'Green' Perceptions Revealed by Global IT Buyers: Some Brands Shine More, Some Countries Care More and Most Buyers Need More Convincing

Business Wire,  June 18, 2008  

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GreenFactor - First Global Study of IT Decision-Makers on "Green" Products & Marketing - Released by Strategic Oxygen, GCI Group and Cohn & Wolfe

AUSTIN, Texas -- Do "green" products and marketing matter in the enterprise technology industry? According to GreenFactor, - the first global "green" enterprise IT study released today by Strategic Oxygen, GCI Group and Cohn & Wolfe, "green" products are not only highly important for the environment, they are potentially profitable: More than 70 percent of the global respondents said they "probably" or "definitely" would increase their preference for a brand's "green" products if they were convinced of the positive impact on the environment and business. Almost 60 percent said they would expect to pay a premium for "green" products.

While there are significant "green" IT opportunities, GreenFactor also highlights some major challenges, according to Michael Gale, CEO, Strategic Oxygen. "There are statistically significant differences between countries, so many of the 'green global campaigns' being implemented by IT brands today will not be successful. Plus, the C-suites and their IT groups are not in-synch and really don't believe there is a 'return on green'."

"The bottom line is that 'green' IT marketers are going to have to be really smart about how they go to market," added Paul Walker, president, GCI Group. "They need to target the right countries and the right 'green advocates' in the C-suite with credible value propositions. We're excited about GreenFactor because it provides a strategic roadmap for getting it right."

Conducted in the first quarter of 2008, GreenFactor surveyed more than 3,500 enterprise IT decision makers - including CXOs, CIOs, IT Managers and Line of Business Managers - in 11 countries. The study looked at 26 enterprise technology brands to determine decision makers' perceptions of "green" IT, products and marketing. Additional information and video commentary on the results can be found at www.greenfactorstudy.com.

"Green" Insights and Implications

CMOs of enterprise IT brands should take note of four major findings in the study:

* No single enterprise IT brand is perceived as a clear "green" leader globally. In fact, there is no statistical difference between the top seven leaders (leaders listed below).

* The importance of "green" IT to IT buyers varies country by country. India's respondents, for instance, emerged highest as both expecting to pay at least a five percent premium on "green" IT and as having a preference for it if they can be convinced of positive impact on both the environment and their budgets. At the same time, nearly one quarter (24%) of respondents in Germany believe buying "green" products has no real impact on the environment, generally twice that of any other country. Findings like this imply that universal, global "green" messaging is ineffective.

* There are disconnects within organizations themselves on the importance of "green." For instance, CXOs globally chose "price" as a barrier to "green" with lower frequency than all other titles surveyed, and CIOs state they "definitely will" look to purchase some "green" products this next year at a higher rate than other respondents. This suggests that IT brands should target C-level executives in order to convince them to direct and empower their teams to include "green" IT into specifications.

* Not surprisingly, "perceived economics" is the biggest barrier to "green" adoption. In nine of 11 countries polled, price was the top barrier. Marketers must focus on better communicating total cost of ownership and overall value to potential buyers.

Green "Leaders" and "Laggards"

Despite varying degrees of "green" products, programs and marketing initiatives, there is no one clear "green" IT brand leader globally. However, when IT decision-makers and IT influencers were asked which brands they most associated with "green" technology, a handful of companies consistently came out on top:

* Apple

* HP

* Microsoft

* IBM

* Intel

* Sony

* Dell

Those companies that did not fare as well on "green" perception were:

* SAP

* Alcatel-Lucent

* Nortel

* EMC

Globally, Microsoft and Google have a statistically significant(a) higher perception of being "green" than all other software and Internet companies included in the study.

"It's interesting that Google, a company that does not produce tangible hardware or software, but consumes a significant amount of resources appears so highly on this list," said Mr. Gale. "They've clearly done a good job of demonstrating they are working hard to innovate new, more power efficient solutions."