5 key network investments that deliver business results

Key networking investments for improved ROI

Today's network infrastructure is a blend of technologies, with advanced software-defined networking and the internet among the primary components. Making prudent investments in various technologies and strategies can help improve business performance, reduce downtime and support growth.

1. Network infrastructure modernization

While the internet is a key network infrastructure foundation, investments in technologies such as SD-WAN, Wi-Fi 6 and 6E, and fiber-optic cable upgrades improve customer experience (CX) by enabling users to interact more quickly and efficiently with apps, such as CRM platforms. Smart investments can also lower costs; for example, SD-WAN reduces MPLS expenses. 

2. Enhance network security with zero trust

Zero trust greatly reduces the likelihood of a security breach -- both inside and outside a network perimeter. Zero trust also helps companies comply with security requirements; the architecture yields a positive ROI because the cost of a security breach, such as a ransomware attack, can be high.

3. Cloud-based networking options

Cloud-based and managed network services help streamline business performance. They are highly scalable and quickly adapt to changing business requirements. They can also save on overhead costs associated with networking hardware, physical space, power and HVAC resources. Concerns about a lack of user control and security aside, investing in these services can improve CX while also delivering a positive ROI.

4. Network performance monitoring and automation

Today's complex enterprise networks require companies to monitor performance and spot possible network interruptions continually. AI can be particularly important here. Monitoring and automation platforms can accomplish the following:

• Reduce overhead.
• Lower risk of network outages.
• Spot security breaches before they can disrupt operations.
• Minimize chances of human error.
• Automate repetitive tasks.
• Analyze network performance.
• Provide recommendations for improvement.

5. IoT and edge computing networks

Moving processing closer to users and IoT devices requires sufficient bandwidth and efficient networking. Investing in networking services that deliver greater performance and operational efficiency is essential for enterprises with heavy real-time processing requirements, such as healthcare, manufacturing, transportation and logistics.

Aligning networking investments with business goals

A solid understanding of the business goals underpins effective networking investments.

Define business goals first

As with most technology investments, there must be a solid business purpose. This step can be facilitated by needs analyses, risk assessments and gap analyses. When a change occurs in the business, such as introducing a new CRM system, networking requirements must be determined at every stage of the project. A prudent investment supports the system as it scales; it's no secret that ROI must be tied to strategic business objectives.

Identify what constitutes success

Define what success is and what is needed to achieve it. A variety of success metrics exist; from a networking perspective, consider KPIs such as network availability, security event response and management, and UX expectations. 

Exercise care when selecting a networking technology

Understanding business requirements is perhaps the first and ultimately most important step. Bright and shiny might sound good, but savvy networking professionals realize that might not be the most appropriate course. Yet identifying advanced technologies that incorporate AI, for example, could prove a smart investment. Networking that combines cloud-based services and AI is likely to be efficient, resilient to outages and able to accommodate changing business requirements.

Operational improvements are essential

Smart networking investments are more likely to yield ROI than upgrades to faster routers or powerful switches. Improvements can come in many forms, such as the following:

• Reducing manual network management using automation.
• Increasing visibility into network performance to identify potential security threats.
• Generating improved network performance analytics.
• Shifting from Capex to Opex financial models.

Tips for avoiding low-value networking investments

Enterprises have multiple networking options available from service providers and equipment vendors that claim to have the right answers. It's easy to make an investment misstep. Below are some tips to reduce the chances of this happening.

• Find out what others are doing. Contact network professionals from other enterprises using similar networking technologies. It might be possible to avoid a bad decision by learning from other professionals.
• Consider using outside expertise. Contact external consultants with the experience needed to guide the selection process and reduce the risk of a poor investment decision.
• Simulate the new technology. Automated tools are available to help with network design, performance analyses and the investment selection process. AI-based tools are ideal because they can evaluate a wide range of options and select one or more configurations that deliver the desired business performance while optimizing costs.  
• Ensure strategic alignment. The networking technology being acquired must clearly support the required business strategies and performance expectations. This minimizes the chances of wasted investments and poor performance.
• Know the total cost of ownership. Failure to accurately estimate the true costs of the new investment could result in budget overruns, even if the technology proves acceptable.

Smart networking investments are more likely to yield ROI than upgrades to faster routers or powerful switches.

Best practices to ensure the best investment outcomes 

Enterprises can follow these best practices to make investment decisions that deliver the best business results and ROI:

• Business outcomes first, features second. Focus on how the investment will affect the business. This ensures that professionals can reduce network downtime, optimize costs and meet security and compliance requirements.
• Establish value-based decision metrics. Consider creating a scoring model that rates the investment based on factors such as achieving business strategies, reducing risk, controlling costs, and adding value through AI and IoT.
• Current and future performance gap analyses. Look at how the network is performing now and examine how it might perform in the future. This helps identify potential performance issues and security risks. AI can greatly simplify these analyses.
• Select and prioritize the investments. Identify the investments that promise the best overall initial value and ROI for the enterprise; launching them should make life easier for network managers, who can then deliver on their ROI.
• Ensure that security investments take priority. Reducing the likelihood of a costly network outage or security breach helps boost ROI.
• Define KPIs in advance of deployment. These can address performance issues such as network availability, cost reduction, reduction of security issues and reduction of technology outages.
• Establish a continuous improvement process. Proactively manage network resources to ensure optimum performance and ROI.
• Speak in business terms. Translate network performance jargon into a clear, compelling display of how achieving KPI metrics through the network investment benefits the business, including improved customer satisfaction and employee productivity, increased security and reduced compliance risk.

Paul Kirvan, FBCI, CISA, is an independent consultant and technical writer with more than 35 years of experience in business continuity, disaster recovery, resilience, cybersecurity, GRC, telecom and technical writing.