It always is dangerous to make predications about what enterprises will do when extrapolating from what they did last year, and what executives say they will do in the coming year, and doubling difficult at transition points, which is where enterprise IT managers likely will find themselves in early 2010.
As IT spending clearly was under pressure in 2009,. the issue is how much growth will happen in 2010 as postponed projects must be started, and how much top-line revenue growth enterprises actually can eke out, since it is hard to see a sustained increase in IT spending without top-line revenue growth. Up to this point in 2009, profitability increases at most enterprises have come because of cost cutting, not revenue growth, and that cannot continue indefinitely.
Investments for cost cutting for that reason appear to have been a big priority for enterprises in 2009. About 24 percent of those polled say cutting telecom and network costs were a critical priority, and 48 percent say it was a high priority.
But some underlying trends likely will re-emerge in 2010. Data center consolidation has been a high priority for cost and disaster recovery reasons, with 24 percent of respondents. saying that is a “critical” priority and 43 percent saying it is a “high” priority.
About 40 percent of enterprise executives say mobility, collaboration and voice over IP continue to be high or critical priorities.
Desktop IP telephony migration continues, while other VoIP technologies of high interest also will get attention. Some 34 percent of enterprises say they already have implemented or are implementing desktop VoIP, and an additional 14 percent are expanding or upgrading their VoIP environment.
IP conferencing, including Web, video, and audio, while not yet implemented widely, have high interest as well.
Cost savings, faster communication, and decision speed are values that drive UC adoption, says Ellen Daley, Forrester Research analyst. UC adoption continues to see traction, as well. About 21 percent of firms report that they are already, or are currently implementing, a UC solution, while nine percent are expanding or upgrading their current UC solution.
About 15 percent say they are piloting one. An additional 39 percent of firms are interested in or are considering UC solutions.
The top motivation for adopting UC is cost savings, followed by increasing communication between users. It appears enterprise executives are more comfortable with UC as well.
Some 51 percent of executives say they understand how UC will affect the way their companies do business. Still, about 32 percent of respondents say they still have some questions about UC value.
Integrated voice, email, and instant messaging top the list of the most desired features for UC.
Web conferencing and audio- and videoconferencing capability come in second while presence, allowing others to see coworkers’ status, comes in third.
Almost half of enterprises buy managed services, and though cost savings are a factor, freeing up time to focus on core business issues has grown as a driver of perceived value.
About 62 percent of respondents say that they have already purchased or are interested in purchasing managed or outsourced telecommunication services.
Unlike in past years, the top reason isn’t cost savings, although it is still high on the list. Instead, firms are opting for managed services to enable them to focus on their core business competencies.
Telecom and network buyers are also interested in managed services beyond physical networks and telecom services like multiprotocol label switching. Web conferencing and or collaboration are the most popular managed services among respondents.
About 52 percent of those polled say they are very or somewhat interested in the technology.
Firms also are interested in network-based security services (46 percent), storage and backup services (44 percent) and data center services (43 percent).
About 51 percent are using IP technologies for contact centers. About eight percent are piloting IP contact center implementations, 31 percent are implementing now and
12 percent say they are upgrading or expanding their existing IP contact center capabilities.
So far, though, enterprise executives have lukewarm interest in hosted contact center solutions, Daley says.
Close to half of firms (49 percent) expect their overall number of contact center seats to remain about the same over the next year, with similar portions either increasing (23 percent) or decreasing (24 percent) seats.
Outsourcing of contact center seats is a different matter, though, says Daley. About 30 percent of firms report planning to outsource more of their contact center seats, while 51 percent of firms anticipate no change.
Both MPLS and Ethernet wide area networks are popular. About 36 percent of those polled say they already have completed their firm’s migration to MPLS. Ethernet adoption is which is growing fast as well, but has not yet reached use of MPLS, Daley says.
Managed MPLS is also popular, with 30 percent of firms already using it, and 22 percent of firms using managed Ethernet service.
Cost is the most important criterion when choosing landline data service providers, respondents say. About 60 percent of buyers say that is a very important consideration.
Service level agreements are important to 49 percent of respondents. Vendor pricing models, especially clarity on service elements and options, are very important to 43 percent of buyers.
Nearly 65 percent of respondents say they have, or are implementing, wireless local area
networks. And while SMB respondents generally are not that interested in public data networking, enterprise executives are much more interested both in fixed WiMAX (23 percent) and mobile WiMAX (25 percent) of respondents.
The majority of respondents have deployed wireless email or BlackBerry applications. Customer-facing applications dominate, though there is interest in line-of-business apps as well, though little buying as of yet, says Daley.
The majority of enterprises buy vendors’ mobile versions of existing packaged applications (41 percent), but a large portion also are developed in-house (35 percent) or are custom-built by third parties (33 percent).
Cost is the most important criterion (68 percent) for choosing a mobile network service provider, followed by domestic coverage (56 percent).
