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MPLS 'still attractive despite recession'
The economic downturn has forced businesses of all sizes to reassess their budgets and reduce IT spending accordingly, but many organisations are still investing in communications infrastructure.
According to channelweb.co.uk, the general decline in spending on computer hardware and support services among British firms is being offset by a growing demand for converged networks, making use of technologies such as MPLS and IP virtual private networks (VPN).
This trend contributes to the website's assessment that "there are still plenty of silver linings out there" for businesses looking to strengthen their network solutions this year, despite the economic doom and gloom.
David Alexander, director of NetworkFlow, told the website that general spending on IT products by large organisations has "fallen off a cliff".
However, he also pointed out that investment in convergence technologies and the enhancement of wide area networks through MPLS remains popular, particularly among smaller enterprises.
Mr Alexander commented: "The benefits of converged networks and continued price depreciation are making MPLS and IP VPN networks attractive.
"It is enabling companies to dramatically reduce travel budgets; home working together with voice and video conferencing is increasing dramatically."
For small firms with a remote working strategy, MPLS facilitates a resilient network that can give home workers the same level of performance as employees based in the office.
In many cases it would seem that businesses are being torn between budgetary pressures and the need to strengthen their communications systems in preparation for economic recovery.
There is also a feeling that investment in new technologies such MPLS and IP VPN can lead to a significant reduction in operational expenditure for an organisation's overall IT system, despite the obvious capital expenditure considerations.
Earlier this week, a spokesperson for the National Computing Centre claimed that a failure to maintain IT investment could cost businesses dearly in the long run.
Michael Dean, head of marketing at the organisation, explained:"IT offers organisations of all sizes the opportunity to reduce costs and improve performance.
"The danger in a recession is that organisations don't invest in IT and when the upturn comes they are less competitive than others."
Furthermore, the implementation of major IT spending cuts can also have an immediate impact on business performance and reliability, as a new survey has indicated.
Research from Ardent Solutions found that 41 per cent of small and medium-sized enterprises (SMEs) are worried that budget restrictions could lead to a deterioration in system reliability or increased downtime.
In addition, 23 per cent of SMEs expressed concerns that a failure to invest in IT could render them less competitive during the recession.
If you would like more information on 8el's networking solution, please call our sales team on 0118 338 3062 or email info@8el.com.
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