IDC Smart Tools 2012

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2012 PRODUCT BRIEFContact Information:

Beth Jolles, Director, [email protected] 508-904-2198

IDC IT ADVISORY TOOLS

mailto:[email protected]

Apr 8, 2023

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

IT Advisory Tools OverviewIT Advisory Tools Overview

IDC presently benchmarks over $100B worth of IT hardware, software and services each year

Tools such as SmartIndex and SmartAnalysis are routine Best Practices for large businesses and government groups

IDC is a trusted source for deal validation and a recognized benchmarker for hardware and service providers

IDC Tools are currently employed by over 50% of the Global Fortune 500

IDC benchmarks drive independence and transparency in vendor management

For the past 13 years, IDC Tools have driven measurable savings within global sourcing and procurement organizations

Apr 8, 2023


Software

IT Services

Hardware

All IT HW PC’s & Peripherals

ServersStorage

Networking

IT Internal & Outsourced Services

Datacenter, PC Support,Managed Support, Applications,

Rate Cards

SoftwareDatacenterMainframeSystem Mgt

WarrantyAudits

Asset DispositionFair Market Value

Lease vs BuyFinancing

IDC Benchmarking Evolution


4

HARDWARE BENCHMARKING

Apr 8, 2023


SmartIndexSmartIndex

Industry standard benchmark for pricing

Being used by over 50% of Global Fortune 500

Peer-to-peer product comparison that benchmarks pricing on a wide variety of products

Establishes price index for each configuration

Discount applied to IDC SmartIndex on periodic basis either monthly, quarterly or biannually

Allows customers to establish price assurance model that benchmarks pricing to the market

Avoids “honeymoon period” pricing; benchmarks best deal throughout purchasing contract

SmartIndex: an indexing tool that helps clients ensure best pricing is achieved throughout the life of a purchasing contract

Apr 8, 2023


SmartIndex SampleSmartIndex Sample

Products aligned by market segment; all features/components adjusted to match

SmartIndex price used to benchmark pricing ongoing

HP ProLiant BL460c G6 Source I DC 01/ 12/ 2010

Vendor HP Dell I BM

Model ProLiant BL460c G6 PowerEdge M610 BladeCenter HS22

Part# 507864-B21 ($1,575) $5,434 7870L2U ($2,755)

Processor XeonQC_L5520/2.26GHz (507798-L21 $799) XeonQC_L5520/2.26GHz XeonQC_L5520/2.26GHz

Addl. Processor XeonQC_L5520/2.26GHz (507798-B21 $799) XeonQC_L5520/2.26GHz XeonQC_L5520/2.26GHz (46M0697 $855)

Memory 6x2GB 1333MHz RDI MM (500656-B21 $720) 6x2GB 1333MHz RDI MM 2x2GB 1333MHz RDI MM (6x2GB 44T1486 $500)

DI MMs 12DI MMS 12DI MMS 12DI MMS

Storage 2x300GB 10k 2.5" SAS (492620-B21 $1,038) 2x300GB 10k 2.5" SAS 2x300GB 10k 2.5" 6Gbps SAS (42D0637 $1,038*)

Hard Drive Bays 2 Bays 2 Bays 2 Bays

Hot Swap Drive Bays Yes Yes Yes

Storage Controller SA P410i/256MB (462968-B21 $219) PERC6/ I /256MB ServeRAI D-MR10ie/256MB (46C7167 $749)

Battery-backed Write Cache Yes (462969-B21 $139) Yes Yes

Optical Drive No No No

Floppy No No No

Network Card Dual Port 10/100/1000 Dual Port 10/100/1000 2x10/100/1000

Addl. Network Card Dual Port 10/100/1000 (453246-B21 $399) Dual Port 10/100/1000 Dual Port 10/100/1000 (73P5101 $249)

Host Bus Adapter 4Gb Fibre Channel (403619-B21 $749) 4Gb Fibre Channel ($749) 4Gb Fibre Channel (46M6065 $749)

Remote Management iLO 2 iDRAC6 Enterprise (Express -$349) I MM

Warranty 3yrsOS (5yrsOSx6hr UK075E $1,863) 5yrsOS (6hr $1,000) 3yrsOS (5yrsOSx6hr 40Y5987 $1,350**)

HW I nstallation Service Yes (UE493E $200) No ($200) No ($200)

US Price $8,500 $7,034 $8,445

SmartIndex Price $7,993 US (Average of 3)

*Adj. 6Gbps to 3Gbps/**Adj. 6hr response

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SmartAnalysisSmartAnalysis

IDC offers a peer pricing (deal level) analysis of prices paid by peer sized buyers for price ranges:

– Average peer– Best in class

IDC profiles each buyer and places into peer categories by spend, volume, geo, product class, etc.

