Yankee Group News Release

Cautious Optimism Will Define Second Half of 2009 for Communications Industry

Communications Spending Expected to Grow in Early 2010

Boston, MA, July 28, 2009 — Yankee Group predicted 2009 would be a watershed year for the communications industry. After six months of economic anxiety, declining consumer confidence and widespread industry pessimism, Yankee Group expects communications spending to tick up in early 2010. Recent Yankee Group survey data supports this, with 68 percent of respondents planning to maintain or increase spending in the next three months.

A new report, "Yankee Group’s 2009 Predictions . . . Reloaded," revisits Yankee Group’s top 10 predictions for 2009 to explore the remarkable changes that have already taken place and provide an outlook for 2H 2009 and beyond. Highlights of the predictions include:

  • Wired switch port sales will decline for the first time in history. Wireless LAN (WLAN) is transforming into a primary source of connectivity for many enterprises. In 2006, 57 percent of enterprises offered WLAN access in the office. Yankee Group survey data reveals that number has jumped to 89 percent in 2009.
  • Sunny skies are ahead for cloud computing. Cloud computing continues to grow as enterprises seek zero-capex solutions. According to a recent Yankee Group survey, more than 75 percent of IT decision-makers are considering a SaaS application for customer relationship management or sales automation.
  • Desktop virtualization will replace PC replacement. New Yankee Group survey results show that 64 percent of enterprises currently have some form of a production deployment of desktop virtualization. This is a dramatic shift from 2008 when Yankee Group surveys revealed only 10 percent had the technology deployed.

"The incredibly dynamic first half of the year has set a new stage for the communications industry wrought with both challenges and opportunities," said David Vorhaus, Yankee Group senior analyst and co-author of the report. "Amidst the economic gloom, dollars are still flowing, but in very specific ways. Cautious optimism remains the order of the day."

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The people of Yankee Group are the global connectivity experts-the leading source of insight and counsel trusted by builders, operators and users of connectivity solutions for nearly 40 years. We are uniquely focused on the evolution of Anywhere connectivity, and chart the pace of technology change and its effect on networks, consumers and enterprises. Headquartered in Boston, Yankee Group has a global presence, including operations in North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific. Visit www.yankeegroup.com.