Budgets that showed a nearly even pairing of advancers to decliners (30% to 28%) between 2009 and 2010 had a breakout year in 2011, according to our Wave 9 Networking preview data. Forty-seven percent (47%) of respondents reported an increased budget. Where is the uptick coming from? The data suggest that in addition to general refreshes of aging hardware and network growth, forward budget dollars are also going toward projects like 10Gb Ethernet rollouts, Unified Communications solutions, and mobile device management.
From a predictive standpoint, 2012 budgets fall back to Earth a bit, but still pace strongly when compared with 2010. Thirty-eight percent (38%) predict continued increased budgets into next year, against 23% noting a projected budget decline. Of that 38% seeing an increase, the largest percentage reported upticks in the 6%-10% and 11%-24% ranges.
With all that said, the respondents most likely to offer narrative commentary on budgets are those experiencing constrictive pain with their allocations. A sampling of budget-related comments:
- “Our new funding model will be in place in 2012, to support a larger budget and much higher capex spending.”
- “In 2009 we had a cap on budget – must remain flat for five years. They forgot about the refresh requirements. Last year we put in a new data center.”
- “With environment in a budget freeze, there was little new to cover.”
- “We have moved to a zero-dollar budget. As we produce a project, we get the funding.”
- “Beyond overall depressed budget situation, we are going to a new funding model for networking – charge per head per department.”