Profile is combined with thorough examination of market conditions to produce recommendations on savings

– Expectation setting/goal validation– Get best rates in RFP process before

its too late

Custom SmartAnalysis available:– Custom price performance analysis– Custom savings opportunity analysis– Short-term reviews audits

Market Dynamics

Competitive Analysis

Peer Price Analysis

Recommendations

Discount reports

SmartAnalysis: a tool that provides a clear benchmark of peer best in class pricing and discounting for all IT HW classes

Apr 8, 2023


Smart Fair Market Value (SmartFMV)Smart Fair Market Value (SmartFMV)

Ideal for negotiating leases, buyouts, asset transfers or dispositions

Report can be used as an independent validation of asset value within outsourcing contracts

IDC tracks secondary pricing (RV and FMV) on a wide range of technologies:

(sample data)

MakeModel Number RETAIL WHOLESALE

SILKWORM 2800 2800 $150 SalvageSILKWORM 3800 3800 $1,300 $250SILKWORM 3850 3850 $1,950 $500SILKWORM 3850 3850 $1,950 $500SUPERSTACK II BASELINE SWITCH 3C16460 $50 $10SUPERSTACK 3 BASELINE 10/100 24 PORT SWITCH 3C16465C $300 $75

J anuary 2006 FMVPC/Portables

Servers

Storage

Network/telecom

Peripherals

SmartFMV: provides a rigorous assessment of current and forecasted values of in-place technology assets


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SOFTWARE BENCHMARKING

Apr 8, 2023

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10

Overview

Software benchmarking: Product usage analysis Deal analysis Negotiation support for data center software

Coverage: enterprise licensing agreements

for vendors like IBM, Oracle, CA, BMC and SAS

IDC finds most organizations over-subscribe on major software packages

Optimized pricing/licensing drives huge savings!

IDC can also provide independent assistance on formal vendor audits

Most SW vendorsPerform compliance

audits exposing millions in costs to

unprepared customers

Data center optimization is available to right-size software inventory against an organization’s server environment

Apr 8, 2023


Best in class data centers have higher concentration of costs on IBM & CA

Most data centers can cut their software costs in half by getting to best in class

IBMCACompuwareBMCASGOther

53.3%

30.2%

3.2%

3.2%

2.39%

7.7%

49.9%

22.7%

6.0%

4.9%

1.6%15.0%

Market Share by VendorBased on Customer Spend

All Data Centers

$4233 per mipBest in Class Data Centers

$915 per mip

**Note**Best in Class represents 3 lowest cost data centers

Apr 8, 2023


Are you Best in Class?Are you Best in Class?

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Best in class data centers only spend between

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,171.00

$1,373.00

$716.00

$987.00

$1,448.00

$622.00

IBM ISV

Uni

t C

ost

Client Average Best In Class

43%-52% of what most data centers spend onsoftware costs.

Apr 8, 2023


Most products are available at a lower price and many lower cost products are only available from a competing vendor.

Total Products

Lower Cost Products

Alternatives Lower Cost Alternatives

0

20

40

60

80

100

120

140

160151

90

49

38

116

60

49

31

Industry AverageBest in Class

Pro

du

cts

Product Pricing Summary


IT SERVICES BENCHMARKING

Apr 8, 2023


• IDC offers COMPREHENSIVE service benchmarking to large public and private sector clients

•Addresses the largest category of IT market spend

• Methodology incorporates elements of IDC’s Industry Standard IT Advisory Tools

Industry standard methodology

Vendor accepted

Actionable intelligence and data

Outsourced or Insourced

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Coverage Areas:• PC support• PC Managed services• Infrastructure (servers,

storage and networking)• Application development• Application and System

Maintenance• Helpdesk• Professional services

Overview

Apr 8, 2023


• IDC benchmarks address service COST for internal services and service PRICE for outsourced environments

