Sentiment improves, project pipeline still lags: survey

Sentiment improves, project pipeline still lags: survey

The majority of Asia Pacific data centre user and influencer businesses surveyed by Emerson Network Power are now positive about their level of business confidence, rather than negative as was the case in the previous survey in March 2009. However, these businesses indicate the deployment of IT projects continues to lag.

The Market Pulse Asia survey, carried out bi-annually since April 2008, now shows energy efficiency is considered the top priority by respondents, with density (cooling) and availability (uptime) following in second and third. According to Emerson, this marks another reversal of pre-recession priorities, when availability was consistently the number one priority.

“The reversal of…negative sentiment…is typically a precursor to increased spend and the commissioning of new projects,” says Russell Perry, marketing director for Emerson Network Power in Asia. “We’ll be interested to see at what rate this sentiment converts into an improved project pipeline.

Respondents were asked to rate their confidence in terms of the local economy's performance in the next six months. In Australia and New Zealand, 57 percent said they were very positive or somewhat positive, compared with only 21 percent in March.

When those in the ANZ region were asked how they expected their company's performance would change, 59 percent said it would improve, up from 28 percent in March.

Perry says the emphasis on energy efficiency shows “a clear connection between energy efficiency and cost reduction, which is consistent with the increased focus on Opex as a result of the recession.”

“It also shows that energy efficiency is now widely associated with lower cost, and less so with corporate governance or ‘green’ initiatives from past years,” he says.

The Market Pulse survey polls hundreds of IT professionals across Asia on a broad range of topics, including data centre design priorities, spending trends, project pipeline and investment confidence. The August survey includes end users (53 per cent), influencers (35 percent) and IT resellers (12 per cent).

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