Networking Trends in 2020 and Beyond

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From Ethernet switches to the latest Wi-Fi standards, Spiceworks Ziff Davis examines current adoption and future plans for data networking tech.

Introduction: The Networking Landscape

Modern networking technology has evolved significantly in recent years, as demands on corporate Ethernet and Wi-Fi have increased. Today, in addition to the need to support a wide variety of devices, local area networks (LANs) must accommodate traffic for many use cases, including streaming media, network attached storage (NAS), voice over IP (VoIP), virtualization, and more. Additionally, the rise of IoT and cloud services have altered traffic flows in many businesses and further increased bandwidth requirements.

Other significant trends in the networking space will also set the tone going forward. Wi-Fi 6 and 100 Gigabit Ethernet promise to greatly expand capacity, Software-Defined Networking (SDN) will improve network automation and management capabilities, and businesses will increasingly rely on Software-Defined Wide Area Networks (SD-WAN) for connectivity between branch offices and cloud data centers. Also, Power over Ethernet (PoE) has made it easier to install, scale, and keep industrial IoT devices in sync.

Against this backdrop, IT decision makers (ITDMs) face twin challenges — managing the rapid growth of traffic from the cloud, mobile, and IoT devices, and introducing new technologies to make networks more scalable, automated, and secure. To understand how organizations will update wired and wireless networks, Spiceworks surveyed 620 IT decision makers involved in buying decisions in January 2020, just before the COVID-19 pandemic altered the IT landscape. As a result, our survey does not touch upon connectivity for remote workers, who often use consumer networking gear in their own homes.

This report examines:

How popular will high-speed networking standards be, including 100GbE and Wi-Fi 6?
Which trends will fuel adoption of next-gen networking hardware?
What factors do ITDMs consider when weighing networking purchases?
Which networking technologies will experience the most adoption growth?
What are the top challenges businesses face in networking?
How does IT security factor into adoption plans for networking tech?

Key Findings

45% of businesses planned to upgrade to newer Wi-Fi or Ethernet standards by 2022. The most popular upgrade destinations will be 10GbE and Wi-Fi 6 (802.11ax).
86% of ITDMs believe network security is a bigger concern than in the past, but only 32% of organizations replace networking hardware before end of support.
While 68% of businesses use network monitoring tools, fewer than half of businesses (49%) have adequate visibility into activity on corporate networks.
Within two years, IT decision makers expected double-digit adoption growth for networking technologies such as SD-WAN, IPv6, and the WPA3 wireless security standard.
Cisco holds the top spot in the network switch and Wi-Fi markets, but businesses are open to a wide range of competitors for future purchases.

Additional Factors Shaping the Networking Market

The rise of high-speed internet, increasingly rich media, and cloud and edge computing models — not to mention the need to migrate data quickly between servers — have resulted in a shift towards high-bandwidth, low-latency networking technologies.

As vendors have pushed the envelope, the networking market has undergone consolidation, with legacy vendors Cisco and HPE building their competitive advantages through a series of acquisitions, including Meraki and Aruba, respectively. Meanwhile, mid-sized players upped the M&A game to remain competitive. For example, Extreme Networks absorbed Aerohive and CommScope snagged Arris-Ruckus to gain the capabilities and scale needed to take on their larger peers.

At the same time, networking chipset players and “hyperscalers” such as Facebook and Google have collaborated with networking vendors to push what was possible in data center networking, closely integrating hardware and software stacks. Going forward, we’ll likely see a tighter coupling of networking gear with Artificial Intelligence/Machine Learning (AI/ML), which could potentially lead to more efficiencies on increasingly autonomous networks. According to our research, 44% of ITDMs believe artificial intelligence and machine learning can help companies optimize network performance.

1. Networking Growth Adoption and Opportunities

Ethernet and Wi-Fi Upgrades and SD-WAN Adoption Growth

From a connectivity standpoint, SD-WAN has been sold as a replacement for legacy WAN solutions, with touted benefits including the ability to scale networks across physically distributed regions, increased flexibility, and cost advantages over Multiprotocol Label Switching (MPLS).

