DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / AUGUST 11, 2003; VOL. 2 NO. 32    ( Table of Contents )

Applications:

STUDY SAYS CONGESTION GROWING WORSE FOR ENTERPRISE NETWORKS

Network World, a leading network media company, and Packeteer, a leading provider of application traffic management systems, announced the results of a study showing that increased use of open networks and the Internet in enterprise environments is causing a significant increase in application performance degradation and network congestion. The survey of 190 network IT executives shows companies of all sizes and types are grappling with corporate productivity issues caused by unsanctioned Internet applications and recreational content competing with business applications for network bandwidth.

"This survey illustrates the negative impact that application performance degradation is having on business performance, employee productivity, customer service and revenue-producing activity," said John Dix, editor in chief, Network World. "With both business critical and unapproved applications competing for network resources, enterprises are facing a crucial productivity issue."

Key Findings:

Conducted in June, 2003, the survey of 190 network IT executives showed that:

• 61 percent said they had experienced incidents of significant application performance degradation.
• That percentage increased for respondents from companies with revenues over $1 billion, with 84 percent saying they had experienced significant application performance degradation.
• One in three companies have delayed launching new ERP, CRM, portal and other applications due to concerns about application performance.
• For respondents from companies with revenues greater than $1 billion, 51 percent said their company had delayed launching such applications.
• Only 25 percent indicated they know precisely what applications are running on their network and how much bandwidth each uses.

"The results indicated that while many network IT executives are delaying implementing new business applications due to performance concerns, the same executives aren't satisfied with the existing tools they have available to manage that performance," said Dave Cote, CEO of Packeteer. "Monitoring, controlling and accelerating applications on wide area networks can greatly ease the pain these companies are feeling and save them money."