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Your organization’s network infrastructure is a vital asset that supports business operations. But, like an aging bridge, it might be bearing increasing traffic loads while showing worrisome signs of wear.

As a CIO or technology leader, you’re standing at a critical crossroads. NTT DATA’s network research reveals a stark reality: while 97% of leaders acknowledge the critical importance of their networks, 73% of CIOs and CTOs agree that their network assets are aging and/or obsolete.

So, it’s not surprising that 7 in 10 organizations are unsure about the network-related outcomes they need and the network features on which they should focus. The clock is ticking, and the stakes have never been higher.

Why network modernization matters

All digital initiatives — from employee and customer experience improvements to operational efficiency programs — rely on a robust, modern network. The rapid pace of change in business, technology and user expectations and changes in how we consider the environment mean network modernization is unavoidable.

AI workloads, IoT devices and hybrid work environments are now pushing legacy networks to their limits. For instance, GenAI workloads demand increasingly higher-performance network connectivity. While these workloads still make up a small percentage of overall enterprise computing resources, dramatic growth is expected.

Cybersecurity threats have also evolved considerably. Enterprise network and security operations were traditionally siloed, but organizations are increasingly following zero trust principles to adopt a more integrated approach to network security. In 2025, operating on outdated infrastructure isn’t just risky — it’s potentially holding your business back.

The cost of delayed action

Delaying network modernization carries significant risks that extend far beyond routine maintenance:

1. The immediate business impact

  • Operational disruptions: Legacy networks are prone to outages and performance issues. Every minute of downtime affects productivity and may lead to lost revenue and reputational damage.
  • Security vulnerabilities: Outdated infrastructure often lacks modern security features, making it more susceptible to cyberattacks.
  • Regulatory compliance: Many industries — especially financial services and healthcare — must follow strict rules to secure their infrastructure and data. Unsupported hardware could result in significant fines and regulatory issues.
  • Employee experience: To perform at their best, employees need easy, fast access to business applications and communication services, all of which are delivered by the network.

2. The long-term strategic disadvantages

Your competitors are already modernizing their networks. Delay doing so at your own peril, as you’ll risk falling behind in service delivery, customer experience and operational efficiency.

Legacy infrastructure also can’t fully support emerging technologies like GenAI, limiting your organization’s ability to innovate and adapt. While network operations are largely manual today, we’re expecting a major shift to automated, AI-enabled processes in the next three to five years.

Furthermore, aging network equipment with inefficient power supplies and outdated features put a spoke in the wheel of your carbon-reduction goals.

What does a network refresh entail?

Think of your network like a smartphone. Eventually, an older device won’t run the latest apps or install updates, and your network infrastructure follows a similar lifecycle. But, unlike a phone upgrade, the stakes involved in a network refresh are considerably higher.

It’s not a case of simply replacing old hardware with new. It’s a strategic overhaul that includes:

  • Modernizing your hardware and software infrastructure
  • Redesigning your network architecture so it can scale as your business grows
  • Implementing advanced security protocols
  • Enabling support for emerging technologies
  • Building a foundation for automation and AI capabilities
  • Making it compatible with open standards and application programming interfaces (APIs)

Note that the term “legacy” doesn’t refer only to technology being outdated. You may have perfectly functional network equipment that simply won’t handle the demands of AI, cloud computing and growth in data volumes because of limited bandwidth, high latency and an inability to scale or adapt to evolving security threats.

A strategic approach to network modernization

Don’t replace your network infrastructure “like for like”. Simply swapping out an old switch for a new one doesn’t add significant value. Here’s a different approach:

1. Know what you’re dealing with

Begin with a comprehensive evaluation of your current infrastructure, including hardware, software, licenses, support coverage and lifecycle milestones. Understand what’s working, what’s not and what’s needed for growth. This is both a technical assessment and an exercise that helps you craft a business-ready network.

2. Modernize with a plan

Any network refresh in 2025 and beyond needs to include the following actions:

  • Mandate automation and open APIs for operational efficiency and unlimited integration capabilities.
  • Design with security principles from the ground up, including zero trust and cloud-delivered security controls.
  • Pilot AI-enabled capabilities for proactive network management and optimization.
  • Include sustainability as a key criterion when you’re evaluating new infrastructure.
  • Consider employee experience across your hybrid work environments and collaborative smart spaces.
  • Determine whether the infrastructure will scale and adapt as your technology needs change, particularly when AI workloads become part of the equation.

3. Align your stakeholders

Engage all key stakeholders across your organization early — from IT teams to business-unit leaders. This will help you understand their needs and concerns and address these in your network-modernization strategy.

4. Don’t do it all in one go

Phase in your modernization plan. Prioritize critical systems and areas where the upgrade will deliver the most immediate value. Focus on understanding how your organization is changing and what new features and functions you’ll need in your infrastructure to support these changes.

This approach will help you to align your new infrastructure with your business outcomes, rather than just replicating your existing network setup.

The NTT DATA advantage

There are good reasons why you should join more than 10,000 organizations around the world to work with NTT DATA’s Technology Solutions team to modernize your network.

We’ve managed more than 10 million network assets globally and delivered thousands of structured network assessments. Our extensive experience with software-buying models makes it easy for organizations to move to subscription, Enterprise Agreement and as-a-service models.

Then, our strong partnerships with leading technology providers like Cisco, HPE Aruba Networking, Palo Alto Networks and F5, combined with our advanced platform-delivered services, enable us to support our clients nationally, regionally or globally (we’re in more than 50 countries).

We have our own ambitious global sustainability practices and net-zero goals, and we regularly receive analyst accolades and recognitions, including being named a Leader in the 2024 Gartner® Magic Quadrant™ for Global WAN Services* and the 2023 Gartner® Magic Quadrant™ for Network Services, Global**.

The time to act is now

The question isn’t whether to modernize your network, but how to do it effectively and how soon you can begin. Organizations that act now will significantly reduce risk and position themselves for success in a digital future.

Our Infrastructure and Software Lifecycle Assessment provides a deep analysis of your environment and delivers structured software, hardware and lifecycle insights that help you to understand your current state and plan your modernization journey.

The future of your business depends on your network. Make sure it’s ready for the challenges that lie ahead.

WHAT TO DO NEXT
Schedule a conversation with our experts. They’ll help you develop a secure network-modernization strategy that aligns with your business objectives and keeps you ahead of the curve.

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* Gartner, Magic Quadrant for Global WAN Services, Danellie Young, Gaspar Valdivia, Karen Brown, Lisa Pierce, 15 April 2024

** Gartner, Magic Quadrant for Network Services, Danellie Young, Karen Brown, Gaspar Valdivia, 22 February 2023

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