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Making Leaders Successful Every Day

November 12, 2007

How Enterprise Buyers Rate Their PC Suppliers And What It Means For Future Purchasesby Benjamin Grayfor IT Infrastructure & Operations Professionals

www.forrester.com

© 2007, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please email [email protected].

For IT Infrastructure & Operations ProfessionalsIncludes data from Business Data Services

EXECUTIVE SUMMARYForrester’s Q3 2007 Business Data Services study of 565 PC decision-makers at North American and European enterprises revealed a dichotomy in the enterprise PC market. On one hand, buyers are thrilled with the basics like product features, quality, and pricing. But on the other, factors like product support and overall business relationship need improvement. Specifically, we learned that Dell will easily retain its position as the preferred desktop and laptop supplier to enterprises, despite the competitive pressure that HP and Lenovo exert. Across laptops, customers gave Dell the nod on pricing and product support, noting little differentiation across product features. Lenovo maintained a slight advantage with product quality, and also scored high on overall business relationship.

TABLE OF CONTENTSNew Pressures Are Forcing Changes To Traditional Computing Models

Mobility And New Form Factors Will Drive Unprecedented Laptop Usage

Last Year, Dell, HP, And Lenovo Supplied PCs To 87% Of The Enterprise Market

Next Year, The Big Three Will Be The Primary Suppliers To At Least 82% Of Firms

How PC Buyers Rate Their Primary Laptop Supplier In Five Key Areas

Dell, HP, And Lenovo Will Retain Their Enterprise Mindshare Dominance

WHAT IT MEANS

Vista Will Finally Be Adopted As Mid-2008 Kicks Off The Next PC Refresh Cycle

Supplemental Material

NOTES & RESOURCESFrom April through June 2007, Forrester interviewed 565 PC decision-makers across North American and European enterprises about their PC sourcing practices and preferred desktop and laptop suppliers. We also asked corporate laptop buyers about their satisfaction levels across five key criteria.

Related Research Documents“Answering 10 Of The Most Frequently Asked Corporate PC Configuration Questions”August 6, 2007

“The State Of The European Corporate PC 2006”December 11, 2006

“The State Of The Corporate PC 2006”August 17, 2006

November 12, 2007

How Enterprise Buyers Rate Their PC Suppliers And What It Means For Future PurchasesThe State Of The Enterprise PC — 2007 And Beyondby Benjamin Graywith Robert Whiteley, Christine E. Atwood, Natalie Lambert, and Rachel Batiancila

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www.forrester.com

http://www.forrester.com/go?docid=41401&src=41407pdf




© 2007, Forrester Research, Inc. Reproduction ProhibitedNovember 12, 2007

How Enterprise Buyers Rate Their PC Suppliers And What It Means For Future Purchases For IT Infrastructure & Operations Professionals

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NEW PRESSURES ARE FORCING CHANGES TO TRADITIONAL COMPUTING MODELS

In 2007, PCs accounted for the largest slice of North American and European enterprises’ hardware spending when compared with other key IT technologies like servers, storage, network equipment, systems management, the data center, and mobile technologies (see Figure 1).1 Despite component prices dropping due to economies of scale, average selling prices have been trending upwards as PC manufacturers cram faster, multicore processors, more memory, higher capacity hard drives, larger displays, lighter form factors, new wireless technologies, dual-mode radios, more robust operating systems, and value-add applications into the base PC. So how can enterprises lower spending but get the same level of service?

· Continue down the path of thick clients, but focus on standardization. Standardization is the key to lowering PC management and support costs. Enterprises that can settle on one desktop and one laptop configuration from a single supplier with standard application configurations save big on building, maintaining, and deploying images across their distributed corporate environment. Of course, it’s easier said than done. Many of our clients complain that different hardware, software, and language requirements force them to maintain upwards of 20 different corporate images. First, it’s important to understand the form factor requirements of your users. Try to find one standard desktop and laptop configuration and, if necessary, one ultralight laptop and/or one tablet PC configuration that will meet your user needs. Minimize the number of applications built into the base image and instead leverage your client management suite to push out most software, updates, and patches.2 Next, determine whether your current PC supplier(s) can provide the various hardware configurations you need and maximize the value of the contract with a single bulk order to increase the level of discount.

