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Most network investment driven by 'fear, uncertainty and doubt'

Did someone say ROI?

By Graham Hayday

Published: 17 October 2002 17:00 BST

Most network infrastructure investments are driven by fear, uncertainty and doubt rather than long-term, measurable strategic planning, according to new research out today.

Despite many IT managers agreeing that network investment in their organisations is a key priority and essential to improving business productivity, over half of the respondents to a survey commissioned by network integration specialist Telindus said that investment only becomes critical when systems fail or there's a real risk of downtime.

Around two thirds said that business as a whole is generally unaware of the importance of network investment.

Telindus managing director, Peter Deacon, said: "There's clearly a gap between how IT departments view the criticality of the network compared to how the rest of the business perceives it."

He added: "Network investment is really only taken seriously when system failure looms. This may result in IT departments having to use scare tactics when it comes to getting network investments on the board's agenda."

Telindus believes a lack of network visibility and ROI (return on investment) measurement may be hampering the IT department's cause. While 54 per cent of IT managers believe it is possible to measure the tangible benefits of network investment, only 12 per cent are actually doing it.

"There appears to be broad acceptance that business productivity improvements are key to justifying network investment. However the survey indicates that the importance of cost cutting and ROI increase significantly when gaining board approval," Deacon said.

If network infrastructure is to get a higher priority at board level then IT managers will need to ensure the strategic value of the network is fully appreciated by the business, Telindus said.

When asked what initiative would improve the approach to network investment, one respondent to the survey said: "Being able to justify and prove a direct correlation between the investment in network infrastructure and its delivery and our ability to measure it in terms of business gained directly."

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