;:1 111 JUNE 1994 Desktop Services User Perspectives INPUT Frankfurt • London • New York • Paris • San Francisco • Tokyo • Washington, D.C. INPUT International IT Inteujgence Services INPUT Worldwide Clientsmakeinformeddecisionsmore quickly andeconomically byusingINPUT'S Frankfurt services. Since 1974, informationtechnology (TT)users andvendors throughoutthe SudetenstraBe 9 worldhavereliedonINPUTfordata,research,objective analysis andinsightful D-35428 Langgons- opinions topreparetheirplans,marketassessments andbusinessdirections, Niederkleen particularly incomputersoftwareandservices. Germany Tel. +49 (0) 6447-7229 Contactus today to learnhow yourcompanycanuseINPUT'Sknowledgeand Fax +49 (0)6447-7327 experienceto grow andprofit intherevolutionaryITworldofthe 1990s. London 17 Hill Street Subscription Services Databases LondonWIX 7FB England Tel. +44 (0)71493-9335 Information Services Markets Softwareand Services Market Fax +44 (0)71 629-0179 - Worldwide andcountrydata Forecasts Softwareand Services Vendors New York - Vertical industry analysis 400 FrankW. Burr Blvd. U.S.Federal Government BusinessIntegration Markets Teaneck, NJ 07666 - ProcurementPlans (PAR) Client/Server Applicationsand U.S.A. Directions - Forecasts Tel. 1 (201)801-0050 - Awards (FAIT) Fax 1 (201)801-0441 Client/ServerSoftware Commercial Application (LEADS) Paris Outsourcing Markets 24, avenue du Recteur Information Services Vendor Custom Projects Poincare Profilesand Analysis 75016 Paris EDI/ElectronicCommerce — France ForVendors analyze: Tel. +33 (1)46 47 65 65 U.S.Federal Government IT Fax +33 (1)46 47 69 50 Markets • Marketstrategies and tactics IT CustomerServices Directions • Product/serviceopportunities San Francisco (Europe) • Customersatisfaction levels 1881 Landings Drive Mountain View • Competitivepositioning CA 94043-0848 Service Features • Acquisition targets U.S.A. ForBuyers—evaluate: Tel. 1 (415)961-3300 • Research-basedreports on trends,etc. Fax 1 (415) 961-3966 (Over 100in-depthreports ayear) • Specificvendor capabilities Tokyo • Outsourcingoptions Saida Building, 4-6, • Frequentbulletins onevents, issues, • Systemsplans Kanda Sakuma-cho etc. • Peerposition Chiyoda-ku, Tokyo 101 • 5-yearmarketforecasts Japan • Competitiveanalysis Other Services TFealx.++8811 3333886644--40151314 • Access toexperiencedconsultants Washington, D.C. Acquisition/partnershipsearches • Immediate answers toquestions 1953 Gallows Road Suite 560 • On-sitepresentations Vienna, VA 22182 U.S.A. • Annualconference Tel. 1 (703) 847-6870 Fax 1 (703) 847-6872 M&S459/01 2/94 DESKTOP SERVICES—USER PERSPECTIVES INPUT Abstract The migration to client/server (C/S) architecture continues at an accelerated pace. As more firms commit mission-critical applications to distributed platforms operating on local-area networks (LANs), the need to maintain and support distributed infrastructure also grows. Traditionally, support ofthese types of environments has been provided by in-house, user support functions. As production applications move from the mainframe, many in-house organizations find themselves without either the capacity or technical capabilities to handle: • The complexities ofdealing with the heterogeneous hardware and software platforms • The sheer volume ofinstallations necessary to support the roll out ofa major corporate-wide system across multiple geographic locations • The distribution, installation and testing ofnew release levels of applications and systems software • The support required to maintain the high system-availability levels required for production applications — The: Desktop Services User Perspectives report investigates the facts behind this phenomena. The research included 190 interviews with middle to large-sized U.S. firms to determine the set of desktop services currently employed, the satisfaction with the delivery ofthese services and future plans. In addition, the report: • Identifies changes in the key desktop services trends from a user perspective • Provides insight into which types of services are perceived to have the most value and why • Analyzes vendor performance based on users evaluations ofhow well key services are being delivered This report contains 68 pages, 35 exhibits and is part ofINPUT'S 1994 Information Systems Outsourcing Program. OSDS ©1994byINPUT. ReproductionProhibited. Published by INPUT 1881 Landings Drive Mountain View, CA 94043-0848 United States of America Outsourcing Information Systems Program—U.S. Desktop Services—User Perspectives Copyright © 1994 by INPUT. All rights reserved. Printed in the United States ofAmerica. No partofthe publication may be reproduced or distributed in any form, or by any means, or stored in a database or retrieval system, without the priorwritten permission of the publisher. The information provided in this report shall be used only by the employees of and within the current corporate structure of INPUPs clients, and will not be disclosed to any other organization or person including parent, subsidiary oraffiliated organization withoutprior written consentofINPUT. 