Poor connectivity sees majority of global enterprises suffer reduced productivity, efficiency

In what the private LTE and 5G network solutions provider has said highlights the growing awareness, interest in and appetite for private networks, research from Quortus has made the revelation that almost two-thirds (63%) of US and European enterprises have suffered reduced productivity and efficiency at the hands of weak and unreliable connectivity.

The study, carried out by Sapio Research, probed enterprise IT decision-makers in the US, the UK, Germany and France on their current pain points related to connectivity. It surveyed 260 such professionals in companies with between 1,000 and 10,000 employees and revenue of more than $1m a year, operating in the manufacturing and industrial, retail, healthcare, automotive, defence and security, shipping, logistics, and local government sectors. 

Quortus said the findings highlight the perceived inadequacies of public fixed and mobile networks. It found that as many as 91% of enterprise respondents believed the limitations of their existing connectivity were squarely tied to the limitations of macro public networks. The major limitations of public networks found to be frustrating enterprises included weak security, restricted network speeds and limited available network capacity limiting innovation.

Virtually all (97%) organisations said they were ready to invest more money to ensure better connectivity and almost half (47%) would increase current budgets by 10% if it reduced existing fears and limitations and helped drive operational efficiency. Moreover, a fifth of enterprises did not believe the quality of their existing connectivity would support the achievement of their future digital ambitions.

Enterprises, until recently, have had to rely on public macro networks for broadband connectivity,” said Neil Dunham, vice-president of sales at Quortus.

“Our study reveals significant levels of frustration with the inherent limitations of macro networks. Too often, global enterprises are finding that the quality of connectivity they receive is decided by an enterprise’s location, relative to network sites and the number of users relying on them.

“As this study shows, strong and reliable connectivity is a significant enabler to greater operational efficiency, enhanced service innovation and better productivity. It is therefore no surprise that enterprises are evaluating their future needs so closely and evaluating alternative means of supply.”

The study also revealed that many global enterprises were taking the safeguarding of high-quality connectivity into their own hands by building and operating private cellular networks. Almost a quarter (23%) of enterprises surveyed currently operate their own network, while a third said they would prefer to build their own network with the help of specialist partners, rather than buy it directly from a public operator.

The top perceived enterprise benefits of private networks include greater security, increased performance and tighter network control. Assessing trends in this regard, Dunham noted that “burgeoning excitement” towards private networks was driving enterprises to consider their options when it came to build, design and deployment.

“The key areas of motivation among enterprise IT decision-makers include a willingness to benefit from specialist vertical knowledge and expertise, not being limited by a public operator’s footprint or service capability and need for bespoke requirements now and in the future,” he added.

“Only private networks can offer a truly bespoke connectivity solution to guarantee appropriate levels of performance, reliability, security and control for all global enterprises.”