· Explore alternative computing models to ease imaging, management, and security burdens. With desktop and application virtualization, computing resources essentially shift from the client to the data center. These technologies significantly simplify the imaging process in that the base image is application-light and line-of-business applications are simply pushed out to the desktop on an as-needed basis. Desktop and application virtualization aren’t yet mature enough for desktop managers to fully replace their PC environment, but targeting specific users like the call center environment or trading room floor provides a cost-effective environment in which IT can centrally manage the desktops. Virtualization isolates applications from each other as well as decouples the underlying hardware, thereby stabilizing the operating system. Enterprises that incur regulatory compliance burdens will find that administrators have full control over the applications users have access to, and that the data resides securely in the data center rather than on remote laptops that may or may not have the most up-to-date virus definitions and security patches installed.

© 2007, Forrester Research, Inc. Reproduction Prohibited November 12, 2007


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Figure 1 PCs Accounted For 21% Of Enterprise Hardware Budgets In 2007

Mobility And New Form Factors Will Drive Unprecedented Laptop Usage

Whether desktop operations managers choose to stick with the traditional thick client computing model or explore or continue down the desktop and/or application virtualization roadmap, one thing is clear: you’re still going to have to buy hardware that can support your end user computing needs. Whereas today, those resources are most likely on traditional desktops and laptops, tomorrow is likely to be an entirely different story. In the meantime, there are four trends that have defined the state of the enterprise PC today and that will shape the future of the market:

· The ratio of desktops to laptops within enterprises today is 70/30 . . . Desktops have dominated the enterprise computing arena for decades because they are cheaper and more powerful, but more important, because enterprise employees are largely desk-bound. With large tower form factors, there has been little need for component manufacturers to shrink parts or focus on energy efficiency, which would have driven up average selling prices. With desktops, components are easily replaced in the event the hard drive fails or the memory needs to be upgraded to run resource-intensive operating systems or applications. Traditionally, users have needed only a single monitor, so maximizing desk space has also been a minor concern. But with the rise of increasingly mobile employees, business needs are quickly changing. Although performance and price remain at the top of desktop managers’ priority lists, additional factors

Source: Forrester Research, Inc.41407

Base: 378 executives at North American and European enterprises(percentages may not total 100 due to rounding)

Source: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2007

“How will your current hardware budget break out across the following eight categories?”

Other 18%

Mobile devices and mobileoperating systems

6%

Data center (power, cooling,and disaster recovery)

6%Systems management software forservers, PCs, storage, or networks

7%Network hardware

9% Storage gear and storage management software11%

PCs and PC operating systems21%

Servers, server operating systems,and server virtualization software

20%



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like energy-efficiency, size, weight, and noise are bubbling up. Desktop managers reported last year that their laptop usage plans over the next two years were 1.5 times greater than their desktop usage plans.3 In fact, clients tell us that the ratio of desktops to laptops slowly evolved from 75/25 two years ago to 70/30 today.4

· . . . But desktop managers clearly see the business value in mobilizing their employees. Approximately 65% of enterprise employees are desk-bound, which is why desktops have dominated for decades. But we’re seeing mobility clearly moving down the corporate pyramid. Mobile computers, which include laptops, ultralight laptops, tablets, and ultramobile PCs, are the perfect computing solution for heavy travelers (employees that spend more than 30% of their time on the road) and standard travelers (employees that spend less than 30% of their time on the road). These employees make up approximately 22% of enterprise employees. We classify the other 13% as occasionally remote. These are employees who occasionally work from coffee shops or from home when they can’t or simply would prefer not to commute into work one or two days per month.

Desktop managers have found three clear benefits to giving laptops to their desk-bound employees: 1) more flexibility; 2) increased productivity; and 3) stronger business continuity. A portable work environment allows for off-hour and day-extension schedules and makes collaboration possible when employees have ready and rapid access to information during meetings and consistent documentation of tasks, processes, and deadlines. Lastly, enterprises are protected against downtime from unplanned events.

