Survey: GFC leaves Asian data centre market in bearish mood

Emerson Network Power, a business of Emerson (NYSE:EMR) and the global leader in enabling Business-Critical Continuity™, has published the latest results of its half-yearly Market Pulse survey of data centre and infrastructure management professionals in Asia, showing the effects of the GFC could last longer than expected in the region.

The key findings from the survey of more than 200 senior executives – 42 per cent of which were from Australia and New Zealand– shows that the early signs of a weakening project pipeline, first highlighted in the August 2009 report, have lead to a conservative outlook for the rest of the year from most respondents. For the first time in the history of the survey, the number of projects completed outpaced the projects forecast, indicating that industry executives are in a bearish mood in their planning, despite reports in the media that the worst of the GFC is over.

“This more cautious approach is echoed in further attributes throughout the report,” says Russell Perry, marketing director for Emerson Network Power in Asia. “For example, the report records an increase in projects being delayed or shelved. There are some exceptions to this, in the telecom space for example, but it would seem fair to suggest that we face a period of questionable growth going forward.”

For the second survey in succession, energy efficiency was highlighted as the number one priority from the respondents, followed by a distant tied-second for heat rejection and availability.

“Companies are still under pressure to cut costs, and with recent media reports suggesting the price of electricity is set to skyrocket in Australia, we expect this to remain the focus for our customers in the short to medium term,” says David Scott, managing director of Emerson Network Power in Australia.

The Market Pulse survey – now in its fifth iteration since Emerson Network Power launched the survey series in April 2008 – 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.

For more information on the results and demographics of the latest Market Pulse survey, visit www.NextGenITCinfra.com. You can also download a one-page executive summary from this site. 

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About Emerson Network Power

Emerson Network Power, a business of Emerson (NYSE:EMR), is the global leader in enabling Business-Critical Continuity™ from grid to chip for telecommunication networks, data centers, health care and industrial facilities. Emerson Network Power provides innovative solutions and expertise in areas including AC and DC power and precision cooling systems, embedded computing and power, integrated racks and enclosures, power switching and controls, infrastructure management, and connectivity. All 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 to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Emerson’s sales in fiscal 2009 were $20.9 billion. The company is ranked 94th on the Fortune 500 list of America’s largest companies. For more information, visit www.Emerson.com.