The Advantages of Managed Networking and Security During Economic Uncertainty

Recessions impact all corners of a business — and that includes the information technology department. As we’re already seeing in the market, just the threat of a recession can dramatically impact how a company operates. Technology investments are likely to slow or, at the very least, stay flat. Business leaders also take a more cautious approach to technology spending, with a focus on an immediate return on investment as opposed to experimental solutions.

Maintaining IT, network and security operations while limiting spend is challenging. Still, by making a proactive, concerted effort to break old habits and move away from long-term commitments with limited flexibility, CIOs can ensure their organizations’ IT strategies will thrive in any economic climate.

Free Capital and Reallocate Existing Funds

The pandemic reinforced the importance of enterprise flexibility to thrive. Long-term, fixed-cost capital expenditures are the ropes binding the inflexible enterprise. It’s the “how we always did it” syndrome, locking users into long-term commitments and inflexible enterprise dynamics. In response, many CFOs are shifting IT investments from capital expenditures to operational expenditures.

With a mandate to keep operations running at almost any cost, CIOs must also revert to a more well-known mission: do more with less. For many technology leaders, that challenge presents true opportunity. As this Wired article from 2009 highlights, the Great Recession spurred large-scale investment in cloud computing.

Invest in Managed Networks

The past decade has seen continued investment in digital transformation and cloud applications, while the traditional network and location-based design architecture has remained a constant. With networks largely performing their function, the need for a managed network service was often pushed down the priority list.

However, in a hybrid work environment, enterprises need agility with networks that can quickly provision applications while providing security and observability. Managed networking allows an organization to outsource the monitoring and maintenance of its cloud and on-premises infrastructure. With a managed service offering, customers can leverage wide area and local area network connections, firewalls, network access, virtual machines and around-the-clock support.

When appropriately implemented, managed networks can offload operational complexities while adding the benefit of faster change management with higher responsiveness. The approach works better with today’s technology landscape, providing connectivity to hybrid and remote workers with charges typically based on a consumption model in contrast to legacy carrier and telcos.

Keeping Networks Secure

Managed network capabilities provide enhanced service and security at a reduced cost. The leading providers can converge network and security components to optimize the overall experience and exceed what organizations can build on their own (or, at the very least, at a lower price point).

The complexity of current networks has made maintaining visibility incredibly difficult. Technology leaders continue to spend more on solutions that provide the line of sight needed into these systems. However, the more complex these networks become, the more blind spots exist. This has been a growing problem that often leads to further investment without much new capability.

Managed networking takes over this security component. Doing so offers a wealth of packaged resources that would cost more if provisioned individually. As we head toward a recession, the ability to get more for less will be incredibly valuable.

A shift in culture

The convergence of network and security as a managed service requires inherent trust. We’ve seen technology leaders hesitate when adopting new technologies, especially those that challenge their idea of control. While CIOs may have less overall control of their networks, they will have strong partners that can take over that aspect of their infrastructure.

In doing so, technology leaders can free themselves to handle their core responsibilities. They can step away from the blocking and tackling of traditional workflows and position themselves more as a leader and strategic thinker. This includes in-depth strategic planning, proprietary technology development and customer service.

As the economic outlook continues to evolve, it’s time for technology leaders to think about the role technology plays in an organization. What tools provide value and what seems to take up space? Leverage innovations and look for solid returns on investment. Doing so will help your company through a difficult time and position you as a leader whom others in the company can depend on when times get rough.

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