IT&C Market Pulse Bi Annual poll IT&C Infrastructure Professionals October 2010

IT&C Market Pulse

Bi Annual poll IT&C Infrastructure Professionals

October 2010

© 2010 Emerson Network Power

For Distribution russell.perry@emerson.com

Market Pulse: #5 October 2010

23/11/2010

Enabling Business-Critical Continuity

- 1 -



October 2010

Introduction ....................................................................................................3

Executive Summary.......................................................................................3

○ Market

○

○

○

Market Pulse Project Forecast ...................................................4

Market Pulse Project Schedule ..................................................4

Market Pulse Economic Sentiment.............................................4

○

○

Market Pulse Business Sentiment ..............................................4

Pulse Indices ..................................................................5

4.

Role.......................................................................................6

Industry .................................................................................7

By Scale By Industry ..................................................................7

Projects...........................................................................................................8

Infrastructure Projects..........................................................8

2.

3.

4.

5.

6.

ICT Infrastructure Projects: Actual Vs Forecast..........................9

All ICT Projects: Actual Vs Forecast...........................................9

ICT Infrastructure Projects: Actual Vs Forecast (U)..................10

ICT Infrastructure Projects: Actual Vs Forecast (D&C).............10

ICT Infrastructure Projects: Actual Vs Forecast (B&S) .............11

Project Schedules........................................................................................12

1. Current

2. Current Status of Project Plans (U) ..........................................13

3.

4.

5.

6.

Current Status of Project Plans (D&C) .....................................14

Current Status of Project Plans (B&S)......................................15

Current Status of Project Plans (ANZ)......................................16

Current Status of Project Plans (SEA)......................................17

7.

8.

Current Status of Project Plans (Enterprise).............................18

Current Status of Project Plans (Telecom) ...............................19

Economic Outlook: Impact .........................................................................20

by Geography ...............................................................20 by Role .........................................................................20

Business Performance ................................................................................21

Performance by Geography......................................21

2. Expected

CAPEX ..........................................................................................................22

1. Past

CAPEX by Role ................................................................22

3. Past

IT&C Concerns .............................................................................................23

by Geography...........................................................24 by Role .....................................................................24

4. Concerns

5. Concerns by Scale (summarized).............................................26




23/11/2010


- 2 -



October 2010

Introduction

The October deployment of the Market Pulse survey marks the 5 th round of this industry poll. With well over 100,000 data points collected, the body of the sample has become a useful and interesting source of insight into the dynamics of our market.

Individuals and companies across Asia have followed this survey and shared their infrastructure journey through participation in multiple deployments of Market Pulse.

Approximately 15% of respondents have taken the survey between 2 and 5 times and 30% of companies have participated in the survey more than once.

This survey marks the first deployment in a local language (Japanese) and with the success of that initiative, future deployments in Thai, Vietnamese & Bahasa

Indonesian will follow.

Executive Summary

This iteration of the Market Pulse survey is notable for several reasons;

1. On a normalized basis, the overall ICT infra project pipeline has increased for the first time since 2008. After four periods of steady decline, projects added to the pipeline have increased by 12%.

2. Most significant is the bell weather Design & Construct segment (Consulting engineers) which has recorded a rise in projects forecast by over 30%.

3. The trend whereby actual deployments exceed that forecast for the same period continues to hold.

4. The deployment schedule on average continues to improve (3%) with more projects planned for deployment in the next 6 months.

5. The D&C segment illustrates further improvements with an 8% growth of projects scheduled for deployment within 6 months.

6. Significant differences in schedule between AU and SEA, Enterprise & Telecom add further insight into these results.

7. On average, respondents indicate that economic conditions have improved per business favorability, expectations of business performance have improved and trends of CAPEX spending continue to rise.

8. Finally, Energy efficiency (with respect to the reduction of consumption and related spending) continues to preoccupy the minds of ICT professionals.

