Geo surveyed IT and network professionals in some of the UKâs largest financial services companies, retailers and local authorities on their top spending priorities for 2010. The survey found that three quarters (77 percent) of respondents said that they were committed to increasing bandwidth next year. The research also shows that technology investment will drive this need for network upgrades, as 13 percent of businesses plan to make greater use of cloud computing or virtualisation, and a further 13 percent will increase their storage requirements.
The research paints a picture of a world where bandwidth has become a business critical matter, and fibre optic speed communications an integral part of enabling everything from algorithmic share trading to processing online shopping orders. It is further underlined by analyst Point Topicâs recent findings that there are now more than 443 million broadband subscribers worldwide, with this number likely to grow by ten percent in 2010.
Geo discovered that demand among enterprises for increased network capacity will grow strongly in 2010, with more than half (54 percent) of IT decision makers questioned preparing to grow bandwidth by between 20 and 50 percent. A further ten percent expected their requirements to rise by more than 50 percent in the next twelve months.
Mark Ryder, Director of Enterprise for Geo, said: âThe level of investment that businesses will be committing to bandwidth alone in 2010 points to two important findings. Firstly that things are finally looking up economically; and secondly that, if one in ten businesses will require 50 percent more bandwidth by December next year, they need to think carefully about how theyâre going to find it.â
âThe fact is that in order to access the high speed, low-latency and easily scalable communications that high-bandwidth consuming organisations need, more may need to consider âgoing privateâ when it comes to their network infrastructure. When a businessâs bandwidth requirement doubles every two years, itâs vastly more affordable for it to own and manage its own network rather than depend on a patchwork of managed services.â
The increasing difficulty that businesses find in squeezing sufficient bandwidth over the UKâs progressively more contended public internet infrastructure is further underlined by Geoâs research. 38 percent of respondents identified general increases in data traffic as being the principal cause of their networks slowing down. Mark continued: âThe fact that the sheer quantity of data running over networks belonging to the UKâs biggest banks, insurers and retailers is growing markedly and causing them to slow down makes a powerful case for greater use of dedicated infrastructure.â
Mark concluded: âThis research bears out our own experience that bandwidth is the one thing companies canât afford not to invest in. Our economy now depends on the internet, but large organisations are increasingly asking themselves if itâs possible to share the finite resources of the public internet with half a billion broadband users without impacting their own operations. Hence we are seeing a surge in interest for dedicated networks that will furnish these organisations with the bandwidth they need now and in the future.â