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Survey Shows Most Australian Organisations Suffer Significant Network or Application Performance Degradation

  • 19 August, 2003 16:59

<p>~ Existing Network Monitoring Tools Ineffective; Over One Third of Organisations Have Delayed Launching New Applications Because of Performance Degradation Concerns ~</p>
<p>SYDNEY Australia, August 19, 2003 -- Approximately 78% of Australian organisations have experienced an incident of significant degradation in network or application performance as a result of an unanticipated WAN or Internet traffic increase in the last 12 months, according to a new survey conducted by Packeteer®, Inc. (NASDAQ: PKTR), a leading provider of application traffic management systems, and Dimension Data Australia.</p>
<p>"This survey shows that application performance degradation and network congestion are significantly impacting Australian organisations," said Peter Owen, Territory Manager, Australia &amp; New Zealand for Packeteer. "Until enterprises implement solutions that specifically address application performance issues, the problem will only get worse."</p>
<p>About 11% of organisations surveyed said 'no' when asked, "Has your company experienced an incident of significant degradation in network or application performance as a result of an unanticipated WAN or Internet traffic increase in the last 12 months?". A further 11% said they were 'not sure'.</p>
<p>When asked, "How do you know when there is application performance degradation on your network?", 73% of organisations said they only knew they had problems when employees complained. 'Monitoring of network performance' (16.2%) and 'monitoring of application performance' (2.7%) raised the alarm at fewer than one in five organisations. The different sorts of human alarms included 'calls to the help desk' (37.8%), 'employee complaints' (24.3%), 'management complaints' (8.1%) and 'personal experience using the network' (2.7%). A further 8.1% of organisations chose 'other'.</p>
<p>"The responses to this question suggest two things," said Mr Owen. "Firstly, that the traditional means of alerting managers to poor application performance are often ineffective and fail to take advantage of both currently installed and available technology. And secondly, that application performance degradation is sufficiently disruptive to cause employees and managers to call help desks or personally complain to IT and network managers. There's clearly a lot of pain out there."</p>
<p>Concerns about application performance degradation are having a particularly serious impact on the operations of many Australian organisations. When asked, "Has your company delayed launching new applications due to concern over bandwidth congestion?" over 35% said 'yes'. At around 57% of organisations, these concerns had not delayed the launch of new applications, a further 8.1% were not sure.</p>
<p>"Application performance degradation seriously affects business operations at many organisations," said Mr Owen. "Many enterprises are delaying the launch of new applications or extending the rollout of new applications because of concerns about networked application performance. These delayed applications, including ERP, company portals, CRM and the webification of existing applications, may be critical to their future success."</p>
<p>The survey was completed in June and July this year by IT and network managers responding to an online campaign conducted by Packeteer and Dimension Data Australia. The 42 organisations which responded all operate within the corporate or government sectors.</p>
<p>According to Packeteer, the problems identified in the survey are closely associated with the increasing use of open networks and with their heavy reliance on the Internet in enterprise environments. In this new environment, critical business applications can lose the bandwidth battle to less urgent traffic such as casual web surfing, large email attachments, streaming media and file transfers. Organisations lose control of their networks, and application performance fails to meet users' needs.</p>
<p>With Packeteer's solutions, incidents of acute network congestion can be better controlled to ensure acceptable application performance and support a plethora of new business applications including streaming media, Internet broadcasting, hosted applications, and voice over IP.</p>
<p>Increasingly, organisations must look to implement solutions that allow more active bandwidth management, including monitoring and control of traffic by application. The result will be increased network performance, improved employee productivity, and most importantly, a possible increase in the bottom line profits of an organisation.</p>
Based in Cupertino, Calif., Packeteer® (NASDAQ: PKTR) is a leading provider of application traffic management systems designed to enable businesses to gain visibility and control of networked applications, extend network resources and align application performance with business priorities. For service providers, Packeteer systems provide a platform for delivering application-intelligent network services that control quality of service, expand revenue opportunities and offer compelling differentiation.</p>
<p>The company's products are sold through more than 100 resellers, distributors and system integrators in more than 50 countries. For more information, visit the company's web site at</p>
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The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Packeteer's expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include express or implied statements regarding future revenues and profitability, spending levels by existing and prospective customers, new product development, liquidity and macro economic conditions. All forward-looking statements included in this press release are based upon information available to Packeteer as of the date hereof. Packeteer assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Actual results may differ materially due to a number of factors including the perceived need for our products, our ability to convince potential customers of our value proposition, the costs of competitive solutions, continued capital spending by prospective customers and macro economic conditions. These and other risks relating to Packeteer's business are set forth in Packeteer's Form 10-K filed with the Securities and Exchange Commission on March 21, 2003, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.</p>
<p>TRADEMARKS: Packeteer, PacketShaper and PolicyCenter are registered trademarks and PacketSeeker, ReportCenter, PacketWise, AppVantage and AppCelera are trademarks of Packeteer, Inc. All other products and services are the trademarks of their respective owners.</p>
Chris Bowes
Bowes Communications
Phone: +61 (0)2 9387 2332

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