· Ultralight laptops, UMPCs, and tablets get the most press, but spending is another story. The press consistently report on the latest leaked or formally announced ultralight laptop, ultramobile PC (UMPC), or tablet. But despite the hype, these computing solutions don’t work well for enterprisewide deployments. Traditional desktops and laptops should be the foundation for enterprises looking to standardize on fewer form factors and maximize the bulk discounts they get from their OEM contracts. Ultralight laptops are ideal for heavy travelers tired of lugging around a five-plus pound notebook and UMPCs for executives who want to take mobility to the extreme. The tablet, meanwhile, although a more established solution for enterprises, remains a largely vertical solution for government agencies, public services organizations, retailers, utilities, construction and engineering firms, and high-tech manufacturers. Beyond these industries, the cost of touch screens hasn’t been easy to justify for general information workers. Expect the integration of tablet features into Windows Vista, rather than a separate tablet edition of an OS, to bolster the tablet industry.

· Alternative form factors provide the best opportunities for tier two and three PC suppliers. Although tier one global PC manufacturers like Dell, HP, and Lenovo dominate the enterprise desktop and laptop market, tier two and tier three PC suppliers have gotten their foot in the door with alternative form factors. Traditional laptop manufacturers like Acer, Asus, Fujitsu



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Computers/Fujitsu Siemens Computers, Samsung, Sony, and Toshiba, and rugged laptop manufacturers like General Dynamix Itronix and Panasonic, are pushing innovation to the next level to pique enterprises’ interest. This won’t result in enterprisewide bulk orders, but we predict desktop managers will move beyond the wait-and-see approach during the next two years. Enterprise buyers tend to be extremely cautious about evaluating bleeding-edge technology and, as one global director of infrastructure planning said to us, “No one has ever been fired for buying from Dell, HP, or Lenovo.”

LAST YEAR, DELL, HP, AND LENOVO SUPPLIED PCS TO 87% OF THE ENTERPRISE MARKET

Forrester asked 565 PC decision-makers at North American and European enterprises from which manufacturers they purchased their desktops and laptops in the past 12 months. What did we find? To no one’s surprise, Dell, HP, and Lenovo were the clear tier one enterprise PC manufacturers (see Figure 2). The big three own 87% of both the enterprise desktop and laptop markets. Specifically:

· Dell is clearly the No. 1 enterprise desktop and laptop supplier. Dell supplied both desktops and laptops to more than half of North American and European enterprises, doubling its closest desktop competitor and more than doubling its closest laptop competitor. Dell also held onto its sizable lead over the second closest competitor across all regions and company sizes in both the desktop and laptop markets, although its lead is down to just 5% in the European enterprise market where the direct model isn’t as widespread. Not surprisingly, Dell fares strongest in the North American market, winning 60% of the desktop and 58% of the laptop market.

· HP maintained its solid No. 2 desktop supplier status and overtook Lenovo for laptops. HP supplied desktops to 27% and laptops to 21% of North American and European enterprises, maintaining its No. 2 status. Its strong indirect model positions HP well in the European enterprise market, with 38% and 26% of enterprises reporting HP desktops and laptops, respectively. HP also improved significantly year-over-year, especially across laptops. HP gained 6% in the North American enterprise laptop market and 5% in the European enterprise laptop market.5 These gains will continue as HP just refreshed its entire lineup of Intel-based laptops earlier this year with Intel’s Santa Rosa release.

· Lenovo rounds out the three tier one global PC manufacturers. In 2005, IBM sold off its PC business to Lenovo, the Hong Kong-based PC manufacturer. Since then, Lenovo has worked hard to build up the brand in the North American and European regions while expanding its market-leading China model into other regions. Lenovo has also relocated its headquarters to Raleigh, North Carolina, built two new manufacturing plants in Mexico and one in Raleigh, and built new distribution centers in Raleigh and Miami. This is all part of Lenovo’s major IT transformation project, which still puts it a little behind as it continues to ramp up its acquisition. On the other hand, because it is starting essentially from scratch, it will have the newest and best technologies and applications to leverage for customer support. According



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to our survey, Lenovo supplied desktops to 16% and laptops to 20% of North American and European enterprises. This was good for the No. 3 PC supplier to enterprises, although it’s just 1% behind HP across laptops, proving just how strong the ThinkPad brand is.

