Cable / Telecom News

Canadian businesses plan to increase network spending over the next two years: Survey

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THORNHILL, Ont. – Canadian businesses have not caught up to their international counterparts when it comes to the implementation of IP convergence, says a new survey out yesterday.

According to a new global survey conducted by the Economist Intelligence Unit (EIU) for AT&T Inc. (NYSE:T), nearly half (48%) of companies surveyed worldwide have already implemented IP convergence, compared to just over one third (37%) in Canada.

However, the study also shows that Canadian businesses are more apt than other countries’ businesses to look beyond the bottom line when it comes to network convergence.

The survey of 395 global senior executives, called "Convergence Takes Hold in the Enterprise", reveals a maturing attitude toward convergence. As well, 79% of Canadian businesses surveyed said that a key benefit of IP convergence is “better collaboration with customers, suppliers and partners” (compared with 70% worldwide), while 80% of Canadians cited “better customer service” as an advantage. Executives from all surveyed countries continue to expect streamlined network management and cost-savings as the primary advantages of network convergence.

While Canadian business leaders appear to lag behind their global counterparts, says the survey, a nonetheless overwhelming majority recognizes the centrality of convergence to their strategic IT and business goals (77% as compared with 84% globally).

The EIU white paper demonstrates that Canadian companies are prepared to make a substantial investment to reap the benefits of convergence. More than three-quarters of Canadian business respondents (77%) expect their firms to increase network investment by at least 10% over the next two years. Globally, this number is 72%.

But all this is tempered by realistic concerns about security. When it comes to implementing converged applications, such as Voice over IP (VOIP), network-security fears are uppermost in executives’ minds. According to the survey, 58% of all respondents view network-security issues as the most significant challenge to implementing convergence.

To overcome these challenges, security plans and measures must be integrated throughout the convergence process.

“Security for converged networks and services must be built in, not bolted on as an afterthought,” said David Denault, general manager, AT&T Global Services Canada, in the release. “A distributed model is needed that places security in multiple locations, from the edge, through the network and into the applications and databases.”

Companies are also concerned that a shortage of expertise will impede the successful migration to IP networks. Nearly half of companies worldwide say that they lack in-house skills and experience in relevant technologies for handling IP convergence. "Companies will need to address this looming skills gap if they are to reap the full benefits of IP migration," says Denis McCauley, director of Global Technology Research with the Economist Intelligence Unit.

The EIU define convergence as the ability to deliver voice, data, and video applications over a single IP network.

Free copies of the EIU research white paper ‘Convergence Takes Hold in the Enterprise’ can be downloaded from the AT&T Web site at: www.att.com/emea/insights/whitepaper/convergence_series4.html