Improve Operational Performance and Reduce Costs with Network Segmentation

Written by Tom Batchelor, Product Manager, Networks and Cyber Security at North 

As the network landscape has evolved there is a constant theme which doesn’t just relate to the performance and scalability of the underlying IT network. Organisations are consistently looking for ways to optimise and tune their network infrastructure based on their security posture and network visibility while ensuring they align with compliance and environmental requirements. One of the most effective ways of achieving this is network segmentation.

What is Network Segmentation?

Network Segmentation divides a network into smaller parts, the purpose is to improve network security and limit the impact of a cyber-attack by isolating networks based on network type such as corporate, CCTV or smart city infrastructure traffic. This can be done through choosing to stop traffic in one segment from reaching another, or by limiting the flow by traffic type, source, destination, and other options. By controlling the flow of traffic between segments, network administrators can enforce more granular policies, improve operational efficiency, protect vulnerable Operational Technology (OT) assets and reduce the risk of cyber breaches.

How Network Segmentation Reduces Operating Costs

Scalability & Flexible Infrastructure

When adding a new site to a network, the traditional approach usually means adding additional hardware for all required isolated networks. With network segmentation you can add additional segments for all connected IT/OT services on the same physical network without overhauling the entire network architecture, this means less LAN switch hardware to buy and maintain.

Isolating Network Segments

When network segments are isolated, any security breach is contained within this segment, preventing an attacker from gaining access to the entire network. In this event the damage is often limited to a single segment, saving you the costly process of dealing with a full-scale data breach or network outage. Moreover, segmented networks allow you to implement targeted security measures meaning you don’t need to deploy expensive security solutions across the entire network. Instead, resources can be focused on high-risk areas while maintaining lower-cost protection on other segments. Giving you the ability to identify and contain potential threats reduces the likelihood of costly downtime, legal fees and loss of customer trust and brand reputation impact.

Simplifying Compliance

Many industries are subject to compliance requirements such as GDPR and PCI DSS. Network segmentation reduces the scope of compliance and simplifies the process of achieving compliance by ensuring the sensitive data is isolated into a secure environment.

Reducing Operational Costs with Network Segmentation

Assessing your current network infrastructure and understanding your existing network architecture can identify areas where segmentation can provide immediate benefits. This might include isolating sensitive data, improving traffic flow, or optimising performance. Here’s how:

  • Define your segmentation strategy

Decide how you want to segment your network. This could be based on factors like business function, security level, or geographical location. Each segment should have clear access controls and specific needs.

  • Deploy the right tools

Invest in technologies that facilitate network segmentation, such as Software-Defined Networking (SDN), and next-generation firewalls. Many modern network management solutions include segmentation features.

  • Monitor and optimise

Continuously monitor network performance and security to ensure that segmentation is achieving its intended cost-saving goals. Over time, you may need to adjust your segments as your business grows and evolves.

Conclusion

While network segmentation has historically been associated with enhancing network security, it also presents a unique opportunity to reduce costs. By improving network efficiency, simplifying compliance, and enabling more effective use of IT resources, organisations can reduce operational overheads, avoid unnecessary infrastructure investments, and mitigate the financial impact of security breaches.

As organisations continue to face tighter budget constraints and greater demands on their network infrastructure, network segmentation stands out as a strategic approach to not only boost security but also maximise cost efficiency. By investing in a well-thought-out segmentation strategy, businesses can create a network that is both secure and cost-effective for the long term.

Contact us to arrange a consultation with one of our network security experts.

Date

13 January 2025