IDC Finds Three-Month Payback for Network Appliance Enterprise Content Delivery NetworksSUNNYVALE, Calif.--May 21, 2002--Network Appliance, Inc., a leading provider of enterprise network storage solutions, today announced the results of a new study from IDC that validates the business benefits and the return on investment (ROI) of the NetApp(r) ECDN solution. IDC found that the companies studied made average ECDN investments of approximately $2.9 million over three years and realized an average payback period for the solution of less than three months.The year-long IDC study, titled "Quantifying the Business Benefits of Enterprise Content Delivery Networks," surveyed Network Appliance's Fortune 500 ECDN customers to gather information about their operating costs, business processes, and technical environments. IDC analyzed this data and averaged the results over a three-year period. The study showed benefits spanning a wide range of business processes. Major elements that contributed to the ROI results include reductions in operating costs that are made possible with the ECDN solution, cost savings realized from content availability and minimal network downtime, and increased user and IT productivity. The complete study is available at www.netapp.com/solutions/cdn.html. "Based on IDC research, initial fiscal investment of a Network Appliance(TM) ECDN solution is approximately $2.9 million, which can result in savings of close to $30 million over a three-year period," said Lucinda Borovick, analyst at IDC. "The savings result from the solution's ability to enable easy access to critical business information such as company news and announcements, training materials, and industry information, as well as Web-enabled ERP and CRM information systems, corporate portals, e-learning, and online video conferencing." "IDC's in-depth research quantifies the business benefits that our enterprise customers have enjoyed for some time," said Amit Pandey, senior director of marketing and strategic alliances, Content Delivery Business Unit at Network Appliance. "The high ROI demonstrates Network Appliance's ability to provide clear business benefits such as operating expense savings, time-to-market reductions, more effective global application deployments, and improved efficiency for employees, partners, and customers." According to IDC, Network Appliance leads the content caching market with the number one market share, and the analyst firm estimates that the increase in enterprise adoption of Web-enabled applications is expected to grow this market to approximately $560 million in 2002. About Network Appliance Network Appliance is a world leader in open network storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has pioneered technology, product, and partner firsts that continue to drive the evolution of storage. Information about Network Appliance solutions and services is available at www.netapp.com. NetApp is a registered trademark and Network Appliance and The evolution of storage are trademarks of Network Appliance, Inc. in the U.S. and other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.
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