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What is the OSI model?

Discover how the model structures network communications into seven layers, how they work, and why it matters for networking.

Neos Networks | 15/01/2025
Showing the 7 layers of the OSI model stacked from top to bottom: Application, Presentation, Session, Transport, Network, Data Link and Physical layers

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What is the OSI model?

The Open Systems Interconnection (OSI) model describes how computer systems communicate across networks. Published by the International Organization for Standardization (ISO) in 1984, it divides communications into seven layers, providing a common basis for developing networking standards.

It’s a reference model, a conceptual framework that outlines the structure and relationship between a network’s components without prescribing specific implementation methods. It provides a universal language for network operators, developers, and students to understand, design and implement complex networks.

The 7 layers of the OSI model

The OSI model organises network communications into a stack of seven layers:

  1. The Physical Layer
  2. The Data Link Layer
  3. The Network Layer
  4. The Transport Layer
  5. The Session Layer
  6. The Presentation Layer
  7. The Application Layer

Each layer performs a specific function and interacts with the layers above and below, ensuring efficient data transmission. Typically, the layers are listed from top to bottom (7 to 1) to reflect the data flow during communication, starting from the user’s application at the Application Layer and moving down to the Physical Layer.

7 layers of the OSI model

Showing the 7 layers of the OSI model stacked from top to bottom: Application, Presentation, Session, Transport, Network, Data Link and Physical layers

 

Here’s a breakdown of the seven layers and their roles in a network.

7 layers explained

# Layer Function
7 Application Layer Interacts directly with end users through applications like email clients and browsers. It includes protocols like SMTP for email, HTTP for web browsing and FTP for file transfers.
6 Presentation Layer Translates data between the Application Layer and the lower layers. This includes data formatting, encryption and compression.
5 Session Layer Starts, maintains and ends connections between devices. It also coordinates data exchange and synchronisation.
4 Transport Layer Uses transport protocols like TCP and UDP to transfer data between end systems. It divides data from the Session Layer into segments, ensuring flow control and error correction.
3 Network Layer Handles the routing of data across multiple networks, determining the optimal path for transmission. Protocols like the Internet Protocol (IP) break data into packets and use IP addresses to deliver them to their destination.
2 Data Link Layer Manages communication between physically connected nodes on a network. It packages data from the Network Layer into frames and ensures reliable transfer between devices over the physical medium.
1 Physical Layer Transmits and receives raw data (ones and zeros) as electrical signals, light pulses or radio waves over physical media. It includes hardware like cables, fibre optic equipment and wireless transmitters or antennas.

 

How does the OSI model work?

When data is transmitted over a network, it moves sequentially through the seven layers, from the Application Layer at the top to the Physical Layer at the bottom.

For example, here’s what happens when you send an email:

  1. You write a message in an email app like Gmail or Outlook and click “send”. The email client uses a protocol like SMTP to process your message (Application Layer).
  2. The email client formats your message for transmission, including encryption if enabled (Presentation Layer).
  3. A session is established between your device and the email server to manage the ongoing data exchange (Session Layer).
  4. The email data is divided into smaller segments for transmission, and protocols like TCP and UDP ensure they’re delivered reliably (Transport Layer).
  5. The email segments are assigned source and destination IP addresses to be routed across the network (Network Layer).
  6. The IP packets are encapsulated into frames to be transmitted over the local network (Data Link Layer).
  7. The frames are converted into electrical, optical, or wireless signals and transmitted through a physical medium like a network cable or Wi-Fi (Physical Layer).

At the receiving end, the process is reversed: the data travels up from the Physical Layer to the Application Layer, reconstructing the email for its recipient.

OSI model vs TCP/IP model

Another significant networking framework is the Transmission Control Protocol/Internet Protocol model (TCP/IP), also known as the Internet Protocol Suite. Unlike the OSI model, which is primarily theoretical, TCP/IP is a practical framework designed specifically for implementing internet communications.

Initially developed for the US military’s ARPANET, the forerunner of the internet, the TCP/IP model consists of just four layers:

  1. The Application Layer combines the functions of OSI’s Application, Presentation and Session layers, managing high-level protocols and user interactions.
  2. The Transport Layer uses protocols like TCP and UDP to ensure data transfer between end systems, like OSI’s Transport Layer.
  3. The Internet Layer manages addressing and routing using the Internet Protocol, like OSI’s Network Layer.
  4. The Link Layer handles data transmission over physical media, like cables and Wi-Fi, combining the functions of OSI’s Physical and Data Link layers.

OSI model vs TCP/IP model: comparing layers

Showing the 7 layers of the OSI model (Application, Presentation, Session, Transport, Network, Data Link and Physical) and how they correspond to the 4 layers of the TCP/IP model (Application, Transport, Internet and Link)

 

Here’s a summary of the main differences between the two:

Feature OSI model TCP/IP model
Layers Seven: Application, Presentation, Session, Transport, Network, Data Link and Physical Four: Application, Transport, Internet and Link
Development Developed by the International Organization for Standardization (ISO) Originally developed by the US Department of Defence (ARPANET) and maintained today by the Internet Engineering Task Force (IETF)
Use A reference model used to standardise general network communications A practical model used to implement internet communications

 

In short, the OSI model is a comprehensive theoretical framework that standardises network communications without relying on specific protocols. In contrast, TCP/IP is a simpler, practical model that defines and supports the implementation of internet protocols.

While the TCP/IP model is more widely used in practice because it underpins the internet, the OSI model remains significant.

Why is the OSI model important?

Although theoretical, the OSI model provides a detailed understanding of fundamental network architecture, making it valuable for several reasons:

  • Standardisation and interoperability: The model provides a universal framework, promoting the development of interoperable protocols and devices.
  • Troubleshooting and security: The multi-layered structure allows administrators to identify and fix technical or security failures in their specific layers without disrupting the others.
  • Education and design: It’s a foundational model for IT professionals and students to share knowledge about network architecture and adapt networks for the future.

OSI model disadvantages

Despite its value, the OSI model has its limitations. First, real-world networking technologies don’t always fit neatly into its framework, and the functions of its layers can sometimes overlap in practice.

In addition, its comprehensive nature can make it overly complex for practical use. The simpler, more practical TCP/IP model has largely supplanted the OSI model, especially for internet communications.

However, the OSI model remains a fundamental theoretical framework. Whether you're a network professional, student, or tech enthusiast, it provides valuable insight into the complex world of computer networking.

Making connectivity work

At Neos Networks, we use the OSI model to visualise complex networks and make connectivity work for businesses across the UK.

For example, optical wavelengths operate in the Physical Layer (layer 1), enabling high-bandwidth data transmission across fibre optic networks. In contrast, Ethernet primarily functions at the Data Link Layer (layer 2) but also defines standards for some layer 1 components, like cables and connectors.

If you’re looking to supercharge your business with high capacity connectivity for the future, get in touch. We’ll be happy to make connectivity work for you.

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OSI model FAQs

  • How is the OSI model used in real-world networking?

    The OSI model is a guide for designing, implementing, and troubleshooting network protocols and architectures. Although the TCP/IP model is more widely used in practice due to its crucial role in the internet, the OSI model helps us visualise and understand complex networking processes.

  • What role do protocols play in the OSI model?

    Protocols establish the rules and standards for communication within each layer of the OSI model. But the model isn’t tied to any specific protocol. Each layer can use various protocols, which can evolve independently without disrupting the model’s overall structure.

  • What is data encapsulation in the OSI model?

    Encapsulation is the process of adding extra information (headers and trailers) to data as it moves from layer to layer of the OSI model. This ensures that each layer can correctly interpret and transmit the data across the network. At the receiving end, this is reversed: each layer removes its header or trailer as the data moves to the top Application Layer – a process called decapsulation.

  • Can layers in the OSI model interact out of sequence?

    No, each layer only communicates with the layers directly above and below it. This structure ensures data is processed systematically and flows efficiently from the source to the destination.

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What is IIoT (Industrial Internet of Things)?

IIoT connects industrial devices for smart decision-making using real-time data. Learn how it works and how it's transforming industrial processes and networks.

Neos Networks | 15/01/2025
Examples of Industrial Internet of Things (IIoT) applications

What is the Industrial Internet of Things (IIoT)?

The Industrial Internet of Things (IIoT), also known as the industrial internet, refers to using interconnected smart sensors and other devices to collect and share data to enhance industrial processes. By connecting devices that process data in real time, IIoT can improve operational efficiency, productivity and safety.

IIoT is increasingly used in sectors like manufacturing, energy management, logistics and transport. For example, IIoT-enabled sensors and devices on production lines can help ensure quality control, optimise energy usage and enable predictive maintenance – spotting issues before equipment fails.

Together with emerging technologies like AI, big data analytics and robotics, the Internet of Things is one of the main drivers of the Fourth Industrial Revolution.

IoT vs IIoT: what’s the difference?

The Internet of Things (IoT) is a general term that refers to connecting devices to the internet to remotely control them, from smart home gadgets to city infrastructure. Consumer IoT applications, like smart TVs, smart thermostats and wearable fitness trackers, focus on convenience and enhancing user experience.

A subset of IoT, Industrial IoT (IIoT) refers to connecting devices in large-scale industrial environments like factories and warehouses. Since IIoT failures can lead to costly downtime or safety hazards, IIoT focuses on ensuring high reliability and low latency for precise real-time control.

IoT vs. IIoT

Examples of industrial IoT applications (smart healthcare, farming, delivery vehicle, energy management, connected train and factory robot) compared with consumer IoT devices (smart light bulb, speaker, thermometer, TV, watch and phone).

 

How does the Industrial Internet of Things work?

IIoT works by connecting machines, sensors and other devices to the internet to collect, monitor and analyse data in real time. Here’s how it works in more detail.

IIoT-enabled devices

Sensors or other devices built into industrial machinery collect data such as temperature, pressure, speed and vibration. For example, a vibration sensor in an industrial motor may collect data on the level of vibration in the device.

Connectivity

The sensors and devices are connected using wired or wireless network protocols like Wi-Fi, Bluetooth, Ethernet or 5G. They send data to a central server or cloud-based IIoT platform for real-time analysis.

Edge computing

Some data may be aggregated and initially processed locally using edge networking and edge computing. This reduces latency and bandwidth usage by enabling real-time analysis without sending all the data to the central server or cloud.

Data analytics

Once in the central server or cloud, data is aggregated and analysed using big data analytics, AI or machine learning to identify and act on patterns in the data. For example, certain vibration levels in an industrial motor can be used to predict a breakdown before it occurs.

Insights and automation

The processed data may be visualised in dashboards, allowing operators to monitor critical metrics and take action to optimise processes. Similarly, IIoT systems may directly control machines based on insights from real-time data analysis, optimising efficiency and automating routine tasks.

By harnessing real-time data analysis and automation, IIoT systems can significantly enhance the efficiency, resilience and scalability of industrial processes.

Examples of IIoT applications

From production lines and supply chains to energy management and healthcare, IIoT is used for various applications in a wide range of industries. Here are some common examples.

Smart manufacturing

In smart factories, sensors capture data on inventories, production line performance and the condition of equipment. By analysing this data, IIoT platforms can improve efficiency, reduce costs and enable predictive maintenance.

Supply chain logistics

In warehouses, IIoT devices like RFID tags and GPS trackers are used to track and optimise the movement of goods. For example, Amazon uses IIoT-enabled robots, AI and machine learning to streamline operations in its fulfilment centres.

Energy management

In distributed energy systems, IIoT-enabled smart meters and other devices enable real-time monitoring of energy usage and remote control of energy assets. For example, IIoT is a vital component of smart grids as the UK transitions to net zero.

Intelligent healthcare

In hospitals and patients’ homes, smart medical sensors allow doctors to monitor changes in a patient’s health in real time. By enabling round-the-clock monitoring, IIoT-enabled remote patient monitoring can improve health outcomes and patient engagement.

Smart agriculture

Farmers use IIoT technology for precision farming. For example, IIoT-enabled devices can be used to remotely control operations, like monitoring soil and crop conditions, tracking livestock, and optimising water, energy and fertiliser usage.

