Budget numbers
Network World, 8/31/98
Budgets are getting bigger
As a whole, salary budgets got bigger in 1998. Respondents were asked whether their current salary line increased, decreased or stayed the same as their 1997 salary budgets.
Increased 70%
Decreased 8%
Stayed the same 23%
Percentage totals more than 100 due to rounding.
Great expectations
The voice, data and video operating budget for this year vs. estimates for next year show that some managers expect their budgets to be bumped up to the $5M to $9.99M range.
1998
Less than $100,000 5.5%
$100,000 - $499,000 17.5%
$500,000 - $999,000 17.5%
$1M - $4.99M 25.5%
$5M - $9.99M 6.5%
$10M+ 10.5%
Don't know 17%
1999
Less than $100,000 5.5%
$100,000 - $499,000 16.5%
$500,000 - $999,000 15%
$1M - $4.99M 22.5%
$5M - $9.99M 8.5%
$10M+ 10.5%
Don't know 21.5%
When it comes to capital equipment, a few respondents also expect to make the jump to the $5M to $9.9M bracket next year.
1998
Less than $100,000 5.5%
$100,000 - $499,000 18%
$500,000 - $999,000 17.5%
$1M - $4.99M 24.5%
$5M - $9.99M 5.5%
$10M+ 5.5%
Don't know 23.5%
1998
Less than $100,000 6.5%
$100,000 - $499,000 16%
$500,000 - $999,000 14.5%
$1M - $4.99M 23.5%
$5M - $9.99M 6.5%
$10M+ 5.5%
Don't know 27.5%
Big spenders
Respondents backed these products and technologies with more budget dollars this year.
Switches 7.5%
ATM 6%
Routers 6%
Fast Ethernet 5%
Network expansion/ 4.5%
upgrade
Hubs 3.5%
Year 2K projects 3.5%
WAN expansion/
upgrade 2%
(Everything else below 2%)
Quick to seek approval
As networks become more critical to business, purchase approval cycles are shrinking. Respondents were asked how many months it takes to get major network expenditures approved today vs. two years ago.
Today
Less than 1 month 11%
1 month 19.5%
2 months 25.5%
3 months 17.5%
4 months 5%
5 months 2%
6 months 11%
7 - 12 months 4%
Over 12 months 2.5%
Don't know 2%
Two years ago
Less than 1 month 8.5%
1 month 17%
2 months 20.5%
3 months 18%
4 months 5.5%
5 months .5%
6 months 11.5%
7 - 12 months 4.5%
Over 12 months 2.5%
Don't know 11.5%
Freezing projects
Respondents were asked how often they had to hold back on major expenditures during the past year.
Never 44%
Once 10%
Twice 18%
Three times 7%
Four times 5%
Five or more 16%
times
Those who had to delay expenditures at least once were asked what technologies or projects were affected:
ATM 5%
Servers 5.5%
Internet/intranet
infrastructure 4%
Fast Ethernet switches 3%
Network management 3%
Routers 2%
Client/server systems 2%
WAN expansion/upgrade 2%
IP telephony 1%
Windows NT 1%
(Everything else below 1%)
Arriving at a figure
Respondents use several different methods for determining budget amounts for each line item.
Benchmarking 29%
Needs assessment 72%
Take what we can get 53%
Discuss with
colleagues 35%
Examine ROI 36%
(Multiple responses permitted.)
A wide reach
Number of end users respondents support:
Less than 1,000 34%
1,000 - 2,499 16.5%
2,500 - 4,999 15%
5,000+ 34.5%
Total number of sites for which respondents have budgetary responsibility:
1 - 5 43.5%
6 - 10 13.5%
11 - 20 12.5%
21 - 50 10%
51 - 100 5.5%
100+ 15%
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