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Study Notes Optimism in ICT Spending in Asia
Source: computerworld.com.ph
Source Date: Monday, December 13, 2010
Focus: ICT for MDGs
Created: Dec 13, 2010

MANILA, PHILIPPINES - A new study conducted among Asia and the Pacific executives noted some increase in IT spending this year — the first time since 2008.

A study by Emerson Network Power showed that planned projects this year has increased by 12 per cent “after four periods of steady decline”.

The recently released October study is the fifth in a biannual series started in 2008. The study covered most industries, including IT and telecommunications, banking and financial services, education, government, industrial, and infrastructure.

But the study also grouped respondents according to how they relate to Emerson. That is, respondents were identified as either users of Emerson services and equipment; those who design and construct projects; or those who buy and sell Emerson services or products.

The study showed that the Design and Construction segment (composed mostly of consulting engineers) reported a rise in projects forecast by more than 30 per cent, and an eight per cent growth of projects scheduled for deployment within six months.

“This is a change from the more cautious approach that we have seen in previous reports,” said Russell Perry, director for marketing and customer insight, Emerson Network Power, Asia. “While companies are not throwing caution to the wind, it is clear that they are planning for growth across all sectors.”

The study results also showed that companies are more focused on building their infrastructure more than simply purchasing IT equipment. Asked which projects are lined up for next year, respondents said they will focus on upgrading infrastructure, upgrading cooling and power, and building and updating data centres.

Most respondents said they would carry out these projects within the next 12 months, leading to a conclusion that investments in IT are expected to increase next year.

Further indications of the respondents’ optimism were reflected in other parts of the study results. The study noted that “on average, respondents indicated that economic conditions have improved per business favourability, expectations of business performance have improved, and trends of capital expenditure (CAPEX) spending continue to rise.”

Even then, companies expressed some concerns moving into the future. One of them is energy efficiency.

“Though companies seem optimistic about the future, they still want to run lean. Energy efficiency is the key to keeping data centre costs low,” said
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