Business Services Industry
New IDC Study Concludes SAVVIS IP VPN Customers Realize An Average Payback Period Under Eight Months; Study Quantifies Value of IP VPN Deployments To Enterprise Bottom Lines
Business Wire, April 2, 2003
Business Editors/High-Tech Writers
HERNDON, Va.--(BUSINESS WIRE)--April 2, 2003
A comprehensive study released today by analyst firm International Data Corp. (IDC) concludes that enterprise networks that have deployed SAVVIS' managed IP VPN solution realized a significant return on investment (ROI) with the average payback period under eight months.
Results of the IDC research appear in a white paper entitled The Evolution of IP VPNs -- From Best Effort to Business Class.
It details how enterprise customers that switched from a frame relay network to the SAVVIS solution achieved a significant average three-year ROI, with an average payback of 201 days, while customers that switched from an Internet-based IP VPN achieved an even greater average three-year ROI, with an average payback of 226 days.
To download a free copy of he white paper, please visit http://reg.itworld.com/servlet/Frs.frs?Context=LOGENTRY&Source= NWWPC&Source_BC=0&Script=/LP/10000137/reg (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.).
"While most enterprises do not dispute the value of IP VPN services, actually quantifying the return on investment -- i.e., how, and to what degree, IP VPNs can improve their bottom line -- has been a challenge for many," said Steven Harris, research manager at IDC. "We interviewed SAVVIS customers ranging from the legal industry to biotech manufacturing, from TV broadcasting to retail and publishing, and from real estate to architectural design and financial services -- and all of them averaged savings of $2.8-$3 million over a 3 year period after switching to SAVVIS' private managed IP VPN service."
"With SAVVIS, we get a more robust and reliable network for a lower cost," said Bob Newman, VP of DataCom Services at AdPlex-Rhodes, one of the companies evaluated in the study. "It's basically a 300% improvement in performance at 50% of the cost. The reduction in network outages, since going with SAVVIS, has definitely caused an increase in customer confidence in our company and in our solutions."
AdPlex-Rhodes is a national full-service marketing solutions provider that features an advanced electronic extranet to respond to its customers' complex marketing, workflow, and asset management needs. It serves a variety of large enterprise customers such as Hewlett Packard, American Airlines, Sears and NASCAR Images.
Approximately 80% of the companies surveyed said SAVVIS had given them a competitive edge, mainly because of increased uptime, positive impact on IT productivity and ease of adding new sites.
About SAVVIS
SAVVIS Communications (NASDAQ: SVVS) is a managed services provider that delivers IP VPNs (virtual private networks), hosting, and applications services to businesses. SAVVIS solutions are designed for industries with demanding information technology requirements including: legal, media, retail, professional services, healthcare, manufacturing, and financial services.
Known as The Network that Powers Wall Street(SM), SAVVIS was ranked #3 in IP VPN market share by IDC in its 2003 report, trailing only AT&T and WorldCom, and its network reliability was declared "perfect" in NetworkWorld magazine's groundbreaking study of backbone performance.
SAVVIS' managed hosting services were awarded the Service Provider Excellence Award by Boardwatch magazine for its virtualized approach to managed hosting and the Market Engineering Award for product differentiation and innovation from Frost & Sullivan.
For more information about SAVVIS' Intelligent IP Network(SM) and managed hosting solutions, visit: http://www.savvis.net.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although SAVVIS believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be attained.
Certain factors that could cause actual results to differ materially from SAVVIS' expectations are set forth as risk factors in SAVVIS' SEC reports and filings, including its annual report on Form 10-K for the year ended December 31, 2002, as filed with the Securities and Exchange Commission on February 28, 2003. Many of these factors are beyond SAVVIS' ability to control or predict.
Forward-looking statements are not guarantees of performance. For forward-looking statements herein, SAVVIS claims the protection of the safe harbor for forward- looking statements contained in the Private Securities Litigation Reform Act of 1995. SAVVIS assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
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