Most companies across the globe were expecting that automation would play a significant role in their businesses by 2020, and they were preparing to upskill or reskill their workforce. Then the COVID-19 pandemic hit and swept the world before we blinked. The pandemic has only exacerbated this trend, increasing the need for large-scale, informed, and collaborative action for companies to scale up.
Ever since, companies have leveraged information technology exponentially to restructure their core operations across the board. The current situation has only uplifted digital transformation while also pushing companies to adopt newer and more innovative approaches.
As we turn the page to a new year, here are some key factors that could influence companies in 2022 and what they need to adapt to help take their businesses to the next level of connected experiences – both from an operational standpoint as well as their users.
1. A more immersive, digital world
Thanks to digital technology and the underlying communications network, we are on the verge of a world of new possibilities. Whether we are experiencing this through a VR headset of simply through our mobile phone, the digital world is all around us and this is something that is expected to continue to grow in 2022 and well beyond.
For the past few years, we have seen a steady rise in VR and AR gaming experiences. However, we are now at the stage of digital concerts taking place in games such as Fortnight, 5G in-stadium experiences, digital artwork being sold online and what has recently been dubbed as the Metaverse by Facebook. This has only escalated the excitement around our digital world.
To make this possible, we will start to see a greater focus on three key areas of network investment: Network Automation, Edge Cloud and 5G. Previously, networks were not constructed to deliver the expectations of an immersive experience. However, we will see an evolution of the network through innovation technologies and solutions that will truly deliver the experience we need.
2. Sustainability and Green Networking
Organisations and consumers alike are really starting to focus on driving more sustainable efforts and this will continue to be a hot topic in 2022. We are now at the stage where businesses are putting sustainability at the heart of their planning, with mandates, goals, and pledges in place.
There is no doubt that sustainability will drive and affect purchase and business decisions as we move forward, especially as we continue to embrace a more connected and digital future. Ciena’s recent research has shown that more than half of the adults in the UAE (54%) and KSA (57%) believe the future of the internet will be driven by our desire to become more energy efficient. An overwhelming majority (94% in each of the two countries) is considering doing more activities virtually to reduce their carbon footprint.
As an industry we need to continue to create innovations that help to ensure that we have more energy efficient networks. We will see a strong focus on this in 2022, with network providers embracing technologies that promote greener networks.
3. Excitement around 5G
There is no doubt that the investment and excitement around 5G will continue in 2022. The next generation of mobile technology has been much talked about for the past couple of years. As we head towards the tipping point of 5G becoming more widely available, the consumer appetite is growing.
Our research has shown that three-fourths of adults in UAE and KSA are planning to upgrade their internet within the next 24 months. In fact, 85% of KSA and 74% of UAE respondents believe they will have better access to the internet when 5G is widely available.
As demand for increased speeds and lower latency grow, this is presenting a major opportunity for the industry and 5G. We are also starting to see a greater focus on the adoption of private 5G, which is being driven by enterprises who are seeking to improve process efficiency, business continuity and agility, operations safety, and sustainability.
In view of this, investment in the underlying infrastructure is going to be a focus point for the industry as we head into 2022. Organisations and consumers alike can have 5G, which promises greater speeds and low latency, but this is still relying on the wireline network to fulfil the promise.
4. Digital Inclusion and LEO satellites
The past 18 months has shown us just how much we rely on the network to stay connected. In 2022, we will witness a stronger focus on trying to improve connectivity in underserved areas to overcome the digital divide. Governments will continue to spend money in broadband build-outs not only to connect businesses to the internet but to support remote work, education, healthcare and more.
Additionally, the growing activity with Low Earth Orbit (LEO) satellites can be a game-changer to accelerate these developments even further, by enabling the development of smart cities through enhanced connectivity. By 2030, BCG estimates that the Middle East LEO satellite market will be valued at approximately $110 million.
(Jürgen Hatheier is the CTO for EMEA and APAC at Ciena)
Also read:
Networks need to be modernised to reap the full benefit of 5G and Edge Cloud