Benefits of IIoT for businesses

As IIoT enables real-time monitoring, insights and automation, it offers several advantages for businesses, especially in manufacturing and logistics. Here are some key benefits:

  • Enhanced efficiency: Intelligent monitoring and automation can help to optimise workflows and enhance productivity.
  • Predictive maintenance: Real-time analytics allow you to predict equipment failures, reducing unscheduled downtime.
  • Reduced costs: Optimised workflows and automation lead to lower operational costs and energy consumption.
  • Improved safety: Sensors can monitor potentially dangerous equipment 24/7, while remote automation can minimise worker interventions in hazardous environments.

Overall, the actionable data, flexibility and scalability of IIoT-enabled systems can help you better adapt workflows and production processes to ever-changing markets.

Challenges of deploying IIoT devices

While IIoT systems offer several advantages, implementing them poses several challenges.

The first is data security and privacy. The more IIoT devices you connect, the greater the risk of cyberattack. You need to manage the vast amounts of data generated and ensure your devices are protected against online threats.

Another challenge is the upfront cost. Investing in IIoT devices, software and infrastructure can be costly, although the return on investment may be good in the long term.

Third, integrating IIoT systems to work seamlessly with existing infrastructure can be complex, especially as devices from different vendors may not be interoperable. As the technology is new and evolving, finding staff with the required IIoT and cyber security skills can be difficult.

Finally, scalability can be an issue as you grow your business. You need to manage increasing amounts of data and connected devices while maintaining performance and reliability.

The future of IIoT

Looking ahead, the number of IoT devices worldwide is expected to roughly double by 2030, reaching around 40 billion. For Industrial IoT devices, that means a CAGR of around 14%, its market volume rising to about $455 billion by 2029.

As IIoT takes off, here are six emerging trends to look out for:

  1. 5G and Wi-Fi 6: The rollout of 5G (with 6G to follow) and Wi-Fi 6 will drive IIoT growth, as they provide high-speed, low latency connectivity for mobile devices, essential for real-time data processing.
  2. Moving to the edge: As more IIoT-enabled devices come on stream, computer processing and storage will increasingly shift to edge networks.
  3. AI and ML: Rapidly evolving AI and machine learning will enable more sophisticated automation and analytics for IIoT platforms.
  4. IIoT standardisation: To solve the interoperability challenge, unified standards and protocols for IIoT will likely emerge.
  5. IIoT security: As IIoT devices proliferate, expect to see more sophisticated security for IIoT deployments, such as AI-powered threat analysis.
  6. Green IIoT: The pressing need for sustainability is likely to drive the development of IIoT solutions to reduce energy usage and waste.

IIoT connectivity

No matter how IIoT evolves, one thing is certain: it will need more high capacity, low latency connectivity in the future. At Neos Networks, we provide high capacity connectivity for businesses with over 90 data centres and 600 points of presence across our UK-wide network.

If you’re looking to connect IIoT applications or need low latency connectivity for business-critical networks, join us. We’ll be happy to make connectivity work for you.

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What is edge networking?

Edge networking brings data processing closer to where data is generated – a growing trend driven by data-hungry emerging technologies.

Neos Networks | 15/01/2025
Edge networking

What is edge networking?

Edge networking is a cloud-based networking architecture that locates computing resources and data storage close to where they’re needed – near end-user devices at the ‘edge’ of a network. This differs from traditional cloud computing, where data is processed in centralised data centres.

In edge networks, devices such as sensors, routers, and IoT devices handle a significant amount of data processing locally. This helps to reduce latency and bandwidth usage, enabling real-time data processing for applications like AI, IoT (Internet of Things) and 5G.

For example, in 5G networks, edge networking enables ultra-low latency, high speed communications, essential for applications like autonomous vehicles, real-time gaming and augmented reality (AR).

How does edge networking work?

Edge networking works by processing and storing data at or close to the devices that generate the data.

For example, autonomous vehicles like self-driving cars generate vast amounts of data from sensors, cameras and other devices. Instead of transmitting it to a distant cloud server, data is processed in or near the vehicle in real time, enabling split-second decisions about steering, braking, speed and navigation.

Autonomous vehicle edge network

Autonomous vehicle edge network showing how cars connect to edge networking infrastructure.

 

From cameras in self-driving cars to sensors in smart factories or your mobile phone, edge networks rely on edge devices to compute data at the edge.

What are edge devices?

An edge device is a device at the edge of a network that connects to another network. Put simply, it’s a bridge between two networks.

In addition, edge devices may filter, aggregate and process data without transmitting it to central cloud servers. Here are some common edge devices and the role they play.

Common edge devices

Device Function
Edge routers Manage and direct network traffic, allowing different edge devices to communicate. By prioritising data in real time, they can decide which data needs to be forwarded to the cloud, optimising bandwidth usage.
Edge gateways Connect IoT devices to the cloud. By aggregating and analysing data from multiple devices, they can ‘make decisions’ autonomously without relying on cloud servers.
Edge servers Process data close to the data source. They may be standalone or integrated into other edge devices, like routers, gateways or IoT sensors.
IoT sensors Collect and process real-time data about physical conditions, allowing devices to respond remotely. For example, sensors measuring temperature, humidity, or air quality in industrial or agricultural settings can trigger actions like adjusting heating or water levels.
Smart cameras Record and process video on the spot. Using AI, smart security cameras can analyse footage locally and trigger an alarm if they detect suspicious activity.
Industrial controllers Collect and analyse production line data in real time. This allows them to optimise efficiency and reduce downtime.
Mobile devices Collect and process user data autonomously. With increasingly large storage, memory and processing power, smartphones, tablets and laptops now support AI and AR/VR.

 

Edge networking benefits

Edge networks offer several key benefits, especially for applications where fast, local data processing is critical. Here are some of the main advantages:

  • Reduced latency: By reducing the amount of data sent to central cloud servers, edge networking can significantly reduce latency and boost network response times.
  • Optimised bandwidth: With less data sent to the cloud, edge networks generally use less bandwidth, reducing costs and improving overall efficiency.
  • Real-time insights: As edge devices process data locally in real time, they enable time-critical applications like autonomous vehicles, smart manufacturing and health care monitoring.
  • Enhanced data security: With local data processing, less sensitive data is sent over the internet, reducing the risk of interception. However, decentralised edge devices with limited security resources provide more entry points for hackers, so they must be adequately secured against attack.

As data consumption explodes, the fast processing, low latency and increased efficiency of edge networks make them ideal for various applications.

Edge networking use cases

Edge networks increasingly play a critical role in data-intensive emerging technologies. Here are some common uses.

AI and machine learning

Industrial IoT

In Industrial Internet of Things (IIoT) applications, edge networking enables multiple devices to make decisions on the spot. For example, in smart cities, cameras and sensors control street lighting, operate traffic lights and monitor pollution levels.

AI and machine learning

5G networks

Telecom providers use edge networking in 5G mobile networks. By processing data at the edge, 5G networks deliver the high-speed data transfer essential for emerging mobile tech like self-driving cars and AR headsets.

AI and machine learning

Autonomous vehicles

Equipped with cameras, radar, and laser-based sensors (LiDAR) , self-driving cars rely on edge networks. By processing driving data in or near the vehicle, they can constantly observe the road and surroundings, making split-second decisions to manage the car.

AI and machine learning

AR and VR

Augmented reality (AR) and virtual reality (VR) rely on ultra low latency to deliver real-time experiences without delay. Managing data on the edge in end-user devices allows AR/VR applications to create a realistic, immersive experience.

AI and machine learning

Healthcare

In healthcare facilities, medical devices process data on the premises to enable real-time patient monitoring and fast diagnosis. Remotely, wearable devices analyse data to detect unusual patterns in a patient’s vital signs and alert healthcare providers.

AI and machine learning

Energy management

In the UK’s emerging smart grid, energy network operators use edge networking to monitor and control energy sources. By controlling local distributed energy sources in real time, the smart grid can balance supply and demand dynamically.

AI and machine learning

Content delivery networks

Edge networks are critical for content delivery networks (CDN), which store data locally to speed up delivery to end users. For example, a streaming service may cache video near end users to minimise buffering and enhance customer experience.

AI and machine learning

Security and remote monitoring

Edge networking enables security cameras and other local sensors to provide real-time monitoring. By analysing video footage and sensor data at the edge rather than sending it to centralised servers, they can send alerts instantly.

The challenges of edge networking

Despite the many advantages of edge networks, deploying and maintaining them can be challenging. Here are some key issues to consider.

Network complexity

Since edge networks often comprise numerous fixed or mobile edge devices with different standards, protocols or software, deploying and managing them can be complex. In addition, current automation tools for remotely orchestrating, troubleshooting and maintaining equipment may not work in new edge deployments.

Network reliability

Edge networks may be deployed in areas with poor connectivity. Maintaining reliable ultra low latency connections between central servers and the edge can be difficult, especially with mobile devices.

Data management

Edge devices generate a massive volume of data, so deciding what to process locally and what to send to the cloud is critical. As edge devices typically have limited processing and storage capacity, businesses often abandon valuable data because they lack the resources to process it.

Scalability challenges

Some edge networks are simple to scale up. Instead of upgrading costly central servers, you can simply add or upgrade edge devices. However, edge device capacity is limited, and many current purpose-built edge deployments can’t always adapt to meet evolving business needs.

Security and privacy

As mentioned above, edge deployments can enhance data security by reducing the amount of sensitive data sent over the internet to central servers. However, numerous multiple edge devices increase the ‘attack surface’ for hackers and must be secured with robust security policies and user access controls.

To sum up, edge networks are complex to design and implement. In the future, deployments should become simpler as unified edge platforms and open standards emerge.

The future of edge networking

As the demand for real-time data processing grows, edge networking is set to become a core component of our digital lives. Here are six emerging trends shaping its future.

1. IoT, 5G and 6G

With the rollout of 5G (and 6G on the horizon), the number of IoT devices worldwide is set to double by 2030, reaching around 40 billion. Edge networking will be vital to manage the vast amounts of data generated. Meanwhile, the global edge data centre market is expected to grow at a CAGR of almost 15%, rising to $33.9bn by 2030.

2. Security and privacy

More advanced security measures, like zero-trust architectures, will be developed to ensure data security and privacy in edge devices. Zero-trust security means that no device on the network is trusted by default and requires continuous authentication to gain access.

3. AI and ML

As artificial intelligence and machine learning develop, edge devices will be able to perform increasingly complex analyses in real time. For example, edge networks can enable federated learning (FL), where ML models are trained locally on edge devices, keeping data private from central cloud servers.

4. Edge standardisation

A critical question that needs resolving is common standards for edge networking. The continued evolution and adoption of open standards, such as ETSI Multi-access Edge Computing, KubeEdge, and EdgeX Foundry, will be vital to ensure interoperability between vendors. Similarly, we can expect unified edge platforms to emerge with common frameworks for deploying and maintaining edge networks.

5. Hybrid architectures

As edge networks evolve, they will increasingly integrate with cloud infrastructure. As Neos Networks CTOO Matt Rees observes, “A hybrid approach of strategically placed data centres at the edge of the network, in combination with central data centres, will be essential to manage the rapid information flow cost-effectively and sustainably.” At the same time, more cloud providers will offer edge networking as a service (Edge-as-a-Service or EaaS).

6. Sustainability

Cloud computing is highly power-hungry, as shown by Google’s massive 48% jump in greenhouse gas emissions in recent years. In the UK, data centre power consumption is forecast to rise six-fold over the next ten years. Optimising smaller, more efficient edge data centres that use green energy and cooling solutions will be vital for a more sustainable future.

In short, edge networking is set to play a central role in our digital future, touching all aspects of our lives. Get ready to move to the edge.


At Neos Networks, we provide high capacity connectivity for businesses with over 90 data centres and 600 across our UK-wide network. If you’re looking to connect to the edge or just need high capacity connectivity for mission-critical networks, get in touch. We’ll be happy to make connectivity work for you.

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Edge networking FAQs

  • Is edge networking the same as edge computing?
    Edge networking and edge computing are interrelated but distinct concepts. While edge computing refers to the general practice of processing data near where it’s generated at the ‘edge’ of a network, edge networking refers to the connectivity infrastructure that enables it. In other words, edge computing is the overall process; edge networking is the path.

