Here's a look at 1999 spending trends according to the size of a company's overall

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1998 spending
Under $100,000 -
$100,000 $499,000 $500,000 +
No Change 25% 13% 7.4%
1 - 5% Decrease 4% 3% 4.3%
1 - 5% Increase 19% 19% 17.5%
More than 5% Decrease 5% 4% 4.0%
6 - 10% Increase 19% 21% 27.6%
11 - 15% Increase 5% 9% 8.6%
16 - 20% Increase 6% 10% 8.0%
21 - 25% Increase 4% 5% 5.8%
More than 25% Increase 14% 15% 16.9%

The jump in labor costs
Under $100,000 -
$100,000 $499,000 $500,000+
0 - 19% 15% 8% 3%
20 - 39% 25% 32% 42%
40 - 59% 23% 32% 33%
60 - 79% 33% 24% 22%
80 - 100% 5% 3% 1%

Spending on outsourcing costs
Under $100,000 -
$100,000 $499,000 $500,000+
0 - 19% 62% 42% 28%
20 - 39% 30% 47% 48%
40 - 59% 7% 7% 16%
60 - 79% 1% 2% 8%
80 - 100% 1% 2% 0%

Network World
Spending Survey
02/26/2017, Page 1

49 8% 8% 10% 50+ 16% 22% 22% Change in spending on labor costs.000 $499.49 7% 8% 9% 50+ 11% 12% 13% Change in spending on outsourcing costs.000 $500.000 + Less than -26 4% 2% 2% -25 to -1 7% 8% 10% 0 32% 18% 16% 1-9 10% 12% 12% 10 .000 $499.000 - $100. Page 2 .000 - $100. 1998 to 1999 Under $100.000 $500.19 16% 18% 17% 20 . 1998 to 1999 Under $100.29 8% 11% 11% 30 .000+ Less than -26 2% 2% 2% -25 to -1 10% 12% 8% 0 51% 34% 35% 1-9 11% 14% 12% Network World Spending Survey 02/26/2017.29 8% 12% 12% 30 .Capital equipment spending Under $100.000+ Less than -26 2% 0% 1% -25 to -1 6% 5% 6% 0 36% 25% 19% 1-9 15% 18% 19% 10 .000 $499.000 $500.000 - $100.19 15% 22% 22% 20 .

19 10% 14% 18% 20 .29 5% 8% 8% 30 .10 .49 5% 6% 8% 50+ 6% 10% 8% Network World Spending Survey 02/26/2017. Page 3 .

Page 4 .000+ Hubs 65% 71% 65% Routers 48% 71% 82% Layer 2 Switches 20% 34% 49% Layer 3 Switches 18% 37% 57% Gigabit Ethernet Switches 13% 28% 50% ATM Switches 6% 16% 37% Token Ring Switches 3% 5% 8% Remote Access Devices 25% 46% 53% Videoconferencing 19% 30% 43% VPN Equipment 16% 37% 47% Wireless Equipment 20% 29% 39% Firewalls 42% 58% 68% Web Servers 45% 62% 73% Non-Web Servers 38% 51% 50% Messaging/Collaboration Tools 19% 30% 35% Network Management Tools 46% 66% 81% Directories 5% 12% 17% Caching/Load Balancing Tools 8% 18% 31% E-Commerce Software 13% 19% 28% Network Operating Systems 59% 70% 66% Other 2% 3% 3% Thoughts about money We asked respondents how they feel about the amount of financial resources they had in 199 Under $100.000 $499.000 - $100.000 $500.000 $500.1999 purchases Under $100.000+ Very Inadequate 17% 12% 12% Somewhat Inadequate 44% 44% 41% About Right 36% 39% 43% More Than Adequate 4% 4% 4% Network World Spending Survey 02/26/2017.000 $499.000 - $100.

Network World Spending Survey 02/26/2017.000 $499.000 $500.000+ Yes 47% 43% 40% No 53% 58% 60% Holding up the works Here's a sampling of projects that were delayed in 1999 due to budget limitations.000 $500.000 - $100.000 $499.000+ LAN Infrastructure Upgrade 33% 48% 56% LAN Backbone Upgrade 20% 37% 48% WAN Upgrade 17% 35% 46% Network Management Upgrade 21% 35% 42% Internet/Intranet Upgrade 28% 28% 36% Converged Voice/Data Network 7% 13% 21% Help Desk Upgrade 8% 20% 27% Other 5% 4% 4% Budget limitations More than half of respondents said budget limitations didn't stand in the way of an Under $100.000 - $100.000+ Much Worse 5% 3% 3% Somewhat Worse 14% 12% 15% About The Same 59% 54% 50% Somewhat Better 19% 23% 24% Much Better 4% 8% 8% Building boom Major network projects in 1999 Under $100.Financial Resources Compared to Last Year Under $100.000 $500.000 $499. Page 5 .000 - $100.

Page 6 .000 - $100. Under $100.000 $499.000 $500.000+ LAN Infrastructure Upgrade 24% 21% 19% LAN Backbone Upgrade 17% 14% 14% WAN Upgrade 13% 15% 16% Network Management Upgrade 15% 16% 14% Internet/Intranet Upgrade 17% 10% 8% Converged Voice/Data Network 6% 11% 14% Help Desk Upgrade 6% 10% 11% Other 1% 2% 3% Network World Spending Survey 02/26/2017.

