Manufacturer IT

Applications
Study







Spring 2013




Page 2

TABLE OF CONTENTS
Methodology 3

RESEARCH FINDINGS
Primary product 6
Job functi on 6
Annual revenue 7
Number of manufacturing l ocations 7
Satisfaction with manufacturing IT applications 8
Downtime experience 9
Number and cost of downtimes 10
Systems run in virtualized environments 11
Plans to move to virtualized environment 12
Virtualization vendor 13
Incidence of hi gh availability strategy/solution 14
High availability strategy/solution used 15
Important factors when making high availability purchase decisions 16
Preferred articles 17
WRITE-IN COMMENTS 18




Page 3

METHODOLOGY
Investigation conducted exclusively for Stratus.
Methodology, data collection and analysis by Penton Research.
Data collected March 26, 2013 through May 1, 2013.
Methodology conforms to accepted marketing research methods,
practices and procedures.

Page 4

METHODOLOGY
OBJECTIVES
Examine the satisfaction level among manufacturers with the reliability and availability of their
manufacturing IT applications.
Investigate the use of high availability applications and virtualized environments among
manufacturers.
Determine what factors are important when making high availability purchase decisions.
METHODOLOGY
On March 26, 2013, Penton Research emailed invitations to participate in an online survey to print
subscribers of IndustryWeek magazine.
By May 1, 2013, Penton Research received 372 completed surveys.
RESPONSE MOTIVATION
To encourage prompt response and increase the response rate overall, the following marketing
research techniques were used:
- A drawing was held for one of three $100 Visa gift cards.
- Live links were included on the e-mail invitations to route respondents directly to the online surveys.
- Reminder mailings were sent to non-respondents on April 1, April 16 and April 25, 2013.
- The invitations and survey were branded with the property name and logo, in an effort to capitalize on
subscriber affinity for the brand.

Research
Findings





Page 6

RESEARCH FINDINGS
Respondents are primarily in management positions at a variety of manufacturing
companies. About one in five (19%) indicate their primary product or service as machinery/
industrial equipment. Nearly half of respondents (46%) describe their job function as
executive, general or supply-chain management.
What is the primary product or service at your
company?
Base for both charts: all respondents (n=372).
27%
1%
2%
2%
3%
4%
5%
5%
6%
7%
9%
10%
19%
Other
Travel and Transportation
Energy and Utilities
Life Sciences
Forest and Paper
Construction
Chemicals and Petroleum
Electronics
Metals and Mining
Aerospace and Defense
Consumer Products
Automotive
Machinery/industrial equipment
8%
1%
2%
2%
2%
7%
9%
10%
18%
18%
24%
Other
Plant IT
Corporate IT
Finance
Sales
Plant production
Quality/Reliability
Supply-chain management
Executive management
General management
Engineer/Engineering
Which of the following best describes your job
function?
Page 7

RESEARCH FINDINGS
Respondents have an average $1.2 billion in annual revenue. Respondent firms operate an
average 8 manufacturing locations.
What is your companys (or parent companys)
approximate annual revenue?
1%
32%
7%
9%
16%
9%
8%
4%
13%
No reply
Less than $25 million
$25 million to $49 million
$50 million to $99 million
$100 million to $499 million
$500 million to $999 million
$1 billion to $2.9 billion
$3 billion to $5.0 billion
More than $5 billion
33%
29%
13%
11%
15%
One
2 to 5
6 to 10
11 to 25
More than 25
How many manufacturing locations does your
company have?
Base for both charts: all respondents (n=372).
Page 8

Overall, the majority of respondents are satisfied with the reliability an availability of their
manufacturing IT applications. Those who have a high availability manufacturing IT strategy
or solution are more likely to be extremely satisfied than those who do not (17% vs. 5%).
Additionally, those who run systems in a virtualized environment are more likely than those
who do not to be extremely satisfied or satisfied (68% vs. 51%).
Over al l , how sat i sf i ed ar e you w i t h t he r el i abi l i t y and avai l abi l i t y of your
manuf ac t ur i ng I T appl i c at i ons?

