What is network infrastructure?

To help ensure network availability, most companies include some kind of network infrastructure management into their planning. This includes network monitoring, maintenance and management tools and security solutions that help optimize network performance.

Due to its role in core business operations, network infrastructure has become a critical part of digital transformation, and the global market for enterprise network infrastructure is large and growing. Many companies see it as an opportunity to use emerging technologies such as artificial intelligence (AI) and cloud computing.

With a valuation of nearly USD 60 billion just 2 years ago, the global market in network infrastructure is expected to grow at a compound annual growth rate (CAGR) of 4.9% over the next 5 years¹.

Modern networks rely on a combination of hardware and software components, practices, processes and systems to function. Here’s a brief overview of some of the most widely used components and services and how they enable network infrastructure to work effectively.

A node is a point on a network—connected to a device such as a computer, printer or modem—that can receive, send, create or store data. Networking devices, such as computers, routers and switches, need to be able to recognize, process and transmit information for network infrastructure to function. Accordingly, each node is identified by its address (known as an IP address) and granted access to the network.

An Internet Protocol (IP) address is a number that’s been assigned to a node that’s connected to a computer network. Each IP address identifies the device and the network that it's connected to and its specific location on the network. When one device sends data to another, the data includes the IP addresses of both devices. Data is sent over a network, between nodes, by using routers and switches.

A router is a device that sends data packets (small units of information that have been formatted for transmission over a network) between networks. Routers analyze data to determine the best path it should be sent on, relying on sophisticated routing algorithms to forward them efficiently to their destination node.

A switch is a device that connects network devices and manages node-to-node communication across a network, making sure that data packets reach their intended destination. Unlike routers, which send information between networks, switches send information across networks, between connected nodes. 

A wireless access point (WAP) is a component that enables devices such as smartphones and laptops that rely on Wi-Fi connections to engage over a network. WAPs enable a wide range of devices to access the internet by acting as a middleman between a wired network (a network where nodes are connected by cables, such as Ethernet) and a wireless network (a network that relies on a wireless signal, such as 5G).

WAPs are critical to network infrastructure because they help bridge the gap for devices that need to access both kinds of networks, wired and wireless, and enable seamless connectivity for the users and applications that rely on them.

Software-defined networking (SDN) is a software-controlled approach to network infrastructure designed for application programming interfaces (APIs) that are central to many core business operations. SDN helps enterprises maximize a centralized platform to communicate with their network infrastructure and guide network traffic. Due to its rising popularity, the SDN market reached a valuation of USD 28.2 billion last year and is expected to grow at a CAGR of 17% over the next 7 years².

In network management, a centralized approach known as software-defined wide area networking (SD-WAN) provides a view of the entire network that allows administrators to gather routing information, optimize network resources, increase network performance, automate simple tasks, improve load-balancing and reduce latency and disruptions. SDN-WAN solutions also help add security to network infrastructure through the addition of features such as firewalls and intrusion/detection/prevention systems (IDS/IPS). 

In addition to their architectural differences, wired and wireless networks play different roles in modern network infrastructure. Wired networks—where data is transmitted between nodes, switches and routers through cables—are critical to processing workloads where high bandwidth, network connectivity and security are paramount, such as large data transfers. 

Wireless networks, however, rely on radio waves to transmit data and are more ideal for situations where bandwidth, reliability and security are not as critical. For example, home internet often relies on wireless internet connections, as do Internet of Things (IoT) connected devices ranging from refrigerators and smart TVs to autonomous cars. While not as secure as wired technologies, each generation of wireless networks is more secure and reliable than the last. For example, today’s lightning-fast 5G connections feature better encryption and authentication standards than their predecessor, 4G.

Digital technologies play a pivotal role in most modern business processes, making it essential for organizations to invest in a robust network infrastructure. Well-designed networks underpin new technological solutions, increase productivity and help businesses gather and process large amounts of data more effectively. 

Poor network infrastructure, however, can manifest in several ways, resulting in security lapses, slow data transfer speeds, interruptions to employee and user workflows, poor application performance and more.

Organizations depend on network infrastructure to power capabilities such as remote work and cloud computing that have become essential to success. Strong, well-designed IT infrastructures help ensure seamless, real-time collaboration for users, uninhibited internet access and fewer work disruptions.