  • How does edge networking differ from cloud computing?
    Edge networks complement cloud computing. Cloud computing processes and stores data in centralised data centres – in the ‘cloud’. Edge networks allow data to be processed in real time near where it’s generated – at the ‘edge’. By enabling tasks to be performed on the spot, edge networks reduce the amount of data sent to the cloud, reducing latency and bandwidth usage.

  • What’s the difference between edge networks and core networks?
    Edge networks are decentralised networks located close to end users providing local data processing. By contrast, core or backbone networks are centralised high capacity networks for long-distance data transmission. They connect data centres and other edge networks, forming the backbone of global network infrastructure.

  • How secure is edge networking?
    Edge networks can enhance security by processing data locally, minimising data transmission across the internet and reducing the risk of attack. However, numerous edge devices can increase the risk of data breaches. They must be secured with strong encryption, device authentication and robust network security policies.

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What is data centre interconnect (DCI)?

Data centre interconnect is a high capacity connection between two or more data centres – a vital link in network infrastructure to meet the growing demand for data.

Data centre interconnect

Our UK-wide data centre network

What is data centre interconnect?

Data centre interconnect (DCI) is the technology used to connect two or more data centres to share data and resources. It not only delivers high-speed data transfer but also performs technical functions like data replication, load balancing and traffic management to optimise the network.

DCI may be over a short distance, across a campus or town, or longer range, crossing regions, countries or continents. Whether local or long distance, DCI allows multiple data centres to operate as a unified whole, simplifying network management and enhancing efficiency.

With the rise of cloud services, AI and edge computing, data is exploding. DCI enables businesses to scale up their network quickly to meet this demand and bring data storage closer to data sources.

Data centre interconnect (DCI)

Data centre internconnect (DCI) diagram showing DCIs between data centres connecting end users to the internet and cloud services

 

How does DCI work?

Data centre interconnect works by transmitting data between data centres via high capacity, low latency fibre optic connections:

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To direct data traffic, DCIs typically use Multiprotocol Label Switching (MPLS). MPLS routes data between network nodes using short paths instead of long network addresses, speeding up traffic.

For example, Virtual Private LAN Service (VPLS) uses MPLS to provide seamless data transfer between data centres in a single Ethernet network. VPLS operates at layer 2 of the OSI model.

The seven layers of the OSI Model

# Layer Function
7 Application Layer Enables humans or software to interact with the network through applications like file sharing, email clients and databases
6 Presentation Layer Formats, encrypts and decrypts data for the application layer
5 Session Layer Starts, maintains and ends connections between applications
4 Transport Layer Uses various transport protocols to transfer data across the network
3 Network Layer Enables communication between multiple networks and determines the data’s path, for example, applying IP addresses
2 Data link Layer Manages connections between physically connected nodes on a network
1 Physical Layer Transmits raw data bits over physical media like cables or wireless connections

 

At the network layer (layer 3), IP VPNs can connect data centres over IP-based networks, enabling secure interconnections over longer distances. Similarly, DCI may use software-defined wide area networking (SD-WAN) to provide flexible, efficient connectivity and optimise traffic flows.

To ensure data consistency and availability, DCI replicates and synchronises data in near real time. If a data centre fails, the connection automatically switches to a backup, minimising downtime and data loss.

What are the benefits of DCI?

DCI can help businesses expand their networks quickly and efficiently to meet today’s exploding demand for data. Here are some key advantages of DCI.

Enhanced performance

DCI provides high capacity, low latency data transfer between data centres, balancing the workload between data centres to optimise network efficiency. You can also apply Quality of Service to prioritise network traffic and ensure critical applications have the necessary bandwidth.

Easy scalability

DCI enables you to quickly scale up your network by adding new data centres or expanding existing ones without significant capital investment. You can bring data storage closer to your end users for optimum customer experience.

Cost efficiency

DCI enhances operational efficiency by facilitating data sharing and optimising resources across multiple locations. This reduces the need for redundant infrastructure, lowering overall maintenance and operational costs.

Strong security

DCI solutions typically use secure, dedicated fibre optic connections. Advanced encryption, firewalls and access controls ensure data is protected in transit and at rest.

Improved compliance

DCI facilitates data replication across multiple data centres for disaster recovery, reducing the risk of data loss. This can help protect sensitive data and ensure compliance with data protection laws.

To sum up, DCI provides high capacity data centre connectivity to support growth, enhance performance and ensure business continuity while offering cost and operational efficiencies.

Data centre interconnect use cases

DCI is suitable for various applications that depend on high capacity, low latency data exchange. Here are some common uses of DCI technology.

Data centre interconnect – typical applications

Industry/application Example use cases
Telecoms providers Connects data centres managing voice, data and video traffic in backbone and backhaul networks
AI and machine learning Enables use of distributed computing power to train AI and ML models and serve end users
Internet of Things (IoT) Integrates data from IoT devices into central data centres for real-time processing
Big Data analytics Enables large datasets from multiple sources to be aggregated for analysis
Content delivery networks Helps distribute high-volume content like videos and images across multiple data centres to improve load times
Financial services Delivers ultra low latency near-real-time data exchange for high-frequency trading
Disaster recovery Replicates data to remote data centres for backup and business continuity

 

In short, DCI technology can be used wherever you need seamless, high-speed data transfer between dispersed locations.

DCI solutions for your business

Since DCI involves various technologies at different network layers, choosing the right solution for your business can be challenging.

At Neos Networks, we specialise in bespoke data centre interconnects for businesses across the UK. Get resilient, scalable DCI solutions with Ethernet and Optical Wavelengths up to 400Gbps in over 90 data centres across our B2B-only nationwide network.

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If you’d like to discuss your DCI options, get in touch. We’ll be happy to make DCI work for your business.

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What is Ethernet?

What is point-to-point Ethernet?

Point-to-point Ethernet provides a direct, high capacity link between two locations or network devices. Could it work for your business?

Ethernet cable for P2P Ethernet

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What is point-to-point Ethernet?

Point-to-point (P2P) Ethernet is a private, direct connection between two network devices using Ethernet. Unlike traditional Ethernet networks that involve multiple devices connected via a hub or switch, P2P Ethernet directly connects two devices without using intermediary devices.

Typically, businesses use P2P Ethernet to provide secure, high-speed data transfer between offices, data centres or other critical network infrastructure. It’s often used to link sites to local area networks (LAN) or create wide area networks (WAN), including Metro Ethernet networks.

How does point-to-point Ethernet work?

A P2P Ethernet works by directly connecting two network devices, such as computers, servers, switches or storage devices.

Traditionally, the devices were connected with copper Ethernet cables for short-distance connections, such as within buildings or campus environments. Today, fibre optic cables are increasingly used to provide higher bandwidth connections over longer distances.

For example, at Neos Networks we provide Ethernet point-to-point connectivity between two locations via our high capacity fibre network, as shown below.

Point-to-point Ethernet – Neos Networks EPL

Example of an Ethernet point-to-point service, Neos Networks EPL, showing a direct, dedicated Ethernet link between two customer premises via the Neos Networks cloud and third-parth access networks.

 

As there are no other devices on this connection and it doesn’t traverse the public internet, P2P Ethernet is inherently secure. With no other devices competing for bandwidth, it’s also a highly reliable, low latency connection.

In addition, P2P Ethernet supports a range of bandwidths, from Fast Ethernet (100 Mbps) to 10 Gigabit Ethernet. That’s why it’s often deployed to connect critical network infrastructure where resilience, high capacity and low latency are crucial.

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What are the advantages of point-to-point Ethernet?

P2P Ethernet offers several advantages over other types of connection for certain applications. Here are the main benefits.

High bandwidth

As P2P Ethernet is a dedicated line, it typically offers higher bandwidth than shared Ethernet connections. The whole bandwidth is available for data transfer between the network’s two endpoints.

Low latency

As mentioned above, a direct P2P link keeps latency to a minimum. This is crucial for tasks requiring real-time data transmission, like financial trading, video conferencing, cloud applications and emergency service networks.

Simplicity

Managing a dedicated point-to-point network can be simpler than multipoint networks. If a fault occurs, you have fewer devices and routes to troubleshoot.

Enhanced security

Unlike shared Ethernet connections, P2P Ethernet is an exclusive, direct connection that doesn’t cross the internet. No one else has access, so it’s inherently secure.

Reliability and Quality of Service (QoS)

Since P2P Ethernet connections don’t suffer from traffic congestion like shared networks, they’re typically more reliable. In addition, with a dedicated link, businesses can ensure Quality of Service (QoS) more efficiently, prioritising bandwidth for applications without competing with other users.

Cost efficiency

Ethernet point-to-point connections can be good value. For dedicated, high bandwidth connections between two locations, they can be more cost-effective than leased lines, depending on the specific application.

What is point-to-point Ethernet suitable for?

Ethernet point-to-point services are ideal for businesses that need secure, high bandwidth, low latency connectivity for real-time data transfers between two sites.

Typical applications of P2P Ethernet include:

  • Data centre interconnects: Supporting high-speed data transfers and synchronisation between data centres
  • Wide area networks (WANs): Connecting remote sites and regional offices to enterprise WANs
  • Backup and recovery: Providing high capacity connectivity for real-time backups and recovery of data
  • Cloud services: Connecting to cloud service providers for seamless access to cloud-based applications
  • Real-time collaboration: Providing VoIP, video conferencing and other collaboration tools
  • Financial trading: Ensuring ultra low latency connectivity for real-time transactions
  • Manufacturing and IIoT: Supporting real-time data exchange for automated production processes
  • Research and education: Connecting universities and research facilities to support high capacity data exchange

Is P2P Ethernet right for your business?

If you need a secure, high-bandwidth connection between two locations with low latency and high availability, an Ethernet point-to-point link could be ideal.

At Neos Networks, we provide high capacity Business Ethernet services across the UK. Connect your sites with Ethernet Private Line (EPL), a resilient P2P Ethernet service you can scale up to 10Gbps.

If you’re looking to connect more than one site to a central office, Ethernet Virtual Private Line (EVPL) point-to-multipoint Ethernet could work for you.

Learn more about EPL vs EVPL networks

Or if you need the flexibility of any-to-any connectivity, Virtual Private LAN Service (VPLS) could be ideal. VPLS links multiple sites in a single domain through IP routing or MPLS.

If you’d like to discuss which is better for your business, get in touch. We’ll be happy to make Ethernet work for your digital future.

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What is the Fourth Industrial Revolution (4IR)?

We’re living in a transformative age. Learn about the new technologies driving change, their impacts and challenges, and how to adapt to this new world.

Industries of the Fourth Industrial Revolution

What is the Fourth Industrial Revolution (4IR)?

The Fourth Industrial Revolution, also known as 4IR or Industry 4.0, refers to the rapid technological advancements of this century – emerging technologies like artificial intelligence (AI), robotics, the Internet of Things (IoT) and biotechnology. The current unprecedented speed of breakthroughs, the disruption caused to almost every industry worldwide, and their potential to transform the global economy and society make this a new industrial revolution.

The first industrial revolution was powered by steam and water in the 18th and 19th centuries. Electricity powered the second revolution. Computers and the internet fuelled a third, digital revolution in the last century. Today, the rise of intelligent machines is driving the fourth revolution, transforming how we live, work and play.

Fourth Industrial Revolution timeline

Shows 1st Industrial Revolution (ca. 1760-1840): steam and water power; 2nd Industrial Revolution (ca. 1870-1914) electricity and the assembly line; 3rd Industrial Revolution (ca. 1950-2000) electronics, computers and the internet; 4th Industrial revolution (ca. 2010 and ongoing) AI and cyber-physical systems.

 

As in previous industrial revolutions, 4IR is fuelled by a combination of emerging industries building on each other.

Ten technologies driving 4IR

The Fourth Industrial Revolution is often described as a fusion of technologies that merge the digital, physical and biological worlds.

By embedding sensors and connectivity into objects, including our bodies, we’re finding new ways to communicate with machines and enhance human capabilities. Here are some of the key technologies driving the revolution.