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 of the information provided. OSDS•426• 1994 1 DESKTOPSERVICES—USERPERSPECTIVES INPUT Table Contents of Introduction I-l A. Purpose and Scope 1-2 B. Methodology/Demographics 1-3 1. Methodology 1-3 2. Demographics 1-3 C. Report Organization 1-4 D. Related Reports 1-5 Executive Overview II-I A. Introduction II- B. Principal Findings II-2 1. Buyers versus Nonbuyers II-2 2. Buyers II-3 a. Reasons for Outsourcing the Desktop II-3 b. Financial Characteristics II-4 3. Users' Evaluations of Services II-4 4. Vendor Evaluation and Selection II-6 5. Selection Criteria II-7 6. Modes ofDistribution II-8 7. User Satisfaction II-9 C. Conclusions and Recommendations II-9 Buyer Motivation and Preferences III-l A. Buyers versus Nonbuyers III-2 1. Nonbuyers III-2 2. Comparing Buyers to Nonbuyers III-3 OSDS ©1994byINPUT.ReproductionProhibtted. 61 DESKTOPSERVICES—USERPERSPECTIVES INPUT B. Buyer Preferences III- 1. Reasons for Outsourcing Desktop Services III-6 2. Users' Assessments of the Value of Desktop Service Functions III-10 a. Installation and Maintenance III-11 b. Supply and Logistics Services III-12 c. Other Services III-13 3. Current and Future Usage Trends III-15 C. Buyer Satisfaction III-19 Vendor Selection and Delivery Preferences IV- A. The Selection Process IV-2 1 Method ofSolicitation IV-2 . 2. Decision Makers IV-3 B. Vendor Evaluation IV-4 1. Selection Criteria IV-4 Vendors IV-6 2. C. Product/Service Market IV-8 1. Overview IV-8 2. Analysis by Service Function IV-10 D. Contract Sizes IV-15 Comparison to 1992 Findings V-1 A. Areas of Agreement V-1 B. Changes in Direction V-2 1. Anticipated Growth for Specific Services V-2 2. Method ofVendor Support V-3 3. Vendor Selection Process V-3 4. Vendor Solicitation Processes V-4 Appendix A. User Interview Guide A-1 B. Definition ofTerms B-1 ©1994byINPUT.RepfoductionProhibited. OSDS 757 DESKTOPSERVICES—USERPERSPECTIVES INPUT Exhibits 1 Distribution ofRespondents by Industry 1-4 -1 Breakdown ofRespondents by Bujdng Category II-2 -2 Distribution of Expenditures for Firms That Outsource All IS—Functions II-4 •S Desktop Services ^User Value Assessments and Future Growth II- 4 Decision Makers for Desktop Services II- -5 Mode ofDelivery ofDesktop Services Used by Survey Respondents II-8 -6 User Levels of Satisfaction with Desktop Outsourcing II-9 1 Distribution ofReasons for Not Using Desktop Services III-2 2 Sample Distribution by Sales Volume for Companies Using Desktop Services III-4 3 Sample Distribution by Sales Volume for Companies Not Using Desktop Services III-4 4 Comparison of Users and Nonusers of Desktop Services Based on Company Size III-5 5 User Ratings for Reasons for Outsourcing Desktop Services III- 6 Other Functions Outsourced by Desktop Services Buyers III-9 7 Types of Outsourcing Used by Buyers of Desktop Services III-9 OSDS ©1994byINPUT.ReproductionProhbited. iii 623 DESKTOPSERVICES—USERPERSPECTIVES INPUT -8 Distribution ofExpenditures for Firms That Outsource All IS Functions T11T1T- 1 n -9 User Ratings for the Value ofDesktop Service Functions III-11 -10 Value Ratings for Professional Services and Support Activities User versus Nonusers TTT-1 4 -11 User Ratings for the Value ofDesktop Services Functions Adjusted for Usage Levels III-15 12 Use ofDesktop Functions by Survey Respondents III-16 13 Projected Growth for Desktop Services Functions III- 17 14 Segmentation ofthe Desktop Services Market by Class of Service III-19 15 User Levels of Satisfaction with Desktop Outsourcing III-20 -1 Methods ofSolicitation for Desktop Services IV- -2 Decision Makers for Desktop Services IV- -3 User Ratings ofVendor Selection Criteria IV-4 -4 Proportion of Respondents Using Different Classes ofDesktop Service Vendors IV- -5 Mode ofDelivery ofDesktop Services Used by Survey Respondents IV-8 -6 Comparison ofAverage User quality Ratings by Mode ofDeliveiy IV-9 — -7 Desktop Services Functions Common Modes ofDelivery IV-11 -8 Desktop Service Functions Grouped by Primary Mode ofDelivery IV-13 -9 User Ratings ofthe Quality ofService by Desktop Service Function rV-14 10 Desktop Services Contract Life rV-15 11 Distribution of Annual Expenditures for Desktop Services IV-16 -1 Business Operations Outsourcing B-2 2 Information Systems (IS) Outsourcing Service Categories B-3 IV ©1994byINPUT.ReproductionProhibited. OSDS