Green is good - comms industry survey finds

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by Stuart Corner

Monday, 16 June 2008

! The latest six monthly survey of the Australian ICT industry commissioned by Communications Alliance and KPMG ICT shows companies willing to pay on average a premium of eight percent for 'green' technology. Related stories ISPs claim Comms Alliance hijacked by Telstra over LSS-ULLS migration AMTA slams KPMG international roaming report New 'green' rules for plug-in power packs Lawson rolls in Axel van der Smagt Telstra broadband pricing out in front of overseas peers. One in six would not pay any premium whatsoever while a similar number would pay over 10 percent and some went as high as 50 percent. Most survey respondents agreed that their customers would increasingly demand 'green' products and services in the next five to 10 years and that their own organisations would both use and sell such products and services. Of the areas surveyed, the strongest positive responses were in expectations of the need for more education, rising customer demand for 'green' products and services and the importance of green attributes in technology devices. However, the survey also found that the overall sentiment of the industry had deteriorated over the past year, with the average sentiment regarding key company performance indicators, such as sales and profitability growth dropping by approximately 10 percent from a year ago. Also, for the first time since the survey's inception, capital expenditure was expected to decline over the next 12 months. Although decision makers generally agreed that both the sector and their respective organisations would continue to grow, they have notably lowered their expectation levels compared to six and 12 months ago. Positive outlook towards the industry's future has also deteriorated markedly. Competition is expected to remain strong while uncertainty with respect to regulation, innovation and the political environment is expected to increase in the next 12 months. According to the head of KPMG's Communications group, Malcolm Alder, "the message reflects the current state of the capital markets, which is to work existing capital harder rather than seek new funding." Communications Alliance CEO Anne Hurley said: "Although this survey shows less enthusiasm about future prospects than the previous surveys, we should not lose sight of the fact that the overall forecast is still for growth and prosperity. The combination of some recent market consolidation and the uncertain economic outlook are perhaps being reflected in the dampened expectations of some senior ICT executives." The ICT Industry Pulse Survey was commissioned by Communications Alliance and KPMG as a regular six-monthly snapshot of the views of senior decision makers in the Australian ICT Industry. Almost half of respondents were either top executives or a member of the senior management team within their organisation, responsible for overall strategy and management. Sixty percent were from small to medium businesses with fewer than 500 employees, with the rest coming from large organisations. The survey found that respondents with management responsibilities were generally more optimistic about the future of the industry as well as their own organisation than their professional and specialist counterparts. Hardware and equipment vendors displayed the most pessimistic market outlook, while software firms and telecom service providers were the most optimistic about expectations of increased sales and profits. Organisations of all types were equally bearish on capital expenditure, while software vendors, consultants and business service providers were most bullish on recruitment. Please enable JavaScript in your browser to post your comment! Tags See All Tags Communications Alliance  Green IT  Stuart Corner  Surveys  Get stories like this delivered daily - FREE - subscribe now

 

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