 

AI and machine learning

1. AI and Machine Learning

Artificial intelligence (AI) is a set of technologies that can reason and learn to solve problems or perform tasks that traditionally require human intelligence. It powers innovations like autonomous vehicles, advanced healthcare diagnostics and personalised customer experiences.

Big data and analytics

2. Big Data and analytics

A significant underlying driver of the revolution, Big Data and analytics refers to collecting and analysing vast volumes of data to reveal trends and insights. Big Data is improving operational efficiencies and changing decision-making in business and wider society.

Internet of Things

3. IoT

The Internet of Things (IoT) refers to the network of interconnected devices that exchange data over the internet. A key 4IR technology, IoT enables advances like industrial automation, smart homes and real-time health monitoring.

AI for network scalability

4. Cloud computing

Cloud computing is the on-demand delivery of computing services like apps, storage and networking over the internet. Cloud services allow businesses to rapidly innovate and scale operations without investing in their infrastructure.

Robotics and automation

5. Robotics and automation

Advanced robotics enables sophisticated robots, including humanoid assistants, to perform complex high-precision tasks independently with high precision. These robots can play vital roles in manufacturing, healthcare and customer service, often enhancing productivity and safety.

AR and VR

6. AR and VR

Augmented reality (AR) overlays digital images on the world around you. In contrast, virtual reality (VR) creates an alternative, computer-generated environment that you interact with. These technologies are set to provide immersive experiences for education, remote collaboration and customer service.

Biotech and nanotech

7. Biotech and nanotech

Biotechnology uses living organisms, or their derivatives, to develop products or technologies. Today, rapid advances in fields such as genetic engineering, biopharmaceuticals and agricultural biotech are leading to breakthroughs in medicine and food production. And nanotechnology, manipulating materials at a molecular level, creates new materials for medicine and engineering.

Quantum computing

8. Quantum computing

Using the principles of quantum mechanics, quantum computers can operate at exponentially faster speeds than traditional computers. This enables us to solve complex problems in fields like material science and cryptography.

Blockchain

9. Blockchain

Blockchain is a decentralised ledger technology that ensures transactions aren’t tampered with. Underpinning cryptocurrencies like Bitcoin, blockchain is also used for digital ID verification, smart contracts and supply chain management.

3D printing

10. 3D printing

3D printing uses computer-aided design to create three-dimensional objects by layering materials like plastics, composites or biomaterials. Also known as additive manufacturing, 3D printing revolutionises production by enabling rapid prototyping and customised manufacturing, reducing waste and costs.

Overall, these technologies represent a revolution due to their exponential growth and potentially profound impact on our lives.

Impacts of the Fourth Industrial Revolution

As 4IR technologies advance, they’re expected to transform the economy, society, government and environment of countries worldwide.

Economy

First, integrating tech like AI, robotics and automation enables businesses to boost productivity and efficiency. This can lead to higher production, faster product innovation, enhanced customer service and reduced costs.

Second, 4IR is set to drive innovation in products and services, transforming existing industries or creating new business models. Advanced manufacturing techniques will allow greater personalisation of products and services.

Third, these technologies are set to displace some traditional manufacturing and routine white-collar jobs. However, they’ll also create new jobs in high-tech industries, data analysis and cybersecurity.

Society

To meet the demands of this new economy, education will have to adapt. Schools and higher education must focus on STEM education and lifelong learning to enable individuals for future jobs.

All the more so because we’ll live longer. Advances in health care, personalised medicine and smart infrastructure will likely improve older people's life expectancy and quality of life.

In addition, the proliferation of internet-connected mobile devices and the rise of IoT gives us unprecedented connectivity. This enables near real-time data exchange globally, fostering collaboration and competition.

However, access to advanced technologies varies across communities and countries. Owners and investors in new technologies are poised to gain significant wealth. As a result, the rapid pace of technological change could exacerbate existing wealth and digital divides.

Government

Governments will have new ways of interacting with citizens to address these challenges. For example, e-government services and smart cities are already used in the UK to enhance public services.

On the other hand, emerging technologies can threaten fundamental freedoms. Across the globe, dictators find new ways to monitor and control their populations. And rapidly evolving technological innovation increases the risk of war and the means to wage it.

Environment

On the positive side, renewable energy, smart manufacturing and new sustainable practices can mitigate environmental impacts. Together with new technologies like carbon emissions management, they can help us tackle climate change.

Yet the increase in energy consumption from AI and cloud computing, electronic waste and the depletion of resources could degrade the environment if not managed properly – one of several challenges the revolution poses.

Challenges of the Fourth Industrial Revolution

While 4IR is set to bring enormous benefits, its blurring of the digital, physical and biological spheres entails several risks. Here are some key challenges.

First, the data explosion fuelled by industries like cloud computing, AI, and IoT raises data privacy and security concerns. In a hyperconnected world, how can we protect user privacy? How can we defend complex, interconnected systems against cyberattacks?

Second, the rapid rise of AI, genetic engineering, biotech, autonomous vehicles and robots pose thorny ethical questions. For example, how can we remove bias from AI decision-making? How can we control biohacking and prevent designer babies? How can we stop autonomous robots from getting out of control?

Third, the socioeconomic impacts above could lead to income inequalities, business bankruptcies, unemployment and even social unrest. How can governments and individuals adapt?

Overall, how can we effectively regulate 4IR technologies? The regulation of new technology often fails to keep up with the pace of innovation, and rules and enforcement differ around the world.

Adapting to the Fourth Industrial Revolution

Meeting the challenges of 4IR will require collective, global efforts across various industries.

First, governments should work with businesses, academia and wider society to regulate new fields like AI and biotechnology. We need timely international regulation of 4IR technologies to promote their benefits while mitigating risks.

As individuals, we need to get used to flexible careers and continuous learning. With the rapid pace of change, education will likely become a lifelong process as we adapt to evolving tech.

For businesses, new technologies mean new opportunities and new threats. To meet these challenges, companies will need to:

  • Prioritise digital transformation: Invest in digital infrastructure and technologies like AI and IoT to enhance products, operational efficiency and customer service.
  • Train employees: Provide continuous learning for staff to work with evolving technologies.
  • Adopt Agile working: Introduce methodologies to enhance flexibility and foster a culture of innovation.
  • Improve data management: Collect and analyse data to improve business insights and decision-making.
  • Bolster cybersecurity: Protect sensitive data from increasing cyber threats.

We can’t predict the future, but one thing seems certain: connectivity will be crucial to compete in this new world.

At Neos Networks, we deliver scalable, high capacity connectivity for UK businesses nationwide. If you’re looking to connect your business for the future, contact us. We’ll be happy to design a network for your business, however the revolution unfolds.

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Why NPS scores matter in the telecoms industry

Net Promoter Scores (NPS) measure customer satisfaction with a product or company – a crucial metric that helps you choose the best service and shows providers what to improve

Emojis for NPS categories: detractor, passive and promoter

What is a Net Promoter Score (NPS)?

A Net Protomer Score (NPS) is a metric used to measure customer satisfaction with a company, product or service. It’s calculated using a standard method, so it’s a great way to compare customer views of different companies or products across an industry.

How NPS scores work

NPS scores work by asking a single question to measure customer satisfaction and calculating a figure based on how customers respond. Here’s how it works in detail.

NPS question

The customers surveyed are asked this question: ‘On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?’. Zero is ‘not at all likely’, and ten is ‘extremely likely’.

NPS categories

Customers are placed in one of three categories based on how they answer the question above:

  • Detractors (scoring 0-6): dissatisfied customers who may discourage others from using the company, product or service
  • Passives (scoring 7-8): customers that are satisfied but not keen enough to actively promote the company
  • Promoters (scoring 9-10): very satisfied and loyal customers who are likely to promote the company

NPS calculation

To calculate the NPS, you subtract the percentage of detractors from the percentage of promoters.

How to calculate an NPS

Graphic showing how the Net Promoter Score is calculated: by subtracting the percentage of Detractors (scoring 0-6 - coloured red) from the percentage of Promoters (scoring 9-10 - coloured green)

 

For example, imagine 50 customers have responded to your company’s survey with the following results: 36 are promoters, 11 are passives and 3 are detractors:

  • Percentage of Promoters: 36/50 x 100 = 72%
  • Percentage of Detractors: 3/50 x 100 = 6%
  • Your NPS score is 72 – 6 = +66

Scores can vary from –100 to +100, so how do you know what’s a good score?

NPS interpretation

If every customer who responds is a detractor, the score will be –100. Conversely, if every respondent is a promoter, it will be +100.

So any positive score (greater than zero) indicates generally favourable customer sentiment. A score of +40 or more is usually considered very good or excellent, depending on the industry.

Types of NPS

There are various types of Net Promoter Scores covering a range of customer sentiment, from feelings about a particular product or brand to satisfaction with service delivery over time.

In the telecoms sector, two NPS are crucial:

  • Transactional NPS show customer satisfaction after a specific interaction with a company, such as a customer service call, purchase or product delivery.
  • Relationship NPS measure the overall relationship with customers and their loyalty over a longer period.

Together, these two scores give you a complete picture of customers’ experience, from purchase and delivery to ongoing maintenance and customer support.

Why NPS are important in the telecoms sector

When it comes to measuring customer satisfaction, telecoms providers often attract low approval ratings. Service delivery is notoriously challenging, with some of the largest companies often earning surprisingly low scores.

That’s why NPS are such a vital indicator in telecoms – a customer satisfaction metric that’s recognised and trusted worldwide.

First, when selecting a provider or connectivity partner, they allow you to look beyond the marketing and identify companies that truly deliver on their promises.

Second, they’re a great way for providers to gather customer feedback. By regularly monitoring our scores, we can see how new changes, products or services directly influence customer satisfaction.

What NPS mean for Neos Networks

At Neos Networks, customer service is our priority. We believe happy customers are loyal customers, and gathering your feedback is vital to understand whether you’re happy with our services.

We ask our customers to rate their experience with us regularly, covering areas like account management, service support and delivery (relationship NPS). We also survey them on the purchase and rollout of a product or service upon delivery (transactional NPS).

By tracking these two scores, we can monitor our performance with our customers and against our competition.

In addition to NPS, customers can respond to a qualitative question, which gives us valuable extra details. In a world where data demands are evolving fast, this helps us evaluate your business’s changing requirements.

Industry-leading NPS

As you can see from our scores, we’re making connectivity work for our customers:

  • Our relationship NPS in 2023-24 was +42, far exceeding the benchmark of around +30 for a B2B telecoms company (as recorded by CustomerGauge).
  • Our transactional NPS averages around +68, again way above the industry standard.

While market-leading scores mean an excellent reputation, what sets us apart from other providers is how we use your feedback.

For long-term customer satisfaction

At Neos, we take our NPS tracking very seriously and do all we can to translate your feedback into action. Our aim is to always deliver the best possible services and customer experience.

For example, one important early learning for us was that our customers would like more regular updates on orders in progress. Now, our provisioning team provides more information at various touchpoints during every order.

Above all, we pride ourselves on commitment-based management. In other words, we do what we say we’re going to do when we say we’re going to do it.

That’s how we’re making connectivity work for businesses and organisations across the UK. If you want to discuss high capacity connectivity for your business or give feedback on our products or services, contact us.

For us, NPS is more than just a score. The feedback you provide shapes the way we work.

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What is Critical National Infrastructure (CNI)?

Learn which sectors are considered vital for the UK, the threats they face, and how we help to connect them

Dam in Scotland - part of the UK's Critical National Infrastructure

 

What is Critical National Infrastructure?

Critical National Infrastructure (CNI) refers to the systems, facilities and networks that are vital for the functioning of a country and its economy.

For example, the water supply provides the water we need to live, the energy sector powers our homes and industry, and telecom networks enable us to communicate – connecting our homes, businesses and public services, including emergency services.

CNI also includes some assets that may not be essential to daily life but need protection because they’re potentially dangerous. For instance, nuclear power stations or chemical plants can pose a severe public health threat if attacked or otherwise damaged.

CNI definition

In the UK, the government defines Critical National Infrastructure as:

‘Those critical elements of Infrastructure (facilities, systems, sites, property, information, people, networks and processes), the loss or compromise of which would result in major detrimental impact on the availability, delivery or integrity of essential services, leading to severe economic or social consequences or to loss of life.’

