*Background reading*(BSNS WIRE) Caught in the Middle, Network Managers Speak Out About What They Face in the New Millennium; As Networks Become Mission-Critical, Pressures Mount for
Reliability, Cost Control
Business Editors and High-Tech Writers
DALLAS--(BUSINESS WIRE)--May 11, 1999--Caught between user demand
for bandwidth, executive insistence on cost control, and everyone's
assumption of uptime, network managers are feeling the squeeze.
They speak out in a new report released today by Olicom A/S
(Nasdaq/NMS:OLCMF), the leader in fault-tolerant enterprise networking
solutions.
95% of all respondents say that they face significant challenges
in implementing goals set by their organizations. 23% cited budget
constraints as the primary challenge. 19% mentioned network
reliability. 18% cited keeping up with technology. 14% said that
finding good people was their biggest challenge.
"The challenges are in implementing solutions within a limited
budget, trying to keep pace with fast-changing technology, and
identifying quality products that meet our needs," said Thomas Grass,
manager of engineering systems, U.S. Electric Motors Division, Emerson
Electric Co. "In today's world technology changes every 6 to 12
months. We need to know what is the right direction to move in and how
soon to buy the new equipment."
Olicom commissioned the study to document current needs and
future plans of networking decision makers in medium to large
U.S.-based commercial and governmental enterprises. The 157-question
survey was administered by phone or in person to network managers and
executives in late February.
"Network managers are under increasing pressure to turn new
technology into tangible business benefits," explained Per Larsen,
president of Olicom Inc. "We commissioned this study to document
those pressures and provide a cross-section of front-line perspective
on how managers are coping with these challenges. We are also using it
as a guide for our own product and solution development plans."
Network uptime is a constant concern of these professionals. 59%
say when the network goes down, revenue and productivity are affected.
For 19% of respondents, downtime can be disastrous. To prevent the
unthinkable from happening, most managers resort to redundancy. 31%
have redundant networks -- redundant components such as hubs, routers,
or switches (18%), or servers (17%).
Next Generation Products
Network executives look to the next generation of products to
better meet their needs for reliability (27%), greater bandwidth
(23%), and simplicity (23%). Only 9% reported having everything they
need today.
Despite the perception that Ethernet switches have become
commodity products, the vast majority of respondents (79%) said that
they would be willing to pay more for a particular vendor's product
with certain attributes and features, including greater performance,
quality and reliability.
69% of firms reporting Token Ring installations say they plan to
migrate to another networking technology. Of that group, 52% are
migrating to Ethernet, 10% to ATM. Providing network access to
customers, partners and employees in remote locations is also creating
challenges, according to respondents. Two-thirds of the firms included
in the survey provide support to home office workers. 53% said they
will be expanding their remote LAN access capabilities. Hurdles
mentioned include security (24%), support issues (24%), connectivity
(19%), and bandwidth (17%).
About Olicom
Olicom, a leading global supplier of high-performance data
networking solutions, designs, develops, manufactures, and markets its
products for large, geographically dispersed enterprises. It
specializes in providing campus network connectivity solutions,
advanced technical support services, and ClearStep(SM) evolution
strategies for networks in transition. The company's products are
distributed worldwide by a network of strategic partners and
resellers. More information on Olicom is available from the company's
SEC filings or by contacting the company directly. See Olicom news,
product, and service information on its Web site at
olicom.com.
Olicom is a registered trademark and ClearStep is a service mark
of Olicom A/S.
Except for historical information contained herein, the matters
discussed in this news release may contain forward-looking statements,
involving risks and uncertainties that may cause actual results to
differ materially. Among the factors that could cause results to
differ are uncertain market conditions, overall demand levels for
networking solution products, the timely development of new products,
intense competition in the networking industry, and the company's
ability to execute strategies efficiently and effectively. Further
information may be found in Olicom's periodic filings with the U.S.
Securities and Exchange Commission (SEC), including the most recent
reports on Form 20-F and 6-K, which identify important risk factors
related to the company's business that could cause actual results to
materially differ from those contained in the forward-looking
statements.
--30--JS/np* RMS/np
CONTACT: Mueller/Shields
David Hawk, 415/487-7182
dhawk@muellershields.com
or
Olicom, A/S
Even Claussen, (+45) 45 27 00 00
egc@olicom.dk
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
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