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3Com predicts business drivers for 2004

  • 30 January, 2004 11:29

<p>Leading edge product alone will not secure budgets and 3Com sets the pace with
business-focused technology</p>
<p>SYDNEY, Australia — 29 January, 2004 – Several developing technologies are set to propel businesses in 2004. However, if spend cannot be justified in terms of return on investment and competitive advantage, corporate cheque-books are set to remain ink-free.</p>
<p>Stanimira Koleva, managing director of Asia Pacific, 3Com, made this statement and other predictions today in response to recent analyst forecasts that global IT spending will experience an up-tick in 2004 (IDC, “IT and Telecom Spending Outlook 2004, November 2003”). These assertions highlight the daunting challenge faced by Australian and New Zealand CIOs and IT managers in gaining budget approval for technology purchases.</p>
<p>“Despite budgets being on the rise, companies will continue to squeeze every last drop of value out of existing assets, incorporating new technology only where there is a solid, low-risk business case to do so”, Stanimira commented on the outlook for 2004.</p>
<p>“For vendors, demonstrating a solid understanding of a prospect’s business, and helping them win budget approval, will ultimately spell the difference between sales increase and market flop. On the other hand, for project managers and CIOs, explaining technology proposals in plain language that conveys business value, using dollars and cents, will win budget approval.”</p>
<p>Stanimira continued, “No one will be surprised to hear that wireless proliferation will continue to cause a buzz, but areas such as building hybrid networks and adopting IP telephony will also receive strong consideration when it comes to budget allocation.”</p>
<p>IP Telephony – the impact will be felt
• Stanimira says, “Talk will finally become action for IP users and legacy PBX users operating hybrid networks, leveraging existing investments. Vendors have been preaching big things for VoIP; now it’s crunch time”
• Benefits will include: IP-based voice support; multiple dial plans and call back options; options for centralised services using SIP phones; control through Web-based provisioning; multiple routing options (including least cost routing); authentication, validation and rating; number translation; enhanced voice mail; unified communications; IP-based conferencing; and presence detection</p>
<p>Consolidated security – doing away with the add-on appliance approach
• According to Stanimira, 2004 will see “a turn away from the ‘band-aid’ appliance approach in favour of security that is built into the fabric of an enterprise network. Centralised, standards-based security will be the order of the day”</p>
<p>Wireless – price drops mean hype will become reality
• “It’s a simple equation – as prices drop adoption will increase,” said Stanimira, discussing an anticipated drop in subscriber-based wireless access costs, which will lead to further hotspot uptake
• As products compatible with 802.11a, 802.11b and 802.11g become commonplace, corporate investment will increase
• Vendors (including 3Com) will move towards viable voice-over-wireless solutions capable of delivering tangible return on investment
• Technology developments will see security expand beyond the corporate network and into the public wireless domain</p>
<p>Hybrid Networks to increase
• Fragmented networks (typified by disparate applications, wired limitations and unconsolidated security appliances) are difficult to manage and hamper productivity, making it difficult to meet business goals
• Productivity gains will result from hybrid networks through IP-based convergence mixed with legacy, resulting in security and manageability improvements that lower administrative and operational costs. Koleva’s tip for IT managers and CIOs is that this will “result in real benefits that will win over the purse-string holders”</p>
<p>Gigabit at the desktop
• Prices will fall and gigabit at the desktop will increase, partly as result of its increased inclusion on motherboards by manufacturers
• Increased bandwidth demands will see a spike in 10 Gigabit over the next two years</p>
<p>IP Storage – the momentum builds
• “Enterprise IT managers see complexity and costs associated with traditional storage as a major headache and in 2004 they will begin to take IP storage as the effective pain reliever,” said Stanimira. IP-based solutions, including Gigabit Ethernet for infrastructure supporting storage set-ups, will assist in making enterprise networks more flexible, more manageable, improving total cost of ownership and being able to capitalise on integrated applications</p>
<p>For a detailed article, “2004 Trends to Watch In The Enterprise Market,” please send a request to</p>
<p>About 3Com
3Com is a leading provider of innovative, practical and high-value voice and data networking products, services and solutions for enterprises of all sizes and public sector organisations. For further information, please visit, or the press site</p>
<p>For further information, please contact:</p>
<p>Gerard Mansour
Red Agency
(+61) 02 9955 7877</p>

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