Role of Network Equipment in Enhancing Modern Business Communication and Data Flow

Highlights:

• Introduction
• Popular network equipment components
• Microsoft’s new network technology
• Promising acquisitions made by top players

Network equipment is a set of physical or network devices that are essential for interaction and communication between hardware units operational on a computer network. Nowadays, technologies have penetrated its arm into every nook and corner of various industrial applications. They also play an important role in building a network that is secure and reliable, allowing users to smoothly run their applications. Network equipment enables industries to grow as it supports their scalability. This set of equipment integrates with multiple components depending on the need of organizations, thereby enabling businesses to establish an effective mode of communication. It also promotes multiprocessing and enables sharing resources, information, and software with ease, enhancing business standards.

A look into the important network equipment in building a robust communication

To create a robust network, a switch operates in the data link layer and connects multiple devices. Unlike a hub that broadcasts data packets to every connected computer or device, a switch stores and uses the media access control (MAC) address to forward data packets to a specific node. A switch is more intelligent compared to a hub. It requires accurate designing and implementation to handle network traffic, reducing the amount of latency.

However, a router plays an important role in facilitating seamless communication and data flow. It operates in the network layer and connects two or more networks. Routers use internet protocol (IP) addresses to forward data packets to a specific node. They are integrated with complex routing algorithms that determine the most optimal path for data flow within a network. Therefore, they are considered as “Network Layer” devices. Routers generally connect LANs and WANs and have an updated routing table based on which they make decisions on routing the data packets. Because of their ability to connect sub-networks or divide a very large network into smaller sub-networks, the routers segment is expected to hold the highest share, generating a revenue of $13,448.9 million from 2023 to 2032.

Microsoft’s new network strategy to offer next-generation connectivity

In March 2024, Microsoft, a leading multinational corporation and technology company announced to deploy a more agile, secure and effective network environment across its organization. The tech giant planned to implement a next-generation connectivity strategy that could account for both traditional in-building experience and hybrid experiences. Such robust connectivity could also accommodate critical industry factors such as providing advanced speed and scale of threats caused by cyberattacks and supporting remote work and emerging hybrid scenarios. Furthermore, with the increase in the adoption of cloud technology for numerous business applications such as security monitoring and employee productivity, Microsoft is implementing new network strategy that could offer cutting-edge solutions to transform traditional on-premises infrastructure and network patterns. Additionally, due to surge in the adoption of IoT devices across workplaces, Microsoft developed a network that could boost the connectivity among the such IoT-based devices and sensors.

In the coming years, the company aims to embrace cloud WAN and edge security models associated with use identities, device states, and applications that are not directly dependent on the physical network infrastructure. It envisions efficiently scale network deployment and operations by making huge investments in software-defined infrastructure, data-driven insights, AIOps, and network automation.  

Acquisitions made by Hewlett and Nokia to provide high-performance networking solutions

Several leading players in the network equipment industry have made alliances such as partnerships, collaborations, mergers, and acquisitions to safeguard the industry’s competitiveness. For instance, in January 2024, Hewlett Packard, the edge-to-cloud company announced its acquisition of Juniper, a leading AI-native networking platform. With this acquisition, Hewlett aimed to boost its networking business by incorporating artificial intelligence. By introducing an AI-native environment, the company aimed to create better user and operator experiences, benefiting customer’s high-performance networks and cloud data centers.

On the other hand, Nokia Corp., a Finnish multinational telecommunication, information technology, and consumer electronics corporation acquired Fenix Group, a leading provider of 3rd Generation Partnership Project (3GPP) communications solutions for the defense communities. This acquisition would enable Fenix Group to provide high-performance, secure, and reliable communication solutions to its defense customer.  

To conclude, the increase in the adoption of network equipment across businesses to enhance operation & productivity is expected to boost the growth of the sector in the coming years. Moreover, the rapid adoption of advanced technologies such as IoT, 5G and edge computing is anticipated to create massive growth opportunities for the domain in the future.

To gain more insights into the network equipment industry, feel free to talk to our industry analysts today! They can also help develop new business strategies and initiatives.

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