Enterprises around the world are moving decisively to converged IP networks. Nearly half of senior executives in a global survey conducted by the Economist Intelligence Unit for AT&T say that IP convergence has been implemented in all or most of their business, nearly double the number recorded in the same 2005 survey. Over three-quarters say this will be the case within three years. The rate of IP migration can no longer be termed “evolutionary”.

Findings of the paper include:

• 84% of business leaders now recognise the centrality of convergence to their strategic IT and business goals, compared with only 45% in 2005.
   
• 48% of businesses have already implemented IP convergence in all or most of their business, nearly twice the number recorded a year ago.
   
• Almost three quarters of respondents (72%) expect their firms to increase spending in this area by at least 10% over the next two years.

As ever, executives look to streamlined network management and cost savings (particularly from reduced voice charges) as prime benefits of convergence. But they are also looking for paybacks in areas that affect top-line revenue growth. "Better collaboration with customers, suppliers and partners" and " ‘better customer service" are among the key rewards of convergence for global respondents, and are the top two benefits cited by North American executives.

The survey indicates that companies are prepared to make substantial investment to achieve these enhancements. Almost three-quarters of respondents (72%) expect their firms to increase spend by at least 10% over the next two years (compared with 58% who said the same in 2005). One in five plans to increase network investment “very significantly”— by more than 25%.

This is the first in the Network Convergence 2006 series of thought-leadership papers written by AT&T in co-operation with the Economist Intelligence Unit. Subsequent papers in the series will explore specific issues of convergence and its implications for business strategy: network security, applications integration and enterprise mobility.

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