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Security Is Key Factor For Implementation Of Converged IP Networks, According To Global Survey Of Senior Executives


LONDON, UK – Over two-thirds of corporate executives view ensuring reliable network security as the single most critical factor in the successful implementation of a converged IP network according to a new survey from AT&T in co-operation with the Economist Intelligence Unit (EIU).

The EIU global survey of 236 senior executives, representing firms from 50 countries and more than 20 industries, addressed the electronic security implications of network convergence and reported that for the second year running, security remains at the top of the list as the most critical network attribute of network performance, ahead of cost, complexity and business disruption.

More than sixty percent of all executives surveyed say that processing customer data online exposes their firms to electronic security breaches, more than any other type of vulnerability. Yet three years from now, 62% of the respondents expect to have implemented IP through most or all of their organisations.

Respondents reveal a clear link between their firms’ technology-related goals and their chief information vulnerabilities. Among some of the key benefits of convergence—the enabling of deeper electronic collaboration with customers as well as remote and mobile working—are also a prime area of network vulnerability.

The survey reveals that enterprise security strategies are evolving, with some organisations looking to complement the localised approach with a more flexible and centralised form of security that enables extensive electronic collaboration with customers and suppliers.

“The new capabilities of the ubiquitous network are great for commerce, but open a whole new dimension of risk,” says AT&T vice president of managed security services, Stan Quintana. “A multi-layered approach to security is required,” he asserts.

According to 89% of respondents, viruses and worms remain the top electronic security threat to companies, but fewer (83%) expect this will be the case in two years’ time. Surveyed executives expect the threats from hackers as well as from competitor espionage to grow in the same time frame, with 57% putting it among the chief security threats, compared with less than half today. Competitor espionage is another area where they expect to see increases.

Meanwhile, hackers will increasingly be joined by, or employed by, professional criminals targeting corporations as subjects of financial crime, through such techniques as ‘phishing’, already common today.

As ever, the top area of network vulnerability remains people. Most executives believe the majority of attacks originate internally, as a result of internal sabotage or espionage by employees or of unintentional mistakes. In direct contradiction there is a growing trend towards mobile and other forms of remote working, as management seeks to boost employee productivity and job satisfaction. Companies, for example, are using wireless technologies to allow sales people, service technicians and other mobile staff access to network applications and mission-critical data. Yet the security features of enterprise wireless networks remain less robust than those inherent in the fixed network.

This contradicts the parallel trends within firms toward expanded employee mobility and remote working, on the one hand, and greater collaboration with customers, supplier and partners on the other. Each of these presents distinct challenges to the operation of corporate networks.

The survey suggests that business leaders are coming to grips with electronic security—better understanding the nature of threats, and setting organisational structures and spending patterns in place to ensure they are met in a robust way. Corporate spending on network security is levelling off at about 15% of IT budgets, suggesting a commitment on the part of the executive suite to maintain spend at a relatively high level to ‘maintain the defences.’

The battle, however, is far from over: the source of security threats will continue to evolve, and their ingenuity will grow. At the same time, effective network security will come to be seen as more than just a means of protecting against risk.

Enabling a truly collaborative enterprise—in which information is shared regularly with customers and other stakeholders, and in which mobile or remote employees are able to access this and other mission-critical company data—requires secure IP networks. Inasmuch as expanding collaboration is seen by executives as a means to enhance competitive advantage, ensuring robust network security may be seen as critical to the achievement of a strategic business objective.

This is the second in a series of four thought-leadership papers written by AT&T in co-operation with the Economist Intelligence Unit on the theme of network convergence and business strategy. Future papers in the series will address the issues of customer service and applications integration in a converged network environment.

These and other findings are presented in a new report called Network Security: Safeguarding the collaborative enterprise, which is now available at:

Survey & Research Methodology

As part of the research for the paper, the Economist Intelligence Unit conducted an online worldwide survey of 236 executives. The majority of respondents came from Asia Pacific (39%), North America (30%) and Europe (25%). Other respondents came from Latin America the Middle East and Africa. The top five industry sectors represented by the survey respondents were professional services, financial services, manufacturing, technology, energy, and healthcare and pharmaceuticals. In addition to the survey research, the EIU conducted a series of one-to-one in-depth interviews with senior executives and analysts. The survey, interviews and other research were conducted in June of 2005.

About The Economist Intelligence Unit
The Economist Intelligence Unit ( the business information arm of The Economist Group, publisher of The Economist. Through its global network of over 500 analysts, the Economist Intelligence Unit continuously assesses and forecasts political, economic and business conditions in nearly 200 countries. As the world’s leading provider of country intelligence, the Economist Intelligence Unit helps executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies.
About AT&T

For more than 125 years, AT&T (NYSE ’T’) has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.
AT&T ’Safe Harbor’

The foregoing contains ’forward-looking statements’ which are based on management’s beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T’s control, that could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, continued capacity oversupply, regulatory uncertainty and the effects of technological substitution, among other risks. For a more detailed description of the factors that could cause such a difference, please see AT&T’s 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.


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