Annual survey reveals CIOs becoming more bullish – within limits

The results of an independent survey of senior IT decision makers, conducted by ICM and commissioned by global Virtual Network Operator (VNO) Vanco, reveal that while cost remains the network priority, the need to implement new technologies like Voice over IP (VoIP) becomes more pressing. When asked which their top three networking issues were over the next two years, 44% of European network managers named cost. While network security remained second with 31% of mentions, new technologies leapt from 12th place in 2003 with 6% of mentions to 3rd place in 2004 with 20% of mentions. Except for Germany where increased bandwidth received the most mentions (27% of mentions) cost was consistently the number one priority across Europe and the world. However, ‘new technologies’ was consistently the biggest climber over the 2003 survey with Netherlands putting it equal to cost (42% each), UK putting it second with 34% of mentions and France where it received 13% of mentions. (*See Note to Editors for more information).

“After being restricted from capital investment in new technologies for the last two years, CIOs are now feeling the need to upgrade but the cost issue continues to stifle their innovation” states Allen Timpany, CEO, Vanco plc. “The question is how they can implement those new technologies while continuing to reduce costs?”

The new technology that most network managers agree is on the agenda is VoIP, presumably because VoIP can potentially deliver the cost savings that all crave. In Europe, 78% of network managers either already have or intend to implement Voice over IP at some point, more than any other technology or service, including wireless solutions (70%). VoIP was a particular priority in the UK where 94% either already have or intend to implement it. Interestingly, despite most network managers seeing VoIP as a must have technology, few were keen to put a definite timeframe on implementation. When asked to bracket when they expected to implement VoIP, 24% put it in the 18+ months category, with only 8% willing to put a six month deadline on the work.

“The wariness toward implementing voice over IP is understandable,” added Simon Iddon, Head of Product Development, Vanco plc. “Voice is a critical application and from day one there can’t be a risk of downtime during the migration from PBXs to IP. As we help customers with VoIP we’ve demonstrated that our ability as a managed service provider to help customers with their migration strategy is ten times more important than the technology.”

In addition, 75% of European network managers outsource their WAN and consequently it is the managed service provider they look to for cost savings and effective network migration. This compares to the US where only 45% outsource their WAN and Singapore where 64% outsource.

Note to Editors
*2003 mentions for ‘new technologies’: UK = 4%, Netherlands = 8% and France = 5%

About ICM
ICM was established in 1989 and has grown to become the largest independent research organisation in the UK with gross sales in the current year in the region of £14m. The ICM Group comprises of three companies - ICM Research, Fieldwork UK and ICM Direct.

ICM has a highly respected public profile, with research regularly commissioned by a number of national newspapers and the BBC. In both the 1997 and 2001 General Elections ICM has been publicly adjudged as providing the most accurate and reliable predictions of the result of the UK General Elections.

Our Managing Director is an industry acknowledged expert in the field of opinion research. He was awarded the MRS Silver Medal for his work to improve the accuracy of polls and frequently speaks on radio and TV on the subject of opinion research. ICM has a wide range of blue-chip clients across a variety of sectors.

About Vanco
Established in 1988, Vanco plc (FTSE: VAN) is the leading global Virtual Network Operator. With solutions available in 230 countries and territories, Vanco is selected by the world’s largest organisations to provide strategic network solutions. Its customers include Avis Europe, Virgin Retail, Ford Motor Company, Pilkington, RMC Group and Smith & Nephew.

Through the Vanco network solution customers get access to the greatest geographic coverage available through a single provider. Vanco offers incomparable flexibility to customise and adapt the solution in line with market changes and business priorities.

Vanco is recognised by the industry for its financial success and world class customer service delivery. A significant proportion of its investment capital goes into customer care which is reflected by the awards won, independent market research and customer retention.

For further press information, please contact:
Andy Brown, Vanco
Tel : +44 (0) 20 8636 1721
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Web site: http://www.vanco.co.uk

Jo Begbie, Brodeur Worldwide
Tel: +44 (0) 207 298 7070
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