According a recent IDC survey that investigates current and planned use of Internet-based services including content delivery, Web hosting, ASP (application service provider), IP VPN (virtual private network), and corporate Internet access, changing market very clearly, such as the proportion of companies using 2Mbps and higher leased line connections is the same for SMEs as it is for enterprises, reflecting recent severe leased line price erosion.
On average, 5% of users expect to shift their Web hosting operations from external hosters to in-house operations, apparently bucking the long-term trend for more Internet operations to be outsourced.
Other highlights of the results included the following:
· Of European companies interviewed, 42% currently use an IP VPN, and a further 19% expect to do so within one year. Other figures include videoconferencing (33% now plus 11% in one year) and CDN (17% now, plus10% in one year).
· Media and finance are the most connected industry sectors, with 94% and 93% of company sites having Internet access currently.
· Switzerland, Germany and the UK are the greatest users of leased lines for Internet access.
· Half of companies use their national incumbent phone operator for Internet access.
· 67% of companies are satisfied or very satisfied with their Internet access service overall; Swiss companies are most satisfied and Italian companies are least satisfied.
· Equal numbers of companies use network service providers and IT services companies as external Web hosting providers, with 24% using pure-play hosting companies.
· By far the most common reason for not using an ASP is perceived lack of need, cited by 67% of non-ASP users; the second most cited reason was cost concerns at 19%.
· 72% of companies are holding their Internet and Web hosting spending steady as a result of the events of September 11th, and the downturn in the economy.