2006 U.S. WAN Manager Survey: Enterprise Networking Requirements: Industry Report

2006 U.S. WAN Manager Survey: Enterprise Networking Requirements

Product Type: Market Research Report
Published by: IDC
Published: May 2006
Product Code: R104-26627

Description

This IDC study sheds light on the state of the enterprise market for telecommunications products and services in 2006. IDC asked telecommunications decision makers across different size companies that compete in virtually every major industry for their input regarding issues including budget trends and managed service adoption. The information contained in this study can help guide the marketing initiatives and investment priorities for hardware software and service providers. This survey provides valuable insight by answering some of the most pressing questions about enterprise end-user demand including:

Are enterprise telecommunications budgets increasing? What are the factors driving telecommunications spend? Are spending trends different across company size or industry vertical? Are enterprises rapidly adopting emerging technologies? How fast is the demand for legacy technologies, such as frame and ATM, declining? What technologies will companies migrate to in the future? What are the business drivers igniting the demand for ever more bandwidth? Are companies willing to spend a premium on value-added services such as WAN optimization and application acceleration? Are managed services offerings poised for explosive growth in 2006? Are companies that view the network as a competitive differentiator less apt to employ managed services? What industry verticals are poised for strong managed services growth? Are small and medium-sized business finally adopting managed services?

"Maintaining operations of existing platforms will consume the largest portion of the WAN budget in 2006. But respondents also indicated that they will appropriate a considerable portion of their budgets to investing in new technology platforms including VoIP and IP VPN - an encouraging data point for service providers and equipment vendors alike." - Sean Hackett, research manager, Business Network Services

