Assessment of Intranet Managed Services, U.S. INPUT Frankfurt • London • New York • Paris • San Francisco • Tokyo • Washington D.C. INPUT Worldwide Frankfurt Perchstatten 16 Clients make informed decisions more quickly and economically by using INPUTs D-35428 Langgons services. Since 1974, information technology (IT) users and vendors throughout the Germany world have relied on INPUT for data, research, objective analysis and insightful Tel: -H49 (0) 6403 911420 opinions to prepare theirplans, market assessments and business directions, particularly Fax: +49 (0) 6403 911413 in computer software and services. London Contact us today to learn how your company can use INPUT'S knowledge Cornwall House and experience to grow and profit in the revolutionary IT world ofthe 1990s. 55-77 High Street Slough, Berkshire SLl IDZUK Subscription Services Tel: +44 (0) 1753 530444 Fax: +44 (0) 1753 577311 Databases • Information Services Markets New York - Worldwide and country data • Software and Services Market 300 Frank W. 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IT Customer Services Directions • Market strategies and tactics Tel: +1 (650)961-3300 (Europe) • Product/service opportunities Fax: +1 (650) 961-3966 • Customer satisfaction levels Service Features Tokyo • Competitive positioning 6F#B, Mitoshiro Building, • Acquisition targets 1-12-12, Uchikanda • Research-based reports on trends, Chiyoda-ku, Tokyo 101 etc. (Over 100 in-depth reports For Buyers-evaluate: Japan per year) Tel: +81 3 3219-5441 • Frequent bulletins on events, • Specific vendorcapabilities Fax: +81 3 3219-5443 • Outsourcing options issues, etc. • Systems plans Washington, D.C. • 5-year market forecasts • Peerposition 1921 Gallows Road Suite 250 • Competitive analysis Vienna, VA 22182 3900 • Access to experienced U.S.A. consultants Other Services Tel: +1 (703) 847-6870 Fax: +1 (703) 847-6872 • Immediate answers to questions • On-site presentations Acquisitions/partnerships searches ASSESSMENTOF INTRANET MANAGED SERVICES, U.S. INPUT Abstract IT architectures have changed dramatically in recent years and the data center environment is no longer the focus ofeither corporate IT or of operational services. The principal challenge for operational services vendors is now the management of distributed systems environments based around the UNIX and NT operating systems. However, while distributed systems management remains the principal challenge, the technology continues to move ahead at a rapid pace. The result is that users now expect operational services vendors to assist them in introducing, supporting and operating new Internet and Intranet based IT infrastructures. Consequently, it is important that outsourcing vendors develop operational capabilities in these areas. This report aims to assist vendors by: • Identifying organizations' current and planned use ofIntranets • Identifying the level ofusage ofIntranet managed services and the likely future demand for Intranet operations and support services • Identifying service levels and levels ofexpenditure on Intranet support and operations services • Analyzing current levels ofsatisfaction with both in-house and external provision ofIntranet services and the benefits sought from outsourcing Intranet support and operations services • Identifying the perceived suitability ofindividual vendors to offer Intranet managed services. The report considers the market opportunities in supplying individual Intranet operations and support services as well as the likelihood of organizations adopting full outsourcing oftheir Intranet operations and support. S037U ©1998byINPUT.ReproductionProhibited. Published by INPUT Cornwall House, 55-77 High Street Slough, Berkshire, SL1 1DZ United Kingdom Operational Services Program Assessment of Intranet Managed Services, U.S. © Copyright 1998 by INPUT. All rights reserved. Printed In the United Kingdom. No part of the publication may be reproduced or distributed in any form, or by any means, or stored in a database or retheval system, without the prior written permission ofthe publisher. The Information provided in this report shall be used only by the employees of and within the current corporate structure of INPUT'S clients, and will not be disclosed to any other organisation or person