Many are looking forward to putting 2002 behind them because it was viewed negatively by everyone (including vendors, users and service providers) in the industry. The failure of many vendors — some startups, some mature — has changed the way enterprises assess and buy equipment and services. Viability has become the primary buying criteria. Feeling comfortable about the vendor with whom you're dealing has become a challenge in this sluggish market, and that inevitable question keeps coming up: "When do we hit bottom?"

Unfortunately, as we look toward 2003, the future does not appear much brighter than the past. Times will be tough for everyone (again). Enterprises are looking carefully at purchases, expecting shorter return on investments and real value. This means limited opportunity and growth for the service providers. And because enterprises and service providers are buying less equipment, networking equipment vendors will continue to struggle, too. Enterprises will remain cautious, trying to squeeze more useful life out of their networks. This will make for very hungry vendors. Enterprises must sort through the product hype and vendor pressure, and use this "buyer's" market to their advantage.   
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Bob Hafner
Vice President, Research Area Director
Gartner Research






David Neil
Vice President and Research Director, Gartner Research






Predicts 2003: Enterprise Networking


Predicts 2003: Enterprise Networking, Another Bad Year?
25 November 2002
Bob Hafner 

Those wishing to put 2002 behind them for a brighter future in networking and telecommunications will be disappointed in 2003. The common industry theme is that tough times are still ahead for vendors, users and service providers.





Predicts 2003: Network Service Pricing Trends
13 November 2002
Jay E. Pultz  Phillip Redman  Jean-Claude Delcroix 
In 2003, some network service rates will be increasing; slowing the trend of substantial decreases during the last several years. Savings can still be achieved, but they will be harder to find.



Remote-Access Pricing and User Productivity in 2003
11 November 2002
John Girard 
In 2003, remote users will face increased access charges for traditional dial-up as well as roaming broadband services.




Predicts 2003: Network Services and Providers
11 November 2002
Jay E. Pultz 
In a tumultuous telecom environment, enterprises should take steps now to protect themselves and to prepare for a new era of network services. Vendor selection will be complicated by the issue of the providers' financial viability.



Don't Wait for Perfection: Internet Is Business-Class Now
22 November 2002
Eric Paulak 
The Internet and other IP services should be used in all enterprise networks. The Internet will never perform as well as private, dedicated networks, but it has sufficient capabilities and is reasonably priced to meet many needs.




Predicts 2003: Downfall of Hosted Services Is Exaggerated
12 November 2002
Ted Chamberlin 
Enterprises should not shy away from hosted models, but understand where and when they can and should be used.



Predicts 2003: Video Over IP Still Outpaces Voice Over IP
15 November 2002
Lawrence Orans 
Lower risk, lower cost and more-compelling applications are all reasons that enterprises will focus on video over IP ahead of voice over IP in 2003.




IP Telephony Will Remain a Niche Deployment in 2003
15 November 2002
Kathleen Simpson  Steve Blood 
The value of IP telephony lies in the productivity benefits for the enterprise, not in the cost savings for the IT department.



Predicts 2003: Network Convergence on the Horizon (Again)
15 November 2002
Bob Hafner 
With few exceptions, reducing capital or operating costs, fast, will be the sole external driver of converged network technologies and services adoption. The result is that only a few enterprises will buy converged products in 2003.




Contact-Center Operating Assumptions Reconsidered
22 November 2002
Bern Elliot 
Economic conditions and technology changes drive contact centers to consider functional alternatives.



NSPs to Dominate Call Center Outsourcing
25 November 2002
Terry Wright 
One in five companies that network their call centers would consider outsourcing their call center infrastructure if a single network service provider could offer network transport and call center infrastructure services.




Predicts 2003: Ethernet Commoditization, a Growing Force
15 November 2002
Lawrence Orans 
Small and midsize businesses continue to be the primary buyers of workgroup switches from commodity-class vendors. But 2003 will be the year in which large enterprises begin to embrace these lower-cost alternatives.



Asia/Pacific Enterprise Networking Trends in 2003
22 November 2002
Geoff Johnson 
The Asia/Pacific region faces challenges because of the global telecom turmoil, but there will be opportunities for enterprise buyers in less-expensive equipment and contract renegotiation, even as some network service prices rise.