Investigation finds: One out of every three retail companies lack sufficient surveillance of their corporate network
In the era of digital transformation, retail companies face challenges in adapting their network infrastructures to meet increasing demands for performance, security, and flexibility. To overcome these hurdles, retailers are building standardized, agile, and scalable infrastructures that enable real-time data collection, processing, and decision-making across both physical and digital channels.
Key adaptations include deploying Internet of Things (IoT) sensors, Artificial Intelligence (AI) tools, cloud platforms, and unified commerce systems that centralize data, automate operations, and provide seamless customer experiences.
However, the road to digital transformation is fraught with challenges. Ensuring adequate monitoring of large volumes of data and devices, maintaining strong cybersecurity, and providing flexibility and scalability are critical concerns for retail networks.
Retail companies are addressing these challenges by implementing AI-enabled monitoring systems, cloud and hybrid data center architectures, building an intelligent operations ecosystem, and emphasizing network standardization and agility.
AI-enabled monitoring systems automate video analytics, reduce false alarms, and highlight critical security events proactively, enhancing store security and operational efficiency. Cloud and hybrid data center architectures offer scalable, flexible, and secure environments tailored to retail’s unique needs, integrating endpoint security, threat detection, and identity management.
An intelligent operations ecosystem integrates systems managing inventories, promotions, and customer interactions dynamically, supported by robust data management and compliance measures. Network standardization and agility facilitate fast piloting and scaling of innovations such as smart shelves, AI personalization, and omnichannel experiences.
Hybrid SD-WAN approaches, which intelligently combine self-operation and managed services, offer the optimal balance of control, flexibility, and cost-efficiency in retail networks. Almost half (46%) of retailers prioritize network traffic to ensure stable and reliable business-critical processes, focusing on real-time inventory management, smooth checkout systems, and omnichannel integration.
Alternative access technologies such as mobile and microwave links play an increasingly important role, offering additional flexibility and redundancy for retail, especially for pop-up stores, mobile checkout systems, and backup connections. Centralized management of alternative network access is crucial and is increasingly relying on SD-WAN platforms, which enable intelligent orchestration and reduce complexity.
Flexible prioritization goes hand in hand with modern SD-WAN solutions, enabling dynamic adjustments, improving failover, and increasing efficiency by prioritizing critical applications during peak times. Hybrid WAN architectures, which combine central and decentralized elements, are increasingly being adopted by retailers to meet challenges and allow local systems to be flexibly and efficiently connected to central applications and cloud services.
1&1 SD-WAN Compact, offered by 1&1 Versatel, is a fully managed solution designed for companies with multiple sites across various industries, providing a cost-effective option for connecting multiple locations. However, lack of transparency in monitoring network architectures is increasingly threatening operational capability in retail.
Robert Mallinson, Co-CEO of LANCOM Systems, adds that retail needs to reassess its networks as a strategic resource, particularly due to the increasing complexity from connected cash register systems and digital price displays. The "Future-proof networks for business" study by techconsult GmbH, 1&1 Versatel, and LANCOM Systems highlights the urgent need for a modern, flexible, and secure network infrastructure in retail.
Implementing robust security mechanisms is essential for retailers to optimize their business processes, increase customer satisfaction, and enhance their resilience against cyber-attacks. The study shows that without effective monitoring and quick reaction mechanisms, attacks can remain undetected for a long time and cause significant damage.
The trend towards prioritized data traffic confirms the need for technologies such as Quality of Service (QoS) and Multi-Path Routing within SD-WAN, a decisive competitive factor for industries that rely on real-time communication and stable operation. The study "Future-proof Networks for Business" by techconsult, 1&1 Versatel, and LANCOM Systems reveals that one-third of German-based retail companies lack adequate monitoring of their corporate networks.
Frank Rosenberger, CEO of 1&1 Versatel, comments that a lack of control over corporate networks in retail is a major challenge that needs to be addressed urgently. Awareness of cyber-attacks is currently the biggest challenge for retail, with 42% agreement, and many retailers struggle with insufficient monitoring and proactive threat detection. It is clear that retail companies must adapt their network infrastructures to meet the demands of digital transformation and secure their businesses against cyber threats.
- Retail businesses in the digital transformation era need to focus on data-and-cloud-computing solutions, such as cloud and hybrid data center architectures, to ensure scalability, flexibility, and security for their networks.
- Technology advancements like AI-enabled monitoring systems, AI personalization, and smart shelves in retail require network standardization and agility to facilitate fast piloting and scaling of these innovations.
- The finance industry plays a crucial role in retail's digital transformation, as retailers invest in technology like SD-WAN and hybrid WAN architectures to optimize their business processes, increase customer satisfaction, and enhance their resilience against cyber-attacks.