Here are some of the most popular benefits of building and maintaining strong network infrastructure:

• Increased scalability: Modern network infrastructure can be highly scalable according to a business or industry’s specific needs. Network infrastructures built with the latest technologies are easily scaled up or down, including important network resources such as bandwidth, storage and compute power. As workloads and business needs change, a well-built network infrastructure can shrink or grow as needed.
• Improved resilience: Modern network infrastructure architectures are designed with built-in load-balancing capabilities that distribute network traffic effectively, even during times of peak usage. When specific components fail, modern network infrastructure can redistribute workloads quickly and effectively to avoid downtime.
• Strong security: As cyberthreats continue to evolve, maintaining network security is paramount to many organizations. Modern network infrastructure helps prevent costly data breaches, including malware, cyberattacks and unauthorized access to sensitive data. From robust firewalls and virtual private networks (VPNs) to access control, network segmentation and regular software updates, modern network infrastructure security solutions are wide-ranging and highly effective.
• Strong return on investment (ROI): The cost of building a modern, scalable network infrastructure is small to begin with and can be built-up over time as business needs grow. This safe, cost-effective approach allows companies of all sizes to invest in network infrastructure at their own pace, see which services and resources they use and adjust as needed.
• Better user experience: A modern network infrastructure that uses all the latest, relevant digital technologies can create a better user experience for employees. Strong network design enables seamless, reliable and fast connectivity; helps ensure that business processes thrive; and helps to deliver a better user experience to customers, as well.   

As modern network infrastructure evolves to adapt to new technologies and changing business needs, its use cases abound. here are some of the most popular.

Straightforward and reliable, personal area networks (PANs) connect devices that are only a few feet apart by using infrared technology. Bluetooth is one of the most popular examples of a PAN network, enabling users to connect speakers and TVs in their home with their smartphone or laptop.

PANs are typically wireless, allowing a wide range of devices to connect over a small area. They can also provide internet by establishing small networks that can only be used by authenticated devices—for example, by using a smartphone to create an internet ‘hotspot’ in a café. While PANs are considered to be secure, largely due to their limited range, the use of strong passwords and encryption is still advised to prevent unauthorized access.

Local area networks (LANs) are systems that connect computers and other kinds of devices in a single location. LANs can use both wired and wireless connections, and their range depends on their network topology (the number of devices they’re connecting and the devices' physical proximity to each other). Unlike PANs, LAN connections start at a few feet and can extend to hundreds of feet in a large office setting.

LANs are widely used in business settings, where many users and computers need to exchange data in a limited geographical area. When they are configured correctly, LANs can be highly secure. However, they still require active measures to be taken, such as the installation of firewalls and access controls, or else the nodes they connect can fall victim to cyberattacks, data breaches and other threats.

Wide area networks (WANs) are large-scale computer networks, typically used by enterprises that need to connect offices in different physical locations. The most widely known example of a WAN is the internet itself—a network that connects billions of users and devices in physically separate locations around the globe. Another example is the financial network that provides ATM service to users of banks in different cities and countries.

WANs extend much further than PANs or LANs (although they are, technically, made up of many, smaller, connected PANs and LANs) and require different approaches to security. In addition to firewalls and encryption solutions, WANs use newer technologies such as multiprotocol label switching (MPLS) to help ensure the security of data traveling across regions and even around the globe.

Like WANS, Metropolitan area networks (MANs) are made up of interconnected LANs and PANs dispersed across a physical area. MANs link local businesses, buildings on a campus, government buildings and other kinds of connected but physically separate smaller networks. Like other networks, MANs rely on a combination of wired and wireless connectivity, including fiber optics, ethernet and 5G.

MANs are smaller than WANs, and they’re more efficient because they don’t cover as large a physical area. While MANs are made up of smaller, interconnected networks, the security and administration of MANS is controlled by a single organization.

Cloud networks are virtual network infrastructure that consists of servers, virtual machines (VMs), applications and other systems. Cloud service providers (CSPs) specialize in cloud computing and offer a wide range of cloud solutions that run on cloud networks. Unlike other kinds of networks, cloud networks are entirely virtual, meaning they are run and hosted on network architecture provided by a CSP, not the user. 

CSPs provide the necessary software and virtualized hardware for organizations to run a wide range of solutions and services on the cloud and scale their resources dynamically on an as-needed basis. Cloud services have exploded in popularity recently, with over 90% of organizations using the cloud in some way³. To access cloud network infrastructure and all its benefits, all an organization needs is a device with access to the internet.