APAC Green IT Services market to reach US$2b by 2011
ConvergenceAsia staff
11/11/2008

Green IT Services market in the Asia Pacific region (excluding Japan) will grow from a small base of US$251 million in 2007 to US$2 billion in 2011, says the latest research from Springboard Research, a next-generation IT market research and advisory firm.

This growth represents a compound annual growth rate (CAGR) of 68.5 per cent during the period. Australia represents the largest opportunity across the forecast period and is the key market in the Asia Pacific Green IT Services space, while India and China are growing at a faster CAGR than Australia, but from a lower base.

According to Springboard’s report, “Asia Pacific Green IT Services Market – The Budding Greens”, while infrastructure services comprise the largest component of market with a 58 per cent share in 2007, consulting services are highly significant in the Green IT services marketplace, relative to the overall IT services market, and will reach a size of $546 million in 2011.

“The key finding from our study is that consulting capability is an essential market entry point for vendors,” said Phil Hassey, Vice President of Services at Springboard Research. “Green IT Services vividly highlights the need for service providers to have end to end capabilities, and to not rely upon a narrow set of capabilities if they are to capture market opportunities,” Hassey added.

The report also reveals that the key areas of interest in terms of Green IT Services are virtualisation, data centre management, recycling and enterprise-wide Green IT strategies. From a competitive point of view, the report notes that although the vendor leadership is still not clear given the embryonic nature of the market, it is clear that HP (with EDS) and IBM have had success in developing and launching end-to-end solutions in the marketplace. Other leaders in terms of speed to develop solutions as reported by Springboard include Sun, Dell, VMWare and Microsoft.

In its predictions for the Asia Pacific Green IT services marketplace, the report states that the Green IT agenda will begin to boost opportunities for vendors in the data centre and Infrastructure Applications Services marketplace in 2008. The report also advises the IT industry to work together with governments to ensure that regulation on Green IT is realistic and takes advantage of what IT can offer as a broad tool to reduce an enterprises environmental footprint.

“Vendors should ensure that their Green IT solutions are more than “window dressing” of existing solutions – for a premium. Green IT adoption will not go into the mainstream until the vendors showcase clear cost savings and a transformational outcome to the enterprise users,” Hassey said.

Published in November 2008, the Springboard Research report, “Asia Pacific Green IT Services Market – The Budding Greens”, builds upon Springboard’s programme on Green IT across the Asia Pacific region. The report considers Green IT Services by geography, so enterprises can better understand the market dynamics inherent in each Asia Pacific country or region (excluding Japan).

This report has identified the need to assess the market in terms of core and secondary Green IT Services markets. It reflects the ambiguity about what is really green, and what is merely window dressing of existing capabilities.

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