In short, CNI is the assets upon which the country depends to function and keep its citizens safe.

CNI sectors in the UK

The UK government designates 13 sectors as Critical National Infrastructure – facilities that are necessary to run the country or potentially dangerous to the public. Some sectors are divided into ‘sub-sectors’. For example, emergency services can be divided into police, ambulance, fire and rescue services and HM Coastguard.

Each sector has at least one government agency, or Lead Government Department, responsible for it.

UK Critical National Infrastructure sectors

Table describing the UK's 13 Critical National Infrastructure sectors: Chemicals, Civil Nuclear, Communications, Defence, Emergency Services, Energy, Finance, Food, Government, Health, Space, Transport and Water

 

Why is CNI important?

If Critical National Infrastructure is disrupted, it can significantly impact the UK and its citizens’ daily lives. Here’s why protecting CNI is vital for the UK.

National security

CNI supports the UK’s defence and security operations. If CNI fails, the UK could be vulnerable to attack from hostile actors or nation-states, including cyberattacks.

Public safety

CNI provides vital services such as water, electricity, health care and transport. Any disruption to these could seriously impact the safety and well-being of the population.

Economic stability

In an increasingly connected digital economy, communications and transport networks are vital to business operations, supply chains, and overall economic stability. Interruptions to this CNI can lead to significant financial losses for organisations and the economy as a whole.

Disaster resilience

CNI helps the UK prevent and withstand terrorist attacks, cyberattacks and natural disasters. When they do occur, emergency response services are critical for coordinating recovery.

Sector interdependence

As much of the UK’s critical infrastructure is heavily interdependent, disruption in one sector can seriously affect another. For instance, the failure of essential IT networks could disrupt the control and coordination of energy supplies.

 

Overall, CNI is also significant for the country psychologically. At home, robust and secure national infrastructure maintains public confidence in the government and critical service providers. Abroad, it enhances the UK’s reputation and credibility as a country you can trust and do business with.

In short, CNI is crucial for maintaining the defence, economic security, and overall wellbeing of the UK and its citizens.

Threats to CNI

In an increasingly precarious world, the UK’s Critical National Infrastructure faces various natural or human threats, including:

  • Cyberattacks: CNI systems are frequently subjected to cyber threats, such as malware, ransomware, phishing and DDoS attacks, which can undermine the integrity of critical assets.
  • Sabotage: CNI can be the target of vandalism, terrorism or other acts of sabotage by internal staff or external bad actors.
  • Natural disasters: Floods, storms, wildfires or other effects of climate change can affect CNI assets, such as transport, power and water supplies.
  • Geopolitical challenges: Regional conflicts and the shifting global power balance can lead to trade disruptions, sanctions, cyberattacks and other hostile actions by states and non-state actors, directly impacting CNI.
  • Supply chain risks: Some CNI assets depend on global supply chains for critical components and materials, so they’re vulnerable to shortages if supply is disrupted.
  • New technology: Artificial intelligence, quantum computing and other emerging technologies may pose new threats to CNI, requiring ongoing research and protective countermeasures.

In addition, the interdependence of many CNI assets poses a threat in itself: disruption in one sector can quickly ripple across to others. That’s why maintaining and defending the UK’s vital assets requires a multi-faceted approach.

Protecting CNI

To protect the UK’s Critical National Infrastructure, specialist agencies work with CNI organisations and businesses, government departments, the wider UK intelligence community, the police and academia to identify and mitigate risks.

Part of the security service MI5, the National Protective Security Authority (NPSA) provides information, personnel and security advice to CNI businesses and organisations. In partnership with the NPSA, the National Cyber Security Centre (NCSC) provides expert guidance, threat intelligence, and incident response support to protect the UK against cyber threats.

As critical infrastructure systems become more interconnected, the risk of cyber-attacks on sensitive networks increases. Therefore, CNI organisations and businesses require exceptionally robust connectivity.

CNI networks

Critical National Infrastructure needs resilient networks that are always on, whatever happens. That requires dedicated, high capacity connectivity with nationwide reach.

For example, as a CNI provider, we offer Dark Fibre, Optical Wavelengths, Dedicated Internet Access (DIA), Ethernet and more across our B2B-only UK-wide network. We’re working with various CNI partners, including:

If you’re part of the nation’s critical infrastructure or just looking for high capacity connectivity for a vital business network, get in touch. We’ll be happy to make connectivity work for your organisation, whatever the future brings.

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What is a network operations centre (NOC)?

A network operations centre is a vital hub that manages a company’s network infrastructure. Learn how it works and why it’s crucial to maintaining the performance and security of large networks

network operations centre (NOC)

What is a network operations centre (NOC)?

A network operations centre, or NOC (pronounced like “knock”), is a central hub where network engineers manage and maintain a company’s network infrastructure. Typically, it’s a secure room with a video wall displaying network maps, critical platform alerts, call statistics and other critical network parameters. Facing the video wall, NOC staff sit at rows of workstations, monitoring the network's operations.

Industries that need reliable, constant connectivity, such as the energy sector, telecommunications, emergency services and financial institutions, use NOCs to maintain their critical networks. However, any organisation with an extensive network may use a NOC, either in-house or run by a third-party network service provider.

For example, at Neos Networks, our NOC monitors our UK-wide high capacity network round the clock, ensuring our customers’ mission-critical networks run smoothly, whatever happens.

Monitoring 24/7 at the Neos Networks NOC

Engineer in front of the video wall in the Neos Networks network operation centre (NOC), part of the team monitoring customer networks 24/7

 

How does a NOC work?

A NOC works like your central nervous system. Just as your brain manages your vital organs to keep you healthy, a NOC monitors critical network elements, customer services and third-party integrators to maintain your network’s health.

Working 24/7, 365 days a year, NOC staff use specialist tools to identify faults, coordinate incident resolution and optimise network efficiency. In addition, a NOC may monitor alerts for unauthorised access and other cyber threats to ensure network security.

NOC functions

A network operations centre performs several vital tasks to maintain a network. The main functions of a typical NOC include:

  • Monitoring: A NOC continuously monitors network alarms and the stability of vital network components such as power, transmission nodes, switches, routers and other managed devices.
  • Optimisation: Analysing network data and performance, NOC engineers take steps to manage capacity and enhance network efficiency to meet changing demands.
  • Troubleshooting: When a fault or outage occurs, NOC staff investigate and, if necessary, coordinate fault resolution with engineers in the field to minimise network downtime.
  • Maintenance: When planned maintenance takes place, the NOC monitors the network for impacts, tracks the progress of the work and ensures any unexpected impacts are resolved.
  • Security: NOC staff track security alerts and take action to prevent unauthorised access, DDoS attacks and other cyber threats.
  • Reporting: A NOC may compile reports on network performance, troubleshooting and network configurations for network management and compliance purposes.

Overall, a NOC is a first line of defence against network disruption and security threats, ensuring that a network remains operational round the clock. By working closely with a company’s help desk or directly with customers, NOC staff respond quickly to customer requests, resolving issues and minimising downtime.

NOC processes

To respond to incidents efficiently, NOCs typically prioritise tasks and organise teams into tiers to tackle them.

For example, at the Neos Networks NOC, we classify events by severity and impact to drive priority: from P1 for the most critical issues down to P4 for low or no impact events. Faults are worked on collaboratively between multiple teams:

  • Tier 1: The triage team receives calls, logs support tickets and classifies incidents, performing initial diagnostics to determine the cause of the fault and the next action.
  • Tier 2: The on-net technical team analyses any tickets escalated from Tier 1, responds to network alarms, resolves issues with network devices and works with customers to rectify faults.
  • Tier 3: Multiple engineering teams build or repair physical infrastructure in the field, configuring services and resolving escalated incidents for customers.

As customer service is our priority at Neos Networks, we use the ‘SANE’ method when updating customers during a fault:

  • S – Situation: Outline the current situation, for example, the circuit ID number, fault type and location affected.
  • A – Action: Set out what we’ve done so far and the current outcome.
  • N – Next Steps: Log what’s happening now and what we’ll do to resolve the issue.
  • E – Expectation: Clearly explain the following steps to customers and make sure we do them within the agreed timeframe.

By staying SANE, we ensure that faults are resolved as soon as possible and that customers are always informed of progress.

Staff in action at the Neos Networks NOC

Staff consulting in the Neo Networks network operations centre (NOC)

 

Benefits of a NOC

A network operations centre offers several advantages for organisations that manage large networks. Among the key benefits are:

  • 24/7/365 monitoring: As a NOC operates round the clock, it can respond to incidents as soon as they occur, regardless of the time of day.
  • Efficient troubleshooting: When a fault or outage occurs, a NOC team follows established procedures to resolve it promptly.
  • Enhanced network performance: By actively monitoring network metrics, NOC analysts can spot bottlenecks and manage capacity to optimise network efficiency.
  • Increased reliability and availability: A NOC can seamlessly deploy alternative routes when an issue occurs to minimise network disruption.
  • Enhanced security: A NOC team monitors network alerts for security breaches or other cyber threats and takes timely action to counter them.
  • Scalability and network management: As a centralised hub, a NOC makes it easy to scale up or down operations as demand changes.

In short, a NOC plays a crucial role in maintaining the performance and security of your IT or network infrastructure. However, your business might not have the expertise or resources to run your own network and NOC.

NOC for critical networks

If you’re looking to boost your business’s network for the future, choosing a network service provider you can trust is essential. As a Critical National Infrastructure provider, we’ve designed our UK-wide network and NOC with resilience to run Britain’s vital networks.

We have two NOCs – one in operation 24/7, 365 days a year and one “dark” NOC in reserve. Our commitment to our customers is clear from the numbers:

  • Around 95% of customers' calls are answered within our target of 20 seconds.
  • Our relationship NPS score measuring customer satisfaction was +42 in 2023-24, well above the industry standard.

Unlike other providers, our Tier 2 on-net technical team often liaise directly with customers to resolve faults. Together with the Tier 3 engineering and field teams, they often go above and beyond, making connectivity work for our customers.

For example, following alarms received at our NOC earlier this year, the Tier 2 team swiftly dispatched field engineers to the remote and windswept Cruachan radio station in Scotland. They expected they would have to simply reboot equipment for the radio link to recover.

Instead, they found the microwave dish had blown off the tower in gale-force winds resulting in a much more complex fix plan. Working around the clock across the weekend, they were able to source a new dish and had it installed and services back up and running in no time.

If you’re looking for high capacity connectivity you can trust for your business or customers, get in touch. We’ll be happy to make connectivity work for you, whatever the future brings.

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Dedicated Internet Access (DIA) vs business broadband: which is right for your business?

Is it worth getting a dedicated internet connection with guaranteed service levels for your business?

  • Neos Networks
  • DIA ,
dia vs broadband

Dedicated Internet Access

Private, high-speed internet for your business

 

What is Dedicated Internet Access (DIA)?

Dedicated Internet Access (DIA) is a private, high-speed connection between your premises and the internet. It’s an uncontended connection, meaning you don’t share bandwidth with other customers and don’t suffer from network congestion. In addition, DIA offers guaranteed symmetrical download and upload bandwidth, ensuring a fast, low latency connection.

Delivering speeds up to 10Gbps, DIA is ideal for organisations that need a fast, reliable internet connection to run business-critical operations.

Learn more about DIA

What is business broadband?

Unlike DIA, business broadband provides a shared connection that distributes the bandwidth between multiple users in a local area. Typically, it offers asymmetrical upload/download bandwidth using one of the following technologies:

  • Fibre to the premises (FTTP): Also known as ‘full fibre’, the fibre connection runs all the way to a customer’s business. FTTP typically provides upload/download speeds up to 1Gbps/220Mbps.
  • Fibre to the cabinet (FTTC): The fibre cabling runs to a curbside cabinet, where it’s distributed to individual businesses via copper wires. FTTC delivers speeds up to 80Mbps/20Mbps.

However, FTTC is being phased out as the UK government aims to have full fibre installed in 85% of premises by 2025 and nationwide coverage by 2030. So FTTP is now the norm for new business broadband connections.

But is FTTP enough for your organisation’s daily operations, or do you need a dedicated line?

