Does Green still mean Go for the manufacturing IT industry in a recession? (Strategic Focus)

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• The market definition of green IT varies wildly
• Green IT will be one of the more recession-proof technology strategies
• A wide range of drivers is creating investment in green IT
• Projects can vary in complexity depending on their scope
• Manufacturers can reduce costs through the adoption of green IT strategies
• The role of IT in wider green projects is firming up
• Hardware vendors are leading the pack in terms of green IT go to market refinement
• The market will look drastically different in five years
• Targeting the right industry will be critical for technology vendors
• Regional trends are being driven by the economic crisis and government regulation

MARKET OPPORTUNITY

• The market definition of green IT varies wildly
  • Traditional green IT represents green within IT departments and in particular the datacenter
  • Technology that has been developed for green-specific processes is also often included in green IT
  • Support for the ' greening' of line of business processes represents the broadest definition of green IT

• A line needs to be drawn at some point to provide robust analysis of green IT
• Green IT will be one of the more recession-proof technology strategies
  • At an aggregate level, the manufacturing industry is cutting back on IT spend
  • Datamonitor believes green IT will remain a priority for CIOs

• A wide range of drivers is creating investment in green IT
  • A significant of portion of surveyed manufacturers already have a green IT strategy in place
  • Cost is the most important issue for green IT
  • Improving the corporate image is also an important factor of green IT projects
  • Environmental regulations continue to be implemented, particularly in Europe
  • Customer driven mandates are starting to appear particularly in consumer facing industries
  • Internal factors such as employee demand are also contributing to the formation of green IT agendas

CUSTOMER IMPACT: GOING GREEN

• Projects can vary in complexity depending on their scope
  • The datacenter is often seen as the more complex end of the scope of green IT
  • Applying green IT to the desktop environment can represent a relatively easy project for companies

• Manufacturers can reduce costs through the adoption of green IT strategies
  • Both capex and opex can be reduced through investment in green IT
  • Energy costs remain a key element of green IT strategies

• The role of IT in wider green projects is firming up
  • IT asset management is a critical area for many manufacturing companies
  • The capture of green data is essential for companies looking to enhance green metrics
  • The role of leading green projects is often unclear within manufacturing companies

GO TO MARKET

• Hardware vendors are leading the pack in terms of green IT go to market refinement
• The market will look drastically different in five years
  • The role of IT will grow in broader green projects
  • There will be significant data concerns for manufacturers as green information levels escalate
  • Collaboration across the supply chain for green information sharing will drive demand for standards

• Targeting the right industry will be critical for technology vendors
  • The automotive industry is in turmoil and is not expected to generate a huge demand for green IT
  • The aerospace and defense industry has been surprisingly resilient in the face of economic pressure
  • Consumer goods manufacturers are being forced to invest in green IT due to their public profiles
  • Industrial manufacturers should also be shortlisted for technology vendors

• Regional trends are being driven by the economic crisis and government regulation
  • Europe represents the greatest current market for vendors
  • Asia Pacific is once again a mix of different countries with different priorities
  • The US will see significant growth, but only after regulatory reform takes place

APPENDIX

• Definitions
• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Three definitions of green IT
• Figure: Improved corporate image is seen as the most beneficial element of green IT pre-downturn
• Figure: A significant portion of surveyed manufacturers already have a green IT strategy in place
• Figure: Environmentally friendly asset retirement is a popular strategy
• Figure: View of green IT credentials for different vendor types, global, 2008