Few Data Center Managers Report Budget Cuts

Forty three percent of data center managers say they expect their 2009 budget to increase, according a survey of members of AFCOM, the industry group for data center professionals. The survey was released Monday during the keynote session for AFCOM’s Data Center World Fall conference in Orlando, Fla.

The good news: the findings suggest that investment in data center services is positioned to remain strong, as companies are either continuing to invest in data center services, maintaining their budgets or targeting their cuts in other areas.

The bad news: the survey of more than 300 data center managers was conducted in May. Although the credit crunch was already affecting the economy at that time, budgets have almost certainly come under additional scrutiny in recent weeks due to the global financial crisis.

 Predicting the very latest impacts of the credit crisis is difficult, but what’s clear from the AFCOM survey is that corporate investment in the data center industry has remained strong at a time when many other budget items are coming under scrutiny. This resilience is linked to the mission-critical nature of data center operations, as well as the potential that investments in energy efficiency may bring long-term savings in utility bills. 

Here’s a closer look at the survey’s findings:   

  • 86.5 percent of managers said they expected power and cooling issues to become an even greater factor in future purchasing decisions.
  • 61.7 percent said their data center has pursued a “green” initiative of some sort.
  • 78 percent said they expected their green data center initiatives to drive budget increases in 2008 and 2009.
  • 37 percent of data center managers said they had been asked to reduce their budget, compared to 63 percent who have not.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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