Ever since Steve Jobs stood on stage to unveil the first iPhone in 2007, the focus of the global technology industry has been on innovation in the software, mobile and cloud markets. Smartphone apps and software-as-a-service products were the centers of value creation.
That was until the launch of ChatGPT at the end of 2022, which heralded the start of the latest AI explosion. The tech industry quickly realized that AI’s success actually depended not on software applications, but on the infrastructure powering it all – specifically semiconductor chips and data centers. Suddenly, infrastructure appears to be king again.
Something similar is now happening with digital networks. Organizations are appreciating anew just how important this foundational infrastructure really is. After a couple of decades out of the limelight, the humble network is back at the very heart of CIOs’ remits.
The transformative potential of edge computing
Why is the network back at the top of the IT priority list? One single factor is key, according to Tata Communications’ SVP and Head of Americas region, Dino Trevisani – “the new technological paradigm of edge computing.”
Unlike traditional cloud computing, which sends data back to a centralized location, edge computing processes data closer to where it is generated, at or near the ‘edge’ of the network. The features in a brand-new connected car, for example, are enabled by edge computing. Sensors continually monitor the car’s performance and process critical data on the edge to make split-second decisions about its speed and maneuvering.
With more data processed at the edge of the network, devices ranging from connected cars to augmented reality headsets can respond in real time and deliver hyper-personalized and immersive experiences. And as technologies like AI and mixed reality improve, the central role of the network only grows.
“The future of digital transformation will be powered at the edge,” asserts Trevisani. “Enterprises can no longer treat networks as ‘just’ infrastructure. Without an advanced, scalable network strategy, CIOs risk falling behind in the next wave of innovation.”
Why CIOs must act
Edge computing has striking parallels to earlier digital disruptions. In the same way that networks transformed the media industry – enabling streaming to replace broadcast and cable TV – they’re now poised to revolutionize everything from manufacturing to healthcare.
“Factories are becoming dependent on ultra-low-latency networks for robotics control,” notes Trevisani. “Hospitals need guaranteed bandwidth for AI-assisted diagnostics. In all of these things, the network is more critical than ever.”
Without a modern networking strategy, organizations in a range of sectors risk suffering the same disruption that legacy media businesses in music, movies, TV and news have all experienced over the past 20 years.
That’s where Tata Communications can help. Its global digital fabric is built for this new reality – delivering cutting-edge connectivity and seamless edge-to-cloud integration. As organizations rearchitect their networks for the future, they need a partner that not only understands the stakes but has the scale and expertise to deliver.
AI impact
With more and more industries becoming AI-driven, networks must be increasingly woven into the very fabric of digital transformation initiatives. Enterprises that lack an agile, intelligent network will struggle to compete.
“It’s simply impossible to be an AI-first company with a legacy digital infrastructure,” argues Trevisani. On legacy networks, productivity is 25% lower and downtime costs an organization $1.5m on average.
Vipin Kalra, an engineering leader with more than two decades of experience in the technology industry, agrees that the impact of AI will be decisive. “AI-driven applications, such as real-time analytics, intelligent virtual agents, and predictive customer service, require ultra-low latency and high-bandwidth networks,” he says. “Organizations must invest in SD-WAN, edge computing, and 5G to ensure AI applications operate seamlessly.”
As we enter this new phase of digital evolution, one thing is clear: CIOs can’t afford to treat networks as an afterthought. In a world where edge computing and AI demand real-time responsiveness, the network is no longer just the plumbing – it’s becoming the platform that will enable the next wave of innovation.
To learn more, visit Tata Communications’ website.
