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					     BSRIA UPDATE
Structured Cabling Market,
    Data Centers,IIMS
and Potential New Studies


                        January 2009
                 Agenda


 Global trends in structured cabling
 US/UK Data Center Studies
 BSRIA Consultancy
 IIMS
 Current studies and plans for 2009/2010
                  BSRIA
        Worldwide Market Intelligence
    I.T. Networks & Associated Technologies
   Small team covering up to 40 countries

   Offices in the UK, China, France & Germany

   Special topic reports on technologies impacting the SCS
    market

   Close tracking of individual country economies and
    construction activity

   Face-to-face and telephone interviews with key
    suppliers, distributors and SIs/VARs in each country
AMERICAS
                  Countries Covered Worldwide                         EUROPE
                                                                      •GERMANY
                                                                      •UK
•USA
                                                                      •FRANCE
•CANADA
                                                                      •NETHERLANDS
•BRAZIL
                                                                      •ITALY
•ARGENTINA
                                                                      •SPAIN
•MEXICO
                                                                      •SWITZERLAND
•CHILE
                                                                      •BELGIUM
                                                                      •AUSTRIA
                                                                      •SWEDEN
                                                                      •NORWAY
                                                                      •FINLAND
                                                                      •DENMARK
                                                                      •PORTUGAL
   ASIA PACIFIC                                                       •POLAND
   •CHINA                                                             •RUSSIA
   •AUSTRALIA                                                         •HUNGARY
   •SOUTH KOREA                                                       •UKRAINE
   •JAPAN                                                             •CZECH REPUBLIC
   •INDIA                                                             •GREECE
   •HONG KONG                                                         •IRELAND
   •ASEAN
   •SINGAPORE
   •VIETNAM


                       ~95% of the global structured cabling market
Market Size Structured Cabling and
            Key Trends
Global Structured Cabling Market, 2007/2008
              by Product Type

         Singlemode fibre cable
                                  Fibre connectivity
         1.8%
                                  3.7%

Multimode fibre cable
11.1%                                                  Copper cable
                                                       47.2%


  Copper connectivity
  36.2%

                                    US$ 4.9 billion

                                                                Source: BSRIA
Global Structured Cabling Market, 2003 – 2010
US$ mill                   Est. $4.97 bill     Est. Flat
                          Rev. $4.95 bill    Rev. Decrease
                         increase 0.5-1%         4-5%
Top 10 Countries for Structured Cabling, 2007
    US$ mill




                                          Source: BSRIA
Growth Forecast 2007 - 2010




                              Source: BSRIA
                                   High
                                          Market Size vs. Market Growth Matrix 2007 - 08
                             30%

                                                                 India


                                                                                                   China
Market Growth Rate 2007-08




                                          Russia                         Latin America



                                          Middle
                                          East                                                 Germany
                                                            Australia



                                                                               France
                             0%


                                            Italy


                                                                                         United Kingdom



                                                                                                                     USA




                    -30%
                                                                                                                                           High
                                   Low       $150 Million                                         Market Size 2008         $1700 Million
        2008 – Preliminary Results

Growth – High 10%+
 India                Growth – Medium
 China                 Australia
 Russia                Germany
 Brazil/Mexico         Middle East
 Argentina
                        Eastern Europe

         Flat                Decline
          Spain              US
          France             UK
                              Italy
                                          Source: BSRIA
          2009 – Preliminary Forecast

Growth
 India (10-15%)             Decline
 China (8-10%)               UK (10-15%)
                              US
                              Russia (27%)
   Flat to minor growth       Spain (~20%)
    Latin America            Italy (5-10%)
                              France (3-5%)
    Middle East
                              Germany (1-3%)
    Australia
                              Austria (2–3%)


                                          Source: BSRIA
            Global Trends 2008/9

   First half of 2008 – “business as usual”
   Business slowed down August – October
   Drastic decrease in demand in November/December
   4thQ (3rdQ) Projects postponed or cancelled
   1stQ 2009: End-user confidence down, slow market
                 - some carry-over
 Private investment significantly down
 Government investment up (schools, universities, infra-
  structure, healthcare, central and local authorities etc.)
                    Price Developments

 Prices remained stable year-on-year from June 2006 – 4Q of 2008
 Some countries had price increases July/August 2008
 Massive drop in copper material prices Autumn 08 (back to 2005
  level), but no general price reduction
 Few suppliers reduced prices Nov/Dec 2008, but most suppliers
  choose to offer further project discount (target/localised)
 Exceptions - China: pressure from Oct 2008
             - Russia: price erosion started!


