industrial networking markets - 2010 user requirements update
DESCRIPTION
These slides are from a webcast presented by Chris Rezendes, Executive Vice President at VDC Research on 03/18/10. During this webcast we address how industrial operators’ experiences from the latest recession are shaping the industrial markets' investment in visibility, connectivity, agility and profitability for 2010-2012. A full audio recording is available for download at: http://www.vdcresearch.com/market_research/industrial_automation/freeresearch.aspxTRANSCRIPT
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VDC Research WebcastINDUSTRIAL NETWORK MARKETSINDUSTRIAL NETWORK MARKETSMarch 2010 User Requirements Update
Chris RezendesExecutive Vice President
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Recording Available
These slides are from a webcast presented on 03/18/10
A f ll di di i il bl f d l d tA full audio recording is available for download at:
http://www.vdcresearch.com/market_research/industrial_automation/freeresearch.aspx
1 – 2010 VDC Research Group, Inc.
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VDC Research Group
Complimentary Insights & Marketing Data on theIndustrial Automation & Control Markets Available at:
www.vdcresearch.com
2 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Today’s Speaker
• VDC Research Groupp Founded in 1971, continuous, profitable operation for nearly 40 years. Focus on a number of embedded and niche network market segments. 1,000 clients annually …90% technology suppliers, tech investors.
Ch i R d E ti Vi P id t• Chris Rezendes – Executive Vice President 19 years experience in embedded, industrial, defense and other mission
critical and high available technology industries. 14 years experience in senior management and leadership positions at a y p g p p
number of technology solutions and professional services organizations. 2 years DARPA contracting. Chris has advised many of the largest and most respected technology
companies in a number of technology segments worldwidecompanies in a number of technology segments worldwide. Chris is a graduate of Harvard University.
3 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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The recession is changing the timing and scope of industrial networking solution deploymentg p y
What impact is the recession having on your industrial networking p g y gevaluation and deployment plans?
4 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Most current evaluators and operators of industrial networks are expecting to maintain, or increase investmentp g
What is your firm’s spending plans for industrial network y p g psolutions for 2010 and 2011?
5 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Nearly half of survey respondents are committed to industrial networking solutions g
What is your current position with respect to industrial network solutions y p poperation, evaluation and investment for factory floor applications?
6 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Wireless evaluation penetration is more than 82%; wireline nearly 97%y
Which network connection method are you investigating?y g g
7 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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While standards evaluation is rising, proprietary evaluation remains a material part of the market p
Which specific wireless network protocols / standards are you p p yevaluating for your next investment / deployment?
8 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Massive growth in Ethernet, and persistent support for control environment ‘standards’ will drive hybrid installsy
Which specific wireline network protocols / standards are p pyou evaluating for your next investment / deployment?
9 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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While the market is shifting toward Ethernet, nearly 27% surveyed see no reduction in reliance on proprietaryy p p y
How will your firm’s reliance on these different network yprotocols change during the next 2 years?
10 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Progress is being made – perhaps slowly – in discrete control and enterprise integration applicationsp g pp
What is the status of networking key applications?g y pp
11 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Networking across various levels of control architectures is growing, with sensors at nearly 61% of respondentsg g y p
Which nodes are currently networked, or under evaluation y ,for industrial networking integration?
12 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Industrial network investment turns on secure, reliable access to real time information
What are the primary operational drivers for your investigation p y p y gof and investment in industrial network solutions?
13 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Real and perceived issues share top billing in the list of barriers to adoptionp
What are the primary barriers to your operation deploying industrial p y y p p y gnetworking solutions during the next 2 years?
14 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Customer appear split on the issue of services, but those who need it, need integration supportg pp
What types of support requirements are most important for your firm yp pp q p yas you consider investment in industrial network solutions?
15 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Value-adding channel position remains small, with ISI and ISV combined cited by less than 38% of respondentsy p
What are your primary sources for your industrial networking solutions investments?
16 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Summary Observations & Pressing Questions
• How can this demand be mapped along market segment pp g gdimensions? Regional markets? Verticals? Applications? Account types and tiers?
• What are the primary technical product/ solution selectionWhat are the primary technical product/ solution selection criteria? And how do they influence the tension between industrial and commercial grade offerings?
• What are the primary commercial vendor/ supplier selectionWhat are the primary commercial vendor/ supplier selection criteria? And how are they shaping the co-existence of industrial and commercial suppliers in these markets?
• What do price and margin trends look like?• What do price and margin trends look like?
• Given customers’ current requirements, preferences and practices, where are they most likely to go for information? P h i ? S t?
17 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
Purchasing? Support?
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How will VDC coverage help clients stay on top of the market?
Industrial Networking Infrastructure Products: g2010- 2014 Market Requirements & Opportunity Analysis • TRACK 1: User Requirements & Channel Analysis Volume 1: Global Wireless Industrial Networking Products Volume 2: Global Wireline Industrial Networking Products
• TRACK 2: Competitive Analysis Volume 1: Global Wireless Industrial Networking Products
V l 2 Gl b l Wi li I d t i l N t ki P d t Volume 2: Global Wireline Industrial Networking Products
STUDY PUBLICATION DATE ACTUAL MARKET SIZE/SUPPLIER SHARE FORECAST MARKET SIZE
Service Year 2010 2009 2010-2014
18 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice
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Q&A Session
Thank You for Attending this VDC WebcastgFor more information about VDC Research coverage of the global markets for industrial networking solutions – including the 2010 Industrial Networking Infrastructure Solutions Market Intelligence Service, or the recently published g y pConnected Factory Market Opportunities & Requirements study, please contact:
Christopher Rezendes – Executive Vice [email protected] | 508.653.9000 x120
Tim Shea – Senior Account [email protected] | 508.653.9000 x146
19 – 2010 VDC Research Group, Inc.Industrial Automation & Control Practice