Networks Seen as Mission-Critical For Business in E-Commerce Era.DALLAS--(BUSINESS WIRE)--May 11, 1999-- Olicom Study Shows Networks as Center of Drive to Increase Market Share, Profitability and Customer Satisfaction The network is moving from the backroom back·room n. or back room 1. A room located at the rear. 2. The meeting place used by an inconspicuous controlling group. adj. 1. to the boardroom of the typical American enterprise, putting networking professionals closer to the hearts of their businesses than ever before, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new study commissioned by Olicom A/S (Nasdaq:OLCMF), the leader in fault-tolerant enterprise networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. solutions. 83% of executives surveyed perceive areas where their networking strategies touch, or have a direct impact, on their customer base. For most, this involves the customer's need for timely, accurate information (29%), or the need for access to the company's data systems via the Internet (27%). Olicom commissioned the survey to document current needs and future plans of networking decision makers in medium to large U.S.-based commercial and government enterprises as input for its product planning Product Planning is the ongoing process of identifying and articulating market requirements that define a product’s feature set. See also
By a huge margin, 80% of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. view the Internet, including Web access and e-commerce, as the primary means of improving communication with customers. Such improvements, say executives, would stimulate increased customer satisfaction (44%), increased productivity (26%), and increased market share (25%). In open-ended interviews that typically extended for more than an hour, survey participants reported a greatly expanding role for networking in their organizations. "Choosing the right networking solution is increasingly becoming a business decision, not a technology decision," explained Per Larsen, president of Olicom Inc. "Whereas the network solution supporting your Web site used to be a simple market-facing system, the network today is increasingly becoming a revenue-generating system. We commissioned this study to provide networking professionals with front-line perspective on the issues confronting business as we enter the e-commerce era. It has also validated our strategy to concentrate on meeting mission-critical networking needs." More than 65% of the networking executives responding to the questionnaire reported that they are planning substantial investments in Web and e-commerce expansion in the next 12 to 24 months. Mentioned most frequently in investment plans were needs for more bandwidth (17%), more routers and switches (16%), more servers and PCs (14%), and more security (13%). The study reinforced the growing ascendancy as·cen·dan·cy also as·cen·den·cy n. Superiority or decisive advantage; domination: "Germany only awaits trade revival to gain an immense mercantile ascendancy" Winston S. Churchill. of the network in today's business Today's Business is a show on CNBC that aired in the early morning, 5 to 7AM ET timeslot, hosted by Liz Claman and Bob Sellers, and it was replaced by Wake Up Call on Feb 4, 2002. environment, from being a mere tool for sharing files, into a major strategic weapon. Not only are more users on the network than ever before, they are demanding greater access to more data, both from the office and from home. Concurrent with this trend is an increasing demand for networks with greater reliability, high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. , and more bandwidth. "What we're seeing is two distinct needs -- companies need more bandwidth, but they also need high availability and reliability," said Larsen. Because of the changing nature of the network, managers feel an extra burden to make sure network outages A network outage is an interruption in availability of a system due to the communication failure of the network. Network outages cost money directly to the organisation (for example Banks, Airlines, Online Transaction companies); or cost money indirectly to customers ISP, are minimized in order to accommodate the growing mission-critical nature of the network. The need for 99.9% uptime is most often named as the most significant burden faced today. Over half of the respondents say they have important applications other than data sessions, such as videoconferencing A real time video session between two or more users or between two or more locations. Although the first videoconferencing was done with traditional analog TV and satellites, inhouse room systems became popular in the early 1980s after Compression Labs pioneered digitized video systems , that require greater WAN connectivity. Those making a move in the direction of e-commerce plan to be making an investment in a wide range of networking products, including additional bandwidth, more hardware, routers, switches, PCs, and encryption The reversible transformation of data from the original (the plaintext) to a difficult-to-interpret format (the ciphertext) as a mechanism for protecting its confidentiality, integrity and sometimes its authenticity. Encryption uses an encryption algorithm and one or more encryption keys. and firewall equipment. This audience believes that the next generation of networking products should focus on high reliability and availability, increased bandwidth, and user-friendly simplicity. About Olicom Olicom, a leading global supplier of high-performance data networking solutions, designs, develops, manufactures, and markets its products for large, geographically dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. enterprises. It specializes in providing campus network connectivity solutions, advanced technical support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other 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 http://www.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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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. |
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