Enterprises' network demand on collision course with budget

BANGALORE, INDIA: On average, respondent organizations spent around $2 million each on networking equipment in 2012. Enterprises' top four networking-related initiatives over the next 12 months are beefing up security, adoption of cloud architectures/services, virtualization of IT infrastructure and cost containment.

This is according to Infonetics Research's new Network Equipment Spending and Vendor Leadership: North American Enterprise Survey.

"Our latest enterprise survey uncovered a solid outlook for network equipment spending, driven by the ever-growing demands placed on network infrastructure. But not all is well: there is a disconnect between the growth in network usage and enterprise budgets, and cost containment is one of the top priorities over the next year. Vendors who can solve this challenge are best positioned to take share in this $27-billion-a-year market," advises Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

Respondents plan to slightly throttle WLAN expenditures this year, correspondingly increasing router and switch outlays.

Company headquarters are the top investment focus, but those surveyed intend to ramp branch office spending as they seek new opportunities for post-recession growth. Survey respondents rate Cisco the top networking manufacturer overall, but the big IT suppliers - IBM, HP and Dell - have beefed up their networking capabilities and are battling for the #2 position.