Spending on Branch Offices to Jump

Spending on Branch Offices to Jump

By Greg McNevin

June 25, 2008: Spending on remote branches around the world is set to grow by a strong 6 percent by 2011 to hit US$24.2 (AU$25.42) billion, says a new study by IDC.

In a special market analysis report published by IDC's Enterprise Infrastructure group, the firm claims that the remote branch market is evolving into one of the key IT battlegrounds.

It says worldwide remote branch spending will increase at a 6 percent compound annual growth rate from US$19.4 (AU$20.38) billion in 2007 to US$24.2 (AU$25.42) billion in 2011.

“Inherent in the nature of the remote branch is the desire of the business to be closest to its end customer, whether it is a retail operation that needs multiple points of sale or a hospital that wants to deliver timely patient care,” said Lucinda Borovick, research vice president, Datacenter Networks.

“Because the remote branch is the location within an organisation that is closest to the end customer, it is the point where the IT organisation must be able to deliver the services that meet the fluid needs of the business.”

Because remote branches are by nature dispersed, Borovick says they provide an opportunity for IT to bring business value to the organisation.

“We believe the number of remote branches will grow over the forecast period.”

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