DIA vs business broadband

Dedicated Internet Access offers several advantages over business broadband, although it costs more than FTTP. Here’s a breakdown of how they compare.

DIA vs business broadband

Dedicated internet access vs business broadband: graphic comparing the connection, bandwidth, reliability, use cases, cost and time to deploy

 

In short, DIA offers a faster, more reliable connection than business broadband for critical online operations, but it comes at a price. Is it worth it for you?

Is DIA or broadband right for your business?

Whether DIA or broadband suits your organisation depends on your needs and budget.

Do you have more than ten people in your business? Are you in a data-intensive industry or do you rely on cloud services for mission-critical operations? Overall, would prolonged downtime seriously impact your business?

If so, DIA could give you peace of mind. Less downtime could prevent missed sales, protect customer relationships and boost profits, making DIA well worth the investment.

On the other hand, if your business has fewer than ten people who use the internet only for basic tasks, broadband could suit your needs for now.

While DIA offers a more scalable, future-proof solution than broadband, which is better for you may ultimately depend on cost. So, consider getting a quote for DIA before deciding.

Dedicated Internet Access solutions

At Neos Networks, we provide cost-effective DIA solutions for businesses across the UK, featuring:

  • Scalable bandwidth from 100Mbps to 10Gbps
  • Our high availability UK-wide core network
  • A 99.95% uptime SLA and 24/7 technical support
  • A choice of last-mile connectivity providers and resiliency options

Choose between ‘wires only’ DIA, where you have complete control over your connection, or Managed DIA (MDIA), protected by 24/7 monitoring from our network operations centre (NOC).

Dedicated Internet Access

Private, high-speed internet for your business

 

Or get a DIA quote in a few clicks with LIVEQUOTE, our online pricing and ordering tool.

Get a DIA quote

 

If you’re not sure what’s right for you, get in touch. We’ll be happy to design a cost-effective DIA solution for your business.

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What is Dedicated Internet Access (DIA)?

Dedicated Internet Access is a private internet connection that isn’t shared with other customers. Could it benefit your business?

  • Neos Networks
  • DIA ,
What is Dedicated Internet Access?

Dedicated Internet Access

Private, high-speed internet for your business

 

What is Dedicated Internet Access (DIA)?

Dedicated Internet Access (DIA) is a private, high-speed connection between your premises and the internet. The connection is uncontended, meaning it’s not shared with other customers. Your provider runs a private leased line to your business’s local area network (LAN) or wide area network (WAN).

Dedicated Internet Access (DIA)

Dedicated internet access diagram, showing how DIA connects your business LAN or WAN to the internet via a leased line to your ISP or network service provider

 

Typically, DIA is delivered using fibre optic cables and Ethernet, providing fixed symmetric upload and download speeds up to 10Gbps. Since any bandwidth you purchase is exclusively allocated for your use, your connection is unaffected by network congestion, and your actual internet speeds are guaranteed.

That’s why DIA is commonly used by businesses and organisations that need fast, reliable connectivity to run critical applications.

What is the difference between DIA and business broadband?

Dedicated Internet Access is a private, uncontended connection for a single customer. By contrast, business broadband provides a shared connection that distributes the bandwidth between multiple users in a local area.

While DIA offers a more consistent, reliable connection than broadband, it’s more expensive, so you’ll need to weigh the costs and benefits.

Learn more about DIA vs business broadband

What are the benefits of DIA for businesses?

A dedicated internet connection offers several advantages over traditional business broadband. Here are some of the main benefits.

High speed

A dedicated line provides a consistent fixed bandwidth. Unlike broadband, DIA’s guaranteed upload/download bandwidth ensures a fast, low latency connection.

Reliability

The best DIA services have strict Service Level Agreements (SLAs), giving you confidence in availability and performance. In addition, you should expect your provider to be operating a resilient core network.

Scalability

Dedicated connections are usually highly scalable, allowing you to easily boost or cut bandwidth to meet your changing needs. A good DIA provider will allow you to increment bandwidth gradually as you grow.

Security

A key aspect of security is availability. As you don’t share bandwidth with other customers, you have more certainty over the availability of your internet access. In addition, you can order diverse circuits for important sites to protect your business from fibre breaks in the ‘last mile’ connectivity.

Support

Time is money, so a good DIA provider should constantly monitor your connection, proactively fix issues they find, and provide 24/7 customer service. They should also guarantee fault repair times to minimise disruption to your service.

Overall, DIA gives you peace of mind, ensuring mission-critical applications run smoothly to optimise your organisation’s productivity and customer experience.

Who is DIA suitable for?

DIA is suitable for a range of businesses and organisations that rely on internet connectivity for critical operations, including:

  • Medium to large enterprises: Larger businesses rely on DIA to support critical operations across dispersed sites, including data sharing, collaboration tools and other cloud-based services.
  • Data-intensive industries: DIA can provide the bandwidth and security crucial for sectors processing high volumes of data, such as data centres, manufacturing, health care and financial services.
  • Government agencies: DIA can ensure reliable internet connectivity for local and national governments to deliver essential services.
  • Education and research: Schools, colleges and universities use DIA to communicate among students and staff and share data between institutions.
  • E-commerce: DIA can provide reliable internet connectivity for online retailers to run their websites, manage customer accounts, and process orders.

If you have multiple, geographically dispersed sites in an enterprise wide area network (WAN), DIA can be a cost-effective way to provide local internet connectivity.

In short, DIA can work well for any organisation that needs reliable, high-performance connectivity for daily operations. However, DIA costs more than traditional business broadband, so it won’t suit every business.

Is DIA worth it for your business?

Whether a dedicated internet connection is worth the cost depends on your needs and budget.

Do you have more than ten people in your business? Do you rely on cloud services for critical operations? Are you in a data-intensive industry where a reliable, high-bandwidth internet connection is essential? Do you need stringent SLAs to ensure maximum uptime? Are you looking for local internet connectivity to connect to an enterprise WAN?

If the answer to any of the above is ‘yes’, DIA is worth considering. The benefits and peace of mind DIA brings can more than outweigh the costs.

Dedicated Internet Access

Private, high-speed internet for your business

 

Dedicated Internet Access solutions

At Neos Networks, we provide high-speed, reliable DIA solutions for businesses across the UK. With DIA, you can gradually scale up your connectivity as you grow with:

  • Seamless bandwidth adjustment from 100Mbps to 10Gbps
  • Our high availability UK-wide core network
  • A 99.95% uptime SLA and 24/7 technical support
  • A choice of last-mile connectivity providers and resiliency options

With our unmanaged, ‘wires only’ DIA service, you’re responsible for configuring and managing your network, giving you complete control over your connectivity..

Dedicated Internet Access (DIA) – wires only

Diagram of Neos Networks Dedicated Internet Access service, showing how your business connects to the internet via a leased line to Neos Networks' core network

 

If you don’t have in-house IT expertise, consider our Managed DIA service (MDIA). With MDIA, you get 24/7 monitoring from our network operations centre (NOC) and a five-hour SLA to replace equipment.

Managed Dedicated Internet Access (MDIA)

Diagram of Neos Networks Managed Dedicated Internet Access service, showing how your business connects to the internet via a leased line to Neos Networks which is actively monitored and managed 24/7

 

Learn more about DIA options for your business.

Dedicated Internet Access

Private, high-speed internet for your business

 

Or get a DIA quote in a few clicks with LIVEQUOTE, our online pricing and ordering tool.

Get a DIA quote

 

If you’re not sure what’s right for you, get in touch. We’ll be happy to discuss the best DIA options to grow your business.

Dedicated Internet Access FAQs

  • How fast is Dedicated Internet Access (DIA)?

    Dedicated Internet Access (DIA) speeds vary depending on the technology and specific service you choose. At Neos Networks, we offer DIA with bandwidths you can scale from 100Mbps to 10Gbps.

     

  • How much does DIA cost?

    As connectivity continues to evolve, DIA tariffs have dropped significantly in recent years. Depending on the bandwidth you need, you can now get a dedicated connection for your business for hundreds of pounds per month, rather than a four-figure sum as before.

  • How does ‘wires-only’ DIA differ from Managed DIA?

    With ‘wires-only’ DIA, the provider supplies IP addresses, but you’re responsible for providing a router, configuring the IP addresses on it and keeping it updated. For Managed DIA, the operator provides and maintains a pre-configured router and monitors your connection’s performance.

  • What is the difference between DIA and IP Transit?

    DIA is a private internet connection between your business premises and your ISP. By contrast, IP Transit is used to connect ISPs to larger networks. It allows operators with their own Autonomous System Number (ASN) to connect directly to the internet using high-performance BGP connectivity.

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Wholesale connectivity partnerships: why collaboration is the key to growth

Why partnerships are crucial to growing your network, what to consider when choosing a strategic partner, and how partnering with Neos Networks can supercharge your growth

Wholesale connectivity partnership - the key to growth

 

Why a connectivity partner is important

With the rapid rollout of 5G, IoT, and AI applications, businesses across the UK are increasingly investing in digital infrastructure. If you’re a network service provider or reseller, choosing the right partner is crucial for growth.

First, a good connectivity provider gives you access to a robust, high capacity network infrastructure. This enables you to offer reliable, scalable services without investing in building or maintaining your own infrastructure.

Second, a reliable partner should offer a range of connectivity solutions, allowing you to scale up bandwidth and try new services to meet your customers’ ever-evolving needs.

Third, a reputable partner should have the technical expertise and support staff to help you design and efficiently maintain your network. This is essential to ensure the smooth operation of services that delight your customers.

Overall, choosing the right partner is crucial to giving you a competitive edge. By offering robust, scalable services backed by a trusted provider, you can attract and retain customers. You can also leverage your partner’s resources to minimise capital expenditure and boost your bottom line.

10 things to look for in a wholesale connectivity partner

With a bewildering array of connectivity providers and products on the market, choosing a strategic partner for growth can be challenging. Here are ten things to consider when choosing a long-term partner.

AI for network optimisation

1. Network reach

Look for a partner with an extensive, high capacity network across a wide geographic area. Do they cover key locations for your customers now and potential new areas for growth?

AI for network troubleshooting

2. Flexibility and scalability

Check the partner's range of connectivity services, including business internet services, Ethernet, optical connectivity and Dark Fibre. Does the provider have the mix of services and scalability your customers need?

AI for predictive maintenance

3. Competitive pricing

Compare wholesale rates across the market to ensure you can remain competitive while maintaining profitability. Choose a partner with transparent pricing and no hidden fees.

AI for network scalability

4. Fast quoting and lead times

Time is money, so choose a partner that offers fast quoting and ordering. Make sure their lead times allow you to deploy quickly to seize market opportunities.

AI for customer experience

5. Delivery and support

Partner with a provider with a history of timely delivery and responsive technical support. NPS scores are one way to spot partners with excellent customer service.

AI for customer experience

6. Reliability and resilience

Assess a partner’s track record for network reliability and uptime. Check they have redundant network architecture, appropriate service level agreements (SLAs) and robust monitoring to minimise downtime.

AI for customer experience

7. Backhaul services

If you're looking to expand rapidly, consider a partner that offers backhaul services. Does the provider offer data centres, points of presence, or network-to-network interfaces (NNIs) where you need them?

AI for customer experience

8. Security and compliance

Ensure a partner offers security measures to protect data confidentiality. If your customers have industry-specific requirements, check that the partner can offer fully compliant solutions.

AI for customer experience

9. Choice of third-party providers

Some providers work with a limited range of partners, for example, to provide an access network. Choose a provider that offers a range of third-party providers with a track record of successful delivery.

AI for customer experience

10. Trust and reputation

Finally, research a partner’s reputation and history in the industry. Select a partner you can trust with a proven history of deploying and maintaining critical, large-scale networks.

The power of partnering with Neos Networks

At Neos Networks, we pride ourselves on being more than just another provider. We’re your partner and ally to help you succeed.

