IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-1-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
Introduction ....................................................................................................3
Executive Summary.......................................................................................3
Demographics ................................................................................................5
1.
By Geography ............................................................................5
2.
By Role.......................................................................................5
3.
By Industry .................................................................................5
4.
By Scale By Industry ..................................................................6
Projects...........................................................................................................7
1.
ICT Infrastructure Projects: Actual Vs Forecast..........................7
2.
All ICT Projects: Actual Vs Forecast...........................................7
3.
ICT Infrastructure Projects: Actual Vs Forecast (U)....................8
4.
ICT Infrastructure Projects: Actual Vs Forecast (D&C)...............8
5.
ICT Infrastructure Projects: Actual Vs Forecast (B&S) ...............8
Project Schedules..........................................................................................9
1.
Current Status of Project Plans ..................................................9
2.
Current Status of Project Plans (U) ............................................9
3.
Current Status of Project Plans (D&C) .....................................10
4.
Current Status of Project Plans (B&S)......................................10
5.
Current Status of Project Plans (ANZ)......................................11
6.
Current Status of Project Plans (SEA)......................................11
7.
Current Status of Project Plans (Enterprise).............................12
8.
Current Status of Project Plans (Telecom) ...............................12
Economic Outlook: Impact .........................................................................13
1.
Impact by Geography ...............................................................13
2.
Impact by Role .........................................................................13
Business Performance ................................................................................14
1.
Expected Performance by Geography......................................14
2.
Expected Performance by Role ................................................14
CAPEX ..........................................................................................................15
1.
Past CAPEX by Geography......................................................15
2.
Past CAPEX by Role ................................................................15
3.
Past CAPEX by Industry...........................................................16
IT&C Concerns .............................................................................................16
1.
Concerns by Geography...........................................................17
2.
Concerns by Role .....................................................................17
3.
Concerns by Industry................................................................18
4.
Concerns by Scale ...................................................................18
5.
Concerns by Scale (summarized).............................................19
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-2-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
Introduction
The February / March deployment of the Market Pulse survey marks the 4th round of
this industry poll.
The genesis for this program lies in the previous economic downturn in 2001 when
the tech sector went through a major shakeout following years of steady and
seemingly endless growth. Early signs and markers of that adjustment were missed
in the period of intense activity that preceded the crash.
Post 2001, the discussion at Emerson turned to how we might better understand the
nature of these early warnings, which parts of the market might see them first and
how that might in turn help us better understand what you, our customers are
thinking and facing in your core business.
With over a thousand surveys completed and over many more data points to
analyze, we are now getting to the point where the program is yielding interesting
insights into how our market “works” and how the different functional roles combine
to create the overall picture.
The ultimate question speaks to the future. What lies ahead not just in terms of
market growth and intensity, but direction and emphasis?
Executive Summary
This iteration of the Market Pulse was deployed during a period of uncertainty with
respect to the direction and pace of economic growth in the region.
One the one hand, feedback over the past few months via general media, has
indicated a recovery in most economies around Asia. This sentiment was picked up
in the previous Market Pulse in August and has been strongly confirmed in this
current round.
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-3-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
However in contrast to this quite bullish outlook in terms of economic impact and
expected business performance, a new note of caution has been sounded. What was
recorded in August as a continued weakness in the infrastructure project pipeline has
now revealed a change in approach to forecasting projects.
The previous trend of over estimating project forecasts has been replaced with one
that appears to achieve the opposite, namely where actual deployed projects
outnumber those forecast for the same period. This more cautious approach is
echoed in further attributes throughout the March report.
Further to this insight, the March report also records an increase in projects being
delayed or shelved. There are some exceptions to this in the Telecom space
however it would seem fair to suggest that we face a period of questionable growth
going forward.
Demographics of this report have shifted due to fewer responses from India and
North Asia. This reflects an adjustment in Emerson’s regional management structure
and starts to redefine the most significant areas of reflection associated with this
study around South East Asia and the ANZ region.
