Tuesday, May 13, 2008

Corporations Fail To Budget For Upcoming Bandwidth Boom

Nicholas Carr, author of The Big Switch and of IT Doesn't Matter states the information technology (IT) departments won't matter in the next few years as computing takes place on the Net, versus on the PC.

Will corporations be prepared for the upcoming bandwidth boom?

Enterprise bandwidth requirements will more than double in the next five years, yet budgets will only increase by five per cent, according to a surveyleaky faucet released today.

The research, carried out by Omniboss - a division of market analysis firm Vanson Bourne - among 100 senior IT decision makers found a further one in five executives thought their bandwidth requirements were likely to grow by 150 per cent or more.

Nearly one third (30 per cent) believed voice over internet protocol (VoIP) and converging voice, data and multimedia technologies such as video on demand would also have a significant effect on traffic in the future.


Dean Collins said...

Hi Scott,

I haven't done a bandwidth cost anaylsis for a long time but....

wouldn't a 5% increase in overall budget more than make up for a doubling or tripling of bandwidth 'capacity' in 18-36 months?

With bandwidth costs on a 'capacity' basis falling on a regular basis - wouldn't additional bandwidth physical access requirements cost far less (or as your capacity increases real costs stay the same).

Dean Collins

Scott P. Shaffer said...

A few things that make bandwidth consumption grow exponentially due to video shifting to HD..

Not only will there be a boom in video ads/content but the video will be in HD.. Video going to HD is where the exponential consumption occurs.