Network Management Megatrends 2018

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Network Management Megatrends
2018
Shamus McGillicuddy
Senior Analyst
Enterprise Management Associates

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INDUSTRY ANALYSIS & CONSULTINGSlide 3 © 2018 Enterprise Management Associates, Inc.
Featured Speaker
Shamus McGillicuddy, Senior Analyst, EMA
Shamus has more than 10 years of experience in the IT industry,
primarily as a journalist covering the network infrastructure market.
At Enterprise Management Associates (EMA), he is the senior
analyst for the network management practice.

INDUSTRY ANALYSIS & CONSULTINGSlide 4 © 2018 Enterprise Management Associates, Inc.
An archived version of the event recording will be available at
www.enterprisemanagement.com
• Log questions in the chat panel located on the lower left-
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QUESTIONS
EVENT RECORDING
Logistics

Sponsors

Agenda
• Research Goals, Methodology, Demographics
• Drivers of Network Management Decision-Making
• The State of Enterprise Network Operations
• The Megatrends
• Megatrend #1: The Fragmented Network Management Toolset
• Megatrend #2: Cloud Services and the Network
• Megatrend #3: NetSecOps: Network Operations and Security
Management Convergence
• Megatrend #4: Network Automation
• Megatrend #5: Network Management Outsourcing

Research Goals, Methodology,
Demographics

Research Goals and Methodology
RESEARCH GOALS METHODOLOGY
• Survey 252 IT pros involved in
network management
• 66% are managing networks
• 54% are planning networks
• 57% evaluate network
management products
• 54% approve and purchase
products
• Recognize and investigate major
shifts in:
• Managed networks
• Network management
technologies
• Explore impact of macro
technology trends on network
management

Demographics
• Roles
• 30% IT executives
• 70% IT staff/middle management
• Company size
• 27% small enterprise (250-999 people)
• 41% midsized enterprise (1,000 to 4,999)
• 32% large enterprise (5,000 or more)
• Revenue
• Less than $100 million (51%)
• $100 million to <$1 billion (30%)
• $1 billion+ (17%)
• 18 vertical industries
• Software (18%)
• Finance/banking/insurance (15%)
• Manufacturing, unrelated to IT
(10%)
• IT-related professional services
(8%)
• Retail/wholesale/distribution (8%)
• Geography
• 75% North America
• 25% Europe

Size of Managed Environments Surveyed
12%
37%
35%
16%
Fewer than 250
250 to 990
1,000 to 4,999
5,000 or more
Number of network devices
under management
25%
42%
33%
Fewer than 20
20 to 99
100 or more
Number of remote offices
connected to the WAN

Drivers of Network Management
Decision-Making

The Cloud and Software-Defined Era has Arrived
• IT initiatives driving networking
decisions today
• SDDCs (37%)
• Public cloud (IaaS) (35%)
• Private cloud (35%)
• Server virtualization (35%)
• Server virtualization is no longer
the dominant driver
• #1 driver (49%) in 2016

Enterprises Embracing Software-Defined Solutions
43%
40%
39%
38%
37%
36%
36%
33%
32%
31%
28%
26%
26%
25%
19%
0%
Networking security
Data center SDN (e.g., OpenFlow, Cisco ACI, VMware NSX)
Network operations optimization (e.g., SLA improvement, MTTR reduction)
Wireless LAN refresh/upgrades (e.g., 802.11ac)
Network virtualization (e.g., virtualization of routers, load balancers, etc.)
WAN optimization
Software-defined WAN
Advanced network analytics
Public/hybrid cloud networking
Data center network automation and orchestration
Switch and router refreshes/upgrades (e.g., upgrade to 10/40/50/100 Gigabit Ethernet)
Network-based application delivery control
Converged infrastructure (e.g., VCE Vblock, IBM Flex)
Intent-based networking
IPv6 transition
Other
Networking initiatives driving current priorities in network management
Sample Size = 252, Valid Cases = 252, Total Mentions = 1,232
Top Drivers in 2016:
• Network security
• WAN optimization
Today:
• SDN
• Network virtualization
• SD-WAN

The State of Enterprise
Network Operations

47% of Enterprises are Successful with Network
Operations
How do they measure success?
1. Security risk reduction (35%)
2. Service quality (32%)
3. Improved network visibility (31%)
4. End-user experience (28%)
5. Application performance (27%)
6. Cloud readiness (26%)

Most Popular Data Sources for Network Management
Capacity planning and engineering
• Configuration data (35%)
• WAN optimization devices (35%)
• NetFlow/sFlow/IPFIX (34%)
• Management system APIs (34%)
Sustained availability and performance monitoring
• Network test traffic (40%)
• Packet inspection (35%)
• Device APIs (34%)
Troubleshooting
• Packet capture/analysis (37%)
• Configuration data (35%)

Elements of Network Operations Success (or Failure)
Problems
detected &
reported by
users
39%
Problems
detected &
addressed by
NetOps
61%
Network problem detection
Reactive
troubleshootin…
Proactive problem
prevention
40%
All other tasks, including
strategic projects
25%
Divison of network management tasks
in a given week