Table of Contents

Table of Contents
IDC Opinion
In This Study
Methodology
Situation Overview
Survey Findings
Figure: Respondents by U.S. Time Zone
Figure: Respondents by Company Size
Figure: Respondents by Gross Sales Volume
Figure: Respondents by Telecommunications-Data Services Spending in 2004
Figure: Respondents by Importance of Enterprise WAN
Figure: Respondents by Hosting Strategy
Figure: Respondents by Vertical Market
WAN Spending
Key Issues Driving Network Expenditure
Percentage of WAN Ports Based on Specific Technology
Migration Drivers
WAN Bandwidth
Enhanced Service-Level Agreements and Class of Service Features
WAN Optimization and Application Performance Solutions
Outsourcing of Networking-IT Infrastructure Management
Table: Spending on Telecommunications-Data Services in 2004 by U.S. Time Zone (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Company Size (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Total Gross Sales Volume (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Telecommunications-Data Services Spending (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Telecommunications Network (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Hosting Strategy (% of Respondents)
Table: Spending on Telecommunications-Data Services in 2004 by Vertical Market (% of Respondents)
Figure: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by U.S. Time Zone (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Company Size (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Total Gross Sales Volume (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Telecommunications-Data Services Spending (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Telecommunications Network (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Hosting Strategy (% of Respondents)
Table: Expected Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Vertical Market (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by U.S. Time Zone (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Company Size (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Total Gross Sales Volume (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Telecommunications-Data Services Spending (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Telecommunications Network (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Hosting Strategy (% of Respondents)
Table: Expected Increase in Spending on Telecommunications-Data Services for the Upcoming Fiscal Year by Vertical Market (% of Respondents)
Figure: Significance of Issues in Network Expenditure
Table: Significance of Issues in Network Expenditure by U.S. Time Zone
Table: Significance of Issues in Network Expenditure by Company Size
Table: Significance of Issues in Network Expenditure by Total Gross Sales Volume
Table: Significance of Issues in Network Expenditure by Telecommunications-Data Services Spending
Table: Significance of Issues in Network Expenditure by Telecommunications Network
Table: Significance of Issues in Network Expenditure by Hosting Strategy
Table: Significance of Issues in Network Expenditure by Vertical Market
Figure: Planned WAN Spending Share over the Next 12 Months
Table: Planned WAN Spending Share over the Next 12 Months by U.S. Time Zone
Table: Planned WAN Spending Share over the Next 12 Months by Company Size
Table: Planned WAN Spending Share over the Next 12 Months by Total Gross Sales Volume
Table: Planned WAN Spending Share over the Next 12 Months by Telecommunications-Data Services Spending
Table: Planned WAN Spending Share over the Next 12 Months by Telecommunications Network
Table: Planned WAN Spending Share over the Next 12 Months by Hosting Strategy
Table: Planned WAN Spending Share over the Next 12 Months by Vertical Market
Figure: WAN Ports Based on Platform
Table: WAN Ports Based on Platform by U.S. Time Zone (Mean %)
Table: WAN Ports Based on Platform by Company Size (Mean %)
Table: WAN Ports Based on Platform by Total Gross Sales Volume (Mean %)
Table: WAN Ports Based on Platform by Telecommunications-Data Services Spending (Mean %)
Table: WAN Ports Based on Platform by Telecommunications Network (Mean %)
Table: WAN Ports Based on Platform by Hosting Strategy (Mean %)
Table: WAN Ports Based on Platform by Vertical Market (Mean %)
Figure: Planned WAN Ports Based on Platform in 12 Months
Table: Planned WAN Ports Based on Platform in 12 Months by U.S. Time Zone (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Company Size (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Total Gross Sales Volume (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Telecommunications-Data Services Spending (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Telecommunications Network (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Hosting Strategy (Mean %)
Table: Planned WAN Ports Based on Platform in 12 Months by Vertical Market (Mean %)
Figure: Significance of Issues Driving Technology Platform Migration
Table: Significance of Issues Driving Technology Platform Migration by U.S. Time Zone
Table: Significance of Issues Driving Technology Platform Migration by Company Size
Table: Significance of Issues Driving Technology Platform Migration by Total Gross Sales Volume
Table: Significance of Issues Driving Technology Platform Migration by Telecommunications-Data Services Spending
Table: Significance of Issues Driving Technology Platform Migration by Telecommunications Network
Table: Significance of Issues Driving Technology Platform Migration by Hosting Strategy
Table: Significance of Issues Driving Technology Platform Migration by Vertical Market
Figure: Planned Changes in WAN Bandwidth over the Next 12 Months
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by U.S. Time Zone (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Company Size (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Total Gross Sales Volume (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Telecommunications-Data Services Spending (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Telecommunications Network (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Hosting Strategy (% of Respondents)
Table: Planned Changes in WAN Bandwidth over the Next 12 Months by Vertical Market (% of Respondents)
Figure: Planned Increase in WAN Bandwidth over the Next 12 Months
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by U.S. Time Zone (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Company Size (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Total Gross Sales Volume (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Telecommunications-Data Services Spending (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Telecommunications Network (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Hosting Strategy (% of Respondents)
Table: Planned Increase in WAN Bandwidth over the Next 12 Months by Vertical Market (% of Respondents)
Figure: Planned Share of WAN Budget Spending Based on Technology over the Next 12 Months
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by U.S. Time Zone
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Company Size
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Total Gross Sales Volume
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Telecommunications-Data Services Spending
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Telecommunications Network
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Hosting Strategy
Table: Planned WAN Budget Spending Based on Technology over the Next 12 Months by Vertical Market
Figure: Prevalence of Enhanced SLAs and CoS Features
Table: Prevalence of Enhanced SLAs and CoS Features by U.S. Time Zone (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Company Size (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Total Gross Sales Volume (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Telecommunications-Data Services Spending (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Telecommunications Network (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Hosting Strategy (% of Respondents)
Table: Prevalence of Enhanced SLAs and CoS Features by Vertical Market (% of Respondents)
Figure: Prevalence of CoS Features
Table: Prevalence of CoS Features by U.S. Time Zone (% of Respondents)
Table: Prevalence of CoS Features by Company Size (% of Respondents)
Table: Prevalence of CoS Features by Total Gross Sales Volume (% of Respondents)
Table: Prevalence of CoS Features by Telecommunications-Data Services Spending (% of Respondents)
Table: Prevalence of CoS Features by Telecommunications Network (% of Respondents)
Table: Prevalence of CoS Features by Hosting Strategy (% of Respondents)
Table: Prevalence of CoS Features by Vertical Market (% of Respondents)
Figure: Prevalence of WAN Optimization and Application Performance Solutions
Table: Prevalence of WAN Optimization and Application Performance Solutions by U.S. Time Zone (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Company Size (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Total Gross Sales Volume (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Telecommunications-Data Services Spending (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Telecommunications Network (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Hosting Strategy (% of Respondents)
Table: Prevalence of WAN Optimization and Application Performance Solutions by Vertical Market (% of Respondents)
Figure: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by U.S. Time Zone (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Company Size (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Total Gross Sales Volume (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Telecommunications-Data Services Spending (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Telecommunications Network (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Hosting Strategy (% of Respondents)
Table: Planned WAN Optimization and Application Performance Solutions over the Next 12 Months by Vertical Market (% of Respondents)
Figure: Outsourcing of Networking-IT Infrastructure Management
Table: Outsourcing of Networking-IT Infrastructure Management by U.S. Time Zone (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Company Size (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Total Gross Sales Volume (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Telecommunications-Data Services Spending (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Telecommunications Network (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Hosting Strategy (% of Respondents)
Table: Outsourcing of Networking-IT Infrastructure Management by Vertical Market (% of Respondents)
Future Outlook
Essential Guidance
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