There are several topics that have been noted for follow-up as interim actions to be completed prior to the next survey in March 2011. Results of this will be published as completed and shared across the respondent audience. Further to this, the current

Market Pulse report will be extended to the historical respondent list rather than just those who have completed the current survey.




23/11/2010


- 3 -



October 2010

Market Pulse Index

With 5 surveys completed over the past few years, we now have ample data to offer data based summaries of specific topics. The five topics form the basis for an individual index which is then further summarized in an overall Market Pulse Index.

They are as follows;

○ Market Pulse Capex

Basic tracking determines if respondents are proceeding with CAPEX or see a risk not to proceed. This index is a simple division of # that are proceeding by those deemed to be at risk. As such, the higher the number, the better.

○ Market Pulse Project Forecast

Respondents are asked to note project deployment schedules past and present. This enables a simple comparison by period of how forecast and actual deployments match up. Project numbers are normalised so as to take into account sample size and the index is determined by subtracting forecast from actual. A positive number indicates Actual deployments exceeding the forecast for the same period.

○ Market Pulse Project Schedule

Respondents are asked to note the expected schedule for project deployment. This index assumes that a shorter timeline offers less risk for cancellation or delay and catagorises responses into firm deployment and "at risk" segments. This index is a simple division of # that are "firm" by those deemed to be at risk. As such, the higher the number, the better.

○ Market Pulse Economic Sentiment

Respondents are asked to rate how the local economy is impacting on their business prospects. Once neutral responses are removed a simple positive vs negative dataset provides the basis for this index. Less than "1" indicates a generally negative sentiment, more than "1" indicates a positive sentiment. As such, the higher the number, the better.

○ Market Pulse Business Sentiment

Respondents are asked to rate their business prospects going forward. Once neutral responses are removed a simple positive vs negative dataset provides the basis for this index. Less than "1" indicates a generally negative sentiment, more than "1" indicates a positive sentiment. As such, the higher the number, the better.




23/11/2010


- 4 -

○ Market Pulse Indices



October 2010

All indicies are positive over March Market Pulse. Some trends however are negative as follows;

○ Market Pulse Forecast: The index currently reflects a position where actual deployents exceed forecasts for the same period. This runs against practical experience and it is to be expected that as the market regains confidence, the current position will be reversed, namely where forecasts exceed actual deployments. The trend supports this analysis.




23/11/2010


- 5 -

Demographics

1.



October 2010

Participation in the current survey reflects the changed scope of the Asia business.

The previously solid participation from respondents in Hong Kong and India as been replaced with a demographic that offers insights in Australia and South East Asia.

An incentive was offered to recipients for the current Market Pulse to test the impact on participation. The resulting >50% increase on the March sample indicates this is an approach worth repeating.

Respondents are grouped according to their relationship with Emerson. The three categories are respondents as;

1. Users (U) of Emerson services or equipment,

2. Designers and influencers associated with specification and recommendation of Emerson services or products who Design & Construct (D&C) projects, and

3. those who (B&S) Emerson services or products.

Buy and Sell remain under represented in this survey. Specific efforts are being made to overcome this gap going forward especially in light of the developing importance of this community to our “go to market” model.




23/11/2010


- 6 -



October 2010

IT Services and Telecom dominate in terms of participation with the Industrial segment providing a solid contribution. BFSI and the all important Infra Services

(Consultants) bell weather have started to increase in participation.

4. By Scale By Industry

The 2009 H2 survey saw the introduction of several new questions, Scale of the primary deployment being one of them.

At the time it was noted that a significant portion of respondents were defined in the small room or network category (ie less than 30 racks). Respondents from this group would appear to have stabilized around the 60/40 mix.

Further to this, the data can vs segmented by market. The relative mix of industry segment by survey should be taken into account as the shift in demographic is considered.




23/11/2010


- 7 -



October 2010

Projects

Respondents were asked to list projects that have been deployed in the past 6 months and those scheduled for deployment in the next period. It offers insight into project pipeline trends as well as the correlation between forecast and actual deployments.

