Networking spending goes on and on…

Board members at 40 large companies were by 3Com for the research, which found that 74% make ongoing – rather than periodic – investments in networking equipment. But 65 per cent of the companies said they had made a ‘strategic’ investment in their network in the last six months, and gave ‘expansion’ as the top reason.

And the report found that 41% of the average IT budget is swallowed up by ISP and carrier costs (30%) and comms hardware (11%). And respondents claimed that 16% of their budget went on ‘wiring’. Just over half of companies do not separately identify or allocate network costs, according to the survey. Two thirds of companies do allocate the cost of overall IT to specific departments or divisions.

‘This research show that corporates are no longer buying large networks for the future but are now buying little and often,’ said Paul Malcolm, managing director at 3Com UK.

He said restrictions on spending mean IT managers can no longer justify spending on something that is much larger than needed.

3Com is looking move into this market with its expandable resilient networking (XRN) LAN core switching products.

3Com’s XRN product was designed to allow corporates to buy what they need when they need it rather than taking risks.

Malcolm said: ‘This is a different way of doing it that allows you build a distributed network that behaves like a single core network.’

‘It offers all the benefits of a large chassis based network with a modular approach where users can build as required and pay as they go,’ he added.

The networking vendor wanted to understand the buying habits of corpoarates before it began its sales push. ‘The reason we asked for this research to be done was because we are attempting to move into the corporate sector,’ said Malcolm.

Keith Humphreys, analyst at EuroLAN said 3Com has a major job on its hands to get into the corporate arena with it new approach. ‘In Lan networking corporates expect to replenish their requirement every three to four years. If 3Com wants to take this approach it will have a big job convincing people.’

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