Interop Attendees: Network Management Spending Immune to Economic Downturn -- Overall Budgets to Remain Flat While 85 Percent of Attendees Surveyed Indicated Spending on Network Management Will Increase or Remain Unchanged in 2009 Network Security and Network Performance Management Projections Most Robust

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Pundits and prognosticators have varying opinions about where IT spending will go in 2009. But what’s the word on the street from the IT professionals who are actually responsible for network and application performance? According to a survey of Interop New York attendees by NetQoS® Inc., an overwhelming majority indicated that spending on network management disciplines will not be adversely impacted by the economic downturn.

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We at NetQoS dare say the performance aspects of network management are recession-proof, as these results and our continued strong growth in a slowing economy show

Of more than 100 attendees surveyed, 85 percent indicated that their network management budgets will either increase or remain flat in 2009, when asked if spending will increase, decrease or stay the same on network management disciplines. Only 15 percent indicated that there would be any decrease, while 39 percent indicated that expenditure on network management would increase in 2009. For two disciplines in particular – security and network performance management – about half of the survey respondents indicated spending will increase. When asked the same question about overall IT infrastructure and management software budgets, 54 percent indicated that their budgets will remain the same in 2009.

"We at NetQoS dare say the performance aspects of network management are recession-proof, as these results and our continued strong growth in a slowing economy show," said Steve Harriman, senior vice president of marketing for NetQoS. "While network security is always a concern, our customers tell us their fault and availability issues have largely been solved. Instead, smart organizations focus on network and application performance management to understand how well they are delivering services and whether changes such as adding bandwidth or deploying WAN optimization technologies are worth the investment. This is a critical business need that can't be ignored, especially when IT budgets are under increased scrutiny."

Interop attendees also indicated that their organizations will spend more money in 2009 on IT initiatives such as virtualization and wireless LAN/WAN. Spending on WAN optimization, unified communications, change management, and managed services will remain the same, according to a majority of survey respondents. The attendees surveyed represent a cross-section of industries including financial services, technology and telecommunications, government, media and entertainment, professional services, manufacturing, retail, and others.

Recent projections from Gartner state that overall IT spending worldwide will increase by six percent in 2009 and continue to grow in the coming years, despite the economic downturn. According to Gartner, the fastest growing services in 2009 will be software with eight percent projected growth and IT services with seven percent projected growth. Gartner also projected that computing hardware spending will slow to just four percent growth next year, down from 10 percent growth in 2007.

NetQoS has experienced 29 consecutive quarters of double digit year-over-year revenue growth as of the close of its second quarter ending June 30, 2008. During the first half of 2008, NetQoS grew software license revenues 60 percent year-over-year versus the first half of 2007.

About NetQoS Inc.

NetQoS provides network performance management software and services that improve application delivery across the world's most complex networks. More than 900 service providers, government agencies, and large enterprises – including half of the Fortune 100 – use the NetQoS Performance Center to monitor application service levels, troubleshoot problems quickly, and plan for change. Representative NetQoS customers include Chevron, Lockheed Martin, Reuters Group plc, American Express, Siemens, Boeing, Deutsche Telekom, NASA, and Barclays Global Investors. Headquartered in Austin, Texas, NetQoS has R&D centers in Austin and Raleigh, N.C., and regional sales offices in London and Singapore. For more information, visit http://www.netqos.com or call 877-835-9575.

NetQoS is a registered trademark of NetQoS Inc. All other trade names, trademarks, and registered trademarks are the property of their respective owners.

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Chandra Hosek
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