Market concerns noted in the previous report as shifting towards energy related
topics have further developed in that direction. Heat and availability issues rank equal
second, a fairly distant five points behind energy.
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-4-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
Demographics
1. By Geography
Region
#1 October 08
#2 March 09
#3 August 09
#4 February 2010
20%
40%
9%
32%
40%
22%
7%
32%
35%
16%
7%
42%
42%
2%
3%
52%
AU
IN
NA
SEA
2. By Role
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 Buy and Sell (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.
Functional Role Rev
#1 October 08
Use
Design & Construct
Buy & Sell
59%
22%
20%
#2 March 09
#3 August 09
64%
26%
10%
#4 February 2010 Grand Total
53%
35%
12%
54%
33%
13%
57%
30%
12%
3. By Industry
Industry
Participation
IT Services
Telecom
Industrial
Government
BFSI
Infra Services
Education
Other
#1 October 08
#2 March 09
#3 August 09
#4 February 2010
27%
11%
10%
15%
10%
18%
7%
3%
16%
16%
18%
11%
9%
22%
4%
3%
21%
22%
17%
8%
16%
6%
4%
6%
23%
19%
17%
13%
8%
7%
4%
10%
IT Services and Telecom continue to dominate in terms of participation. BFSI has
dropped away (partly due to the relative absence of Hong Kong). Industrial and
Government sectors have subsequently moved up the participation ranking.
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-5-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
4. By Scale By Industry
The August 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
have further increased in this survey.
Shift in demographic by scale are further illustrated as per the following chart with
green cells denoting positive growth and yellow indicative of negative growth.
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-6-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 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. This has been a
consistent feature of the Market Pulse survey from the start of the program. It offers
insight project pipeline trends as well as the correlation between forecast and actual
deployments.
Respondents select from a menu of project descriptions (x13), which in turn are
consolidated into three categories; 1) IT Equipment Projects, 2) IT Infrastructure
Projects & 3) TC Infrastructure Projects
To overcome any bias caused by variations in sample size, this data has been
normalized.
The shift from over estimate of forecast to under estimation per a more cautious
approach is best illustrated here.
1. ICT Infrastructure Projects: Actual Vs Forecast
4.00
3.50
3.00
2.50
Actual
2.00
Forecast
1.50
1.00
0.50
0.00
March 08 August 08
September 08
- February 09
March 09 August 09
September 09
- February 10
March 10 August 10
2. All ICT Projects: Actual Vs Forecast
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-7-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
3. ICT Infrastructure Projects: Actual Vs Forecast (U)
3.00
2.50
2.00
Actual
1.50
Forecast
1.00
0.50
0.00
March 08 August 08
September 08
- February 09
March 09 August 09
September 09
- February 10
March 10 August 10
4. ICT Infrastructure Projects: Actual Vs Forecast (D&C)
1.20
1.00
0.80
Actual
Forecast
0.60
0.40
0.20
0.00
March 08 - August
08
September 08 February 09
March 09 - August
09
September 09 February 10
March 10 - August
10
5. ICT Infrastructure Projects: Actual Vs Forecast (B&S)
0.60
0.50
0.40
Actual
0.30
Forecast
0.20
0.10
0.00
March 08 August 08
September 08
- February 09
March 09 August 09
September 09
- February 10
March 10 August 10
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-8-
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
Project Schedules
Respondents were asked to define the likely timing of projects listed in their pipeline.
Improvements recorded in the August survey have been reversed to a degree with
increases in delays beyond 12 months at the expense of those slated for immediate
deployment.
