Softchoice Corporation

Softchoice Corporation

April 02, 2012 10:47 ET

Softchoice Study Finds Corporate Networking Infrastructure Built on Shaky Foundation

Networks at Risk for Outages, Increased Maintenance and Degraded Performance

TORONTO, ONTARIO--(Marketwire - April 2, 2012) -

Editors Note: There is an infographic associated with this press release.

Softchoice's (TSX:SO) analysis of 78 corporate networking environments reveals that neglecting device management is exposing organizations to the risk of network outage, ratcheting up maintenance costs, and degrading network performance. While global spending on network security is estimated at more than $7 billion annually and growing, without effective asset management, network maintenance represents a significant and largely overlooked threat to many organizations.

The findings of Softchoice's Strategic Network Infrastructure study come after a series of high profile outages that included some of North America's largest banks, wireless providers and e-commerce sites. The fallout has tarnished major brand names and cost hundreds of millions of dollars in lost revenues for both organizations and consumers.

"In the age of mobility and cloud computing, the network is arguably the most important pillar in today's IT environment," said David MacDonald, president and CEO of Softchoice. "Whether due to a lack of tools and resources or effective strategy, network maintenance is becoming an Achilles heel for many organizations."

Study Highlights

Over the past two years Softchoice analyzed network devices housed at 78 small, mid-market and enterprise organizations from across the United States and Canada. Key findings include:

  • 36 percent of network devices have no vendor maintenance coverage whatsoever. In the event that one of these devices fails, the company has no recourse but to manage fixing or replacing the device themselves, a process that could potentially take days and effectively shut down operations.
  • 23 percent of devices are at or approaching 'end of support'. Though still in use, these devices are no longer supported by the manufacturer which means technical, onsite support or replacement options are no longer available.
  • An average of 44 configuration errors were found within each environment. The severity of a configuration or 'service affecting error' can range from degrading network performance to causing an outright outage.
  • Potential unrealized annual savings of $273 per device or an average of $23,000 per organization. This is based on a study average of 84 devices per organization and is due largely to paying maintenance costs on routing and switching devices that may not even exist or that may no longer be in use. For smaller organizations with approximately 150 employees, the median potential savings was $10,800. For larger organizations with roughly 1000 employees the median potential savings was $25,000 annually.

"Like good engineering, network infrastructure is largely invisible until it becomes an issue or worse, front page news," added Jason Mcneill, Director of Business Development for Softchoice. "Organizations need to apply the same rigor to the network as they do to managing other essential IT assets. That means establishing processes so you know where these devices are in terms of their lifecycle, what updates are required and tracking maintenance coverage on a consistent basis."

About Softchoice

As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice's holistic approach to technology includes solution design, implementation and asset management services, as well as providing access to one of the most comprehensive and cost-effective technology distribution networks in North America. With more than 1100 employees, Softchoice manages the technology needs of thousands of corporate and public sector organizations across the United States and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate", "expect", "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

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