Perhaps that’s why our data indicates an additional 11% of organizations will start using SD-WAN technology within the next two years, up from 21% currently. Growth will be even faster among larger organizations, with an additional 29% of enterprises planning to adopt SD-WAN by 2022, up from 33% today.

The success of SD-WAN might come at the expense of legacy technologies. While MPLS is a prominent WAN technology with a current 24% adoption rate, 5% of respondents said their organization discontinued the use of the technology within the last two years — compared to only 3% of businesses planning to start using MPLS by 2022.

With an ever-growing number of devices connecting to networks, heightened security concerns, and increasing data demands, we expect business adoption growth within the next two years for standards and features such as IPv6 (21%), WPA3 (28%), and Quality of Service (10%).

VLANs, a go-to solution for flexible network segmentation, clock 85% adoption, and 7% of respondents plan to implement them by 2022. Additionally, use of guest networks — which help segregate and secure sensitive corporate data from other traffic — while already widespread, is expected to grow by 7%.

Additionally, while nearly all businesses use Ethernet or Wi-Fi already, many businesses are looking to move to faster versions of these standards. According to our research, 45% of organizations plan to upgrade wired or wireless networks in the future, and 10% plan to upgrade both.

On the other end of the spectrum, within the next two years, only 5% of businesses plan to start using Wi-Fi mesh networking technology – which tends to cater to consumers or smaller environments.

42% of organizations use 10 Gigabit or faster Ethernet networks

2. Ethernet Switch Technology Trends

40/100GbE Revolution Brewing in Enterprises

Over the years, evolving Ethernet standards have allowed for faster LAN connectivity, unlocking new possibilities in the workplace. The Fast Ethernet standard (100BASE-T), introduced in 1995, raised the bar by offering transmission speeds of up to 100Mbps, 10x faster than its predecessor — Standard Ethernet (10Mbps).

Later, the 1000BASE-T standard delivered 10x greater bandwidth over Fast Ethernet, with data transfer rates of 1 gigabit per second. Over the years, the Ethernet roadmap evolved to offer 10GbE, 40GbE, and even faster 100GbE speeds, with vendors happy to roll out high-performance network switches and cables to support the new standards.

Today, 92% of organizations use switches capable of maximum Ethernet speeds of 1GbE or faster in the workplace; and 42% of organizations use 10 Gigabit or faster Ethernet networks.
Enterprises tend to be early Ethernet standard adopters compared to smaller organizations. For example, 59% of enterprises have implemented Ethernet speeds of 10GbE or faster, compared to just 27% of small businesses.
Even though 100GbE is available, many organizations view it as a luxury. Even among enterprises, only 5% have deployed it.

2.1 Future Ethernet Adoption in Businesses: Likely Next Stop, 10GbE

The most popular standard to upgrade to over the next two years will be 10GbE, especially among smaller organizations. 43% of SMBs planning to buy new Ethernet switches before 2022 plan to upgrade to 10GbE.
Directionally, our research suggests more than one-third of enterprises planning to upgrade Ethernet standards will choose either 40 GbE or 100 GbE.
Nearly a quarter of mid-sized companies planning to upgrade will switch to 40GbE or 100GbE networking standards within the next two years.
Among businesses looking to upgrade, the newer 2.5GBASE-T and 5GBASE-T Ethernet standards — which represent a less expensive option for businesses looking to exceed gigabit speeds — will be a more popular upgrade option for small businesses (11%) compared to enterprises (5%).

However, not all organizations will upgrade to one of the latest and greatest options. Some will be stuck playing catch-up. Among businesses planning to upgrade Ethernet standards by 2022, 9% plan to adopt the 1 GbE standard.

2.2 Ethernet for End Users: Slower is Standard

Speed is of the essence in the server room where wired networks support mission-critical servers, storage, and applications. However, Ethernet connectivity at end users’ desks isn’t quite as fast.
Only 5% of organizations provide end-users with Ethernet connections faster than 1 GbE. In contrast, 45% of businesses have faster than 1 GbE connections in the server room.
Currently, an overwhelming majority of businesses (76%) offer a maximum wired Ethernet speed of 1GbE to end-users, while 15% of businesses only provide a 100Mbps connection.

