Srong Growth Potential for High-Speed Wired/Wireless Data Communication Networks in U.S. Government

Given their enormous impact on employee efficiency and productivity, high-speed wired/wireless data communication networks are attracting increased attention from the Federal as well as state and local governments in the U.S. Wireless services and solutions are especially beneficial for field workers, such as building, facility and health inspectors, social workers, emergency teams and event coordinators, allowing them to carry along their offices wherever they go.

What is more, the staff can instantly access and share schedules, forms, e-mail, client files and back-office data and can also coordinate with colleagues and supervisors more easily, both within and beyond their organizations.

“Other technologies that are likely to draw greater government spending include unified messaging, conferencing and collaboration applications and unified communications,” notes Frost & Sullivan Senior Industry Analyst Roopashree Honnachari. “These applications enable users to handle the increasing communication load more efficiently by accessing all of their messages through a single interface. Additionally, users can engage presence to identify the most appropriate means (email, phone, etc.) to reach their colleagues, partners and customers.”

Security solutions to tackle the vulnerability issues of IP-based networks are also likely to gain traction in the vertical. Overall enterprise spending growth rates on firewalls/IPSec VPNs/ IDS/IPS solutions is in double digits and the same trend is expected in the government vertical too.

With regard to the challenges organizations faced in adopting new IT/Telecom technologies, limited budgets tops the list with approximately 40.2 percent of the respondents considering it a major restraint. Following this were higher prices of new/advanced technologies (38.2 percent), potential downtime associated with new technology migration (36 percent) and security concerns (33.9 percent).

“Vendors could take a cue from the above results to address some of the challenges and thereby enhance their competitiveness,” says Honnachari. “For example, vendors could develop innovative funding mechanisms to address the higher prices issue.”

Frost & Sullivan is of the opinion that, going forward, managed storage service providers (MSSPs) would play an important role in the state and local government storage management markets, primarily due to retirement of a major portion of IT staff and also due to excellent cost benefits offered by managed storage service providers. MSSPs typically offer turnkey services including design, deployment, and migration of data, as well as several types of service-level agreements (SLAs) that guarantee performance and availability of services.