applications like ERP and adoption of converged networks
is driving bandwidth requirements in the connected enterprise
shortage of bandwidth (or the glut of it) has often
been the subject of discussion in CIO circles. There
has been much concern about actual throughput and quality
of service. But connectivity becomes imperative when
business grows and extends to multiple locations. And
bandwidth becomes a focus area with the deployment of
data-centric enterprise applications. In fact 94 percent
of the respondents in this survey said there has been
an increase in bandwidth requirement. About 39 percent
of all respondents said bandwidth is their main focus
area. The average rate of increase in bandwidth requirement
is 48 percent.
Enterprises use bandwidth either for Net connectivity
or LAN/WAN/Campus connectivity. For this survey we have
considered both separately.
Within this segment the various connectivity options
are ISDN, dialup, leased line, satellite, DSL, and cable.
Of these ISDN, leased line and dialup are the most popular
solutions for Net access. About 65 percent of the respondents
said they use ISDN for Net access and the same number
use dialup. Also, 56 percent of the respondents said
they use leased lines.
One of the reasons why CIOs have chosen ISDN for Net
connectivity is that it can also be used for voice calls
and video conferencing.
is also favored as a back-up connectivity solution,
and is ideal for those who do not need always-on connections.
Leased lines offer always-on Net connectivity. The existing
LAN/WAN can be connected to an Internet gateway via
leased lines offering shared Net access to all users
within the enterprise. And if there are many users,
this seems to be a cost-effective method for Net connectivity.
The demand is high for leased lines in 2002-03. About
55 percent of the respondents said they have a requirement
for leased lines. On the other hand fewer enterprises
are going in for ISDN or dialup connectivity41
percent of the respondents said they require ISDN and
21 percent said they require dialup. Bandwidth-hungry
applications like VoIP and ERP/CRM (within a WAN) that
require always-on connectivity coupled with falling
costs are the main drivers for leased lines.
Within this segment the various connectivity options
are VSATs, Leased Lines, RF (Radio Frequency) Links,
Frame Relay, ATM, and MAN (Metropolitan Area Network).
Enterprises are favoring VSATs, Leased Lines and RF
links for LAN/WAN connectivity. VSATs are used for connecting
remote locations or areas where terrestrial infrastructure
is scarce. VSATs are also favored for their reliability.
More businesses are embracing VSATs as they extend operations
to the smaller towns in remote (rural) areas.
Leased lines are widely used and are chosen for point-to-point
WAN links. RF links are also growing popular because,
for the same cost as leased lines they offer better
bandwidth. RF links are chosen for connecting locations
over shorter distances, especially in areas where it
is difficult to deploy terrestrial infrastructure. In
many cases they are also used as backup alternatives,
in case the main network goes down.
About 27 percent of the respondents said they have opted
for VSAT connectivity, while 19 percent said they have
leased lines and 14 percent said they use RF links.
Just 8 percent of the respondents said they use Frame
Relay and 5 percent use ATM. The requirement for VSATs
and leased lines is growing24 percent said they
require the former while 23 percent said they require
The budget allocation for bandwidth is the second highest
(about Rs 346 lakh), just below converged networks.
This budget allocation is almost double that of last
year (about Rs 178 lakh).
Many respondents in the survey are investing up to Rs
25 lakh in bandwidth. Last year 44 percent of the respondents
fell in this slab and this year 33 percent of the respondents
have allotted up to Rs 25 lakh of the budget for bandwidth.
Enterprises are making incremental increases in bandwidth
capacity and are not spending elaborately on new connectivity
options at the moment.
isdn, vsats favoured
About 54 percent of respondents across all industries
said bandwidth is covered in the current budget. Bandwidth
is a main focus area for almost all industry segments.
Analyzing industry-wide bandwidth usage for Net access,
we observe that leased lines, dialup and ISDN are most
favored across all industry segments. DSL, Cable and
Satellite being relatively newer entrants are still
fighting to gain a strong foothold. In 2002-03 the investment
is going to be more on leased lines than any other connectivity
technology. Dialup is definitely on its way out as far
as enterprise connectivity is concerned.
VSATs are the most favored options for WAN connectivity
across all industry segments closely followed by leased
lines. VSATs offer inter-office connectivity between
remote offices, something that may not be feasible using
a leased line. About 47 percent of the respondents in
the Manufacturing sector already use VSATs for WANs
while 79 percent in IT/Telecom sector use leased lines
for Net access. This year the requirement is again highest
for VSATs and leased lines.
As we've said before, converged networks and data-centric
applications are going to drive bandwidth requirements.
The main requirement will come from service-oriented
companies (such as banks, call centers, etc) or that
are heavily dependent on networks and centralized databases.
Enterprises which are already well connected will make
incremental upgrades in bandwidth without overhauling
networks thereby avoiding heavy investment in any new
VSATs and leased lines will continue to be the most
favored options for WAN connectivity. But more companies
will consider RF links for connecting locations over
short distances where terrestrial links are not possible
or as a redundancy solution.
percent of the respondents said there has been
an increase in bandwidth requirement
65 percent of the respondents say they
use ISDN for Net access and the same number
For Net connectivity, the demand is highest
for leased lines in 2002-03. About 55 percent
of the respondents said they have a requirement
for leased lines
Fewer enterprises are going for ISDN
or dialup connectivity for Net access
Bandwidth-hungry applications like VoIP
and ERP/CRM (within a WAN) that require always-on
connectivity coupled with falling costs are
the main drivers for leased lines
RF links for connecting locations over
short distances are growing popular
The requirement for VSATs and leased
lines for WAN connectivity is growing
Enterprises are making incremental increases
in bandwidth capacity and are not spending elaborately
on new connectivity options at the moment
4 benefits CIOs SEEK
Better connectivity with regional
Better information management