1. ICT Infrastructure Projects

Respondents continue to place a greater emphasis on Infrastructure projects however it should be noted that this refers to numbers of projects vs total value. This is consistent across all regions survey




23/11/2010


- 8 -



October 2010

In the following Project related charts, to overcome any bias caused by variations in sample size, this data has been normalized.

2. ICT Infrastructure Projects: Actual Vs Forecast

H1 to H2 in 2010 reflects the first increase in forecast projects since August 2008.

The trend line for actual deployments remains at a slight increase with the general trend of actual project deployments performing ahead of project forecasts for the same period.

3. All ICT Projects: Actual Vs Forecast

The same trends can be noted when all IT projects are taken into account (ie not just infrastructure specific) albeit in a more muted fashion. This would further support the earlier observation that projects to rollout new IT systems / equipment refresh lag behind infrastructure projects.




23/11/2010


- 9 -



October 2010

4. ICT Infrastructure Projects: Actual Vs Forecast (U)

End Users indicate continued caution on Infrastructure projects both in terms of forecast and deployment.

5. ICT Infrastructure Projects: Actual Vs Forecast (D&C)

By virtue of their position in the market, the D&C segment has visibility into projects across multiple clients and multiple segments. To a large degree this explains the significant delta between the chart above and that relating just to End Users of ICT infra. For the first time since the end of 2008, both forecast and actual deployments would appear to be trending in positive directions.




23/11/2010


- 10 -



October 2010

6. ICT Infrastructure Projects: Actual Vs Forecast (B&S)

Even though on a smaller sample size, the B&S segment is offering a similar positive outlook.




23/11/2010


- 11 -



October 2010

Project Schedules

Respondents were asked to define the likely timing of projects listed in their pipeline.

1. Current Status of Project Plans

Improvements recorded in the 09 H2 survey, which were reversed in 2010 H1 have now recovered slightly in 2010 H2. This uncertainty would suggest that the increased scrutiny on project viability and approvals will continue for some time to come.

Overall however, the trend is positively inclined towards projects proceeding within 6 months.




23/11/2010


- 12 -



October 2010

2. Current Status of Project Plans (U)

End Users polled in this survey return a similar cautious result as previously noted per Project Pipelines, with a decline in projects slated for deployment in the next 6 months.

On the other hand, projects without a deployment plan (date) have dropped to close to zero




23/11/2010


- 13 -



October 2010

3. Current Status of Project Plans (D&C)

Further to increases in the forecast project pipeline, D&C respondents are seeing a rise in projects to be deployed in the next 6 months. This increase is almost entirely at the expense of projects previously without a scheduled deployment plan.

Results of this survey with respect to the deployment schedule mix are the most positive since 2008 per deployments within 6 months (highest 63%) and those without a schedule (close to lowest number of 5%)




23/11/2010


- 14 -



October 2010

4. Current Status of Project Plans (B&S)

Contrary to the positive project pipeline, respondents from the B&S segment continue to either see projects going on hold or being pushed out beyond 6 months.

This may be a correction to what was apparently a “false start” in 2009 H2. Sample size might come into consideration even though it remains above that considered statistically sound. Beyond the effort to increase participation in this segment, this trend will be a topic for further enquiry prior to the next Market Pulse survey.




23/11/2010


- 15 -



October 2010

5. Current Status of Project Plans (ANZ)

As a mature (and to a degree conservative) market, the positive gains in ANZ are significant and indicate continued strength in ICT infrastructure opportunities going forward.




23/11/2010


- 16 -



October 2010

6. Current Status of Project Plans (SEA)

Contrary to AU, SEA has recorded a steady decrease in projects slated for deployment within 6 months. The only positive note here is the decrease in projects without a deployment plan.

The weighting of the sample towards the Telecom market may also further eplain this trend. Further details in the following two pages.




23/11/2010


- 17 -



October 2010

7. Current Status of Project Plans (Enterprise)

While the Enterprise (Information Technology) segment has not regained the positive position recorded in 2009 H2, indications are that per the overall life of the survey series, projects to be deployed within 6 months are trending in a positive direction.