2.3 Switch Types Used by Businesses

Among Ethernet switches there are key differences between different options relating to manageability and control. For example, whether to buy managed or unmanaged switches is a decision networking pros must consider. Leading switch vendors (Cisco, Juniper, HPE) tout many benefits of managed switches, including the ability to prioritize LAN traffic and increased network security (protection from DDOS attacks) and real-time control over information flow throughout the entire network.

Another option to consider with switches is how they’re linked, with stacked switches allowing multiple units to be connected together and configured as a single entity, which can simplify management potentially resulting in boosted efficiency and scalability, which might be useful with high-bandwidth applications.

While modular switches are pricier than standard switches, they allow IT pros to add expansion modules as networking requirements change. Finally, with network complexity increasing, we see a shift from more basic Layer 2 switches to Layer 3 switches, which allow for dynamic routing.

Overall, with a 95% adoption rate, managed switches are the most popular type of Ethernet switch in the workplace.
Layer 2 and Layer 3 switches are also quite popular, with 77% and 74% business adoption rates, respectively.
With their more advanced functionality but higher price tags, stackable, modular, and Layer 3 switches are significantly more popular among enterprises than in small businesses.

3. Network Switch Brands

3.1 Factors Businesses Consider When Buying Networking Hardware

Reliability matters most to ITDMs when evaluating a networking hardware purchase, with 75% of respondents considering it a critical factor.
With 59% of ITDMs rating it critical consideration factor, security features are more important to ITDMs than compatibility with existing infrastructure (41%).
Over one-third of ITDMs believe high performance (37%) is a critical factor influencing networking buying decisions. IT buyers also pay attention to ease of management (25%), lack of security issues (24%), low cost of ownership (22%), and configurability (21%).

3.2 Network Switch Usage: Cisco Controls the Network Switch Market

Currently, Cisco/Meraki network switches are most popular among businesses, with a 62% adoption rate putting a considerable gap between the networking giant and its closest competitors, HPE/Aruba (41%), Netgear (39%), and Dell EMC (25%).
Among second-tier vendors, TP-Link and D-Link each netted 21% business adoption, followed by Fortinet (14%), Juniper (8%), and Brocade (6%).
Netgear is popular among smaller organizations, with a 41% adoption rate among SMBs, compared to 25% among enterprises. In contrast, Brocade enjoys a 15% adoption rate in enterprises, compared to only 4% among SMBs.
A clear sign of a competitive ecosystem: Many organizations use multiple network switch brands. On average, our data shows enterprises use switches from 2 vendors and are open to considering an additional 2 brands in the future.
Brands that enjoy the highest future consideration rates include Fortinet (17%), Juniper (17%), and HPE Aruba (16%).

3.3 Customer Satisfaction of Select Network Switch Brands

Overall, popular networking vendors HPE/Aruba, Cisco/Meraki, and Dell EMC scored very similarly across many key consideration factors, and are locked in a 3-way photo finish across the most critical consideration factors including: Consistent reliability / stability; Security features; Compatibility with other networking solutions; High performance.
While Cisco ranked near the top for every other factor, it fell behind in one category … cost. On the other side of the coin, current and future HPE/Aruba and Dell EMC switch users believe these brands offer the lowest total cost of ownership (TCO).
Less frequently adopted vendors such as Juniper and Arista scored less favorable customer satisfaction ratings, which helps to explain lower adoption rates.

4. Wi-Fi Networking Trends

While it was once a revolutionary technology, many now take Wi-Fi for granted. Today, 96% of organizations use some form of the wireless technology. Since emerging in 1997, Wi-Fi standards have evolved significantly, with revisions offering greater bandwidth, reduced latency, better security, and more reliable connectivity.

The original Wi-Fi standard, known as IEEE 802.11, has seen many amendments such as 802.11b, a, g, n, ac, and ax. With consumers facing this alphabet soup of standards, in 2018, the Wi-Fi alliance made changes to simplify naming conventions — where 802.11n was renamed to Wi-Fi 4, 802.11ac became Wi-Fi 5, and 802.11ax was referred to as Wi-Fi 6. This change has been received positively by IT pros, with 54% of respondents in our survey indicating the new naming convention is easier to understand than before, compared to 34% saying there was no change in clarity.

