Emerson Network Power Survey Suggests Asia Data Centre Market Behavior is Changing
Singapore, – February 19, 2013 – Emerson Network Power, a business of Emerson (NYSE:EMR) and a global leader in maximizing availability, capacity and efficiency of critical infrastructure, has flagged an important change in the dynamics of the Asian data centre market following the results of its 9th bi-annual Market Pulse Survey.
According to Gene Hayden, VP of sales for Emerson Network Power in Asia, the results of the survey suggest data centre investment cycles are contracting, which fundamentally changes the approach that data centre professionals must follow when considering short- and longer-term infrastructure deployments.
“Long-term crest and troughs have been replaced with shorter terms hikes and spikes,” says Hayden.
“This translates to shorter project cycles, and necessitates revised user expectations when reviewing infrastructure capacity. Other trends, like the explosion in mobile devices and the increased pervasiveness of the Cloud, also point to a change in pace in decision-making; companies can’t simply stop investing because the market is slowing, because chances are the market will swing sharply in the short-term and they’ll be left behind.”
Based on feedback from ICT professionals throughout Asia, the Emerson Network Power Market Pulse survey periodically ‘checks the pulse’ of technology users, buyers, sellers and designers with regards to their market outlook, project forecasts, and general optimism (or pessimism) in the market.
The summary results from all nine Market Pulse surveys indicate most of the gains from the previous survey (March 2012) have retreated, with the important exception of project schedules.
Ross Hammond, director Telecom Business, Emerson Network Power in Australia and New Zealand, believes there is a generally positive view of the market in the short term, particularly among the Design and Construct (D&C) segment which traditionally has been the most indicative of future market trending.
“If I read the index the same way I did two or three years ago I’d be less optimistic than I am now,” says Hammond. “What we’re seeing points very strongly to the need for fluidity in infrastructure. Yes there will be rapid contractions just as often as escalations in demand, but companies can’t just stop investing. If they do, they risk losing their competitive advantage. Likewise vendors that can’t match this fluidity in the solutions they offer will fall behind.”
There is other evidence in the market, outside the Market Pulse survey, that corroborates these results. Last month McKinsey & Company published its Economics Conditions Snapshot report, noting “the latest results indicate…executives broadly believe that demand for their companies’ products or services – as well as their companies’ profits – will increase in the next six months, despite their concern about sluggish global and domestic demand.”
Nowhere is this trend more evident than in the Infrastructure Forecast results from the D&C segment.
Unlike end-users, D&C (mainly contractors) have visibility into future project pipelines and underlying market conditions, and continue to build project funnels.
“This shortening of the market cycle can further impact the types of solutions our customers need and as a result we’re seeing different technologies becoming more popular for infrastructure projects,” says Hammond.
The first of these is containerized (modularized) infrastructure. While this technology is not necessarily new, it has only recently started picking up pace as its two strongest features are now finding traction in this fluid market. Rapid deployment (as well as portability and modularization) and a lower OPEX driven largely by the simpler management of capacity in both directions (activate and deactivate) are driving increased interest.
“The second is the rapidly developing Data Centre Infrastructure Management (DCIM) sector. Whereas containerized data centers address the need for fluidity via easily recognizable infrastructure building blocks, DCIM infuses the entire IT&C ecosystem in a way that optimizes current infrastructure but also enables visibility and planning for future requirements,” says Hammond.
“DCIM affords business executives the opportunity to be less concerned with the nuts and bolts of what they don’t have and more concerned about what can be done with what they do have. If anything I expect to see more of this approach to infrastructure investment, especially if the trends captured in the latest survey persist.” Click here to read the report in full.
About Emerson Network Power
Emerson Network Power, a business of Emerson (NYSE:EMR), delivers software, hardware and services that maximize availability, capacity and efficiency for data centers, healthcare and industrial facilities. A trusted industry leader in smart infrastructure technologies, Emerson Network Power provides innovative data center infrastructure management solutions that bridge the gap between IT and facility management and deliver efficiency and uncompromised availability regardless of capacity demands. Our solutions are supported globally by local Emerson Network Power service technicians. Learn more about Emerson Network Power products and services at www.EmersonNetworkPower.com.
About Emerson
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2012 were $24.4 billion. For more information, visit
