Network Speeds Explained: Does your business need 10Gbps networking?

Hint: Probably not, or at least, not yet.

Let’s start by saying that your business is probably using “1 Gigabit Networking”, and for you, that is probably all you need and will need now and for the foreseeable future. In fact, it is estimated that as of 2024, less than 1% of UK businesses require more than 1Gbps internal networking.

So... end of article, right? No. Whilst the majority of UK businesses may not require more than 1Gbps internal business network infrastructure, there is still a need for 2.5Gbps, 5Gbps and even 10Gbps.

But what are these numbers, and how do they translate into something that would be useful for small to medium businesses and large enterprises throughout the UK?

1Gbps, 2.5Gbps, 5Gbps, 10Gbps, Fibre, it may just sound like over-confusing jargon, and it’s easy to get confused about what these network speeds actually mean for your business.

Does a bigger number mean faster? Well, yes. But do you really need a lightning-fast 10Gbps internal network, or will 1Gbps do just fine?

Let's start by breaking down the differences between common network speed types in plain English. However, to put it into perspective, it is best to look at use cases across various industries to help you decide what fits your business needs and budget.

What is the need to know about Network Speed? (1Gb, 2.5Gb, 5Gb & 10Gb explained)

Gigabits per second (Gbps) is a measure of how much data can move across your network each second. A 1Gb (1Gbps) network can theoretically transfer about 1 billion bits per second. For years, 1Gbps Ethernet (the network cable you may plug into your computer or laptop) has been the standard in office networks, and “Gigabit” is the baseline speed of both your network infrastructure and even the compatibility of available ports on your device. Anything slower is almost unheard of now inside offices, unless you have not upgraded your infrastructure in a LONG time. If this is the case, you need to reach out to us yesterday to discuss your infrastructure, as it will likely be holding you back.

However, as with any technology, things are always improving and standards like 2.5Gb or 5Gb Ethernet offer... You guessed it, 2.5 to 5 times the bandwidth/speed of 1Gb. This enables faster data transfers across your network without a complete overhaul of your cabling. These mid-range speeds are gaining popularity as a “sweet spot” as they provide a noticeable boost over 1 Gb while using existing copper cabling that you may have installed over the past 20 years (Cat5e/Cat6 and above) in many cases.

If it's that good, why not upgrade right now?

Whilst many new PCs now come with 2.5 Gb ports by default, not all do, and many businesses may not have hardware (PCs & Laptops) that will benefit from this increase in network speed, as they are likely running older hardware that lacks the necessary network card to process 2.5Gbps or 5Gbps speeds.

If your business primarily processes a lot of on-site data, especially larger files and databases that continuously take up a lot of data traffic on the network or regularly upload or download large files over the internet (or through cloud storage solutions, these faster network speeds could see significant benefits on compatible devices.

However, for many small to medium-sized businesses whose network traffic involves connections out to the internet for web browsing or CMS access, or synchronising documents such as Word or Excel, the speed difference between 1Gbps and 2.5Gbps would likely not be noticeable.

At the high end, 10Gb (10Gbps) networks can (of course) be ten times faster than your standard 1Gb network. That’s a huge leap in capacity. Imagine downloading and transferring a high-quality 4K video internally between network storage and a local PC; this would happen in seconds as opposed to minutes. But it goes beyond this, network speed such as this allows for real-time interaction with large, complex files directly on a network rather than downloading a local copy of each file. For example, video studios often use 10Gb networking to edit footage directly from their network, with real-time “timeline scrubbing”, which usually would be reserved for files that are stored on a device.

However, it is important to know that these are edge cases, and usually 10 Gb Ethernet is typically found in data centres, advanced digital studios, or enterprise setups rather than the average small- to medium-sized office.

Additionally, 10Gb Networking requires higher-grade cabling and more expensive network infrastructure to run reliably, in addition to having dedicated 10Gb compatibility networking cards in servers, network storage and PC’s (10Gb networking in laptops is rare and is usually done through an external dock over a high-speed connection).

In short, 10Gb networking is blazing fast, but it comes with complexity and cost that only make sense if you truly need that level of performance. It would be considered “overkill” for casual office use, unless you were planning on rapid growth in areas that would require this level of connectivity. As put by Cable Matters: “10Gb Ethernet is best suited for power users, media professionals, and enterprise networks that demand the highest levels of performance.

It doesn’t stop here, though; there are even higher speeds (like 40 Gb or even 100 Gb) used in large data centres, enterprises and cloud providers via fibre optics, but those are beyond the needs (and budgets) of most SMEs.

Can you use “fibre” for networking?

Fibre, or fibre-optic cable technology, isn’t a speed on its own, but rather a medium that carries data as light. It can be used for almost any form of data transmission as long as the data is able to be sent, received and converted on both sides of the cable.

Fibre is used to achieve remarkably high speeds or provide connectivity along long-distance links where typical copper data connectivity will lose data integrity and increase latency over longer distances (maximum cable length of 100 meters). For example, your business’s internet connection might be a fibre broadband or leased line, meaning it uses fibre optic cable to deliver fast service (often 100Mbps to 1Gbps or more). Inside your office, fibre cables can be used to link network equipment such as switches, servers, network storage and more for 10Gb+ speeds, or even to connect buildings across a business park.

