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New report analyzes enterprise telecom spending plans

Light Reading Inc.'s market research division has released results of a major survey that delivers an inside look a...


December 21, 2004  


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Light Reading Inc.’s market research division has released results of a major survey that delivers an inside look at enterprise users’ 2005 budget and spending plans for telecom and networking products and services.

The survey was conducted as part of an effort to assess the current state of the telecom industry supply chain.

Key findings include the following:

* Enterprises appear ready and willing to start spending more on telecom products and services in 2005. More than 70% of all enterprise respondents indicated that their organization’s telecom budget will increase in 2005, and 38% said spending would rise by 10% or more.

* Companies with multinational operations are ready to make significant increases in their telecom budgets. Upwards of 46.3% of respondents whose organization operates in more than one country said their telecom budgets will grow by 10% or more in 2005.

* Network security and wireless LAN products are at the top of most enterprise shopping lists for 2005. More than two-thirds of all respondents said their organization would be acquiring VPN and firewall equipment in 2005, and just under 65% said their company’s purchasing plans included 802.11 wireless LAN equipment, and

Interest in VoIP is particularly strong at larger organizations. The report found that 64.3% of respondents from that demographic said they expect VoIP gear to be in the 2005 telecom budget, compared with 48.4% of respondents from organizations with fewer than 1,000 employees.

Further information on the study is available at www.lightreading.com.