Gartner Says Most Business Networks Over-Engineered, Overpriced and Underperforming, With Trend Set to Continue; Analysts Discuss Latest Issues Surrounding Enterprise Networks during Gartner Symposium/ITxpo in San Francisco.

SAN FRANCISCO -- Most businesses continue to implement outdated network design and procurement practices, leading to over-engineered, overpriced but under-performing networking infrastructures, according to Gartner, Inc.

Presenting at Gartner Symposium/ITxpo in San Francisco, which is taking place here between May 14 and 18, Gartner analysts said that a lack of focus on user requirements will lead to businesses wasting more than $10 billion procuring Gigabit Ethernet for the local area network (LAN) by 2008. This figure doesn't include the added cost of Gigabit-equipped phones, larger power supplies, upgraded facilities and other miscellaneous requirements.

"The majority of network designers continue to be caught in traditional design practices, building and upgrading the network equates to something that's bigger and faster," said Mark Fabbi, vice president and distinguished analyst at Gartner. "They continue to spend money on bigger and faster core networking technologies at their headquarters and large locations that don't actually serve the user population."

"Most businesses have an increasing number of users in remote locations -- either in branch offices or working on the road and at home - so high investments in LAN's are totally missing the point. By designing networks that map to actual user requirements, rather than falling into the trap of buying the next new thing, businesses could recoup substantial capital dollars that can be redeployed in areas where they actually make a difference".

Gartner analysts said network managers must start shifting their focus to technologies that bring new capabilities to the infrastructure, and that provide services to a distributed workforce.

"Astute network managers will focus their attention on the upper layers of the stack, and look to security, data control, application optimization and mobility services as key features that will benefit the organization far more than installing gigabit Ethernet for all desktops," Mr. Fabbi said.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts. Attendees rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use technology to address business challenges and improve operational efficiency. For more information, please visit www.gartner.com/symposium/us.

About Gartner

Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other

senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit www.gartner.com.