Morgan Stanley · NYSE:MS
Morgan Stanley — Morgan Stanley Dean Witter — Presentation (March 2001)
24 slides from Morgan Stanley's investor presentation, Mar 6, 2001
Slide 1: Enterprise Software MSDW CIO Survey Series: Release 2.1
MORGAN STANLEY DEAN WITTER Periodical Page 1 Equity Research North America Industry Enterprise Software Charles Phillips Industry Overview March 6, 2001 +1 (1)212 761-4450 [email protected] Ryan Rathman +1 (1)212 761-6377 MSDW CIO Survey Series: [email protected] Release 2.1 PAST MSDW CI
Slide 2: Table of Contents
MORGAN STANLEY DEAN WITTER Page 2 MSDW CIO Survey Series: Release 2.1 Table of Contents: IT Budgets Page 3 Software Projects 9 Databases & Servers 16 Data Networking 18 Enterprise Software – March 6, 2001 Please refer to important disclosures at the end of this report.
Slide 3: IT Budgets: Re-evaluating spending plans
MORGAN STANLEY DEAN WITTER Page 3 Exhibit 1 IT Budgets Has the ongoing news about a slowing economy combined with a stock market decline caused you to re-evaluate your budget/spending plans within the last month? No change yet 56% No change but monitoring the situation closely and evaluating 15% whe
Slide 4: IT Budgets: Areas most and least likely to be cut
MORGAN STANLEY DEAN WITTER Page 4 Exhibit 2 IT Budgets Areas Most Likely to be Cut in a Slowdown Areas Least Likely to be Cut in a Slowdown Consulting 59% Customer service applications 43% Wireless initiatives 41% Network equipment 43% Window 2000 upgrade – desktop 39% E-commerce initiatives 40% New
Slide 5: IT Budgets: Fixed versus project-by-project budget
MORGAN STANLEY DEAN WITTER Page 5 Exhibit 3 IT Budgets Are you assigned a fixed IT budget at the beginning of the year or is your IT spending more project by project as needs arise? Partially fixed for known expenses but somewhat Mostly open, each project open for new projects is decided on 56% inde
Slide 6: IT Budgets: How often spending plan changes
MORGAN STANLEY DEAN WITTER Page 6 Exhibit 4 IT Budgets How often does the spending plan for IT change throughout the year? Some changes – full-year Some changes – full-year spending is usually slightly spending is usually slightly higher than the original lower than the original plan plan 27% 33% Fr
Slide 7: IT Budgets — Telecom: Budget allocation
MORGAN STANLEY DEAN WITTER Page 7 Exhibit 5 IT Budgets — Telecom Does your IT budget include telecommunications spending, or is that a separate budget allocated to a telecom unit or business units? Allocated to telecom unit & business unit Included in IT budget 0% 81% Allocated to business units 7%
Slide 8: IT Budgets — Telecom: Impact of deregulation
MORGAN STANLEY DEAN WITTER Page 8 Exhibit 6 IT Budgets — Telecom If telecommunications spending is included in your IT budget, how has the deregulation of the telecom industry affected your spending? No measurable impact – still spending about the same as last year Large impact – our 31% telecommuni
Slide 9: Software Projects — ROI
MORGAN STANLEY DEAN WITTER Page 9 Exhibit 7 Software Projects — ROI Which type of software project(s) gives you the highest ROI? (multiple answers) Marketing/customer analytics software 24% CRM software 20% E-commerce initiatives 17% ERP software/ERP upgrade 17% New custom development 17% Sales forc
Slide 10: Software Projects — Packaged vs. Custom Applications
MORGAN STANLEY DEAN WITTER Page 10 Exhibit 8 Software Projects — Packaged Applications vs. Custom Applications Will you increase your focus this year on deploying packaged applications versus building applications yourself? Yes 63% Uncertain 5% No 32% Source: Morgan Stanley Dean Witter CIO Survey, F
Slide 11: Software Projects — Application Integration
MORGAN STANLEY DEAN WITTER Page 11 Exhibit 9 Software Projects — Application Integration Have you slowed or canceled any application integration related projects? Uncertain 2% Yes 29% No 69% Source: Morgan Stanley Dean Witter CIO Survey, February 2001. 29% of CIOs responding said that they have eith
Slide 12: Software Projects — Infrastructure Software
