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Enterprise Networks Need to be Smarter – Not Just Faster, Says IDC

  • 24 July, 2006 17:56

<p>NORTH SYDNEY, 24th July, 2006 – Smart networks are the way forward, IDC finds that enterprise networks need to deliver more than basic connectivity and speed. IDC's new report "Australia Networking Equipment Forecast &amp; Analysis 2006 – 2010" highlights key trends in the networking equipment market stemming from changing information and end users' demand on the network.</p>
<p>"For IT managers, slapping bandwidth to resolve network issues will no longer be deemed an effective solution from a cost or an applications performance standpoint. What is needed now is a smarter network, one which is application aware and is capable of dynamic resource allocation per application and user," said Shing Quah, Market Analyst – Telecommunications, IDC Australia.</p>
<p>"The behavioral change driving the shift to intelligent, application aware networks is attributed to the increasing number of mission critical applications like VoIP, video, CRM and ERP applications that are streamed over the network, leading to IT managers' increased need for intelligence to view, understand, and ultimately - to control the behaviour of applications within the network," added Ms Quah.</p>
<p>"Networking equipment vendors and their partners need to focus on solution-selling as opposed to box-moving, emphasizing how the network is able to help expedite business processes instead of having technology for technology's sake and to solve business outcomes rather than IT outcomes," said Shing.</p>
<p>IDC Australia's Q106 LAN and WLAN Equipment tracker reveals that the Australian networking equipment market has enjoyed stellar growth in 2005, buoyed by the continued post year-2000 LAN refresh to more intelligent, higher speed networks with greater reliability, the concurrent upgrade of enterprises' TDM PABX-s to IP-enabled or pure IP telephony equipment, as well as Telco’s continued investment in next generation IP network infrastructure.</p>
<p>On the WLAN front, IDC has found that enterprise and SMB customers are changing their mindsets and demanding the delivery of one integrated wired/wireless network. IDC sized the 2005 Australia overall networking equipment market (LAN, WAN, WLAN hardware only) at US$708.45 million, with a 5-year CAGR (Compound Annual Growth Rate) of 3.9% to reach US$856.03 million by 2010.</p>
<p>For press enquiries please contact:
Shing Quah
Market Analyst, Telecommunications
Phone: 61 2 9925 2220
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