                                                        Source: BSRIA
Price Comparison: A Box (100 ft) UTP Cat 5e, PVC Cable




                                             Source: BSRIA
              High Penetration of Cat 6


Cat 6 penetration                 Cat 6A penetration

 German speaking                  High uptake of Cat 7 cables
  countries (80-95%)                with shielded Cat 6 or
                                    Cat 6A connectivity

 Middle East (75-95%)             Low penetration of Cat 6A

 France,Netherlands (65%)         4 - 5%



                       2008 est. by volume
                                                        Source: BSRIA
               Cat 5e Sales Continue to be High

Cat 5e sales                                    Cat 6A penetration
 Japan 65–70%                                   1%
 Latin Americas (65-70%)                        1% – 3%
 China 57%                                      Only very few projects
 Russia 50% and increasing in 2009              11%
 US 51-52%                                      ~4%
                                                            2008 est. by volume


                Cat 5e (35% - 45%), Cat 6 (50%- 60%) & Cat 6A (2% - 5%)
                 UK, Spain, Denmark, Norway, Sweden, Italy, India, Australia
                                                                   Source: BSRIA
                              China
 China been spending 40% of GDP on business investments
  => excess capacity
 Exports have fallen since Nov 08 – Can internal demand be
  stimulated to replace it?
 Pressure on cable prices when the copper material price
  dropped (from Oct 08). Increased (15%) beginning of 2008
 Slowed down Q4 2008 and the trend continues in 2009

 Data centre only very small segment (3 – 5%)

 Ningbo Ship, LTK, Potevio (Putian), Orient Daikin, Sunf Pu,
  Wonderful Wire are increasing in importance in China
             Russia – a Developing Market

 3% of the global market (2008)
 Massive growth in 2006, 2007 and 2008 fuelled by construction
  and material price increases
 Dec 2008/Q1 2009 – prices expected to fall significantly
 Consumer confidence down. Projects on hold or cancelled.
  Volume to decline 20% in 2009
 Focus on cost savings (Cat, brand, size)
 Growth expected in 2010 and 2011
    U.K. & U.S.
Data Center Studies
US Data Centre and LAN Market


                            LAN $1.65 bill
                            DC $360 mill
                            DC 18% of total

                            Fiber cable
                             problematic in
                             DC report
                             - pre-term
                             - link lengths
                             - value of links



                                 Source: BSRIA
         Subjects Covered by Data Center
                End-User Studies


 Cabling market size          Pre-terminated cable
 Cabling type and location    Fiber connectivity
 Cable jacket type            Replacement rates
 Brands                       Network impact from blade
 10G cable choice              servers & virtualization
 40G and 100G -               Most important criteria in
      current & plans           selection of system and
                                supplier
 Switch port utilisation
Size of Data Centres in the Studies




              No. Respondents 250 US; 120 UK   Source: BSRIA
                       Plans to Install 10G Copper Cabling
                      in the Near Future in the Data Centre




                                                 10G copper cabling options listed:
No. Respondents 120                               Cat 6 shielded (F/UTP)
                                                  Cat 6A unshielded or shielded
                                                  Cat 7
                                                  Cat 7A
                          Source: BSRIA           CX4 (10GbE) cable
Most Likely Choice for Future Data Center
  10G Copper Cabling Solution - U.K.




     No. Respondents 120
Would Like to Install 10G Active Equipment
            for Copper Cabling




                                 U.K. 2008




   U.S. 2007




          No. Respondents 180
Plans for All Speeds in the Data Center
                end 2009
          The Copper-Fiber Split
    in the Data Center Network - U.K.
As at end 2007 and Planned for end 2008




                                   No. Respondents 120
How Often Replace Copper & Fiber Cabling
  in the Data Center Network - U.K. 2008




               By No. Respondents   No. Respondents 100
   How Often Replace Equipment in the
Data Center Network - U.S. 2007 & U.K. 2008




             By Percent Respondents   No. Respondents: U.S. 250; U.K. 120
    40G in the Data Center Network
      by Layer – U.K. 2008 & 2010

Current 40G by Layer                                              40G Plans




          No. Respondents 77 & 120
          Note: The vertical scales are the same on this slide.
       40G and 100G by Layer
in the Data Center - U.K. 2008 & 2010




                                  No. Respondents 77
      Current Fiber Cabling Installed
in the Data Center - U.S. 2007 & U.K. 2008




                                 No. Respondents: U.S. 239; U.K. 110
        Preference for End-to-End Systems
in the Data Center - by Size - U.S. 2007 & U.K. 2008




   %
   Resps




                                      No. Respondents: U.S. 250; U.K. 120
          Type of Protocol Used
in the Data Center - U.S. 2007 & U.K. 2008




                                 No. Respondents: U.S. 250; U.K. 120
Future Expansion Plans in the Next 5 Years
    Data Center - U.S. 2007 & U.K. 2008




                                No. Respondents: U.S. 250; U.K. 120
 Most Important Criteria When Selecting
a Location For the Data Center - U.K. 2008