23/11/2010


- 18 -



October 2010

8. Current Status of Project Plans (Telecom)

The Telecom segment has recorded its first decline since 2008 in terms of projects to be deployed within the next 6 months. That said, the Telecom segment has consistently posted more positive results per expected project deployment schedule

(up to 30% greater than Enterprise). Even though the delta from 2010 H1 to H2 reflects a decline, it remains higher than Enterprise by 7%.




23/11/2010


- 19 -



October 2010

Economic Outlook: Impact

Respondents were asked to rate the impact of Asia's economic conditions on the business prospects of their company in the near future.

1. Impact by Geography

2. Impact by Role

In general, respondents to the 5 th Market Pulse survey have recorded an improved positive sentiment following the March survey.

Australia continues to offer a cautious interpretation of economic conditions per IT and ITC infrastructure spending. SEA by contrast scores a top 2 box score that is double that of Australia. North Asia follows the average.

Further segmentation by “role” in the supply chain reveals a decrease in the B&S segment. Again, this may be due to a smaller sample size, however as per previous comment, this segment will be the subject of some interim work.




23/11/2010


- 20 -



October 2010

Business Performance

Respondents were asked to indicate how over the next 6 months, they expect their company's overall performance will change, i.e. improve, worsen or remain the same?

1. Expected Performance by Geography

2. Expected Performance by Role

With the exception of North Asia, respondents expect business performance to follow a similar trend to that described by the previous attribute relating to Economic outlook, ie. overwhelmingly positive. North Asia remains pessimistic in spite of a positive view per local economies.

Only time will tell if this curve will slow down into a flatter trajectory, or bounce up and down with the fortunes of other indices in the market. The trend so far would seem to favor the former.




23/11/2010


- 21 -



October 2010

CAPEX

Respondents were asked to indicate how over the past 6 months they have managed

CAPEX activity.

1. Past CAPEX by Geography

2. Past CAPEX by Role

As a lagging index, these results hold some promise for a further positive result going forward. Taking into consideration the previous several attributes (economic outlook and businesss performance), the above uniform increase across all segments suggests that the positive trends have real substance.




23/11/2010


- 22 -

3. Past CAPEX by Industry



October 2010

IT&C Concerns

As per previous surveys, respondents were asked to indicate their top three worries / concerns / challenges.

Top 3 are indicated by color;




23/11/2010


- 23 -

1. Concerns by Geography



October 2010

2. Concerns by Role




23/11/2010


- 24 -

3. Concerns by Industry



October 2010

4. Concerns by Scale




23/11/2010


- 25 -



October 2010

5. Concerns by Scale (summarized)




23/11/2010


- 26 -

6. Concerns Categorized



October 2010

The fourteen dimensions rated to formulate the market concerns portion of this survey can be further condensed into the above 3 categories.

This reveals that issues remain fairly consistent across the past several surveys however; o

AU appears to have more of a focus on Physical Infra over SEA o

SEA has more of a focus on Facility Management issues o

Sub 30 Racks has more of an emphasis on Management o

Greater than 30 racks has more of an emphasis on Infrastructure o

Enterprise (on average) has more of an emphasis on Management o

Telecom has more of an emphasis on Infrastructure




23/11/2010


- 27 -



October 2010

7. Japan Bellwether

The proposition is that the Japanese market is an indicator for future trends in ICT infrastructure and spending. If this holds true, then so to will that market offer insights into shifting issues, challenges and concerns.

Due to the current deployment in Japanese, we have been afforded an interesting insight into market dynamics there;




23/11/2010


- 28 -

IT&C Market Pulse Bi Annual poll IT&C Infrastructure Professionals October 2010

Related documents

Products

Support

IT&amp;C Market Pulse Bi Annual poll IT&amp;C Infrastructure Professionals October 2010

Related documents

Add this document to collection(s)

Add this document to saved

Suggest us how to improve StudyLib

IT&C Market Pulse Bi Annual poll IT&C Infrastructure Professionals October 2010