The new normal of work, and uncertainty around the survival of businesses is having a massive impact on IT departments, who must now make investment decisions on infrastructure, networks and data centres that enable future-proof operations but don’t jeopardise the budget.
This is according to Sudipto Moitra, GM for ICT at MTN Business, who outlined key local IT trends ahead of an MTN Business webinar to assist SMEs, large enterprises and public sector organisations weather the changing environment.
Changing direction: new IT investment priorities
“The pandemic has profoundly changed the way enterprises operate, how they engage with customers, shareholders and employees and at the heart of it is how they manage connectivity,” he says.
Networks and data centres are a top priority, he says.
“Higher bandwidth has become key, but not necessarily through the traditional WAN environment. We’re seeing large enterprises downgrading the links they had or even shutting down links if they will not be required in the short term or permanently.”
Moitra says this does not signal the end of the traditional WAN, however. He predicts SMEs, large enterprises and public sector organisations will continue to use traditional WAN in some areas and accelerate the move to dedicated Internet access (DIA) and SD-WAN in others.
Another emerging trend is bundling, he says. “There is more demand for bundled applications with network packages. The underlying network is key to all business operations and looking at it in a silo is no longer an option.”
At the same time, the move to cloud is accelerating, with in-country hyperscalers having helped overcome cloud inhibitors.
However, with sectors such as hospitality, retail and even mining facing an uncertain future in the current economic climate, many organisations are challenged in directing investment to future-proof operations.
“Some organisations are finding themselves in a position where they have halted big projects they were planning because they are unsure whether their core business will survive. On the other hand, digital transformation supports business continuity and some capital investment will be needed even if they are moving to an opex model. So many organisations are now trying to determine how they will operate, and what their business will look like in future, in order to allocate investment.”
Moitra notes that CIOs across sectors are under pressure to reduce IT budgets, and are facing the dilemma of making decisions that correct the course of their transformation journey. “Their digital transformation itself has to become agile, and pricing becomes crucial. They are grappling with managing the multi-cloud environment and understanding the opportunities 5G presents to improve operations. Right now, they are asking ‘do we go left or right, how do we ensure we make the right investments?’.”
Telemetry, IOT roles change
The telemetry and IOT markets have changed as a result of the restrictions on movement, says Moitra.
“With interprovincial travel restricted and borders closed, we are seeing a downward trend in terms of traditional track and trace telemetry. However, telemetry and IOT use cases are changing, and we are seeing increased uptake of IOT as multiple sectors look for solutions to increase efficiencies and reduce the need for human touch.”
New roles for bulk SMS, reverse billed URL
Moitra says the pandemic and emerging new normal have driven growth in bulk SMS and reverse billed URL, particularly in the public, financial and education sectors.
“We are seeing significant changes in demand for our non-core mobile assets including wholesale APN, bulk SMS and reverse billed URL,” he says. “With work from home the new normal, organisations are looking to bigger APN packages for cost savings. Meanwhile bulk SMS is an increasingly important medium – particularly for the public sector and financial services sector, to reach out to stakeholders.
"And an interesting development is the upward trajectory in reverse billed URL, which allows clients and stakeholders to connect into enterprise applications, with the organisation paying for the data consumption.”
This proposition enables digital service delivery to consumers at no cost to them, and presents a solution to the access challenges in remote education.
MTN, Cisco deliver solutions
MTN Business, in partnership with ITWeb and Cisco, will host a webinar designed to help SMEs, large enterprises and public sector organisations understand the key IT trends and challenges the local market faces today.
Expert speakers will unpack the course corrections many enterprises must make in the transformation journey, enabling secure remote work and business continuity, optimising the multi cloud environment and leapfrogging the technology refresh cycle. They will also address the transformation potential of 5G and how to achieve agility in the digital transformation process.
For more information about this event, click here.
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