Enterprise Network Adds Down, Disconnects Up

The number of enterprises disconnecting network locations reached its highest level in six years during 2008, according to new research by Vertical Systems Group.

In a survey of U.S.-based enterprise network managers, 14 percent reported they had eliminated one or more network locations without adding or moving others. This figure compares to only 9 percent from a survey conducted a year ago.

For the most recent survey, 41 percent of respondents reported both additions and eliminations, while 16 percent added locations without any eliminations. Twenty-nine percent reported no change.

“The pace of network site additions stalled in the second half of 2008, and a significant number of networks are shrinking as compared to a year ago,” said Rick Malone, principal at Vertical Systems Group. “Economic uncertainty and business slowdowns are forcing unplanned network reconfigurations, particularly within hard-hit industries like retail and financial. Location eliminations peaked during the fourth quarter, and we expect this trend to continue throughout the first half of 2009.”

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