Large Enterprise Tools Only “Good” at Maintaining Performance of Data Network in Ovum Survey


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Ovum Survey of 150 Large Enterprises Shows That Fewer Than 50% Rate Their Tools “Good” in Maintaining High Performance of Data Network

60% of North American Respondents May Be Willing to Pay Telcos More to Improve Application Optimization; Research Commissioned by Ipanema Technology

WALTHAM, MA — July 21, 2008 — A study conducted in June 2008 with 150 large enterprises in North America and Europe by analyst and consulting firm Ovum revealed that fewer than 50% of them rate their tools “good” in maintaining high performance of applications on their corporate networks.

The research showed the highest satisfaction of network performance tools is with business software applications (45%), followed by voice applications (39%) and video conferencing (31%).

“These results suggest that the current approach has some significant limitations,” said Peter Hall, principal analyst in Ovum’s Enterprise Practice and co-author of the report.

The research also found that, as a result, between 65% and 80% of respondents might be willing to pay network service providers more to improve application optimization. The areas of most interest include
• Improving the quality of service to guarantee performance of business critical applications.
• Acceleration technologies to reduce WAN bandwidth and delay constraints for business critical applications.

Moreover, some 60% of North American respondents said they either are or would consider using a third-party for monitoring and optimizing performance.

According to Hall, “The research demonstrates the critical role of enterprise networks on the health of the enterprise and the interest of enterprises in adopting managed services for applications networking optimization and 24×7 network and applications performance monitoring.”

Ipanema Technologies, a leader in application traffic management systems for wide area networks, commissioned the survey, although Ovum has an independence charter and the report represents the views of Ovum.

“These results confirm the value-added services trend we have been seeing in the market for several years,” said Jeffry Herman, vice president and general manager of Ipanema Technologies’ North American operations. “While European firms are more experienced partnering with managed service providers for application optimization needs, North American firms are now seeing the benefits of using such services, which have been recently launched by BT, Orange Business Services and Cable &Wireless, among others.

Ovum conducted research with senior IT professionals in 150 large enterprises in North America and Europe with a minimum of 3,000 employees (more than 1/3 having 10,000 employees) to understand these challenges. An on-demand webcast of Ovum’s Hall presenting the findings can be accessed at In addition, a copy of the complete report can be obtained from
Ovum is a global advisory and consulting firm. Its primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.
Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone. Ovum is part of the Datamonitor Group.
About Ipanema Technologies (
Ipanema develops and sells next-generation solutions for application traffic management that allow enterprises to automatically align the network with their business objectives. The Ipanema System was specially created for all large Wide Area Networks (WAN), both in- country and international, as well as being for telecom operators and network service providers. Application performance management is delivered by integrating the functions of Visibility, Optimization, Acceleration and networked application governance. The SALSA platform (Scalable Application Level Service Architecture) allows telecom operators and network service providers to create repeatable application oriented value added services with the lowest Total Cost of Ownership (TCO). Ipanema is used internationally by many large telecom operators as well as large multinationals in all market segments such as banking and finance, public sector, energy, pharmaceuticals, automobile, IT, etc. For more information go to

For additional information, contact:
George Cohen
GCC, Inc.
[email protected]

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