RESEARCH FINDINGS
Base: all respondents (n = 372).
2%
6%
42%
45%
5%
1%
4%
33%
45%
17%
2%
5%
39%
45%
9%
Extremely
Dissatisfied
Dissatisfied
Neutral
Satisfied
Extremely satisfied
All respondents
Respondents with a high availability
manufacturing IT Strategy or solution
Respondents without a high
availability manufacturing IT Strategy
or solution
1%
5%
42%
43%
9%
3%
3%
25%
58%
10%
2%
5%
39%
45%
9%
Extremely
Dissatisfied
Dissatisfied
Neutral
Satisfied
Extremely satisfied
All respondents
Respondents who run systems in a
virtualized environment
Respondents who do not run systems
in a virtualized environment
Page 9

In the first four months of 2013, 28% of respondents have experienced downtime affecting
one or more of their manufacturing applications. Larger companies are more likely to have
experienced downtime, as nearly on in three respondents with revenues of $1 billion or more
have experienced downtime.
Have you experienced any downtime this year that affected one or more of your manufacturing
applications?

72%
68% 68%
76%
28%
32% 32%
24%
All respondents $1 billion or more in
annual revenue
$100 to $999 million in
annual revenue
Less than $100 million in
annual revenue
Yes
No
RESEARCH FINDINGS
Base: all respondents (n = 372).
Page 10

RESEARCH FINDINGS
Overall, respondents have experienced an average 7.0 downtime incidents in the past year.
Each incident costs an average $16,917. Larger companies have experienced more
incidences at a higher cost per incident.
How many downtime incidents have you had in
the past year?
Base for both charts: respondents who have experienced
downtime (n=105).
7.0
12.8
5.2
4.3
All respondents $1 billion or
more in annual
revenue
$100 to $999
million in
annual revenue
Less than $100
million in
annual revenue
What is the approximate cost of an average downtime
incident?
$16,917
$36,538
$10,761
$7,927
All respondents $1 billion or more in
annual revenue
$100 to $999 million
in annual revenue
Less than $100
million in annual
revenue
Page 11

Sixteen percent of respondents currently run one or more of the listed systems in a virtualized
environment. Among companies with $1 billion or more in annual revenue, 22% run one or
more of the listed systems in a virtualized environment.
Do you currently run any of the following systems in a virtualized environment?

0%
89%
2%
2%
1%
1%
2%
6%
3%
78%
4%
2%
5%
5%
4%
6%
1%
77%
1%
1%
8%
8%
9%
5%
1%
83%
2%
2%
4%
4%
4%
6%
No reply
None of the above
Other
OPC
SCADA
Historitian
MES
Batch
All respondents
$1 billion or more in annual
revenue
$100 to $999 million in annual
revenue
Less than $100 million in annual
revenue
RESEARCH FINDINGS
Base: all respondents, multiple answers
allowed (n = 372).
Page 12

Overall,5% of respondents plan to put manufacturing systems in a virtualized environment in
the next 12 months. Those who currently run systems in a virtualized environment are more
likely to add additional systems (25%) than those who do not currently use virtualized
systems (2%).
Do you plan to put any of your manufacturing systems in a virtualized environment in the next 12
months?

0%
31%
65%
4%
1%
51%
42%
6%
0%
50%
43%
8%
0%
41%
53%
5%
No reply
Unsure
No
Yes
All respondents
$1 billion or more in annual revenue
$100 to $999 million in annual revenue
Less than $100 million in annual revenue
RESEARCH FINDINGS
0%
41%
57%
2%
0%
41%
34%
25%
0%
41%
53%
5%
No reply
Unsure
No
Yes
All respondents
Currently run systems in
virtualized environment
Do not currently run in
virtualized environment
Base for both charts: all respondents (n=372).
Page 13

Microsoft Hyper-V and VMware ESX are the most preferred among respondents who have
chosen a vendor, however a large percentage have not chosen a vendor.
If you are currently virtualizing or plan to move to a virtualized environment, who is the chosen
vendor?

Base: respondents who currently use or plan to move to a
virtualized environment (n = 64). Multiple answers allowed
17%
8%
2%
19%
20%
23%
31%
No reply
Other
Redhat KVM
Citrix XenServer
VMware ESX
Microsoft Hyper-V
Plan to virtualize, but have not
chosen a vendor
RESEARCH FINDINGS
Page 14

Nearly one in three respondents currently have a high availability manufacturing IT strategy
or solution. Larger companies are more likely than smaller companies to have a strategy or
solution in place.
Do you currently have a high availability manufacturing IT strategy or solution?

