* 90% of companies pan to increase bandwidth in 2008. Is it needed?
As I wrote last week, the actual and projected growth in bandwidth is extremely noteworthy. In our upcoming Advanced Communications Services research project, 98% of organizations said they increased bandwidth in 2007 – on average by 80%. And for 2008, 90% expect to increase bandwidth by an average of 66%. The reasons for this growth vary from company to company.
As I wrote last week, the actual and projected growth in bandwidth is extremely noteworthy. In our upcoming Advanced Communications Services research project, 98% of organizations said they increased bandwidth in 2007 – on average by 80%. And for 2008, 90% expect to increase bandwidth by an average of 66%.
The reasons for this growth vary from company to company. Some have centralized applications and data, and need more bandwidth to deliver them to branch locations. Others are deploying new, bandwidth-intensive applications, such as videoconferencing, telepresence, VoIP, or other collaborative tools. And others are experiencing growth within their companies.
Whatever the reason, many organizations plan to spend significant budget on bandwidth this year. Consequently, 63% of companies say they’re using WAN optimization tools in the branch. This is one of the best ways to curtail the purchase of additional bandwidth, while still meeting the capacity demands of users.
Optimization tools include network/bandwidth optimization, route optimization, and application acceleration—and in many cases, products combine some of these features (particularly application acceleration and network optimization). (Compare Application Acceleration and WAN Traffic Optimization products)
Most companies see a payback of about 12 months with these tools, based on the cost of the products compared to the cost of upgrading bandwidth or reducing bandwidth (as a result of the compression, latency reduction, and acceleration techniques applied to traffic).
In cases where there is no substitute for adding bandwidth, such as in a new location or when bandwidth is at capacity even with optimization, companies are opting for less-expensive DSL or cable modem lines. Performance on business-grade lines is solid in most locations. Most companies say at least 80% of their locations are suitable for broadband services. And, the cost is a fraction of a T1 or fractional T3 local loop.
The bottom line: If you’re bandwidth demands are starting to exceed capacity or anticipated capacity, consider optimization or broadband access services as two ways to fulfill the need without breaking the bank.