                                    New open question
                                    No. Respondents 114
The Factor that will have the Largest Impact on the
 Data Center Cabling Infrastructure in the Future




                                        Open question
                                        No. Respondents UK 115; US 201
BSRIA Consultancy

- A Brief Introduction
                          Methodology

           PHASE 1                              PHASE 2




Market Analysis - WMI


                                        Recommendations (including
                                             financial) - BMC



Internal Analysis - BMC
• FORECASTS                 • SEGMENTATION



              Management
              Consultancy



                Market
               Research
   •PRICING                 • DISTRIBUTION & COMPETITIVE
                            INTELLIGENCE
                Analysis of Client’s Internal Data
                                           • Financial data




                            Management
                            Consultancy

• Commercial data

                               Market
                              Research
                                           • Comparison Vs. market
          Detailed Recommendations & Action Plans
                       + Financial Data
    •SALES TARGET SETTING                 •   INVESTMENT ESTIMATES



                            Management
                            Consultancy



                               Market
                              Research
•   CASH FLOW FORECAST                    • ACTION PLANS
             What BSRIA Consultancy Offers

1. Commercial due diligence
• In our commercial due diligence we take into account the latest news and trends of the industry.
  This enables us to contrast the company strategy with the current market
• This document also contributes to gain visibility of new opportunities and risks

2. Business plan evaluation
• The business plan assessment supplies expert opinion about the viability of the company in
  strategic and commercial terms
• Moreover, it includes recommendations about the key aspects, supported with calculations and
  logical arguments

3. Market research
• This document integrates external market factors as well as strategic positioning and the internal
  situation of the client. It is structured in dynamic and predictive models considering different
  scenarios, facilitating the decision making process

4. Assessment/Creation of Vendor's book
• The vendor’s book has the competitive advantage of integrating BSRIA experience in the industry
• The deliverable integrates the financial information with information on the marketplace and the
  company’s strategy. The commercial language used is clear and concise.
                    Examples of Completed Projects
   Company type                                        Project and outcome                              No. of countries



Global HVAC            Developed complete new strategy for existing player. Action plan devised for            1
company                fundamental change in distribution


Large regional HVAC    Refocus strategy for company for management buyout. Company refocused                   3
company                product and segment strategy and are now very profitable.


Private equity         Assessment of acquisition opportunity – large regional heating company. We              1
company                advised - “don’t buy it.”


Global HVAC            Assessed current distribution strategy, assessed key changes. Warned of market         1+3
company                collapse in the country. Recommended changes in product range.
                       Compared market position and potential with three main other markets.




Private equity + major Examined current market, future structures and opportunities. Preparation of            3
plumbing client        vendor's book.
   Old Bracknell Lane West      c/ Juan Ramón Jiménez 9, 1º

Bracknell Berkshire RG12 7 AH          Madrid 28036

       United Kingdom                     Spain

    +44 (0) 1344 465600              +34 91 185 42 37
Intelligent Infrastructure Management
                 Systems
Intelligent Infrastructure Management Systems (IIMS)




    No-IIMS
                                       IIMS
Global Sales of IIMS, 2005 - 2007
IIMS Sales by Region, 2005 - 2007
Sales of IIMS by Generic Solution, 2006 & 2007
      by Volume - no. of Managed Ports
        Reasons for Growth?

 Global roll out (mainly Financial sector)


 Increasing number of installations in medium sized
  companies

 Large projects such as airports


 Increasing awareness


 Premium reduced, now 15% - 25%
Plans to Install IIMS in the Near Future
    in the Data Center - U.K. 2008




            Where no IIMS currently exists   Open question
                                             No. Respondents 79
Primary Reason Have Installed an IIMS
    in the Data Center - U.K. 2008




                                 Open question
                                 No. Respondents 37
Barriers for Further Uptake of IIMS


   Lack of understanding and awareness,
    but less of an issue now

   Lack of compatibility between systems


   Cost of solutions


   Cost of implementation and training
Primary Reason for NOT Installing IIMS
    in the Data Center - U.K. 2008




                                  Open question
                                  No. Respondents 78
  How To Be Successful in IIMS
 Stay with the projects until the system is fully
  employed

 Continue to provide service and back-up

 Vendor representation or competent SI

 Continuing updates of products and software

 Further projects

 Loyal customer!
Plans for 2009 / 2010
                                      Cabling Portfolio                                         Data Centre
                                                                                                    UK

                                                                                      Data Centre
                                                                                                           Data Centre
                                                                                          US
                                                                                                             India?
                                                                                Verticals
                                                                                  USA
                                                                                                            Verticals
                                                                                                             China
                                                                    Wireless

                                                                         10G
                     Residential C.                                                                        Cabling in
                                                                      VoIP                                 Buildings
                                                                                            IIMS
                               North America
                                                            Residential C.
                                                                                                        Wireless / VoIP
            Asia Pac.            Asia Pac.      Middle E.    Middle E.         Middle E.

