Gartner's prediction* for networks for this year is: "Through 2011, enterprises will waste $100 billion buying the wrong networking technologies and services."
The research organisation claims enterprises are missing out on opportunities to build a network that would put them at a competitive advantage. "Instead, they follow outdated design practices and collectively will waste at least $100 billion in the next five years," it states.
Gartner goes on to say disruptive technologies have emerged that should dramatically change how enterprises architect their networks.
"Approaching network design in a new way will have a significant impact on the capabilities of the network, as well as radically changing the underlying cost model. However, these opportunities are being missed by the vast majority of companies as they continue to follow well-established, but now outdated, design methodologies. Much of the $100 billion is simply being wasted on technologies that are not necessary, fixing problems that don't exist, while investments in areas that could transform the business are missed."
Watch that over-spend
Furthermore, by following outdated design principles, as many as 70% of organisations will be at a competitive business disadvantage by missing out on initiatives that drive new business processes, but not having budget room due to the over-expenditures in other areas.
Much of the $100 billion is simply being wasted on technologies that are not necessary.
Gartner
"Of network organisations, 20% will face outsourcing because they are not meeting business requirements, while also showing poor cost and vendor management practices. Ten percent of organisations will emerge as new thought leaders, driving new modes of architecting their networks and delivering business value, all while reaping significant cost advantages."
Gartner's recommendations? "The top two business priorities for CIOs during 2006 were to improve business processes and reduce enterprise costs. Enterprises must start their network design process by thinking about applications and business processes. By being part of the application project teams, network architects will be better able to anticipate and drive investments into areas that will make a difference to the business, rather than spending money on traditional enhancements."
Don't fix what isn't broken
Gartner also advises a review of current network spending plans, focusing on near-term (one- to three-year) needs and not investing without an identified business need that will provide a significant productivity boost for most or all users within the enterprise.
"Don't fix problems for areas that are not broken," the company suggests. "And don't prepare for functionality that will never be used. Do not follow traditional network design best practices; these are now outdated. Do not simply grow bigger and faster in any portion of the network. Look for the disruptive technologies, such as WAN optimisation, public services and better communication applications as a better way to build the network."
Analysing expected shifts in the worker population, especially toward mobile and remote workers, will also go a long way to reducing costs. Finally, Gartner says focusing investments on application performance, network-based security, wireless and mobility, IP WANs and converged voice applications are the way to go.
* Report courtesy of Gartner Africa. Sourced from Gartner's Top Predictions for IT Organisations and Users, 2007 and Beyond, December 2006.
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