Enterprises struggle with network reliability, security: survey

Wired network connectivity isn’t as reliable as U.S. businesses need, according to a recent survey, which shows that nearly 90% of respondents experienced between one to four hours of connectivity downtime per week due to network failure.

Wireless WAN and edge networking provider Cradlepoint, which is a subsidiary of telecommunications giant Ericsson, this week released the findings of its annual connectivity report that shows businesses are dealing with the negative side effects of downtime and considering cellular options to combat connectivity issues. More than half of decision-makers (54%) surveyed estimated that their organizations face one to two hours of connectivity downtime per week, while another 34% said they experienced as much as three to four hours of downtime each week due to network failure. The survey is part of Cradlepoint’s State of Connectivity 2024 report, which is based on Censuswide research of more than 1,000 senior management respondents at businesses with more than 250 employees in the U.S.

According to the survey, downtime can result in significant business-impacting outcomes. More than half of respondents (51%) said that between 50% to 74% of “their business is predicated on having always-on connectivity,” and 55% of those surveyed equate connectivity issues to significant effects on their business. The survey revealed that negative results from downtime include:

• Higher operational costs: 55%
• Operational inefficiencies: 46%
• Loss of reputation: 38%
• Loss of talent: 38%
• Loss of earnings: 34%

The survey data shows that businesses as an alternative or supplement to fiber and wired connections are turning to cellular networks to ensure better connectivity for specific business and technology functions. For instance, 37% of respondents said they use cellular to support security and surveillance systems, and 33% use cellular for critical operational infrastructure. Other notable uses include:

• Digital signage: 31%
• Fleet management: 31%
• Work-from-home support: 30%
• Industrial Internet of Things (IoT): 29%

Separately, industry watchers have noted that cellular – in particular, 5G connectivity – is becoming more appealing to enterprise businesses. According to Enterprise Management Associates (EMA), 86% of enterprise users either use or plan to use wireless WAN connectivity (4G/5G) in their corporate networks. And 90% of those companies plan to use WWAN as the primary network connection for at least some of their sites.

Still, the Cradlepoint report shows that technology decision-makers polled are cautious to rely solely on cellular connectivity for several reasons. Among the chief concerns for 33% of respondents is a lack of skills necessary to adopt 5G, and 31% pointed to uncertainty around the security implications across their organization as a barrier to 5G adoption. Another 32% of organizations surveyed said they are worried about costs, and 29% stated that they were “struggling to see a clear return on investment” despite the report stating that cellular networks enable 99.99% uptime.

“5G came out of the gate with tremendous hype and transformative potential, but the two-tiered deployment (NSA and SA), combined with a lagging device ecosystem, has tempered much of the enthusiasm for 5G, particularly as network deployments become more commonplace and AI takes over the technology spotlight,” said Jason Leigh, research manager, 5G and Mobile Services at IDC, in a statement.

Network security concerns also plagued survey respondents, with nearly half (49%) of businesses reporting they were subject to an attack in the last 12 months. Of those decision-makers that who experienced a network security attack, 42% said company data was most frequently attacked, with 35% of respondents saying the breaches “usually result in data loss.”

“These findings reinforce the urgency for enterprises to prioritize resilient and secure network connectivity as industries across the U.S. navigate uncertain economic climates, emerging technology, advanced threat landscapes, increasing consumer demands, and talent shortages,” said Donna Johnson, CMO at Cradlepoint, in a statement. “Controllable, scalable, and secure networks for critical business functions come with strategic 5G adoption.”