Europe
            Latin Am.            Latin Am.
                                                              “Runner” 20 – 21 countries per year
             Europe               Europe


1995     1999/2000      2001       2002      2003   2004    2005   2006        2007      2008       2009       2010
Impact on Cabling of WLAN and VoIP Update

      Penetration of WLAN

      Impact on cabling (addition/reduction in cabling)

      Barriers and new regulations

      Applications and wireless only installations

      Implementation of VoIP

      Integration of VoIP and WLAN
High Speeds in Commercial Networks

  Uptake of Cat 6A, Cat 7 and OM3 fibre

  High speeds in Data centres, server rooms and LAN

  Choice between copper and fibre

  Protocol choices

  Main suppliers

  Barriers

  Active equipment and their availability
        Quarterly Forecast - U.S.
 U.S. first
 Potentially other key countries (regions)
 Forecast for structured cabling (Copper & Fibre)

Forecast based on:
- Economic trends
- Construction, planning applications
- Copper prices and other energy/material prices
- Panel (selected channel players, consultants, VARs)

- Output: trends - mainly up, down, flat
           BSRIA Market Sizing Project for CABA



     BSRIA in discussion with CABA (Continental Automated Buildings
      Association) of North America about a major market study
     Project would be commissioned by CABA’s Intelligent & Integrated Buildings
      Council (IIBC)
     IIBC is proposing a market sizing exercise of the North American market for
      intelligent and integrated building technologies used to create high
      performance green sustainable buildings
     Scope:
    I.     Environmental (HVAC) Controls / Building Automation
    II.    Security Systems (Access Control, CCTV, Intruder Alarm)
    III.   Fire Detection and Alarm
    IV.    IT-Convergence
    V.     Lighting Systems
    VI.    Water Saving / Control Systems
    VII.   Audio Visual and Digital Signage Systems
          BSRIA Market Sizing Project for CABA
              Intelligent Building Products

 BSRIA has a proven track record in these subjects around the world and
   extensive North American experience
 Project comprises in-depth studies of these markets by value of
   products/systems, value-add, services, vertical markets by building type
 Project will build on Proplan’s historical data and proven methodology of face-to-
   face interviews and data gathering directly from manufacturers
 Project expected to start around March/April 2009 for publication around
   September/October 2009
 A CABA mailing on the content and scope will be available in February and will
   be featured at the ASHRAE (AHR Expo) event in Chicago 26 January 2009
 Please refer to CABA’s Ron Zimmer or Alex Detre for details or sponsorship (tel:
   613.686.1814 / www.caba.org)
Use of Structured Cabling in Building Control Networks


 Management                                     Highest
 Level


 Automation
 Level




 Field Level



                                                Lowest
Greatest Use of Structured Cabling in Security Systems
Intruder Alarm   Hybrid CCTV   Access Control   Total IP CCTV systems
     systems         systems       systems




   Lowest                                                     Highest
           Drivers and Barriers for Convergence

Drivers:                             Barriers:

 Upgrading the existing              Lack of knowledge
  infrastructure (from Analogue to
  Digital)                            Educating installers
 Networked and accessible            Prices tend to escalate when upgrading
  remotely                             the infrastructure
 Open communication protocols        BAS suppliers lack control of network
                                       performance
 Convergence of Physical and
  Logical (I.T.) Security             Broadcasting approach (used by BAS)
                                       not permitted on some routers and
                                       switches
 Increasing Use of Structured Cabling
in Intelligent Building Control Systems




   Controls




              Intruder Alarm
                        Strategic Overview

 Top 15 suppliers by product and     Company profiles of the top 10
   by region                           largest companies:
                                         CommScope (Systimax)

 Global and regional trends             Belden (Mohawk)
                                         Tyco Electronics
 Electrical suppliers and channel
                                         Nexans (Berk-Tek)
 Private label (distributors)
                                         Panduit
 Production and increasing sales
                                         ADC Krone
  by local suppliers
                                         Legrand (incl. Ortronics and TCL)
 Penetration of Cat 6A
                                         Schneider Electric (Infra+, Clipsal,
 Shielded or UTP Cat 6A?                 LexCom, LK)
 Residential cabling                    Siemon
                                         General Cable
              Overview of Potential Studies

Updates or new markets       New studies

   WLAN and VoIP             High speeds in Commercial
   Verticals in China         Networks
   Update of US Verticals    Quarterly Forecast
   Data Centres (India,      Integrated Cabling in
    Germany)                   Buildings
                              Strategic Overview

                              Other suggestions????
THANK YOU