Almost a year ago, it became apparent that the worsening global economy was going to have a major impact on many industries, including telecommunications. Consequently, we surveyed the Webtorials user base to try to help determine what the impact of the economic crisis would be on telecommunications budgets and plans. These results were published in our “2009 Network Plans and Priorities State-of-the-Market Report.”
What CEOs say about the economy
We found that almost universally, organizations were going to see an increase in the importance of the telecommunications infrastructure, they were going to be asked to do more, and this was expected without an increase in budgets or staffing.
At the end of June 2009, we decided it was time for a follow-up to see how the situation had evolved over the intervening months, and, as a result of the follow-up survey, we’ve just released the “2009 Network Plans and Priorities Mid-year Update.”
A brief summary of the findings showed that:
” – Survey respondents expect economic conditions to continue to have a negative impact on IT operations.
– Respondents overwhelmingly expect budget allocations to decrease most for conferences requiring travel; staff salaries, telecommunications services, and local conference budget allocations are the only areas seen as more likely to stay the same than decrease. Telecommunications services is seen as the most likely area in which the budget allocations would increase.
– Respondents think that the importance of IT and the desire for new IT capabilities will both increase, but that increased funding will not be allocated.”
Further, the report notes that, “Overall, the responses of those taking the survey at the end of June 2009 are very similar to those from November 2008, despite the eight intervening months. Perhaps the similar values of some economic metrics accounts for this – one imagines that a follow-up survey coinciding with the lowest values of the Dow Jones Industrial Average in mid-March might have found a great deal more pessimism!
“Whatever the reason for the similar survey results, respondents still expect that the growth in importance of networking assets and capabilities that has occurred over the last 30 years will only continue, IT professionals will be asked to do more with fewer dollars over the next year. For most companies, then, a focus on efficient, cost-productive investments in networking assets, services, and personnel will be crucial to surviving the current market downturn and thriving in the eventual economic revival.”
While these occasional snapshots are most useful, we also think that this topic deserves and ongoing dialogue. For that reason, we’ve started an discussion at the Webtorials Water Cooler on “Networking plans and priorities – Are we recovering?” We would greatly appreciate your input in this discussion.