MORGAN STANLEY DEAN WITTER Page 12 Exhibit 10 Software Projects — Infrastructure Software If you are already accepting orders over the Web, does your spending on infrastructure software continue to rise, stay flat, or decrease relative to the initial investment to set up your infrastructure? Uncerta
Slide 13: Software Projects — Discounting
MORGAN STANLEY DEAN WITTER Page 13 Exhibit 11 Software Projects — Discounting Are software vendors, on average, providing better deals or discounting more now compared to three to six months ago? Uncertain 12% Yes 37% No 51% Source: Morgan Stanley Dean Witter CIO Survey, February 2001. Enterprise So
Slide 14: Software Projects — SAP
MORGAN STANLEY DEAN WITTER Page 14 Exhibit 12 Software Projects — SAP Do you have SAP installed? If yes, do you plan to upgrade to mySAP.com? Already done 0% No 64% Unsure 28% Yes 33% Partially 2% Installing now 3% Yes 31% No 39% Source: Morgan Stanley Dean Witter CIO Survey, February 2001. 36% of r
Slide 15: Software Projects — Oracle
MORGAN STANLEY DEAN WITTER Page 15 Exhibit 13 Software Projects — Oracle Do you have Oracle applications installed? If yes, do you plan to upgrade to Oracle 11i? Already done 7% No Partially 50% 3% Installing now Unsure 1% 19% Yes 48% No Yes 26% 46% Source: Morgan Stanley Dean Witter CIO Survey, Feb
Slide 16: Databases & Servers
MORGAN STANLEY DEAN WITTER Page 16 Exhibit 14 Databases & Servers To what degree are your database purchases tied to your server growth? Highly tied 20% Uncertain 29% Not at all tied 3% Somewhat tied 48% Source: Morgan Stanley Dean Witter CIO Survey, February 2001. 68% of respondents commented that
Slide 17: UNIX Servers: Catalysts to buy a new server
MORGAN STANLEY DEAN WITTER Page 17 Exhibit 15 UNIX Servers What is the major catalyst to buy a new UNIX server? (Rank 1-4 in terms of influence with 4 being the most important driver) New custom development drives 49% 14% 21% 16% the need for a new server Newly purchased packaged applications drive
Slide 18: Data Networking: WAN connection size
MORGAN STANLEY DEAN WITTER Page 18 Exhibit 16 Data Networking What size is your corporation’s WAN connection? (multiple responses) Uncertain 10% OC-48/STM16 5% OC-12/STM4 3% OC-35/STM1 2% T3/E3 37% T1/E1 46% DSO 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of Respondents Source: Morgan Stanley Dea
Slide 19: Data Networking: Timing of WAN increase
MORGAN STANLEY DEAN WITTER Page 19 Exhibit 17 Data Networking When do you think you will need to increase the size of your WAN connection? Uncertain 7% Don’t plan to increase WAN 10% connection 1-2 years 16% 6 months to one year 33% 3-6 months 11% 1-3 months 7% Should have already done it 16% 0% 5%
Slide 20: Data Networking: Streaming media plans
MORGAN STANLEY DEAN WITTER Page 20 Exhibit 18 Data Networking Do you have plans to implement streaming media capabilities? No plans to deploy 32% Not until 2002 23% Within 2001 21% Currently deploying 10% Already deployed 14% 0% 5% 10% 15% 20% 25% 30% 35% % of Respondents Source: Morgan Stanley Dean
Slide 21: Data Networking: Expected networking spending growth
MORGAN STANLEY DEAN WITTER Page 21 Exhibit 19 Data Networking What percentage growth do you expect in networking spending in 2001 over 2000? 40% 36% 35% 31% 30% 25% 23% 20% 15% 10% 5% 4% 3% 0% 0% 1% 1% 0% 0% 0% 0% 91-100% 81-90% 71-80% 61-70% 51-60% 41-50% 31-40% 21-30% 11-20% 1-10% Flat Decrease So
Slide 22: Important disclosures
MORGAN STANLEY DEAN WITTER Page 22 Enterprise Software – March 6, 2001 Please refer to important disclosures at the end of this report.
Slide 23: Important disclosures
MORGAN STANLEY DEAN WITTER Page 23 Enterprise Software – March 6, 2001 Please refer to important disclosures at the end of this report.
Slide 24: Morgan Stanley offices and disclosures
MORGAN STANLEY DEAN WITTER The Americas Europe Japan Asia/Pacific 1585 Broadway 25 Cabot Square, Canary Wharf 20-3, Ebisu 4-chome Shibuya-ku, Three Exchange Square 4th Floor Forbes Building New York, NY 10036-8293 London E14 4QA, England Tokyo 150-6008, Japan Hong Kong Charanjit Rai Marg Fort Tel: (
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