• IDC commonly supports cost-benefit analysis for decision to outsource or back-source

• IDC clients routinely drive cost savings by benchmarking deals to best in class rates

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Key Differentiators:

IDC offers a new approach to service benchmarking …1. IDC adapts projects to each client2. Self-populating data templates DO NOT require data entry by the

client; client participation time is metered and minimized3. IDC delivers actionable observations on industry conformance for

large business and key verticals and recommendations on best practice and cost savings

Service Benefits

Apr 8, 2023


Value-Adds – Long Term StrategyValue-Adds – Long Term Strategy

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Strategy Best Practices Decision

IDC data can provide key metrics for determining cost/benefit; whether or not to outsource or back-source

Informal benchmarking data can inform long-term supplier strategy – is vendor performing to spec? Should sourcing get involved?

Target Roles: IT leadership, Global Sourcing

Apr 8, 2023


Value-Adds – Industry Best PracticeValue-Adds – Industry Best Practice

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Customers need support in aligning new and existing service agreements to industry practice – “are we doing this the right way?”; IDC can draw upon real customer experience

Clients need to understand the appropriate service definitions and service levels for their business versus industry practice

Target Roles: IT leadership, IT Shared Service Professionals

Apr 8, 2023


Value-Adds – Tactical Decision-Value-Adds – Tactical Decision-

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Making

When it comes time to exercise a benchmarking clause, IDC has the experience and data set to provide enforceable results; IDC has experience positioning results for vendors

Recommendations in benchmarking reports will provide client with a clear idea of the impact of any changes made to a service supplier relationship & potential savings generated

Target Roles: IT leadership, Global sourcing

Apr 8, 2023


Services BenchmarkingServices Benchmarking

Type of Benchmark Description

Cost Benchmark Measures the performance of an in-house organization’s IT environment

Price Benchmark Measures the performance of an outsourcing arrangement

Back-sourcingSimulates the cost to an organization when in-sourcing parts or all of the outsourced environment

Value Benchmark Assesses the Value the IT department delivers (or not) to the organization

SLA Assessment Assesses the Service Level Agreement (SLA) – is it industry-compliant, are SLAs too tight/too loose/ just right, are SLAs missing, have SLAs been delivered as per contract

Contract AssessmentAssesses the Contract – is it current, where are weaknesses and potential problem areas, where are the contract’s strengths, how does the contract perform when the environment changes

Satisfaction AssessmentAssesses the satisfaction of the user community, determines the perceived strengths of IT’s service delivery, specifically focusing on the Service Desk and the Desktop Support Staff

Productivity AssessmentAssesses whether IT delivers value in terms of its productivity when delivering services in the context of the Client’s environment, e.g. 1 FTE Supports ‘n’ Desktops, 1 FTE Supports ‘n’ Wintel Servers, etc. Can be used to calculate “certain” values in an outsourced environment

Integrated Cost/Price ModelProvides an organization with both an in-house as well as an outsourcing assessment; this type of benchmark is popular when an in-house organization wants to know the price it would have to pay when outsourcing or vice versa

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IDC offers benchmarking for a wide range of IT services…

IDC service SmartAnalysis provides benchmarking for insourced or outsourced services including: applications, desktops, servers, storage, networking, helpdesk

and more.

Apr 8, 2023


Smart Tools CoverageSmart Tools Coverage

SmartAnalysis SmartIndex SmartFMV

PC’s & Workstations Notebooks & Tablets LCD’s & Printers Enterprise Storage (SAN, NAS, tape)

Servers (blade, rack, midrange & enterprise)

Networking (switches, hubs, routers, VOIP)

Mainframes

Data Center SW

Outsourced Services (desktop, infrastructure, datacenter, applications)

