Enterprise network spending holds up despite downturn

Britain's leading businesses are continuing to make significant investment in their networks despite the economic downturn.

Britain's leading businesses are continuing to make significant investment in their networks despite the economic downturn.

New research has shown that almost two thirds (65%) of organisations have made a significant investment in their network within the last six months, with a further 15% making investments in the past year.

Of these, 74% said they were "continuous investors" in new technology, making ongoing or piecemeal, rather than periodic, investments in their network.

Carrier and ISP costs accounted for the largest portion of IT budgets, according to the survey.

Forty board members from The Times Top 1,000 companies were interviewed in the survey, which was carried out by independent research company, Z/Yen Aspect for network equipment manufacturer 3Com.

Paul Malcom, UK country manager of 3Com, said the results showed investment was now being made in response to demand and that network technology had to offer users flexibility in the way they build their local area network cores

The survey showed that 43% of the finance sector's recent network expenditure was on bandwidth and that 60% of the distribution sector had made changes to their Wide Area Networks.

The average IT budget:
Internal Hardware 21%
Communication Hardware 11%
Carrier & ISP costs 30%
Servers & Storage Hardware 7%
Server & Storage Software 5%
Wiring 16%
Other 9%

Source Z/Yen Aspect

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