Study of Telecom and IT Engineers Explores AI’s
Impact on the Network
A global study commissioned by Ciena (NYSE: CIEN) sheds light on
communications service providers’ (CSPs) growing optimism toward
Artificial Intelligence (AI). More than half of telecom and IT
engineers surveyed believe the use of AI will improve network
operational efficiency by 40% or more1. In addition, an
overwhelming 85%2 of respondents express confidence in CSPs’
ability to monetize AI traffic across networks.
The research was conducted by Ciena in collaboration with
Censuswide, surveying more than 1,500 telecom and IT engineers and
managers at CSPs in 17 countries across the globe.
Jürgen Hatheier, Ciena’s International Chief Technology Officer,
said: “Understanding emerging technologies like AI is an essential
step toward staying competitive in today’s constantly changing
digital landscape. The survey highlights the optimistic long-term
outlook of CSPs regarding AI’s ability to enhance the network as
well as the need for strategic planning and investments in
infrastructure and expertise to fully realize the benefits.”
AI network benefits
A key theme from the study is the opinion that AI will enhance
network performance. To achieve this, participants believe new
solutions across fiber network infrastructure and operations will
be required. According to the study, the most popular strategies
believed to improve performance include upgrading networks with new
traffic and network analysis software (selected by 49% of
respondents), along with upgrades in switches and routers (43%),
and investment in 800G technology (40%), underscoring the
multi-faceted approach operators are adopting to bolster network
capabilities. In fact, almost all (99%)3 respondents4 believe they
will need to upgrade fiber-optic networks to support more AI
traffic.
AI-driven revenue opportunities
Globally, CSPs believe the sectors that will generate the most
AI traffic, and therefore revenue opportunities, are financial
services (46%), followed by media and entertainment (43%), and
manufacturing (38%).
Respondents also see multiple avenues to generate revenue from
AI. Specifically, 40% believe it will be from opening their
networks to third-party integrations; 37% believe revenue will come
from security and privacy services; the same number (37%) believe
it will come from new product offerings; 35% believe it will be
from the creation of tailored subscription packages; and 34%
believe revenue will be from differentiation on quality of service
for connectivity.
Private vs. public cloud
The research highlights the critical role of cloud in supporting
and utilizing AI across networks. 43% of CSPs favor private cloud
deployment for AI services, while 37% lean toward public cloud
providers' data centers. Meanwhile, only 21% of respondents plan to
adopt a hybrid cloud model.
Job creation
According to the study, 67%5 of CSPs anticipate AI to be a force
for job creation and identified key areas of expertise necessary
for developing and launching AI services, including cybersecurity
(31%), followed by machine learning (30%), and programming/coding
(30%).
Global differences
The survey yielded interesting results by country, showing how
CSPs’ confidence in monetizing AI can vary significantly. Of note,
CSPs in India are among the most confident (95%) while the U.S. is
among the least confident (55%). There were similar differences in
the optimism around AI’s impact on creating or reducing jobs
amongst CSPs, with a 50% difference between Mexico seeing the most
job creation, and Japan seeing the least (90% vs 40%)5. The survey
also revealed the breadth of sectors that different countries see
as driving the growth in AI traffic, with financial services,
entertainment, manufacturing, healthcare, and education all coming
out on top in at least one market.
The research was conducted by Censuswide, among a sample of 1517
18+ full time employees in IT or Telecoms industry –
engineer/technician/analyst, manager, VP/director, C-Level across
the USA, Brazil, Mexico, UK, Germany, Norway, Sweden, Middle East
(UAE, KSA and Egypt), Australia, Japan, India, Philippines,
Indonesia, Korea and Singapore. The data was collected between.03.
18. 2024 -03. 28. 2024. Censuswide abides by and employs members of
the Market Research Society and follows the MRS code of conduct and
ESOMAR principles. Censuswide is also a member of the British
Polling Council.
About Ciena
Ciena (NYSE: CIEN) is a global leader in networking systems,
services, and software. We build the most adaptive networks in the
industry, enabling customers to anticipate and meet ever-increasing
digital demands. For three-plus decades, Ciena has brought our
humanity to our relentless pursuit of innovation. Prioritizing
collaborative relationships with our customers, partners, and
communities, we create flexible, open, and sustainable networks
that better serve all users—today and into the future. For updates
on Ciena, follow us on LinkedIn, Twitter, the Ciena Insights blog,
or visit www.ciena.com.
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along with other disclosure channels that we use. This press
release contains certain forward-looking statements that are based
on our current expectations, forecasts, information and
assumptions. These statements involve inherent risks and
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from those stated or implied, because of risks and uncertainties,
including those detailed in our most recent annual and quarterly
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statements regarding our expectations, beliefs, intentions or
strategies and can be identified by words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may,"
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obligation to update the information included in this press
release, whether as a result of new information, future events or
otherwise.
_____________________________
1 ’41-60%’, ‘61-80%’ and ‘81-100%’ answers
combined (58%)
2 ‘Very confident’ and ‘Somewhat
confident’ answers combined
3 This % was calculated using the inverse
of ‘Not sure’ and ‘No particular way’
4 Respondents who expect a percentage
increase in traffic between data centers and the network edge to be
carried, as a result of AI usage
5 ‘Significantly increase new roles’ and
‘Moderately increase new roles’ answers combined
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version on businesswire.com: https://www.businesswire.com/news/home/20240522071432/en/
Press Contact: Jamie Moody Ciena Corporation +1 (410)
694-5761 jmoody@ciena.com pr@ciena.com
Investor Contact: Gregg Lampf Ciena Corporation +1 (410)
694-5700 ir@ciena.com
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