The key thing to remember is that fibre allows much higher bandwidth and distance than traditional copper cables. When we talk about “fibre connectivity,” think high-capacity, fast data pipelines, whether that’s a fibre internet line coming into your building or fibre cables linking your network infrastructure.

Internal Network vs. Internet Connectivity

It is important to distinguish between your internal network (LAN or Local Area Network) and your internet connection, as the speed of your internet connection may not directly correlate to your internal network capabilities.

Your internal network speed is what devices within your office use to communicate. For example, a PC transferring a file to a server or network-attached storage in another room.

Your internet or WAN (Wide Area Network) speed is what connects your office to the outside world; cloud services, websites, emails, and so on.

Why is it important to understand the differences between these? Because the slowest link in the chain will directly impact your experience.

If you have a super-fast internal network infrastructure (say 10Gbps) but a slow internet connection (say a basic broadband at around 50Mbps), any internet-based task (video calls, file downloads or uploads with a cloud service, and so on) will still be limited to that 50Mbps speed. Upgrading your internal LAN beyond 1Gbps in this case won’t make your internet faster, just the transfer of data within the building (or buildings) where you have this infrastructure. For many small businesses, your internet connection (WAN) is likely to be much slower than 1Gbps, which means a standard 1Gbps internal network is already more than enough for their day-to-day online activities for a small team. However, it is also important to understand that the larger your team, the more likely you are to have multiple people all doing data-intensive tasks. This is where bottlenecks occur.

If you had 250 users on video teams calls (at full 1080p video quality at roughly 4Mbps per user), whilst their internal communication would not be impacted as each user has 1Gbps internal communication, this amount of simultaneous communication over the internet over a 1Gbps internet connection would saturate the bandwidth.

Or, if you had 80-125 users simultaneously downloading a 100Gb file at around 8-12.5Mbps download speed per user, this would also saturate a 1Gbps internet connection.

Alternatively, if you have a 1Gbps internet service (such as a 1Gbps fibre leased line) but your office router and switches are all older 100 Mbps or 1 Gbps models, you won’t be able to use the full capability of that internet bandwidth on each device.

Businesses that have internet provisions above 1Gbps, or plan to in the near future, depending on their requirements, should ensure their internal network infrastructure can handle those speeds (this is where 2.5 Gb or higher Switches and LAN ports might be needed).

Many UK small to medium-sized businesses start with standard business broadband, which is shared with other users and often has asymmetric speeds (fast downloads, slower uploads). It’s affordable and easy to set up, making it ideal for smaller operations. However, standard broadband can slow down at peak times and may not always deliver the advertised “up to” speeds.

A “leased line” is a dedicated fibre internet connection for your business alone, usually offering symmetrical upload/download speeds and rock-solid reliability (backed by higher service level agreements). Leased lines are more expensive, but they’re the go-to for businesses where constant and consistent, high-speed connectivity is critical for their operations.

For businesses, the decision between which internet connection they require often boils down to this: if your business heavily relies on online services or transfers huge amounts of data externally, a faster and more reliable internet connection (Leased Line) is a worthy investment.

But if your internet needs are modest (email, web browsing, cloud apps with light data use) and you can cope if your internet is slower at times or occasionally has outages, a standard fibre broadband will do.

However, it is important to always evaluate where the true bottleneck is for your business, inside your local business network or your connectivity to the internet, before spending on upgrades. This is why it is important to partner with a trusted provider such as us, who can help you to assess your unique business needs.

Does Your Business Need More Than 1Gbps Networking? (Examples)

Not every business needs to jump on the 10Gb bandwagon, and use cases can vary widely in different scenarios across different industries. Let's take a look at some examples:

Professional Services (Accountants, Law Firms, Consultants):
These types of business deal mostly with documents, spreadsheets, and emails. File sizes are relatively small, and most applications are cloud-based or not bandwidth-intensive. A standard 1Gbps internal network is plenty of speed for day-to-day tasks.

In this example, upgrading to 10Gb internal networking would be like buying a Ferrari for a school run; you simply wouldn’t utilise that speed. Budget-wise, stick with affordable 1Gb switches and perhaps invest in a reliable internet connection instead.

Real Estate Agencies:
Similar to other small offices, real estate teams share photos, PDFs, and listings data. Even high-resolution property images or the occasional video tour can move quickly on a 1Gbps network. These businesses mostly use cloud-based CRMs and email, which depend more on internet upload/download speeds than internal networking (LAN) speed. For most real estate businesses, 1Gb internal networking coupled with a reliable internet connection would likely be sufficient. A costly 10Gb network infrastructure would offer no noticeable benefit in this use case.

Creative Studios (Graphic Design, Marketing) vs. Film/Video Production:
This is where we start to see a split in how different industries use their network infrastructure. A graphic design agency working with high-quality images and graphic layouts might do fine on 1Gbps but would likely benefit from a moderate boost to 2.5 Gbps if they frequently pull multi-hundred-megabyte files from a server or network-attached storage (NAS).