29% of organizations plan to upgrade to a newer Wi-Fi standard within the next 2 years

Among more recent standards, Wi-Fi 5 promised greater reliability and efficiency, and also provided additional features to support a growing number of devices. Wi-Fi 6 (802.11ax) debuted in 2019, delivering up to a 30x speed improvement over its predecessor and further enhancing support for device-dense environments. With these speed advantages, Wi-Fi 6 hopes to enable new use cases for IoT, AR/VR, online gaming, and video streaming.

Among those organizations currently using Wi-Fi, 71% say Wi-Fi 5 (802.11ac) is the fastest standard they use, compared to 15% for Wi-Fi 4 (802.11n).
Only 4% of organizations support Wi-Fi 6 (802.11ax) on their networks, but that figure will grow in the future.

4.1 Business Wi-Fi Upgrade Plans

29% of all organizations plan to upgrade to a newer Wi-Fi standard within the next two years
Among business planning to upgrade, 75% will move to Wi-Fi 6 (802.11ax), and 11% plan to deploy Wi-Fi 5 (802.11ac) within the next two years.

4.2 Wi-Fi Hardware Adoption: Cisco/Meraki and Ubiquiti in the Lead

Currently, Cisco/Meraki and Ubiquiti UniFi are tied for being the most widely adopted Wi-Fi hardware brand, at 42% business adoption each.
In the second rung of Wi-Fi popularity are brands such as HPE (13%), SonicWALL (10%), and CommScope (8%), which was acquired by Arris-Ruckus in 2019.
Less popular but still prominent wireless device makers include Aerohive (6%), Sophos (4%), Open Mesh (3%), and Juniper (1%).
Looking towards the future, WLAN vendors that enjoy the highest consideration rates include HPE/Aruba (22%), Ubiquiti UniFi (18%), Cisco/Meraki (17%), Ruckus/ARRIS/CommScope (15%), Sophos (14%), and Juniper (14%).

4.3 Wi-Fi Challenges in the Workplace: Wireless Interference a Key Barrier

While use of Wi-Fi is widespread in businesses, the technology isn’t perfect. We asked IT decision makers to talk about their top trouble areas with the technology.

Signal interference (39%), spotty connectivity (35%), inadequate coverage (34%), security (32%), and cost issues (32%), are among the most frequently cited Wi-Fi problems encountered by business users.
Issues arising from supporting a high density of users (28%), slow speeds (21%), and troubleshooting difficulties (16%) are other key challenges IT departments face when using managing corporate Wi-Fi networks.

Because many of the top Wi-Fi problems encountered by IT departments align with factors that are most important to decision makers — reliability/stability and security — vendors in the space are advised to refine products and messaging to address these issues.

4.4 Customer Satisfaction of Select Wi-Fi Hardware Brands

Among the brands we asked about, there’s a clear crowd favorite. Ubiquiti UniFi, which tied for being the most popular Wi-Fi brand, earned top marks across almost all attributes. Additionally, Ubiquiti UniFi stood far above the competition when customers rated the brand for low total cost of ownership (TCO).
While Cisco/Meraki tied for being the most widely adopted Wi-Fi brand in the workplace, and the brand ranked very favorably in nearly every area, decision makers gave it relatively low marks for TCO compared to competitors.
While lagging in some areas, CommScope/Ruckus-Arris scored hight marks for high performance, ease of set-up, and ease of management.
While HPE/Aruba scored consistently across most categories, the brand earned slightly lower customer satisfaction scores in important areas such as reliability, high performance, and ease of management than other prominent Wi-Fi players.

5. Network Monitoring Software

Network Monitoring software can help IT departments monitor network traffic, analyze network bandwidth usage, get real-time information about devices, and receive alerts when suspicious activity is detected. Today, these solutions are widely deployed to monitor servers, applications, and networking devices, including those residing in public and private clouds. These tools can provide insights into response time and availability, based on current and historical performance data.