including parent, subsidiary, or affiliated organisation without phorwritten consent of INPUT. INPUT exercises its best efforts in preparation of the information provided in this report and believes the information contained herein to be accurate. However, INPUT shall have no liability for any loss or expense that may result from incompleteness or inaccuracy ofthe information provided. S037U • 1998•566 ASSESSMENTOF INTRANET MANAGED SERVICES, U.S. INPUT Table of Contents I Introduction 1 A. Scope and Objectives 1 B. Methodology 7 . C. Report Structure 8 D. Related Reports 8 II Executive Summary 9 A. Requirement for Intranet Operations and Support will Increase as Applications Mix Changes 9 B. Vendors Should Develop Services Based on Remotely hosted Applications 11 . C. High Levels ofAvailability Are Required 15 D. Buyers Require High Level ofUser Support and Training 19 III Use of Intranet Support Services 21 A. Current and Planned Intranet Usage 21 B. Intranet Support and Management 29 C. Intranet Support Expenditure 32 D. Future Service Requirements 35 IV Satisfaction with Intranet Support and Management 43 A. In-house Support and Management 43 B. Service Level Agreements 52 S037U ©1998byINPUT.ReproductionProhibited. ASSESSMENETOF INTRANET MANAGED SERVICES, U.S. INPUT V Vendor Positioning 57 A, Awareness ofVendors 57 Appendices A. Perceived Intranet Services Capability Profiles by Vendor A-1 B. Questionnaire B-1 ii ©1998byINPUT.ReproductionProhibited. S037U ASSESSMENTOF INTRANETMANAGED SERVICES, U.S. INPUT List of Exhibits -1 Business Operations Outsourcing 4 -2 Information Systems (IS) Outsourcing Service Categories 5 -3 Outsourcing Service Components 6 -4 Sample by Industry Sector 7 II -1 External Expenditure by Service Type: the U.S., 1997 11 -2 Market Forecast: Intranet Support and Operations 12 -3 Likelihood ofPurchasing Access to Remotely Hosted Applications 13 -4 Vendor Awareness and Capability 14 -5 Intranet Availability 15 -6 Service Coverage 16 -7 Development ofIntranet Use: Retail Sector 17 -8 Development ofIntranet Use: Manufacturing Sector 17 -9 Development ofIntranet Use: Financial Services Sector 18 -10 Proportion ofEmployees with Intranet Access 19 III -1 Major Reasons for Implementing an Intranet 21 -2 Number ofUsers Accessing Intranet 22 -3 Proportion ofUsers with Access to Intranet 24 -4 Current Intranet Support for Applications 24 -5 Current Intranet Support for Applications by Industry Sector 25 -6 Future Intranet-Enabling ofApplications 26 -7 Future Intranet-Enabling ofApplications by Industry Sector 27 -8 Maturity ofIntranet 28 -9 Source ofIntranet Operations and Support 29 -10 Source ofIntranet Operations and Support by Sector 30 -11 Source ofOperations & Support by Activity 31 -12 Breakdown ofIntranet Budget 32 -13 Breakdown ofIntranet Operations and Support Expenditure 33 S037U ©1998byINPUT.ReproductionProhibited. ASSESSMENETOF INTRANET MANAGED SERVICES, U.S. INPUT -14 Number ofPersonnel Involved in Intranet Management and Operations 34 -15 tuture Service Requirements 35 -16 Planned Use of External Intranet Operations and bupport 36 -17 Planned Use ofExternal Intranet Operations and Support by Sector 37 -18 Planned Intranet Outsourcing Sector 38 -19 Planned Intranet Outsourcing 39 -20 Likelihood ofPurchasing Access to Remotely Hosted ' Applications 40 -1 Areas ofHigh Satisfaction 43 -2 Improvements Required 44 -3 Areas ofHigh Importance: In-house Support and Operations 45 -4 Areas ofLesser Importance: In house Support and Operations 46 -5 Satisfaction with In-house Support and Operations: Financial Services Sector 47 -6 Satisfaction with In-house Support and Operations: Manufacturing Sector 48 -7 Satisfaction with In-house Support and Operations: Retail Sector 49 -8 Suitability ofIn-house Support and Operations for Future Business Needs 50 -9 Areas for Improvement: In-house Intranet Support and Operations 51 -10 Presence ofService Level Agreement 52 . -11 Type ofSLA 53 -12 Network Availability: Internal & External SLAs 54 -13 Service Coverage: Internal SLAs 55 -14 Service Coverage: External SLAs 56 V -1 Vendors Used " 58 -2 Vendors Awareness 59 -3 Awareness ofCapability 60 -4 Perceived Capability Rating 61 Iv ©1998byINPUT.ReproductionProhibited. 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