How German Businesses are Getting the Upper Hand on UK Businesses!

Sam Claus, Account Manager, avsnet

Here’s a startling statistic:

A lack of IT investment means that 20% of UK businesses are missing out on the many operational and cost benefits of new network technologies, simply because they’re using equipment that is more than three years old.

What about German corporations in the same situation?

A mere 8%.

Why is there such a disparity in investment? Both countries are economic powerhouses and businesses here have the same reliance on high-speed data as those across Europe, so are UK organisations simply missing a trick?

Well, the reason can be considered both financial and cultural. Let’s begin with the financial differences:

• Essentially, UK companies spend less annually compared to their German counterparts,
• In the UK, there’s a larger focus on long-term amortisation of network assets in the workplace and particularly the data centre,
• The average annual UK business spend on data centre networking was £161,000 with another £86,000 spent on the WAN, and in contrast…
• German companies spent almost double in the data centre (€326,000 annually) and €140,000 on the WAN.

What do these figures tell us?

German companies spend more, but are they also better at recognising that the network raises market competitiveness?

Germany has long been considered a beacon of productivity and corporate efficiency, a country full of lean businesses capable of maximising their respective workforces, resources and production capabilities.

Recent figures suggest the opposite of the UK, partly because we have different business cultures, but also because, in general, UK businesses seem to undervalue network connectivity. That applies on a macro level where consumer broadband lags behind other countries, but more importantly in how much businesses invest in their dedicated network services.

The network nowadays is a critical asset. It underpins everything in a workplace, drives productivity and enables long-term success.

Companies want teams to communicate with each other wherever possible and they are certainly investing in collaboration applications that enable these outcomes. However, the final piece of the puzzle is to invest strategically in the network.

This is how businesses will fully realise the benefits these applications provide and achieve the desired return on investment from new collaboration tools. Consider what benefits managed network services can bring. These not only deliver the positive outcomes a business wants and requires, but they also reduce the financial burden on IT (i.e. the shift to OPEX from CAPEX) and enables a more flexible method of harnessing new networking solutions at a fraction of the cost.

By investing smarter, more efficiently and seeing the corporate network as the asset it truly is, UK businesses can drive business productivity and show the Germans that bigger budgets are not always better…

Let me know whether you agree…