Apr 8, 2023


Vendor CoverageVendor Coverage

Hardware Vendors

Servers

IBM

HP

Sun Oracle

Dell

Storage

HP

Hitachi

EMC

NetApp

IBM

Sun Oracle

PC’s & Portables

HP

Dell

Lenovo

Toshiba

Networking

Cisco

HP

Arista

f5

Juniper

Peripherals

HP

Dell

Lenovo

Lexmark

Xerox

Samsung

NEC

IT Services Vendors

Managed Services & Outsourcing

IBM

HP

ACS

CSC

Accenture

Unisys

HCL

Patni

Atos

Fujitsu

NCS

TCS

OTHERS

Maintenance

HP

IBM

EMC

Sun Oracle

Professional Services

IBM

Dell

TCS

Accenture

CSC

HP

Fujitsu

Unisys

Telstra

HP

OTHERS

Software Vendors

Mainframe

IBM

CA

BMC

CA

Compuware

SAS

ASG

Information Builders

Sterling Commerce

Software AG

Serena

Distributed

IBM

CA

BMC

Oracle

SAS

Vmware

Microsoft

EMC

HP

Veritas/Symantec

Apr 8, 2023


Summary and Contact InformationSummary and Contact Information

Call to Action – We would like to:

Learn about your initiatives and help you measure savings based upon our data and peer benchmarking services

Discuss any other activities or services that may be valuable

Have you add us to your bidder list for IT, Industry and custom research needs.

Contact Information:

Beth Jolles, Director, [email protected] 508-904-2198

Christopher Murphy, Program Director [email protected], 508-935-4134

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APPENDIXSAMPLE OUTPUT & CASE STUDIES

Apr 8, 2023


Custom

er Im

plem

entatio

n

Avera

ge Imple

menta

tion

Optim

al Imple

menta

tion

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

Unit Cost ($/UC)

Sample – Oracle Pricing

Oracle Enterprise Unit Cost ($/CU)

Apr 8, 2023


Help/service desk Currently in-house

x* contacts per year @ x# days per week

x contacts per day @ x agents

x contacts per hour per agent @ Industry Av. of 9 mins total contact time = 23 mins per hour

Is this competitive? Dependencies are SLAs, call profile, SOW, environment, contact time

* Data taken from RFP-194 # Estimated by HP

XYZ Peer Group (In-house) Peer Group (Outsourced)

$130 $119 $154

$0

$50

$100

$150

$200Dollar per contact

Sample Data - Helpdesk

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Helpdesk performance relative to the efficiency (cost) with which services are delivered

Apr 8, 2023


Sample Data – Mainframe Efficiency - CPU Sample Data – Mainframe Efficiency - CPU

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The figure on the left shows the Mainframe’s (CPU) financial performance in regard to the Efficiency (Price) with which services are delivered.

Assumption:5 Service delivery in a shared environment will take place on a processor that is shared with

several other environments (LPARs), thereby enabling the Vendor to achieve a superior “Economy of Scale”. Note, that no organization is able to access another organization’s LPAR(s).

Observations:5 Services delivered in a shared environment is about 38% less expensive than in the current XXX

environment

Company X

Apr 8, 2023


Case Study: United States Postal ServiceCase Study: United States Postal Service

Process: IDC provides ongoing price indexing on a wide array of commodity technology from notebooks to x86 servers. IDC also provides spot-deal analysis on enterprise technology such as midrange servers, mainframes and storage.

Results: IDC is a trusted source of best in class pricing on enterprise deals; annual savings are significant.

“IDC's price benchmarking tools have become a valuable part of our ongoing strategic

sourcing practice”United States Postal Service

Background: The US Postal Service has been an IDC Tools client for over four years. In that time it has enhanced its vendor management process by employing independent benchmarking data to obtain market pricing on IT hardware.

Apr 8, 2023


Case Study: US-based AirlineCase Study: US-based Airline

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Process: client auditioned several benchmarking partners but unanimously chose IDC for its experience, streamlined process and transparency in dealing with the service provider

Project Results: benchmark observed challenges with productivity and complexity and recommended changes that would reduce FTE’s, drive annual savings of up to $650,000 and improve service levels

Outcome: service provider accepted and is acting upon all of IDC’s recommendations

Background: client exercised a benchmarking clause which required a third party to review key rates and service levels for managed PC and peripheral environment within carrier’s distributed fleet of airport locations

IDC Smart Tools 2012

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