Morgan Stanley · NYSE:MS
Morgan Stanley — Morgan Stanley Dean Witter — Investor Presentation (September 2000)
42 slides from Morgan Stanley's investor presentation, Sep 13, 2000
Slide 1: MSDW CIO Survey Series Release 1.7
Equity Research North America Industry Report Enterprise Software MSDW CIO Survey Series Release 1.7 September 13, 2000 Charles Phillips (212) 761.4450 [email protected] MORGAN STANLEY DEAN WITTER
Slide 2: CIO Survey Series Release 1.7
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 • This survey incorporates the results of our survey work for the months of June, July and August. • Topics covered in this survey include: – IT spending – General software projects – E-commerce – Custome
Slide 3: IT Spend: Change in IT Budget
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 IT Spend What is the percentage change in your IT budget this year versus last year for total IT spend? 60% 54% 50% 40% 30% 27% 20% 7% 8% 10% 4% 0% Sharply Moderately Remain the Moderately Sharply Decreas
Slide 4: IT Spend by Category
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 IT Spend What is the percentage change in your IT budget this year versus last year in the following categories: 5 4.21 4.17 4.14 4.13 4.08 4.03 3.97 3.93 3.89 4 3.63 3 2 1 0 s s re s ) y er t t r 90 ns e
Slide 5: IT Spend: Rate of Project Spending Increase
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 IT Spend Over the next 12 months at what rate will your spending on IT projects increase? 60% 51% 50% 40% 30% 30% 20% 10% 10% 5% 0% 0% 1% 2% 1% 1% 0% 0% 0% 0% 0% w e % 0% se in as no r ta 00 ea -8 -6 -4 -
Slide 6: IT Spend: Increasing or Slowing
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 IT Spend Is that rate of increase in your spending on IT projects increasing or slowing over the next 12 months? No Change 35% Increasing 40% Slowing 25% Source: Morgan Stanley Dean Witter CIO Survey, Jul
Slide 7: General Software Projects
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 General Software Projects What is your top strategic software project over the next year? (multiple responses) Commerce server on web site 27% Customer service on web site 18% Application integration 13%
Slide 8: E-commerce Priorities
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce How are you prioritizing your e-commerce efforts? Rank from 1 to 10 the following categories with 1 being the highest priority and 10 the lowest priority. Web Site Commerce Enablement (150) 3.4
Slide 9: E-commerce: Online Catalogs
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce Many organizations are having to load their product line into electronic catalog to sell products on web sites and exchanges. Where does your organization stand in getting your content Already
Slide 10: E-commerce: Alternate Channels
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce Does your organization sell through alternate channels (resellers, distributors, etc.)? Yes 46% No 54% Source: Morgan Stanley Dean Witter CIO Survey, June 2000. MORGAN STANLEY DEAN WITTER Charl
Slide 11: E-commerce: Channel Relationship Management
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce If so, have you implemented a “channel relationship management” software package to automate that relationship for things like lead sharing, warranty registration, etc.? Using third party packa
Slide 12: E-commerce: Channel Management Application
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce Does your organization have a channel management application in place to automate relationships with distributors and resellers? Currently implementing Under 5% development 15% No 45% Yes 13% N
Slide 13: E-commerce: Accepting Orders on Web Site
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 E-commerce Is your company accepting orders over your Web site? Evaluating 11% Planned this year 19% Yes 55% No 15% Source: Morgan Stanley Dean Witter CIO Survey, August 2000. MORGAN STANLEY DEAN WITTER C
Slide 14: CRM Vendor Selection
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Customer Relationship Management Which customer relationship management (CRM) vendor has your organization/division selected/installed? (multiple responses) 30% 25% 20% 15% 10% 5% 0% a l P x el m t te f n
Slide 15: CRM: Customer Data and Marketing Products
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Customer Relationship Management Which product is your organization using to provide and analyze customer data and orchestrate marketing campaigns? (multiple responses) 25% 20% 15% 10% 5% 0% y gy n el ft
Slide 16: CRM: Call Center Automation
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Customer Relationship Management Has your organization installed software solutions to automate call center interactions? Other 1% No, call center has been outsourced 2% Not sure 3% Evaluating off the she
Slide 17: Supply Chain Management Software
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Supply Chain Management Has your organization installed supply chain management software to optimize production? No, hasn’t come No, don’t have a up need 9% 21% No, evaluating 28% Custom solution built in
Slide 18: Database Strategy
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Database Describe your database strategy: "Don't have one, would prefer a single one" Don’t have a 1% single strategic vendor, will use multiple vendors 35% Already have strategic vendor, rolling out more
Slide 19: Windows 2000 Deployment Timing
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Windows 2000 How quickly do you expect to deploy Windows 2000? 30% 26% 25% 23% 20% 16% 15% 11% 10% 7% 7% 7% 5% 3% 0% Q300 Q400 Q101 Q201 Q301 Q401 Unsure Other Source: Morgan Stanley Dean Witter CIO Surve
Slide 20: Windows 2000 versus Unix/Linux
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Windows 2000 Will you deploy applications on Windows 2000 at the expense of Unix/Linux servers? Other 1% Yes, major. Key objective is to use W indows 2000 where possible instead of Unix 3% Yes, significan
Slide 21: PCs: Y2K Purchase Slowdown
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 PCs Did your organization slow PC purchases last year because of Y2K? Yes, but only modestly 3% No 88% Yes 9% Source: Morgan Stanley Dean Witter CIO Survey, August 2000. MORGAN STANLEY DEAN WITTER Charles
