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The switch disconnect.

By Anderberg, Ken
Publication: Communications News
Date: Saturday, July 1 2006

Updating the switch infrastructure is not a topic with the cache of such technologies as voice over IP (VoIP), network security and wireless, but it just may be the most important item on the agenda of enterprise IT managers. According to a study conducted by NetLink Research of 219 IT managers

(see page 6), upgrading Ethernet switch infrastructures to support more users and to deliver new services, such as VoIP, is far and away their most pressing priority.

At a time, however, when these organizations say their IT budgets are increasing and they have an average of $760,000 in incremental budget for new Ethernet switching projects, there appears to be a disconnect between these potential customers and the vendors who sell the switches. Quite simply, these IT managers say, the vendors don't get it.

Experimenting with new technology is not today's priority; supporting business priorities, such as e-commerce applications, and reducing IT budgets are. Vendors, however, are still trying to sell their switches by touting new bells and whistles.

Among the study's recommendations to vendors:

* Differentiate your switching products based on what customers need, such as lower IT costs, better worker productivity and improved access to corporate resources.

* While customers prefer working with their incumbent suppliers, don't abuse this relationship. Customers will start evaluating other vendors when they think that prices are too high, or reliability or service declines.

* One reason IT managers manot search out vendor alter natives is that the non-incumbent vendors are not making their case well enough to these customers. Non-incumbents need to do a better job of getting the word out about their switching solutions.

* Most IT managers are wary of trying new switch vendors, but they will take a chance with small test bed projects or in access configurations.

In the study, IT managers identified five major Ethernet switching priorities. First is preparing their networks for e-commerce applications. Next come: upgrading and enhancing their existing switch infrastructure to accommodate a 6-10% increase in end-users and new technologies such as VoIP; improving wireless and wired access; enhancing switch security; and expanding VoIP.

With about 20 switch vendors in the market, enterprises have a wide range of choices should they become dissatisfied with their incumbent provider. While no one is going to supplant Cisco any time soon, 3COM, HP and Nortel all have a significant presence, and Extreme Networks, Foundry Networks, Allied Telesyn, Dell and Force10 are all viable alternatives.

In other words, vendors that pay the most attention to the actual needs of those customers (rather than basing sales pitches on new features), and those that do the best job of promoting their solutions, will be in the best position to secure new business.

Ken Anderberg

kanderberg@comnews.com

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