000 - $100.000 $500.000 - $100.000 $500.000+ Yes 47% 52% 55% No 54% 48% 45% Footing the bill for Y2K How is your company paying for Y2K-compliance work? Under $100.000 $499.000 $499.000 $500.000+ Expanding regular staf 37% 51% 62% Reducing regular staf 12% 9% 12% Investing in more outsourced services 17% 21% 31% Bringing outsourced services inside 10% 12% 12% Relying more on contract/temporary employees 22% 23% 32% Other 9% 8% 4% Network World Spending Survey 02/26/2017.000 - $100.Y2K's impact on spending Did Y2K remediation issues have an impact on your network spending in 1999? Under $100.000 $499.000+ Additional Funds 39% 52% 58% Existing Funds 61% 48% 42% 1999 staffing trends Under $100. Page 7 .

000 $499. Page 8 .000 $499.999 36% 45% 23% 1.000+ Decreased 6% 9% 11% No Change 70% 50% 39% Increased 24% 41% 50% Industry Under $100.000 $500.000+ 20% 38% 72% Number of sites maintained in 1999 Under $100.000 $499.000 $500.000 - $100.000+ Under 100 39% 12% 4% 100 .000 - $100.000 $499.000 - $100.000+ Network World Spending Survey 02/26/2017.000 $500.000+ 1 27% 11% 5% 2-9 48% 46% 23% 10 .000 $499.000 $500.19 11% 16% 12% 20 .Company size Nunber of end users in 1999 Under $100.49 4% 11% 16% 50 .000+ 21% 42% 75% Number of end users in 1998 Under $100.99 3% 8% 12% 100 or more 8% 8% 31% Change in Number of Sites 1998-1999 Under $100.000+ Under 100 44% 17% 5% 100 .000 - $100.000 $500.999 40% 47% 21% 1.000 - $100.

$999.$9.Manufacturing 19% 19% 15% Finance/Banking 5% 6% 9% Insurance/Real Estate/Legal Svs 5% 8% 4% Health Care Services 4% 8% 8% Hospitality/Entertainment/Rec.9 million 5% 8% 9% $1 .9 billion 1% 1% 7% $100 billion or more 2% 3% 4% Network World Spending Survey 02/26/2017.$99.000 $500. Page 9 .$99.9 million 21% 22% 9% $50 .9 million 7% 12% 8% $100 .9 million 9% 20% 17% $500 .$9.000 - $100.$499.000+ Less than $1 million 22% 8% 7% $1 .9 billion 2% 3% 14% $50 .000 $499. 1% 1% 1% Media/TV/Cable/Print 3% 3% 2% Retail/Wholesale/Business Svs. 7% 6% 7% Transportation 2% 2% 5% Utilities 1% 2% 5% Education 24% 18% 14% Process Industries 2% 3% 3% Government 15% 13% 18% Military 3% 5% 5% Non-Profit 3% 2% 0% Other 7% 5% 4% 1998 gross company revenue Under $100.9 billion 6% 11% 21% $10 .$49.9 million 25% 12% 4% $10 .$49.

1% 3. Page 10 . TOTAL 16.8% 18.8% 4.1% 7.5% 22.5% 15.1% TOTAL 9% 32% 29% 27% 3% TOTAL 48% 40% 9% 3% 1% Network World Spending Survey 02/26/2017.9% 4.1% 7.of a company's overall network budget.

Page 11 . TOTAL 3% 8% 23% 11% 17% 11% 8% 20% TOTAL 1% 5% 28% 17% 19% 10% 8% 12% TOTAL 2% 10% 41% 12% Network World Spending Survey 02/26/2017.

14% 7% 6% 8% Network World Spending Survey 02/26/2017. Page 12 .

TOTAL 67% 64% 32% 34% 28% 17% 5% 39% 29% 31% 28% 54% 58% 46% 27% 62% 11% 17% 19% 65% 3% resources they had in 1999 vs. Page 13 . TOTAL 14% 43% 39% 4% Network World Spending Survey 02/26/2017. the tasks they needed to accomplish.

TOTAL 44% 57% dget limitations. TOTAL 4% 13% 55% 22% 7% TOTAL 44% 33% 30% 31% 30% 13% 17% 4% t stand in the way of any of their 1999 projects. Page 14 . Network World Spending Survey 02/26/2017.

TOTAL 22% 15% 14% 15% 12% 10% 9% 2% Network World Spending Survey 02/26/2017. Page 15 .

k spending in 1999? TOTAL 51% 49% TOTAL 48% 52% TOTAL 48% 11% 22% 11% 25% 8% Network World Spending Survey 02/26/2017. Page 16 .

TOTAL 21% 37% 42% TOTAL 25% 36% 40% TOTAL 16% 41% 13% 10% 7% 14% TOTAL 8% 55% 37% TOTAL Network World Spending Survey 02/26/2017. Page 17 .

Page 18 . 18% 6% 6% 7% 1% 3% 7% 3% 2% 19% 3% 15% 4% 2% 6% TOTAL 13% 15% 18% 9% 15% 7% 12% 6% 3% 3% Network World Spending Survey 02/26/2017.