Slide 22: PCs: Notebook Share of Purchases
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 PCs What percent of your PC purchases are Notebook PCs? 50% 45% 45% 40% 35% 30% 27% 25% 20% 15% 12% 10% 5% 7% 5% 1% 3% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% % 00 -9 -8 -7 -6 -5 -4 -3 -2 -1 -1 % % %
Slide 23: ASPs: Likelihood of Use
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Application Service Providers (ASPs) Is your likelihood of utilizing an ASP greater/lesser/same today versus 6 months ago? Lesser Unsure 1% 1% Greater 41% Same 57% Source: Morgan Stanley Dean Witter CIO S
Slide 24: ASPs: Applications
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Application Service Providers (ASPs) What applications would you most likely utilize an ASP for? 18% 17% 16% 14% 14% 12% 12% 12% 12% 11% 10% 10% 8% 6% 5% 4% 2% 2% 2% 0% t er e RM c s ne in ls e n ifi on c
Slide 25: Consulting Preferences
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Consulting From where do you prefer the consultants on a software project to come from? From a smaller, Other new economy 1% systems From regional integrator consultants 15% 32% From a large, established
Slide 26: Storage: Strategic Vendor
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Storage What company is your strategic storage management vendor for volume management and backup/recovery? 35% 31% 30% 25% 22% 20% 15% 10% 10% 6% 6% 5% 4% 4% 4% 3% 3% 3% 5% 1% 1% 1% 0% e Am n P M e ng l
Slide 27: Storage Hardware Annual Growth
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Storage By what percent is your storage hardware growing in total gigabytes annually? Outsource Mainframe 1% None 3% Unsure 9% 81-100% 5% 61-80% 0% 41-60% 6% 21-40% 22% 1-20% 53% 0% 10% 20% 30% 40% 50% 60
Slide 28: Storage Growth - This Year
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Storage Growth - This Year By what percent is your storage hardware growing this year? (% Change in Gigabytes/Megabytes) 35% 29% 30% 25% 25% 20% 17% 15% 10% 5% 5% 4% 5% 5% 3% 3% 1% 1% 1% 1% 0% re 0% + 0%
Slide 29: Storage Growth - Next Year
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Storage Growth - Next Year By what percent is your storage hardware growing next year? (% Change in Gigabytes/Megabytes) 30% 27% 25% 21% 21% 20% 15% 10% 10% 5% 6% 4% 3% 5% 1% 1% 0% 0% 0% 0% re 0% + 0% 0%
Slide 30: Linux: Mission Critical Applications
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Linux Is your organization considering using Linux for: Mission Critical Applications? Considering/Eva luating 18% Currently Deploying 0% Currently In Use 5% Not Sure/Don’t Know 5% Not Considering 72% Sou
Slide 31: Linux: Non-Mission Critical Applications
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Linux Is your organization considering using Linux for: Non-Mission Critical Applications Currently In Use Not Sure/Don’t 9% Know 5% Currently Deploying 1% Considering/Eva luating 29% Not Considering 56%
Slide 32: Linux: Development Platform
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Linux Is your organization considering using Linux for: Development Platform Currently In Use 5% Not Sure/Don’t Currently Know Deploying 7% 2% Considering/Eva luating 23% Not Considering 63% Source: Morga
Slide 33: Linux: File Server
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Linux Is your organization considering using Linux for: File Server Not Sure/Don’t Know Currently In Use 7% 5% Considering/Eva luating 23% Not Considering 65% Source: Morgan Stanley Dean Witter CIO Survey
Slide 34: Mainframe: Web-Enabling for E-commerce
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe What percent of your mainframe applications do you anticipate will have to be Web-enabled for E-commerce over the next 12 months? 45% 42% 40% 35% 30% 25% 20% 20% 17% 15% 10% 5% 5% 5% 3% 5% 1% 3%
Slide 35: Mainframe: MIPS Upgrades
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe Do you expect to upgrade your mainframe MIPS in the next 12 No, reducing months? mainframe MIPS No mainframe in our Possibly 5% organization 5% 5% Yes, at same Yes, at an rate as last year accel
Slide 36: Mainframe: MIPS from New Workloads
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe What percentage of your MIPS consumption will come from new workloads over the next 12 months? 60% 49% 50% 40% 30% 20% 10% 13% 11% 10% 4% 2% 5% 3% 3% 0% 0% er e re % 0% % % % e e on m m th u 20
Slide 37: Mainframe: Workload Changes
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe What workload changes are you planning for your mainframe over the next 12 months? (multiple responses) Other 3% Unsure 8% No mainframe 4% No changes 15% Consolidate mainframe 9% Migrate to AS40
Slide 38: Mainframe: Changing Importance
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe How will the importance of the mainframe change over the next year for your overall IT strategy and architecture? More Important 15% Irrelevant 29% Significantly Less Important 7% Same Slightly
Slide 39: Mainframe: Migrating Applications
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe Is your organization migrating existing mainframe applications off the mainframe? No Mainframe 3% No, but evaluating 9% No plans to migrate existing mainframe applications 9% No, existing mainfr
Slide 40: Mainframe: MIPS Upgrades This Year
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe Do you expect to upgrade your mainframe MIPs this year? Yes, but waiting on the next version of the 390 (i.e. “Freeway”) to ship No Mainframe 3% Yes, but with a smaller increase as compared to l
Slide 41: Mainframe: New Application Development
Equity Research North America Enterprise Software Industry Report CIO Survey Series Release 1.7 Mainframe Is your organization still developing any new applications for the mainframe? Yes, but we’ve outsourced enhancement and development of mainframe applications No Mainframe 3% Evaluating extending
Slide 42: Clauses
Equity Research North America Enterprise Software Industry Report Clauses •The information and opinions in this report were prepared by Morgan Stanley & Co. Incorporated ("Morgan Stanley Dean Witter"). Morgan Stanley Dean Witter does not undertake to advise you of changes in its opinion or informati
Morgan Stanley Dean Witter — Investor Presentation (September 2000) on 6ix