With Neos Networks, you get:

  • UK-wide reach – high capacity B2B-only network with 550 on-net exchanges and over 90 commercial data centres
  • Flexible, scalable products – a range of services with speeds from 10Mbps to 400Gbps, including Ethernet, Dedicated Internet Access and Optical Wavelengths or almost limitless capacity with Dark Fibre; check out our product comparison tool
  • Competitive, transparent pricing – clear, upfront pricing fast with LIVEQUOTE, our online pricing tool, with the best rates across the whole market
  • Fast quoting and lead times – quotes in a few clicks with LIVEQUOTE and fast order fulfilment across 550 unbundled exchanges nationwide
  • Outstanding delivery – dedicated account managers and excellent technical support earning us an average NPS score of +75, well above the industry standard
  • Reliability and resilience – three UK network operation centres to monitor services 24/7, 365 days a year, and SLAs ensuring 99.95% uptime
  • High capacity backhaul – scalable Ethernet and optical backhaul services with 100Gbps NNIs in over 20 data centres and selected exchanges nationwide
  • Robust security – bespoke encryption options and dedicated optical wavelengths or manage your own with Dark Fibre
  • Extensive third-party provision – quotes for all major third-party providers in LIVEQUOTE and a proven track record of delivery
  • Reputable, trusted partner – 20+ years’ experience delivering class-leading connectivity, from telecoms, energy and emergency services to media, banking and transport

We’ve partnered with numerous UK service providers to help them realise their ambitious expansion plans, including:

  • Colt to extend high capacity connectivity to major UK cities, including London and Manchester
  • CityFibre to deploy Dark Fibre for fibre-to-the-premises services along the south coast of England
  • brsk to roll out 100Gbps services to key regions across the North of England and the Midlands

If you’re looking for a trusted, customer-centric partner to help grow your network, join us. We’ll be happy to help you supercharge your network.

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The 2024 UK logistics digital infrastructure report

What are the digital investment priorities of UK logistics operators, and what challenges do they face in adopting a ‘digital by default’ approach? A report by dedicated internet services provider Neos Networks.

UK logistics digital infrastructure

The logistics sector is a key driver of domestic economic and employment growth, contributing £163 billion to the UK economy. The industry also connects the UK to the global market. In 2022, the UK traded over £1 trillion in goods, consisting of £414 billion in exports and £644 billion in imports.

The logistics industry is increasingly powered by technological innovation and the adoption of digital solutions. A notable advancement occurred in September 2023 when the UK government implemented the Electronic Trade Documents Act (ETDA). This law grants legal validity to digital trade documents, eliminating the need for physical paperwork in the supply chain. This change is part of a broader trend in the logistics sector, where companies must continually adapt and integrate digital infrastructure and processes to stay competitive and efficient.

But how is the industry reacting to increased digital processes in logistics operations? And are UK logistics companies forward-planning to develop the infrastructure for these digital processes?

In this report, we survey business leaders and decision makers from 89 UK logistics companies (data collected December 2023) to explore the role connectivity has to play in the present and future of UK logistics, and assess how ready the industry is for wider digital transformation.

Contents

Key findings

  • Plans for continued digital transformation in the logistics industry suggest investment in connectivity improvements is imminent: Four in five (86.5%) logistics operators plan to digitally transform their operations in the near future.
  • Digital trade document adoption indicates the need for focus on digital connectivity infrastructure: Up to 69% of the logistics industry will facilitate digital trade documents as standard in the coming years.
  • A portion of the logistics industry is at risk of becoming digitally outdated: Nearly one in five (18.5%) companies haven’t updated their connectivity systems since the turn of the decade, in three years or more. There’s a need to invest in connectivity, such as full fibre, to be successful in digital transformation goals.
  • The logistics sector is in need of a digital skill boost to facilitate growth: 62.9% of companies in the sector say their employees’ digital skills are ‘next to none’, ‘insufficient’, or ‘sufficient for current operations’.
  • The government should go further to support investment in digital technology: According to the majority of UK logistics operators (65.2%), two in three logistics companies call for more support.

Digital trade documents: soon to become the industry standard

Our findings indicate that the logistics industry is in the process of adoption, though the majority remain in the planning stage.

Findings:

  • One in three companies (27%) are currently equipped to use digital trade documents in serving their operations/clients/customers.
  • 42% of logistics companies have plans to adopt digital trade documents soon, making it a big growth area for the industry.
  • When combined, the data reveals that up to 69% of the industry are set to operate with digital trade documents in the coming years.
Pie chart: percentage of logistics companies equipped to process and collaborate with clients using digital trade documents

 

Digital trade documents explained

The Electronic Trade Documents Act removes the legal requirement for logistics companies dealing with imported or exported goods to handle commercial trade documents only on paper. These can now also be handled in electronic format.

The act is set to alleviate the administrative burden from global trade and could spearhead further digitisation of processes along the supply chain.

Kevin Shakespeare, the director of strategic projects and international development at the Institute of Export & International Trade (IOE&IT), says “the importance of the act could well be the fact that it indirectly encourages the digitisation of other documents that aren’t necessarily included as examples in the legislation. This includes e-Phyto certificates, electronic export health certificates, airway bills and CMR notes for road transport.”

What does this mean for digital connectivity?

With over two in three companies set to adopt such digital-first processes, logistics companies should be aware of the greater demand that may be put on their connectivity needs.

Historically most logistics hubs would only need a basic connection to manage its ‘on the ground’ operations. However, as the sector digitises, it requires a more modern connectivity infrastructure to deliver, store and manage data and documents across its UK infrastructure.

This connection must be resilient and available 24/7. A simple broadband solution will soon create operational limitations, and the ETDA is just a small contributor to this compared to the wider digital transformation taking place for logistics companies.

Investment in digital transformation a priority for UK logistics businesses

We surveyed leaders in the logistics industry to understand their digital investment strategies and broader transformation plans. Our focus was to identify the key investment areas the sector prioritises for growth.

Which digital investments are planned as a priority?

Digital processes account for two of the three top overall investment priorities identified by logistics companies. These include ‘upgrading to smart fleet and digital tracking technology’ (38.2%) and ‘improving internal digital communication systems’ (43.2%).

Our data found the majority of the UK logistics industry is looking at digital solutions to optimise their operations — 86.5% plan to invest in improving at least one digital technology solution over the next two years.

Bar chart: percentages showing which digital technologies logistics companies are prioritising over the next two years

Findings:

The top priority for companies is ‘Predictive vehicle maintenance’ (39.3%) — just under two in five plan to invest in a solution in the next two years. An operational fleet is a must for logistics companies. Predictive vehicle maintenance leverages real-time monitoring and data-driven decisions to determine maintenance needs ahead of issues occurring. In fact, each of the priority investment areas relies on storing, analysing and accessing large data pools to yield practical insights.

Other priorities include ‘Big data analytics for improved operations’ (31.5%), and ‘Upgrading smart fleet or goods digital tracking technology’ (29.2%). Overall, as over four in five (86.5%) logistics operators continue to digitally transform their operations, the demand for connectivity upgrades and services from telecommunications companies serving the industry is clear.

Challenges remain for many in successfully adopting digital processes

Many operators in the logistics industry have been found to be experiencing challenges in adopting and implementing digital processes — 82.6% of UK logistics companies have experienced technological challenges which have impacted operations over the last 12 months.

Bar chart: technology challenges logistics companies have faced in the last year

 

Findings:

  • The most common challenges have arisen from outdated systems hampering operations for 37% of operators. This figure aligns with the findings in the following section, showing two in five companies haven’t updated their connectivity systems since the turn of the decade.
  • The next highest response is a lack of sufficient digital infrastructure for operations for 34.8%. These companies may struggle with integrating advanced technologies, and ultimately difficulties in scaling operations or adapting to market changes.
  • 32.6% of companies have issues with vehicle connectivity and remote driver communication. This potentially impacts delivery times, route optimisation, and overall operational efficiency.

Results also showed wider considerations in recruitment to successfully adopt digital processes. One in four logistics companies (23.9%) stated a lack of in-house understanding of operating digital systems, potentially highlighting a shortfall of digital skills in the industry.

Connectivity capacity shortfall looms for those slow to upgrade

Investment to improve digital-first processes is a priority for over four in five (86.5%) operators in the logistics industry. This will directly impact the need for speed and capacity of connectivity across multiple business centres, as well as across national transport infrastructure.

How have companies reacted to address this so far?

Findings highlight a good portion of the UK logistics industry is ‘evolving smart’ and taking steps to facilitate digital processes through connectivity infrastructure investment.

Findings:

  • One in five companies (19.6%) in the industry have invested in connectivity infrastructure in the latter half of 2023.
  • 22.9% of logistics companies have invested in their connectivity infrastructure within the past 12 months to 2 years.
  • 15% of UK logistics operators state they are planning to invest in connectivity improvements in the near future.
Bar chart: when did logistics companies last invest in connectivity infrastructure?

However, there’s a section of UK logistics which risks falling behind the technology curve.

Nearly one in five (18.5%) companies haven’t updated their connectivity systems since the turn of the decade, in three years or more. These responses suggest an urgent need for a portion of logistics operators to invest in upgrading their digital infrastructure. Connectivity standards have developed rapidly since 2020, and those who stand still are fast falling behind competitors in the rapidly evolving logistics sector.

UK logistics face barriers to digital transformation

We have been able to identify the challenges which UK logistics operators are experiencing, as well as the digital investment appetite from the industry for future growth. But what barriers exist to hinder this transformation?

Findings:

  • The majority of UK logistics companies highlight investment costs and lack of funding as key barriers to digital process adoption. High implementation costs were cited by 43.6%, while 40.4% highlighted a lack of necessary funds for investment.
  • These were both topped by cybersecurity concerns — more than half of UK logistics companies (51.1%) cited cybersecurity as a prevalent barrier to developing their digital processes. This highlights the need for assurances from technology providers that adequate protection will be provided.
Bar chart: the most prevalent barriers logistics companies experience when adopting and implementing digital technologies

 

Despite the wider barriers which are yet to be addressed, the opportunity for telecommunication providers remains. One out of every three logistics companies points out that inadequate communication infrastructure is a big hurdle when implementing digital transformation initiatives.

Steve Parker, director general of the British International Freight Association (BIFA), says:

“The factors facilitating increased adoption of digital transformation and those hindering it are cut from the same cloth. One of the biggest challenges faced by any company looking to undergo digital transformation is the natural resistance to change that arises within any organisation: sometimes a company’s culture, which might not be supportive of change or new technologies.”

“There is certainly plenty of willingness to adopt digital solutions to various aspects of their operations. BIFA members... are gaining greater awareness of the importance of and rewards to be gained from paying enough attention to digitalisation of the front and back end systems they employ to run their businesses.”

Are lack of digital skills a barrier to logistics sector growth?

Employee talent with digital skills are crucial in adopting and operating digital processes. Does the industry believe it has the required skills to develop into digital-first ways of working?

  • The majority of the logistics sector is in need of digital skills to facilitate growth — 62.9% of companies in the sector state their employee digital skills are ‘next to none’, ‘insufficient’, or ‘sufficient for current operations’.
  • However, a little under two in five companies say they are well placed for digital growth and have either sufficient digital skills to adopt new and future technology, or good or excellent digital skills in the company.
Bar chart: digital skillsets currently in logistics companies

“There is a need for well-qualified staff with in-depth technical knowledge” according to Steve Parker, “and that can be lacking as a career in logistics may not be as appealing to the experts as some other sectors. BIFA is working on addressing that.”

“It is of critical importance if the companies in the sector are to capitalise on some of the key benefits of digitalization in logistics, which include improved efficiency and productivity, reduced costs, faster decision making, enhanced communication and collaboration, and more effective customer service.”

UK logistics operators call for government action to incentivise digital transformation

The government is crucial in creating an environment that supports and promotes digital initiatives, encouraging investments from stakeholders. By doing so, it facilitates the digital transformation of logistics companies.

To ensure the logistics industry keeps up with digital adoption, it’s essential that the government champions investment in critical connectivity infrastructure, like full fibre connectivity networks through Project Gigabit.