1%
74%
25%
0%
71%
29%
0%
54%
46%
1%
68%
32%
No reply
No
Yes
All respondents
$1 billion or more in annual revenue
$100 to $999 million in annual revenue
Less than $100 million in annual revenue
RESEARCH FINDINGS
Base: all respondents (n=372).
Page 15

The majority of companies are leveraging backup as their HA solution. Companies with
annual revenues that exceed $1 billion are more likely to have advanced strategies in place,
as 26% use built-in high availability functions, 23% use fault tolerant servers, 16% use
windows clustering and 9% use high availability software.

What type of solution or high availability strategy are you using?

Base: respondents with a high availability strategy or
solution, multiple answers allowed (n = 117).
2%
12%
8%
5%
11%
11%
19%
20%
66%
No reply
None of these
Other
High Availability Software (Stratus Avance, Marathon everRun,
etc.)
Windows Clustering
Virtualization based
Built in High Availability functions to your applications
Fault Tolerant Servers
Backup
RESEARCH FINDINGS
Page 16

RESEARCH FINDINGS
Total cost of ownership and ease of deployment/management are most important when making
high availability purchase decisions.
2.9
3.1
3.9
3.9
4.1
4.3
2.9
3.1
3.7
3.8
4.0
4.1
Consultant recommendation
Application vendor recommendation
Your unique high availability requirements
Initial purchase price
Ease of deployment and management of
the solution
Total cost of ownership
All respondents
Respondents who use high
availability strategies or
solutions
How important are each of the following when making high availability purchase decisions?
Average ratings based on a 5-point scale, where 1 =not at all important and 5 =very important
Base for blue bars: all respondents (n=372).
Base for green bars: respondents with high availability
strategies (n=117).

Page 17

RESEARCH FINDINGS
Respondents prefer to read best practices articles, such as those on how to cost effectively
improve the reliability and efficiency of plant/manufacturing operations.
Which of the following types of articles are you most interested in reading?
Base : all respondents (n=372).
.

3%
16%
4%
34%
44%
No reply
None of the above
Articles that include technical specifications on solutions that
guarantee uninterrupted processing for DCS, SCADA, MES and
BMS applications
Articles on the best available tools that help accomplish various
manufacturing job functions
Articles on how to cost effectively improve the reliability and
efficiency of plant/manufacturing operations
Write-in
Comments





Page 19

WRITE-IN COMMENTS
1. What is the primary product or service at your company? Other responses:
Agriculture equipment
Agricultural, mulch, wood products
Appliance
Blood Banking
Building Materials Manufacturing
Building materials MFG
Coating and Ink production
Commercial Plumbing Fixtures
Commercial Printing
Commercial Refrigerators and Freezers
Component fabrication for heavy
construction & mining equipment
industry
Compressed gases for semiconductor,
scientific, medical and governmental
applications (including aerospace)
Computer manufacturing
Consulting 3 mentions
Contract Manufacturing (Precision
Machining, etc.)
Curtain Wall
Custom fabrication of Stainless Steel
and Nickel Alloys
Custom urethane molding for the heavy
duty truck and agriculture machinery
markets.
Cutting Tools
Deep Drawn fabricated metal products.
Dental Equipment
Diversified manufacturing
conglomerate
Electrical Distribution Equipment,
Switchgear, MCC, HV Switches, etc.
Electrical switchgear
Equipment shelters,
telecommunications site equipment
and solar industry site
Fabricated metal products/ Industrial
clamping systems
Fabricating and construction of
Condensate & Boiler Feed Sytems.
Fiberglass boat manufacturing
Fixtures and Gauging
Fluid Systems
Food
Food Production
Furniture manufacturing
Glass tableware manufacturing
Golf Carts, Small Implement Tractors,
All Terrain Vehicles. Mining
Industry, Lawn Tractors
Grinding wheels
High Temperature Corrosion Resistant
Coatings Development and
application
Hospitality
Hvac and Industrial equipment
Lighting reflectors
Machining
Management consulting
Manf. of heavy wall bearings &
bushings for locomotives,
compressors and HD engine platform.
Manufacturing Fans/Blowers
Manufacture roofing material and
waterproofing products
Manufacturer and Distributor of
Medical Devices
Manufacturing
Manufacturing consultant
Manufacturing of Rotationally Molded
Products ranging from Air Cargo
Containers for the Aerospace and
Defense Industry to Underground
tornado Shelters and everything in
between!
Material Handling Equip (Lift Trucks)
Matting and flooring products
Measurement Instrumentation
Medical devices
Medical Components
Medical device MFG
Medical Devices 4 mentions
Medical seating products
Medical/surgical equipment and
supplies
Metal & Plastic Manufacturing
Metal storage products used in the
Office Furniture Industry
Metal Working Roller Bearings
Mfr of kitchen cabinetry
Military garment
Oem for food service equipment
Office furniture
Optical lens blanks.
Packaging
Page 20

