Corporate Networks Face Problems With MP3.

CARLSBAD, Calif.--(BUSINESS WIRE)--July 22, 1999--

In a focus group of network managers, Computer Economics found unanimous concern for the potential impact of MP3 on traffic volumes of corporate networks.

Internet connectivity is perceived as an asset to most office workers and professionals, but downloading large files like MP3s and other activities are turning an asset into a nightmare for many corporate network managers.

"Network managers have been facing a continuous stream of new challenges because of the Internet, including security breaches, viruses, worms, and improper uses of the Web such as porn surfing in the office. MP3 is the next thing that will turn into a problem," said Computer Economics vice president of research Michael Erbschloe.

"MP3 and any other method to help deliver sound and music over the Internet is a cool idea," said Erbschloe. "But the more cool an idea is, the more it can have a negative impact on a corporate network. Massive music distribution over the Internet could put many companies in a position where they really need to crack down on improper use of the Internet to avoid serious network upgrades."

On average large companies spend six percent of their IT budget on network infrastructure. This has been rising steadily since the early 1990s when it was less than one percent. In addition, one out of every ten IT staffers in an average company work on building or maintaining corporate networks.

Computer Economics is an independent research firm specializing in helping IT decision makers plan, manage, and control IT costs through advisory services, analyst support, an innovative Web site, and printed reports. Based in Carlsbad, Calif., Computer Economics serves 82 percent of the Fortune 500. For further information, please visit the Web site at http://www.computereconomics.com.