Datamonitor: Green IT gains an upside in the economic downturn

Global economic recession has squeezed IT budgets, hindered capital expenditure, and generally slowed IT development growth. A report by independent market analyst Datamonitor, "Can Green IT Bloom in an Economic Downturn," suggests the IT market may like the color green.

07/02/2009


Green IT is gaining an upside in the economic downturn. The current global economic recession has squeezed IT budgets, hindered capital expenditure and generally slowed the growth of IT development. However, according to a report just published by independent market analyst Datamonitor, "Can Green IT Bloom in an Economic Downturn," the recession also may provide significant upside to the green IT market.

Notebook computer in the woods in a notebook computer

the various ways the green IT market has adapted and evolved in response to broader business conditions.It also provides recommendations for green IT vendors and end-user organizations. Datamonitor provides online data, analytic and forecasting platforms for key vertical sectors. Forecasts are available for automotive & logistics, consumer markets, energy, financial services, healthcare, retail and technology. www.datamonitor.com

"The global economic recession has spurred a paradigm shift in the way organizations evaluate, budget for and deploy green IT," says Rhonda Ascierto, senior analyst at Datamonitor and the report's author. "The downturn has also resulted in green IT trends for datacenters, client devices and asset lifecycle management, as well as re-shaped return on investment (ROI) models."

Green IT that eliminates capital expenditure is increasing in demand

Current green IT investments are driven by compliance with environmental legislation and cost savings. In particular, green IT that eliminates the need for capital expenditure (capex), such as datacenter virtualization, datacenter design and layout, and asset lifecycle management, has become increasingly important as IT budgets remain constrained.

Datamonitor research shows IT budgets are likely to remain flat in 2009, which means cost-effective green IT is likely to increase in demand. As such, organizations no longer regard green IT and cost-effective IT as being mutually exclusive. This represents a significant paradigm shift and bodes well for the future evolution of the global green IT market.

Restrained IT budgets also mean that green ROI models are becoming compulsory and shorter. For green IT vendors to satisfy new ROI requirements, they are being forced to develop more efficient and greener IT solutions.

Green IT is becoming more important in the datacenter

Flat IT budget growth also means that organizations that face critical datacenter limitations, such as a shortage of floor or rack space, are looking to software or outsourcing alternatives to building new datacenters or upgrading existing facilities. Those alternatives include IT leasing, managed services, virtualization software, cloud computing and software-as-a-service (SaaS).

Datamonitor believes datacenter resources will increasingly be hosted in a cloud computing environment, which should - at least theoretically - fall under the green IT banner.

However, the greatest demand for datacenter green IT will be for datacenter virtualization. Datacenter virtualization is becoming more holistic, whereby various assets, including servers, storage, communications infrastructure, and business applications, are being virtualized across a pool of datacenter hardware. Datamonitor believes business applications are the next frontier of datacenter virtualization.

- Edited by Mark T. Hoske, electronic product editor, MBT www.mbtmag.com



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
click me