1. Current Status of Project Plans
100%
90%
17%
19%
24%
28%
80%
70%
21%
18%
27%
60%
50%
29%
16%
19%
40%
14%
21%
18%
30%
27%
20%
10%
18%
32%
26%
11%
11%
4%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
#4 February 2010
7 to 12 Months
2. Current Status of Project Plans (U)
100%
90%
16%
21%
18%
24%
80%
19%
70%
21%
28%
27%
60%
50%
18%
20%
16%
15%
40%
30%
35%
14%
24%
20%
10%
33%
24%
11%
13%
3%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
7 to 12 Months
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
-9-
#4 February 2010
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
3. Current Status of Project Plans (D&C)
100%
90%
18%
19%
70%
28%
34%
80%
20%
27%
60%
50%
27%
26%
19%
17%
40%
30%
19%
12%
23%
26%
27%
21%
20%
10%
9%
13%
9%
5%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
#4 February 2010
7 to 12 Months
4. Current Status of Project Plans (B&S)
100%
90%
14%
21%
24%
4%
33%
80%
18%
70%
23%
60%
50%
18%
7%
30%
51%
7%
40%
28%
30%
20%
42%
35%
12%
18%
5%
10%
8%
3%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
7 to 12 Months
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 10 -
#4 February 2010
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
5. Current Status of Project Plans (ANZ)
100%
90%
17%
24%
70%
20%
19%
28%
60%
50%
13%
23%
16%
31%
12%
20%
10%
23%
12%
40%
30%
25%
33%
80%
21%
38%
23%
0%
#1 October 08
#2 March 09
11%
3%
10%
#3 August 09
#4 February 2010
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
7 to 12 Months
6. Current Status of Project Plans (SEA)
100%
90%
17%
17%
22%
26%
80%
17%
26%
70%
27%
60%
13%
33%
50%
40%
23%
20%
24%
30%
20%
26%
18%
16%
33%
10%
10%
16%
11%
5%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
7 to 12 Months
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 11 -
#4 February 2010
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
7. Current Status of Project Plans (Enterprise)
100%
90%
19%
15%
16%
19%
20%
26%
80%
70%
26%
60%
50%
29%
16%
20%
22%
14%
40%
18%
30%
30%
20%
20%
10%
35%
26%
12%
12%
3%
0%
#1 October 08
#2 March 09
#3 August 09
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
#4 February 2010
7 to 12 Months
8. Current Status of Project Plans (Telecom)
100%
90%
18%
27%
33%
80%
42%
70%
35%
60%
32%
31%
50%
40%
13%
30%
15%
31%
18%
21%
20%
10%
16%
12%
8%
20%
11%
7%
7%
4%
#2 March 09
#3 August 09
#4 February 2010
0%
#1 October 08
No plan for deployment
More than 12 Months
4 to 6 Months
1 to 3 Months from now
7 to 12 Months
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 12 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 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. Responses followed the
same positive trend as above.
1. Impact by Geography
2. Impact by Role
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 13 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 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?
All regions / Roles / Industries reflect the expectation that performance will improve
going forward.
1. Expected Performance by Geography
2. Expected Performance by Role
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 14 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
CAPEX
Respondents were asked to indicate how over the past 6 months they have managed
CAPEX activity. As a lagging index, the feedback is consistent with the slight
increase in actual projects deployed in the past 6 months as well as per general
market conditions.
1. Past CAPEX by Geography
2. Past CAPEX by Role
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 15 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
3. Past CAPEX by Industry
IT&C Concerns
As per the August survey, respondents were asked to indicate their top three worries
/ concerns / challenges.
Top 3 are indicated by color;
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 16 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
1. Concerns by Geography
2. Concerns by Role
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 17 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
3. Concerns by Industry
4. Concerns by Scale
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 18 -
IT&C Market Pulse
Bi Annual poll IT&C Infrastructure Professionals
March 2010
5. Concerns by Scale (summarized)
Enabling Business-Critical Continuity
© 2010 Emerson Network Power
Company Confidential Not For Distribution
russell.perry@emerson.com
Market Pulse: #4 February 2010
26/03/2010
- 19 -