WRITE-IN COMMENTS
1. What is the primary product or service at your company? Other responses:
Pet Food
Pharma
Plastics
Print
Printed Product
Printing 3 mentions
Printing of labels and tags
Process Lines in Advanced
Manufacturing
Pumps
Pvc compounder.
Rubber products
Rubber, plastic and metal parts custom
parts
Specialized silicon components for
semiconductor industry (non-metallic
mineral)
Signage & Graphics
Spice flavor/color extract
Spill Response Products
Steel door and frame manufacturing
Steel packaging products
Supply Chain Integration and
Management
Textile fabrics
Textile finished goods
Textiles 2 mentions
Usps - Mail Sortation/transport
Valves 2 mentions
Wastewater Treatment Equipment
Wholesale distribution
2. Which of the following best describes your job function? Other responses:
Administration
Chemical/substance compliance
Consultant
Continuous Improvement
Corporate Facilities Management
Customer Service Manager
Director Manufacturing Engineering
EHS 2 mentions
Global Manufacturing and Quality
Human Resources Specialist
Lean Manager
Lean Six Sigma Leader
Maintenance 2 mentions
Maintenance Manager
Maintenance Supervisor
Marketing
Occupational Health Nurse
Owner
Procurement/Subcontracts mgmt
Product lawsuit consulting
Product Management
Purchasing 2 mentions
Purchasing and Tooling
Safety Administrator
Safety and Environmental
Safety Supervisor, Lead Auditor, Doc
Control, environmental
Training
Warehouse


3. To what extent are you involved in the purchasing process for your company? Other responses:
All of the above except for Member of
purchasing committee and No
involvement.
Decision Maker
Distributor of DNC equipment for
CNC machine tools.
Oversight, strategic direction
Purchase of capital equipment

Page 21

WRITE-IN COMMENTS
7. Do you currently run any of the following systems in a virtualized environment? Other responses:
Baan
Erp
Kanban
Kiwi Plan
Mq1
No clue
Not at this time
Sap

9. If you are currently virtualizing or plan to move to a virtualized environment, who is the chosen vendor? Other responses:
Esxi
J obscope
Marblemaster
No clue
None of the above
Our company has worked on emergent IT trends in our area for 33 years. We will design to suit our needs not to be restricted by
vendor's extreme shortcomings. You did NOT mention open source (only the vendor RedHat who uses open source). IT should be
designed with business strategies driving decisions and to resolve specific strategic issues in the enterprise and on the
production/process floor. The best approaches on this we've examined come from TIBCO, GE Intelligent Platforms, and IBM --
none of which (as a commercial vendor does Penton mention in this survey -- to bad your IT in manufacturing people didn't perform
adequate vendor research -- but instead stuck with the traditional worn-out approaches add Cisco). Our view MUST include Apple
with iPad technology and front-line floor apps for mobile shop floor use, to the Internet of things (specifically better use of machine
sensor data and methods of collection (Autodesk 3D Sensor as an example)) and so forth as they flow into business analytics as a
connected component of the entire Enterprise system of business strategic management (that's the 21st Century (1st quarter to 2026)
model that should be discussed at Industry Week now.

11a. What type of solution or high availability strategy are you using? Other responses:
Developed company specific Marine Suites IT applications
I know the strategy is in place, I am unsure of the details.
It is available 99.9% of the time.
Not sure 3 mentions
Not sure where the "High Availability" VENDOR-based buzz hype came from??? It's one thing to get caught up in the juvenile under
30 hype world, its another thing to see reality and have systemic strategic solutions to problems, one of which being availability -- a
strategic issue. Let' cut the marketing hype and BS vendor buzz wordage -- shall we?
VMS
Page 22

WRITE-IN COMMENTS
12. How important are each of the following when making high availability purchase decisions? Other factors:
Applicability to wireless networks and M2M applications.
Approval from the Corporate Headquarters
Buy only the components we may need
Historical cost information detail available for last ten years.
I am the wrong guy to ask
I don't know what "high availability IT strategy or solution" means. We are certainly not going to buy something that is not available.
Ongoing maintenance and operational advancement and build prices post initial costs.
Systems compatibility