticing for IT teams when being on-premises isnot possible or challenging.
• ITDMsare also seeking improved tools for network monitoring and insight, with 34%globally planning to increase their investment in analytics and assurance, 48% indicatingthat they will maintain their level of investment and 15% reducing it. Thisallows IT organizations to troubleshoot and fine-tune the network moreefficiently, as demands on it are augmented by a distributed workforce. 
• Thereis also an emphasis on innovative technologies that simplify the lives of ITteams by automating repetitive tasks. We found 35% of ITDMs globally areplanning to increase their investment in AI-based networking technologies, withthe APAC region leading the charge at 44% (including 60% of ITDMs in India and54% in Hong Kong).

ADOPTIONOF NEW CONSUMPTION MODELS IS ACCELERATING

AsITDMs shape their investment plans, they are looking at alternative modes ofconsumption to achieve the best balance of value and flexibility.

• 55%globally say they will explore new subscription models for hardware and/orsoftware, 53% managed services for turnkey hardware/software and 30% financialleasing -- all as a result of the impact of COVID-19. This reflects theincreased need for more financially flexible models in a challengingenvironment.
• Networkingsubscription 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%).
• Theindustries most likely to be considering the subscription model arehotels/hospitality (66%), technology and telecom (58%) and education (57%). Theimpact of COVID-19 on IT behavior has made the desire for flexibility and predictabilityin spending, while reducing risk from initial capital costs, greater thanbefore.
• Instark 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 transportwill continue to focus solely on CapEx investments, versus just 5% in IT, tech,education and telecoms, and 2% in hotels and hospitality.

"Withthe needs of customers and employees having changed so comprehensively inrecent months, it's no surprise to see IT leaders seeking more flexiblesolutions," says Narasimhan. "They are having to adapt fast and ensure thatmore complex, distributed networks can securely support the experiences usersdemand. The need for agility and flexibility in network management is nowgreater than ever."

Whilethe pandemic has clearly negatively impacted ongoing projects, this researchsuggests it will also catalyze medium-term investment into advancing networkingtechnologies, and a shift to more flexible models of consumption that limitup-front capital demands. Trends that were already taking hold will nowaccelerate, including the move to the Edge and the adoption of cloud-based andAI-driven intelligent networks.

Tofind more about Aruba's flexible IT solutions go to: https://www.arubanetworks.com/solutions/technology-solutions/

AdditionalResources

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 leadingprovider of next-generation networking solutions for enterprises of all sizesworldwide. The company delivers IT solutions that empower organizations toserve the latest generation of mobile-savvy users who rely on cloud-basedbusiness apps for every aspect of their work and personal lives.

To learn more, visit Aruba at https://www.arubanetworks.com. Forreal-time news updates follow Aruba on Twitter and Facebook, and for the latesttechnical discussions on mobility and Aruba products visit Airheads Social at https://community.arubanetworks.com/ 

About Vanson Bourne

Vanson Bourneis an independent specialist in market research for the technology sector.Their reputation for robust and credible research-based analysis is foundedupon rigorous research principles and their ability to seek the opinions ofsenior decision makers across technical and business functions, in all businesssectors and all major markets. For more information, visit www.vansonbourne.com