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MARKET DYNAMICS: MAKING SENSE OF THE MARKET

From Network Computing Vol 18 No 03- May/June 2009

IN A REGULAR LOOK AT RESULTS AND KEY BUSINESS ANNOUNCEMENTS FOR SUPPLIERS INTO THE NETWORKING AND IT MARKET, NETWORK COMPUTING SUMMARISES THE EDITOR’S SELECTIONS

An analysis of European data centres shows that unless practices change, providers already slim profits will turn into losses within two or three years. The report, 'Keeping the Data Centre Competitive' from Booz & Company points out that data centres are under enormous pressure to change. Louise Fletcher, Head of the Global IT Practice, said, "Demand for data services is on the rise, but the data centre is under tremendous pressure to cut costs, reduce energy usage and develop new delivery models. Those pressures, and the threat of rising costs such as energy, labour or real estate, will force every data centre operator to reassess how it does business, if it wishes to remain competitive."

Microsoft has moved its support programme for Windows XP into extended support mode, meaning that it is stepping down its support for the still-popular operating system. In response, Fortify Software is advising anyone working on customised or new applications running under Windows XP, to beef up their code auditing procedures. Barmak Meftah, Senior Vice President Products & Technologies for Fortify said, "Extended support for Windows XP will continue until April 2014, but this month's support move means that smaller firms will find it more difficult to get telephone support for Windows XP."

A network performance management

company is claiming that almost one in six internet connections are loaded to the point where performance is likely to be affected. NetEvidence surveyed "leased line" internet connections from 6,000 organisations with speeds ranging from 256K (quarter of a Mb) to Gigabit Ethernet (1,000Mb). Richard Thomas, Managing Director of NetEvidence said, "We were particularly surprised that these customers who know their lines are overloaded are leaving them that way. The organisations in the survey use our Highlight network monitoring system, so they are aware of the problem. However, many organisations don't have good visibility of this key resource (i.e. they don't use Highlight or a comparable tool), and it's reasonable to assume that instances of overloading are even higher

amongst this group."

The study of 1,000 companies revealed that the reasons for enduring such heavily loaded lines included:

• Doing more with their internet connections (such as virtual meetings or VoIP) but no budget to upgrade

• The consistent, if poor, performance and the vastly superior support provided with their leased line have kept them from switching to Broadband or DSL, even though it could be faster

• Internet applications have a built-in 'survival' mode to cope with poor connections and rarely fail completely. Instead, performance deteriorates slowly, and users get used to it. IT departments may choose to wait until they receive serious complaints. NC

IN BRIEF Ipswitch Inc.'s Network Management division, developer of WhatsUp Gold has announced double digit revenue growth in Q1 2009 over the same quarter last year for its 1,000 strong, Gold Partner Channel. IT provider Kelway has announced the acquisition of London- based IT solutions provider Repton Holdings Plc. Repton's expertise in enterprise and data centre infrastructure is set to bolster Kelway's portfolio, complementing its strengths in product, consultancy and lifecycle solutions. The move follows Kelway's acquisition in February of Panacea Services. The combined organisation now employs more than 350 staff and has a turnover in excess of £180 million. NetApp and Data Domain has announced that they have entered into a definitive agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock for $25 per share in cash and stock. The transaction is valued at approximately $1.5B, net of Data Domain's cash. Aruba Networks says it will offer a lifetime warranty for all new shipments of AP-120, 70, 60, and RAP-5 families of indoor Wi-Fi access points.

Disclaimer -all information published in this article is based upon fuller submissions provided under general release. Any interested party is urged to verify any information printed here, prior to using it in any way. Neither Network Computing nor it publishers accepts any responsibility for the accuracy of the information contained in this article.

 

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