Findings:

  • The government should go further to support investment in digital technology, according to the majority of UK logistics operators (65.2%) — two in three logistics companies call for more support.
Pie chart: Is the government doing enough to incentivise digital technology investment from logistics operators

Conclusion: three focus areas to unlock a world-leading digital-first logistics industry in the UK

 

1. Logistics industry set to invest in connectivity to facilitate digital adoption

  • Many in the industry are already aware of the need to adopt digital processes across their operations to remain competitive. The majority of operators plan to onboard technological solutions over the next two years.
  • To operate the digital solutions, companies must be aware of the connectivity requirements they will demand.
  • While 19.6% of companies have recently invested in developing their connectivity infrastructure, more than double the number of companies — a little over two in five — haven’t updated their connectivity systems since the turn of the decade. They are warned they risk falling behind the technology curve.
  • Companies who have failed to upgrade connectivity and still operate with a public switched telephone network (PSTN) — on which services such as ISDN (Integrated Services Digital Network) and broadband operate — are warned to upgrade soon. Besides the company being unlikely to get the required speed, resiliency and internet access required to digitally transform, PSTN is also set to be switched off in December 2025 to be replaced by more modern digital services. Those who are slow to upgrade will be left without service.

2. Opportunity for telcos to support logistics digital transformation, coordinated with government support

  • The final say in creating the connectivity infrastructure to meet the demands of the logistics industry is down to investment from telecommunication providers (telcos). As logistics processes become increasingly digitised, this demand is only going to become greater.
  • The UK government passed the Electronic Trade Documents Act, which navigates a major hurdle in digitising international trade documents.
  • For the UK logistics industry to truly compete on a global scale, further incentives are required to push UK operators towards full digital integration.
  • As it stands, UK operators still experience barriers to digital access, such as insufficient infrastructure nationally, as well as a lack of funding and cybersecurity concerns.

3. Bridging the digital skills gap is essential for future digital adoption

  • There remains a shortage of digital talent coming into the logistics sector.
  • 9% of companies in the sector state their employee digital skills are below what’s needed to grow digital solutions in their operations.
  • It will be the responsibility of UK logistic trade bodies, business groups, and logistic industry qualification boards to market the advantages of the logistics industry to the next generation of digital talent.

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What is a backbone network?

A backbone network is the central core of large computer networks that connects smaller networks. Learn all about backbone networks and how they ensure network performance for service providers and end users.

What is a backbone network?

A backbone network, also known as a core network, is the central infrastructure in larger computer networks that interconnects local subnetworks. They’re usually high capacity, low latency connections designed to transmit high data volumes as efficiently as possible.

For example, a backbone network can connect different local area networks (LANs) in one building or across many buildings in a business park or university campus. Large enterprises with geographically dispersed sites might create a backbone network to connect their sites in a wide area network (WAN).

Similarly, backbone networks connect different cities, regions or countries. For instance, internet service providers (ISPs) and data centres use backbone networks to provide high capacity connectivity between dispersed locations.

How does a backbone network work?

A backbone network works like a central highway, providing fast, reliable traffic flow to local road networks. It typically uses high capacity optical connectivity with fibre optic cables, routers, switches and other networking equipment to transmit high volumes of data as efficiently as possible.

In addition, wireless satellite or microwave links, or a hybrid core network of wired and wired connections, can be used to reach remote areas where laying cables is impractical.

While core networks vary, they use standard technologies like Internet Protocol (IP), Multiprotocol Label Switching (MPLS) and Dense Wavelength Division Multiplexing (DWDM) to ensure seamless communication between subnetworks.

Backbone network vs access network

Backbone and access networks are distinct components of computer networks with different functions. In national or global networks, the two are interconnected as follows:

  1. A backbone network is the high capacity core that connects different regions, data centres and ISPs to the internet and cloud services.
  2. A distribution network, which may include backhaul, connects the backbone network to an access network, distributing traffic to regional or local metropolitan area networks (MAN), streets or buildings.
  3. An access network, also known as the “last mile”, connects end users or subscribers to the distribution network, providing access to the internet and cloud services.
Example of a backbone network, showing how it's connected to a distribution network and an access network

In short, a backbone network is the core networking highway that ensures the reliability and performance of large-scale networks, including the internet.

Backbone network functions

In addition to providing high capacity connections between local networks, backbone networks perform several crucial functions, including but not limited to:

  • Aggregation: Backbone networks aggregate data traffic from various sources, including MANs, LANs, WANs and access networks.
  • Routing and switching: Routers and switches efficiently forward data packets across different parts of the network.
  • Redundancy: Core networks are typically designed with backup routes and failover mechanisms to maximise reliability.
  • Authentication and security: Backbone networks use encryption, firewalls and other measures to prevent unauthorised access, data breaches or other cyberattacks
  • Traffic management: As core networks are centralised, they allow you to optimise the data flow, ensuring Quality of Service (QoS) to prioritise critical types of traffic.

Typically, backbone networks can accommodate much higher capacities than the local networks they serve. They’re usually designed to scale as you grow to meet the ever-increasing demand for data.

Types of backbone networks

Backbone networks vary in technology and scale, from local core networks to the internet backbone, which connects network service providers worldwide. However, most core networks have one of the following basic network topologies:

  • Serial backbone: A simple point-to-point connection links two or more connectivity devices, such as connecting a hub to a subnetwork.
  • Distributed backbone: Numerous connectivity devices link to various central hubs, switches, or routers in a layered hierarchy, which is typically used for most large core networks.
  • Collapsed backbone: All connectivity devices link back to a central location in a star topology, which is easy to manage but has a single point of failure.
  • Parallel backbone: Connectivity devices link to a central location but with duplicate connections providing redundancy and resilience.

Backbone network solutions

To sum up, backbone networks are vital components of large-scale networks, ensuring network performance for both service providers and end users. Core networks give you:

  • Seamless connectivity to grow your network
  • Redundancy and resilience to ensure customer experience
  • Flexibility and scalability to meet growing demand

At Neos Networks, we provide backbone networks and backhaul services for businesses across the UK. Optical connectivity is the fabric of any large backbone network, and we offer a range of optical wavelength services to suit your business’s needs with:

  • High availability: Up to 99.95% uptime across our UK-wide network
  • Ultrafast connections: Choose between 10Gbps, 100Gbps and 400Gbps
  • Flexibility: Connectivity options to suit your business and customers nationwide

We’ve already helped several service providers achieve their ambitious growth plans, including:

  • Jisc: Enabling their mission-critical national backbone for education and research facilities across the UK
  • CityFibre: Deploying a Dark Fibre backbone network for their UK fibre-to-the-premises (FTTP) services on the south coast
  • Gigabit Networks: Providing exchange backhaul to supercharge their connectivity in the ‘Golden Triangle’ of Nottingham, Leicester and Derby

To see how we could boost your connectivity across the UK, download our network map. We’ll be happy to help you supercharge your network.

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What is DWDM (Dense Wavelength Division Multiplexing)?

DWDM wavelength

Dense Wavelength Division Multiplexing (DWDM) is an optical networking technology that dramatically increases the bandwidth of existing networks. Learn how it works and how DWDM solutions can help supercharge your business’s connectivity.

Get ultrafast, low latency Optical Wavelengths

Supercharge your network up to 400Gbps

What is Dense Wavelength Division Multiplexing (DWDM)?

Dense Wavelength Division Multiplexing (DWDM) is a kind of Wavelength Division Multiplexing – a technology used to expand the capacity of fibre optic networks. It allows multiple data streams to be transmitted over different light wavelengths through a single fibre.

It’s called ‘dense’ because the gaps between each channel’s wavelengths are much smaller than in Course Wavelength Division Multiplexing (CWDM). As a result, you can transmit many more channels on a single fibre over longer distances.

Learn more about the difference between CWDM and DWDM

How does DWDM work?

Dense Wavelength Division Multiplexing slices the ultraviolet light section of the electromagnetic spectrum into small segments. It’s this tighter wavelength spacing that allows a large number of channels to be carried over a single pair of optical fibres.

DWDM operates on the C band (1525nm to 1565nm wavelengths) or L band (1570nm to 1610nm). The wavelength spacing varies, but a typical DWDM system uses 0.4nm spacing to create up to 88 channels.

DWDM (typical 88-channel plan)

DWDM - typical 88-channel plan showing 0.4nm wavelength spacing

 

That means you can use your existing network infrastructure far more efficiently, removing the high cost and disruption of laying more fibre.

What are the main components of DWDM systems?

A DWDM system consists of five main components:

  • Optical transmitters and receivers
  • DWDM mux and demux filters
  • Optical add/drop multiplexers
  • Optical amplifiers
  • Optical transponders

Optical transmitters and receivers

Optical transmitters and receivers are fundamental components of DWDM systems. Multiple transmitters in each system provide source signals before they are multiplexed, with several individual lasers deployed to handle different channels in the signal.

Each optical transmitter is fed with electronic data bits – ones and zeros – which trigger the modulation of precise optical pulses. To represent ‘one’, the transmitter’s laser generates a pulse of light. To represent ‘zero’, the laser remains inactive.

The pulses of light then travel the length of the optical fibre, where they are demultiplexed before terminating at optical receivers. These optical receivers detect the light pulses and convert them back into electronic data bits.

DWDM mux and demux filters

The mux filter receives different signals from the optical transmitters via multiple fibres. It then combines and transmits them as a composite signal over a single optical fibre.

At the demux filter on the receiving terminal, all the separate wavelengths of the composite signal are separated and sent down different fibres to the optical receivers.

Mux and demux devices are usually passive, requiring no power supply or maintenance to function correctly.

Optical add/drop multiplexers

Optical add/drop multiplexers (OADMs) are installed at intermediate points along a transmission line. They enable new signals to enter the network and existing signals to leave, separating or rerouting different wavelength channels.

Most signals simply pass through the OADM unchanged, but some are dropped by splitting them from the line. At the same time, signals originating at that point can be added and transmitted to another destination.

Reconfigurable optical add-drop multiplexers (ROADMs) are now widely used, allowing the routing and rerouting of any wavelength in any direction.

Optical amplifiers

Optical amplifiers enhance optical signals by directly stimulating photons, increasing amplitude and strengthening the signal.

They’re built into the fibre and can amplify signals over a wide range of wavelengths. A vital part of DWDM systems, they greatly extend the transmission distances of DWDM equipment.

RAMAN amplifiers can be used to allow transmission over longer distances.

Optical transponders

An optical transponder, also known as an O-E-O (optical-electrical-optical) wavelength converter, is a crucial signal transmission component. It gathers incoming optical signals from the client service and converts them to outgoing optical wavelengths compatible with DWDM components.

First, it converts the optical signal into an electrical signal. It then performs either 2R (reamplify and reshape) functions or 3R (reamplify, reshape and retime) functions. Finally, it converts the signal back into an optical signal, hence the name O-E-O.

What is Dense Wavelength Division Multiplexing used for?

Faced with an explosion of data fuelled by the adoption of AI, 5G and IoT, businesses are looking to boost their network capacity. They use DWDM to greatly increase the bandwidth and reach of their optical networks.

With DWDM, you don’t need to install new cables, avoiding the huge costs and long lead times of fibre infrastructure upgrades. Instead, you can fully realise the investment in your existing network by enabling different data streams to be sent simultaneously over a single optical fibre.

While DWDM hardware can be more expensive than other solutions, the cost is justified by significant financial and time savings. In addition, amplifiers serve as repeaters, mitigating optical power loss and enabling DWDM operation over long distances.

Overall, DWDM provides tremendous scalability, reliability and reach for fibre optic networks. Without it, many cloud computing solutions would not be possible, and infrastructure overheads would be significantly higher.

Is DWDM the same as Dark Fibre?

A Dark Fibre network consists of ‘unlit’ fibre optic cables with no service or traffic running on them. You deploy and manage the equipment needed to light it.

DWDM is a technology you can deploy to enhance your network efficiency and maximise capacity. However, running your own DWDM service requires significant IT resources and expertise to deploy and maintain your network.

If you don’t want the upfront costs and hassle of Dark Fibre, consider a managed DWDM solution.

Learn more about Dark Fibre vs DWDM

DWDM solutions for your business

At Neos Networks, we’re helping businesses nationwide transform their networks with DWDM-enabled Optical Wavelengths up to 400Gbps.

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If you’re looking to upgrade your network to meet the exploding demand for bandwidth, get in touch. We’ll be happy to design a high-capacity DWDM solution for your business.

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