Network Operations Challenges
• Top NetOps challenges
1. Shortage of skilled personnel (24%)
2. Lack of end-to-end network visibility (24%)
3. Lack of usage policy/enforcement (23%)
4. Fragmented management tools (22%)
• Most time-consuming aspects of diagnostics
and troubleshooting
1. Problem identification, such as information
gathering and system analysis (41%)
2. Planning and implementing fix (36%)
3. Verifying success of fix (34%)
4. Testing/proving root cause theory (33%)

Megatrend #1:
The Fragmented Network
Management Toolset

Network Teams Struggle with Large Toolsets
23%
49%
27%
1 to 3 tools
4 to 10 tools
11 or more tools
Number of tools used to monitor and
troubleshoot networks
Network teams that use 11+ tools:
• Detect fewer network problems before
users impacted
• 55% versus 70% with 1-3 tools
• Suffer more annual network service
problems/outages
• 3x more problems than teams with 1-3
tools
• Lack end-to-end network visibility
• 1.6x more likely than teams with 1-3 tools
to struggle with this issue

Other Challenges Associated with Large Toolsets
• Network teams with large toolsets (11+) are more likely to:
• Resist or reject collaboration with the security group
 Lack defined processes or best practices for this collaboration
• Resist using network automation for closed-loop operations
• Struggle with assembling the right team of stakeholders when
troubleshooting service problems
• Struggle with documenting a troubleshooting event

Network Teams with Large Toolsets Feel More Successful
with Network Operations
27%
73%
48%
52%
64%
36%
More successful
Less successful
1 to 3 tools 4 to 10 tools 11 or more tools
Sample Size = 252

Megatrend #2:
Cloud Services and the Network

Cloud Saturates Networks, Drives Decision-Making
• 60% see significant cloud traffic on a daily basis (#1 response)
• Average enterprise: 45% of all traffic is attributable to public cloud
• Cloud drives network decisions
• Public cloud – IaaS (35%)
• SaaS applications (32%)

Cloud Monitoring and Management Strategies
• Existing tools are often not enough
• Only 15% of network managers manage
cloud networking with existing tools
alone
• 58% acquire new tools
• 14% are still looking for a solution

Megatrend #3:
NetSecOps
Network Operations and Security
Management Convergence

Network Managers Have Security Mandate
42%
• Network managers collaborating more with IT
security
38%
• Network managers integrating network
management systems with security monitoring
35%
• Enterprises increasingly use security risk reduction
as a measure of network management success

Current Relationship Between Network Management and
Information Security Teams
40%
35%
16%
4%
2%
0%
2%
Fully converged with shared tools and processes
Separate teams with integrated tools for collaboration
Separate teams with some shared tools for collaboration
Separate teams that collaborate on an ad hoc basis
Separate teams that rarely or never collaborate
Other
Do not know
Sample Size = 252

NetSecOps: Where and Why?
CRITICAL POINTS OF
COLLABORATION
Infrastructure
design &
deployment
(38%)
Incident
monitoring
(31%)
Incident
response
(27%)
TOP DRIVERS OF
COLLABORATION
OpEx
efficiencies
(38%)
Risk
reduction
(37%)
Faster
MTTR/MTTI
(34%)

Megatrend #4:
Network Automation

92% of Enterprises are Expanding Network Automation
• 70% say automation is a high priority
• IT groups with flat or shrinking budgets
are less likely (58%) to prioritize
• Tasks they are automating
• Network optimization (49%)
• Security incident response (47%)
• Network capacity planning (40%)
• 87% have adopted at lest some closed-
loop operations (self-healing networks)

Network Automation Tool Preferences
SDN (40%) NCCM (38%)
SD-WAN
(38%)
DevOps/IT
automation
tools (35%)
Standards-
based
network
automation
tools (34%)

Why Automate Networks?
• Most important benefits
• Security risk reduction (34%)
• Improved collaboration across IT (32%)
• Rapid response to service problems (28%)
• Increased network agility (28%)
• Least important:
• OpEx savings (10%)

Megatrend #5:
Network Management Outsourcing

Network Management Outsourcing Expanding
58% in 2018
51% in 2016
36% in 2014
How many
enterprises are
outsourcing
aspects of
network
management?

Network Management Outsourcing Maturing
Top outsourcing targets in 2016
1. 24x7 network health monitoring
2. Remote site networking
3. Layer 1 support (help desk
calls)
4. Off-hours network health
monitoring
Top outsourcing targets today
1. Device management and
configuration
2. WLAN networking and support
3. 24x7 network health monitoring
4. Data center networking and
support

Network Management Outsourcing Risks and Benefits
• Network problem detection
• Outsourcers detect only 54% of network problems before users are impacted
• Non-outsourcers detect 70%
• Client device or user error
• Twice as likely to cause complex service issues
• Troubleshooting steps that become more time-consuming
• Testing and proving root cause theory
• Documenting troubleshooting findings
• Outsourcers are more likely (33%) to increase IT innovation via NetOps
success than non-outsourcers (19%)

Final Thoughts
Next-generation
technologies are driving
networking
Network managers are still
struggling with tool
fragmentation
Cloud is saturating enterprise
networks
Network and security teams
are converging
Network automation is a
universal priority
Enterprises are aggressively
outsourcing network
management tasks

Q&A
Get the report at:
http://bit.ly/2JlahSu

Network Management Megatrends 2018

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