Key trends, facts and interpretation you need to run your business
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Interest in edge-of-the-enterprise applications that improve customer and supplier relationships by enabling external parties to access and interact with an enterprise's internal data and applications is on the rise. According to Yankee Group research, enterprises are allocating 34 percent of their IT budgets to solve their edge-business needs. Of note, that is also the largest and fastest-growing portion of the enterprise IT budget. When enterprises were asked to rate the ability of vendors to deliver edge technology, Microsoft, IBM and Oracle scored the highest with ratings in the "very capable arena" (scores of 4.0 or higher on a 5.0-point scale).
Enterprises are focusing on edge apps for a number of reasons, including increasing demands from customers and business units, spending cuts for internally oriented technologies and, in some enterprises, flat or declining budgets. Edge technologies help reduce costs, improve service and improve competitive advantages. VARBusiness' own research, conducted in the first quarter of 2004, also gauged enterprises' interest in using their IT budgets to reduce costs and run their businesses more efficiently. Some of the innovative technologies enterprises anticipate to focus on this year include blade servers (33 percent) and information life-cycle management (24 percent).