But, on the other hand, a professional film or video studio handling large video files (4K/8K footage, raw video streams) is a prime candidate for 10 Gbps networking. Editing video directly off a shared server or NAS over 1 Gbps can become a bottleneck. For example, multiple streams of high-definition or 4K video will quickly saturate a 1Gbps network link, and if you are editing multiple of these in a video timeline 1Gbps connection would be almost unusable for the average editor's workflow. OWC note that a 10Gbps connection is “likely a must for video editors tackling multi-cam HD/4K+ workflows and is a basic necessity for teams working with 4K+ media”.

In practical terms, that means a video team can play and edit large footage in real-time from a network storage device without frustrating lag. So, if you’re in media production, especially post-production, investing in 10 Gb switches, high-grade cabling, and 10 Gb-equipped servers, network storage, and capable workstations will significantly boost productivity.

For lighter multimedia work (e.g. marketing teams producing web content or designers handling Photoshop files), 1Gb-2.5Gb is usually fine. Many creative users in small businesses with roles that cover tasks such as graphic design or basic video edits don’t always max out a gigabit link, and often edit local files synchronised with a cloud storage solution.

Manufacturing & Engineering Firms:
In businesses such as these, they might use CAD software, 3D modelling, or collect data from production machines. If designers or engineers are pulling large CAD files (which can be hundreds of megabytes or more) from a central server, a faster local network (2.5Gb, 5Gb or higher) could save time. However, many manufacturing SMEs today still run comfortably on 1Gb network connectivity, as the data per “transaction” (sensor readings, documents, machine instructions) over the network with their internal infrastructure (servers or network storage) isn’t enormous.

For example, a manufacturer’s network often prioritises reliability of continued connectivity to machines over raw speed, and 1Gbps connectivity with considerations for redundancy in case of hardware failures would be the most important considerations.

That said, if your company is often working with very large design files or doing data-intensive simulations in-house, you might see the benefit of multi-gigabit network speeds for these use cases

Logistics, Retail & Hospitality:
Sounds like an odd mix under one umbrella, doesn’t it? Well, bear with us, as these businesses often share similar considerations for their network infrastructure.

Companies in logistics, retail, and hospitality typically handle lots of small transactions and database updates, whether it’s scanning inventory barcodes or processing sales at a checkout, each piece of data transferred over the network is tiny (bits and bytes, not megabytes). Even with many transactions, the bandwidth usage stays relatively low. 1Gb network infrastructure can handle a surprisingly large amount of this kind of traffic without breaking a sweat.

The more crucial factor across all of these business types is internet connectivity and Wi-Fi coverage:

A hotel might invest in a high-speed internet line to provide guest Wi-Fi and in robust wireless access points, but the wired backbone can remain 1 Gb per link in most cases (unless you plan for all of your guests to all be streaming 4K or 8K video simultaneously). However, large venues such as convention centres or big hotels with hundreds of simultaneous users streaming might consider using 2.5 Gb or 10 Gb uplinks on their core network to ensure sufficient aggregate throughput for the number of simultaneous users. However, a robust internet connection is necessary to supply internet to all of these users.

Similarly, for the typical logistics or warehouse provider, or a chain of retail shops, the bottleneck is often the internet, as they require constant connectivity. For retail, this is often with synchronising with their head office or centralised data centre, and for Logistics, this is often for tracking or digital twinning of goods and synchronisation back for drivers for item delivery and route planning. Here, a reliable broadband or leased line, perhaps with a Satellite or 4G/5G high availability backup, is a higher priority.

What does your business need?

Well, this is the question, isn’t it? It all depends on your use case, your business needs, and even your plans for the future. The practical approach is to look at your current network performance.

• Are employees complaining that it takes ages to save files to the server or download data?
• Do you frequently move very large files, and do those transfers impact productivity?

If not, upgrading beyond 1Gb might yield little noticeable improvement.

On the other hand, if you do handle large media files, run nightly backups that barely finish by morning, or plan to introduce data-heavy applications (like high-res video, big data analytics, or a significant amount of new high-end workstations for 3D modelling), those are good signs that multi-gig networking will provide real benefits.

Remember, you don’t necessarily have to upgrade everything at once; many businesses take a hybrid approach. For example, you might install one or two 10Gb links for your servers or network attached storage (NAS) where it is needed (often 1Gb switches come with higher capacity uplink ports) and keep the rest of the office on 1 Gb. Or even install higher capacity network infrastructure for a particular department that requires it, but keep everywhere else on 1Gb. This way, the heavy hitters get the bandwidth they need without overhauling every desktop connection. By being strategic, you align your spending with actual needs and plans for the future. At TwentyFour IT Services, our vCIO works with businesses as part of their strategic IT planning to ensure that their technology is aligned with their business needs, and through quarterly and annual business reviews, ensures that your business is prepared for these changes in the future.

Do you need to assess your business’s internal network?

If your internal network (LAN) is ageing, not adequately managed or maintained, or if your users are complaining about slow speeds across your internal network or the internet, we are here to help. Book an IT Strategy Consultation with one of our specialists today. We can work through a complete network audit with your business, assessing your individual usage and needs, and recommend the best solutions to meet your growing needs.