According to our research, 68% of businesses use network monitoring tools, and adoption is even higher (89%) among enterprises. On average among businesses using networking monitoring software, organizations use two different tools.

However, despite the prevalence of network monitoring software, only half of IT professionals believe their organization has adequate visibility into network activity on the corporate network. This disparity points to a clear need that might be addressed by solutions providers.

At 62% businesses adoption, WireShark is by far the most popular network monitoring software
Other popular tools include PRTG Network Monitor (26%) and Solarwinds NPM (21%)

6. Opportunities and Next Steps

According to our research, many organizations (45%) planned to upgrade their Ethernet or Wi-Fi networks to newer standards over the next two years. These plans could help move the needle in the industry, considering another Spiceworks study – the 2020 State of IT, found 8% of IT hardware budgets are spent on networking gear.

Additionally, according to the annual study, corporate IT budgets were expected to go up year-over-year in 2020, with the top factor contributed to increases in spending being the need to replace aging infrastructure.

Despite the global pandemic altering some spending plans, additional Spiceworks research showed that 61% of businesses expected to spend the same or more in 2020 despite or because of COVID-19. But despite this positive news, with this January 2020 survey focusing largely on on-premises hardware, the COVID-19 pandemic could delay some upgrade plans, with many workers not returning to offices to connect to corporate networks.

Our survey also revealed IT vendors could face additional challenges:

ITDMs have a low awareness of the technical details and various standards behind 5G despite all the hype behind the wireless technology.
Fewer than one-third of organizations (32%) replace networking hardware before it reaches end of support.
ITDMs are also not very aware of newer Ethernet terms and standards such as Cat 7/Cat 8, 2.5GbE / 5GbE, and 25 GbE NBASE-T … pointing to a need for additional education.
Some words used commonly by vendors might be viewed as buzzwords or jargon. Fewer than half of ITDMs are aware of terminology including “beam forming” and “intent-based networking”.

That said, there are some bright spots for vendors selling emerging tech. A majority of respondents are well-informed about PoE standard 802.3af, and the newer 802.3at, also known as PoE+. Additionally, many IT pros are at least somewhat familiar with newer terms such as “cloud-managed Wi-Fi,” “cloud-managed switches,” “cloud networking,” and vSwitches.

6.1 Networking Challenges in the Workplace: Budget Constraints Are a Top Challenge

Good news for networking vendors: only 29% of ITDMs believe network switches are commoditized, and the numbers are even better (23%) for Wi-Fi hardware. However, some buyers are price sensitive. For example, 55% of ITDMs identified budget constraints as one of their top challenges with networking. In a related note, 24% of businesses said one of their main concerns was getting management to support networking initiatives.

Other big networking concerns among IT departments include time constraints preventing them from focusing on networking challenges (36%), suboptimal network monitoring practices (35%), and security (31%).

Armed with this knowledge, vendors can work on standing out from the competition by focusing on security features in their product development roadmaps and marketing efforts, as it’s clearly a pain point. For example, 86% of ITDMs believe network security is a bigger concern now than in the past, and 55% believe securing Wi-Fi is even more difficult than protecting wired connections.

Only 32% of businesses replace networking hardware before it reaches end of support

There are other bright spots for IT vendors in our research. Providers that already have a presence in corporate networks have the opportunity to capture even greater market share. 78% of ITDMs said they would prefer to standardize on a single brand for networking hardware, instead of piecing together solutions from multiple vendors.

There’s also an opportunity for vendors to differentiate offerings through innovation. ITDMs are bullish on artificial intelligence and machine learning, and 44% of ITDMs believe these technologies can be useful in helping companies optimize network performance.

Conclusion: The Way Forward

As businesses evolve their networks by introducing new connectivity solutions that enable new use cases and boost productivity, smart businesses will continue to keep an eye towards the future, staying informed of developments that can drive businesses forward.

In order to succeed in the crowded networking market, vendors should continue to develop products that address common networking pain points, while emphasizing how their solutions can deliver reliability, scalability, cost-savings, security, and flexibility. As companies look to modernize their networking stacks and replace out-of-support hardware, IT vendors have the opportunity to capture tech spend by preparing businesses for the next generation of connectivity, and beyond.

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