Enterprise Network Spend to be Driven by Green IT

CommScope survey identifies that energy efficient solutions will drive enterprise network investment in 2012 as organizations aim to reduce running costs
November 15, 2011 LONDON

A survey of European business enterprises by CommScope, Inc., a global leader in infrastructure solutions for communications networks, has revealed that the majority of businesses (55%) expect investment in network infrastructure to grow by 10-25% in 2012, despite the continued struggles of the global economy. This increased investment will be fuelled primarily by the implementation of environmentally-friendly IT solutions, with network reliability and network intelligence as other key drivers.

Demand for “green” IT solutions in the enterprise is already strong, with 84% of organizations having taken steps to improve the energy efficiency of their networks during 2011. Investment is set to continue next year with 46% of enterprises believing it is the most effective approach to achieving cost efficiencies in the network, which was cited by nearly half of all enterprises (49%) as the most significant goal of 2012.

According to 18% of survey respondents, improving network reliability in the enterprise is the most important objective in the short-term. Reliability problems predominantly were attributed to a lack of network visibility (identified by 37% of enterprises), errors by technicians (21%) and power failures (17%). Investment to enhance network visibility, eliminate blind spots and reduce human error is expected through the continued integration of intelligence into networks at the infrastructure level. The research found that 38% of enterprises are either currently using or installing intelligent infrastructure solutions and a further 23% are ensuring they have a clear upgrade path.

Longer-term investment trends are being dictated by cloud computing and virtualization, which is expected to have the biggest impact on enterprise network infrastructure over the next five years. There is also a move towards hosted data centers, with 64% of enterprises either currently using or considering deployment of colocation solutions in the next three years. This approach is rapidly gaining popularity because of the time and cost savings and risk mitigation that a company can see as result of using shared data center infrastructure.

“Our research shows that network managers are focused on achieving more efficient, intelligent and robust networks. Crucially, it reveals a widespread strategy to achieve cost efficiencies by investing in solutions that are proven to optimize performance and increase reliability, as opposed to simply reducing expenditure or opting for lesser quality alternatives,” said Koen ter Linde, vice president of Enterprise Sales for Europe, CommScope. “The importance of these issues is only going to grow in time and we fully expect organizations, at the very least, to ensure they have a clear upgrade path to energy efficient and intelligent infrastructure, allowing them to deploy full-scale upgrades when the time is right.”

Notes to editors:

  • Data taken from a survey of 100 enterprise network managers and systems integrators, September 2011
  • Summary of key findings:
    • 55% expect investment in network infrastructure to grow by 10 - 25% in 2012
    • 84% have moved towards deploying green IT solutions in the last year
    • 46% believe green IT is the most effective approach to achieving cost efficiencies in the network
    • The biggest priorities of 2012 are achieving cost efficiencies in the network (49%) and improving network reliability (18%)
    • Reliability concerns are being driven by a lack of network visibility (37%), errors by technicians (21%) and power failures (17%)
    • 38% of enterprises are either currently using or installing intelligent infrastructure solutions
    • Of those not using or installing intelligent infrastructure solutions, 23% are ensuring they have a clear upgrade path
    • 64% of enterprises either currently using or considering deployment of collocation/hosted data centers in the next three years

About CommScope

CommScope (www.commscope.com) has played a role in virtually all the world’s best communication networks. We create the infrastructure that connects people and technologies through every evolution. Our portfolio of end-to-end solutions includes critical infrastructure our customers need to build high-performing wired and wireless networks. As much as technology changes, our goal remains the same: to help our customers create, innovate, design, and build faster and better. We’ll never stop connecting and evolving networks for the business of life at home, at work, and on the go.

This press release includes forward-looking statements that are based on information currently available to management, management’s beliefs, as well as on a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. In providing forward-looking statements, the company does not intend, and is not undertaking any obligation or duty, to update these statements as a result of new information, future events or otherwise.

News Media Contact:
Karen Devin, CommScope
+ 353-1-2042079 or kdevin@commscope.com
or
Rick Aspan, CommScope
+1 708-236-6568 or publicrelations@commscope.com
or
Financial Contact:
Phil Armstrong, CommScope
+1 828-323-4848