AT&T Touts IP Convergence

LONDON -- 48 percent of businesses have already implemented IP convergence in all or most of their business, nearly twice the number recorded a year ago, according to a new global survey conducted by the Economist Intelligence Unit (EIU) for AT&T Inc. (NYSE: T). In addition, the vast majority - 84 percent - of business leaders now recognise the centrality of convergence to their strategic IT and business goals, compared with only 45 percent in 2005.

The survey of 395 global senior executives, called 'Convergence Takes Hold in the Enterprise', reveals a maturing attitude toward convergence. While executives continue to expect streamlined network management and cost-savings as the primary advantages of network convergence, executives are also beginning to see beyond the bottom line. Around 70 percent of those polled cited "better collaboration with customers, suppliers and partners" and "better customer service" as recognised benefits of IP convergence, and 65 percent said they are focusing on using converged networks to launch and manage new applications.

The EIU white paper demonstrates that companies are prepared to make a substantial investment to reap the benefits of convergence. Almost three-quarters of respondents (72 percent) expect their firms to increase spending in this area by at least 10 percent over the next two years. But this is tempered by realistic concerns about security. When it comes to implementing converged applications, such as Voice over IP (VoIP), network-security fears are uppermost in executives' minds. According to the survey, 58 percent view network-security issues as the most significant challenge to implementing convergence.

To overcome these challenges, security plans and measures must be integrated throughout the convergence process.

As Tom Siracusa, director of VPN Strategy at AT&T explains, "Security for converged networks and services must be built in, not bolted on as an afterthought. A distributed model is needed that places security in multiple locations, from the edge, through the network and into the applications and databases."

Companies are also concerned that a shortage of expertise will impede the successful migration to IP networks. Nearly half of companies worldwide say that they lack in-house skills and experience in relevant technologies for handling IP convergence. "Companies will need to address this looming skills gap if they are to reap the full benefits of IP migration," says Denis McCauley, director of Global Technology Research with the Economist Intelligence Unit.

AT&T Inc. (NYSE: T)