Enterprise Network Opportunities 2007
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1 Enterprise Network Opportunities 2007 Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner's official approval. Such approvals may be requested via David Willis
2 What Problems are Communications Networks Being Built to Solve? A foundation for business execution Enhancing productivity Staying ahead of security threats Managing cost Photo by elbisreverri under Creative Commons license (
3 Key Issues 1. What are the top drivers of networking services and technology in the enterprise? 2. What are the major pain points? 3. What are the top opportunities?
4 The Enterprise Communications Challenge 100% 80% 60% Distribution of IT Spend The Perennial Challenges Cost reduction Organization/skills Service delivery Process maturity Culture Security Managing legacy 40% 20% 0% Other Voice & Data Network Help Desk Data Center Desktop/LAN Server Applications Finance & Administration And the New Ones Agility Complexity Compliance Consumerization Mobility New forms of disaster Power/cooling Source: Gartner Consulting Worldwide IT Benchmark Service
5 A Vision for Networks 2012: The CIO's View Efficiency and Cost Management Assets Effectively Managed Enhanced Productivity Business Looks to IT for Transformation No Security Worries High User Satisfaction Goal: Earn the Trust of the Business
6 Some Key Management Priorities Endure Year After Year 2006 CIO Strategic Management Priorities To what extent will each of the following CIO actions be a priority for you in 2006? Delivering projects that enable business growth Linking business and IT strategies and plans Building business skills in the IT organization Demonstrating the business value of IT Attracting, developing and retaining IT personnel 5 * * Applying metrics to the IT organization and IT services Improving the quality of IT service delivery Flexible technology infrastructure 8 * * Improving IT governance Consolidating the IT organization and operations 10 8 ** * New question for 2006 ** New question for 2005 Ranking
7 Key Issues 1. What are the top drivers of networking services and technology in the enterprise? 2. What are the major pain points? 3. What are the top opportunities?
8 How Enterprises Rate Their Net Ops Finance Controls a Lot but Long-Term Planning Lags Enterprise Network Self-Assessment Financial Mgt IT & Biz Alignment Strategic Planning They Know Technology but Performance Falls Short Net Design/Engr Organization/Staffing Performance Execution Has to Improve Agility Implementation High Avail & BC 0 Reactive 1 Standardized 2 Rationalized 3 Virtualized 4 Service-based 5 Policy/Value-based Source: Gartner Networking Workshops, 2006
9 Internal Operations: Communication-Enabled Business Processes Reduces Delays Each event in this workflow benefits from reduced delays Without UC Elapse time: days Order Order Supply chain With UC Elapse time: hours/mins 1. Presence to answer order question 2. "Find-me" notification of problems 3. Presence & LBS to configure & pack goods 4. IM then Webconference for delivery details
10 Communications Is Becoming Software QOS Security Scale Optimization Applications Voice/video/data Devices and Applications Intranet Internet Carrier Mobile Home Multiple Networks Integration Offload XML Processing Dial tone Message stores Servers and Datacenters Application Evolution (Voice) Physical Integrated Apps Switch/ router Infra Virtual Layered Switchcentric Serverbased Clientbased Overlays Server + Serverbased offload Infrastructure Evolution (Core Network) Coping Strategies Avoid vendorcentric strategies IP does not mean open Emphasize integration, application support and security Overlay first, integrate later
11 Corporate Mobile Application Trends High Most potential applications implemented Transition from executive niche to mainstream Connectivity , PIM Selective process support Medium Low Few potential applications implemented Lightweight application extension B2C Process innovation 45% of the workforce is MOBILE
12 Software Opportunity: Communications-Enabled Business Processes Removing Latency 1 How do I establish contact? Who do I contact? 21 CRM 31 What is the best way to interact, now? ERP 41 Industry App Companies Roles 51 People Back Office 61 Communications methods Many Technology Options Phone fixed, mobile, home, or Mobile Instant messaging IM-based voice Conferencing Teamware Shared calendar Video Coping Strategies Adoption is inevitable: Identify priorities now Reducing mailboxes UM Intelligent assistants Integrate to applications Presence Unified communications Experiment with use cases List/profile based Intra- + Inter-company Leverage mobility Use alerting
13 Networking is More Than Just About Connecting Locations: It's About Business Applications Distribution of Organizations More remote offices Network Architect More remote workers More mobilization WAN Carrier Services LAN Past Application Performance Security Mobility Consolidation of IT Reduce cost Improve data security LAN Compliance WAN App Fluency Diversifying Applications Future Voice, video and data convergence Web-enabled applications Carrier Services Mobility SOA application architecture Security
14 Key Issues 1. What are the top drivers of networking services and technology in the enterprise? 2. What are the major pain points? 3. What are the top opportunities?
15 Planned 2007 Network Initiatives Voice over IP 55% Mobile and wireles s infras truc ture 46% Network application optimization Call c enters Remote workforce access 39% 36% 36% E xpanding bus iness off erings 26% Expanding business into new geographical locations 21% RFID 13% Other security initiatives, specify Other 2% 1% 0% 10% 20% 30% 40% 50% 60% n=205
16 Gartner Magic Quadrant U.S. Network Service Providers Market Highlights Consolidation : end of the IXC business; second tier carriers consolidate Market tone set by AT&T vs. Verizon Business Expect secondary carriers in many accounts Increasing use of Internet services
17 Gartner Magic Quadrant U.S. Managed / Professional Network SPs Market Highlights SIs vs. NSPs Cisco-enabled VAR services coming soon Much Self- Management in large U.S. corporations Increasing use of multivendor services Remote monitoring is hot
18 Gartner Magic Quadrant North American Web Hosting Market Highlights Mature market little differentiation on the basics; Technology expertise not scarce All applications going web, including inside the firewall Utility offerings are most significant innovations
19 Gartner Magic Quadrant U.S. Wireless Service Providers Market Highlights Enterprise battle is emerging Cingular vs. Verizon Sprint Nextel confined to niche Surge in enterprsie mobile High speed data covering 60% of US population, most cities
20 Gartner Magic Quadrant Global Network Service Providers Market Highlights No real new global entrants some smaller providers making claims Characterized by OBS vs. BT vs. AT&T, with VB marketing hard Customers considering regional model, which sacrifices MPLS advantages
21 Other Opportunities IP Telephony (VoIP) Campus Wireless (WiFi) Managed Mobility Telecom Expense Management Asset and Configuration Management Remote Monitoring (+ Maintenance)
22 Whatever You Call It It's All About Selling Technology as a Service, Not a Product Software as a service Hardware as a service Business process as a service Hosting Utility computing On demand Elastic Compute Cloud Increasingly Invisible Technology Applications Infrastructure Networks Asset One-to-One One-time Custom On-site Fee Access One-to-Many Annuitized Configurable Standard "Cloud-based" "Free"
23 Summary The business change delivered by networks is a CIO level issue Process and people issues overshadow technology issues Top opportunities are in mobility, convergence, IP WANs, integrated security, remote monitoring, asset management AT&T is well established as a service leader for coverage and reliability. What would surprise your prospects?
24 Enterprise Network Opportunities 2007 Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner's official approval. Such approvals may be requested via David Willis
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