Broadband services hit enterprise stumbling blocks

Demand for broadband services, primarily DSL is being driven by an increasing number of remote workers, reports In-Stat/MDR. However, broadband usage may remain limited to non-essential applications for home workers or small offices.

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By  Zoe Moleshead Published  September 11, 2002

Demand for broadband services, primarily DSL is being driven by an increasing number of remote workers, reports In-Stat/MDR. However, the analyst house also believes that broadband growth and usage may remain limited to non-essential applications for home workers or small offices.

The size and location of main offices, the types of applications delivered by enterprise bandwidths, and the perceptions of telecom managers regarding broadband services are the three key barriers to a wider uptake of broadband, according to In-Stat/MDR.

Over 20% of enterprises customers surveyed by the research group said they would not consider any broadband solution for their main offices. However, if enterprises were to deploy broadband services in their main office, 37% of respondents would opt for DSL over cable, fixed wireless and satellite internet.

“The concept of a ‘distributed enterprise’ is not a catch phrase, but a reality for most firms with more than 1000 employees. As a result, enterprise bandwidth continues to be driven primarily by the exchange of internal content, either among employees or to customers,” says Kneko Burney, director of business infrastructure & services research, In-Stat/MDR.

“However, the manner in which this content is exchanged has begun to evolve, becoming more Web-intensive. This has led to a marked increase in internally managed applications hosting, and subsequently, security requirements: two of today's most influential application-specific drivers of enterprise bandwidth in this changed economy. However, these customers are still likely to address their changing main and branch bandwidth needs with dedicated lines, where some customers are unwilling to try broadband alternatives, comparable or not,” he adds.

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