"Forty five percent of the network estates of the nearly 300 organisations...will be totally obsolete within five years," Dimension Data said. "This figure is an increase of 38 percent on last year. In addition, of the devices that are now in the obsolescence cycle, the percentage that are end-of-sale (EoS) increased...from 4.2 percent in calendar year 2010 to 70 percent in calendar year 2011."
Dimension Data said a key factor in this massive leap in early stage obsolescence was that equipment providers were moving more products to end-of-sale to allow for newer technology. At the same time, the percentage of devices sitting at the higher risk end-of-contract-renewal (EoCR) and end-of-engineering (EoE) stages has dropped dramatically from 86.2 percent to 20.8 percent.
Raoul Tecala, Dimension Data's business development director for network integration said: "In the last two years, there's been a significant shift from product-oriented development to architectural-oriented development, in order to ensure support for the larger macro-technology trends such as virtualisation, video and enterprise mobility.
"At the other end of the spectrum, the drop in devices at EoE and EoCR indicates that IT managers have embarked on implementing an intensive refresh cycle at the lifecycle milestones that represent real operational risk. Interestingly, at 9.2 percent, the percentage of devices that were last-day-of-support (LDoS) has moved only 0.2 percent from 9.0 percent in 2010."
Tecala concluded. "The pace of technology innovation means that the usable life of the capital asset is smaller than ever before. Historically, clients planned and budgeted around a seven-year depreciation of their network. This data demonstrates that almost half of clients' network estates will be LDoS within five years.
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