Johannesburg, 11 Mar 2004
Leading-edge products will not secure budgets
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.
In response to the recent analyst forecasts that global IT spending will experience an up-tick in 2004 ("IDC`s IT and Telecom Spending Outlook 2004, November 2003"), Chris van Niekerk, country manager at 3Com SA, comments that South African CIOs and IT managers face the daunting challenge of gaining budget approval for technology purchases.
"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," he says.
"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."
According to 3Com, the following will be key business drivers for the coming year:
IP telephony - the impact will be felt
Says Van Niekerk: "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 and IP-based conferencing.
Consolidated security - doing away with the add-on appliance approach
3Com predicts that 2004 will see a departure 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.
Wireless - price drops mean hype will become reality
"It`s a simple equation - as prices drop adoption will increase," says Van Niekerk.
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.
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.
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.
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.
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.
Share