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Vertical Systems Group:
Adds Down, Disconnects Up for Enterprise Networks

BOSTON, MA, January 6, 2009... 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, fourteen percent (14%) reported that they had eliminated one or more network locations without adding or moving others.  This figure compares to only nine percent from a survey conducted a year ago.

For the most recent survey, forty-one percent (41%) of respondents reported both additions and eliminations, while sixteen percent (16%) added locations without any eliminations. Twenty-nine percent (29%) 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."

Vertical Systems Group’s primary research on the networking requirements of enterprise customers throughout the world is coupled with supply-side information to generate "real world" analysis and statistics.  This time-proven, proprietary research methodology has uncovered important leading indicators for networking markets for more than two decades. Vertical's syndicated research is available through ENS (Emerging Networks Service), a comprehensive web-based resource for detailed market statistics and trends.  Custom Research services are offered to address specialized business information requirements.  Contact us now for more information on services that fit your organization's needs.
 

About Vertical Systems Group

Vertical Systems Group (http://www.verticalsystems.com) is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry.  To speak with an analyst at Vertical Systems Group, call Erica Ambrose at +1.781.352.0700 or eambrose@verticalsystems.com.