· Almost 90% of enterprises chose to single-source their desktop and laptop purchases. Lowering acquisition costs, simplifying the imaging process, and easing client management are driving desktop managers to consolidate their suppliers and get better discounts. So it’s not surprising that 87% of enterprises purchased their desktops from only one of the suppliers we asked about, and 88% purchased laptops from a single supplier.6 Clients tell us they are looking to take this even further by standardizing on one PC supplier across all form factors. Meanwhile, 12% of enterprises purchased desktops from two suppliers last year, and 10% chose two suppliers for laptops. A mere 1% bought desktops from three or more suppliers, and only 2% went to three or more vendors for their laptop purchases.



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Figure 2 Dell, HP, And Lenovo Have Dominated The Enterprise Desktop And Laptop Market


Enterprises’ preferred desktop suppliers2-1

Enterprises’ preferred laptop suppliers2-2


“From which vendor or vendors did you purchase desktops in the last 12 months?” (Select all that apply)

Base: 565 PC decision-makers at North American and European enterprises

54%

27%

15%

2%

2%

1%

1%

1%

7%

1%

2%Don’t know

We have notpurchased this item

Other

Toshiba

Sony

Acer

Apple

Fujitsu

Lenovo

HP

Dell

“From which vendor or vendors did you purchase laptops in the last 12 months?” (Select all that apply)

Base: 565 PC decision-makers at North American and European enterprises

54%

21%

19%

4%

2%

2%

2%

1%

4%

1%

2%Don’t know

We have notpurchased this item

Other

Sony

Acer

Fujitsu

Apple

Toshiba

Lenovo

HP

Dell

“From how many suppliers did your company purchase desktops in the last 12 months?”

Base: 510 PC decision-makers at North Americanand European enterprises who purchased

desktops in the last 12 months from atleast one of the suppliers we asked about

Three or more vendors1%

Two vendors12%

One vendor87%

“From how many suppliers did your company purchase laptops in the last 12 months?”

Base: 524 PC decision-makers at North Americanand European enterprises who purchased

laptops in the last 12 months from atleast one of the suppliers we asked about

Three or more vendors2%Two vendors

10%

One vendor88%



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NEXT YEAR, THE BIG THREE WILL BE THE PRIMARY SUPPLIERS TO AT LEAST 82% OF FIRMS

The dominance of the three major PC manufacturers will continue next year. When asked to name their primary supplier of desktops and laptops in the future, 48% of enterprises chose Dell for their desktops and 50% of enterprises chose Dell for their laptops (see Figure 3). HP remained in second position with 22% and 17% of the enterprise desktop and laptop market, respectively. Lenovo rounds out the top three with 12% of the desktop market and 15% of the laptop market. It’s important to note, however, that 8% of the PC decision-makers reported that they hadn’t yet settled on their desktop and laptop suppliers, so these figures will increase by 2% or more as IT sourcing analysts make their selections. The tier two PC suppliers (Acer, Apple, Fujitsu, and Toshiba) pulled in the rest, but at an anemic 3% of the desktop market and 5% of the laptop market.

Figure 3 Dell, HP, And Lenovo Will Continue To Own The Enterprise Desktop And Laptop Market

HOW PC BUYERS RATE THEIR PRIMARY LAPTOP SUPPLIER IN FIVE KEY AREAS

How will Dell, HP, and Lenovo maintain such dominance in the enterprise PC market? Three reasons: 1) the cost of switching suppliers is incredibly high; 2) the RFP process consumes too much of the office of the CTO’s, PC sourcing analysts’, and desktop managers’ time; and 3) customer satisfaction ratings are relatively high, giving enterprises little reason to look beyond their current supplier(s). This year, Forrester asked laptop customers to rate their satisfaction levels across five key areas: product features, product quality, price, product support, and business relationship. Overall,


“Which vendor is your primary or leadsupplier for future purchases of laptops?”

3-2“Which vendor is your primary or leadsupplier for future purchases of desktops?”

3-1

Base: 565 PC decision-makers at North American and European enterprises(percentages may not total 100 due to rounding)


Fujitsu 1%Apple 1%

Acer 1%

Dell48%

HP22%

Lenovo12%

Other 6%

We don’t plan to purchase this item1%

Don’t know8%

Dell50%

HP17%

Lenovo15%

Don’t know8%

We don’t plan to purchase this item1%

Fujitsu 1%Apple 1%

Acer 1%Toshiba 2%

Other 4%



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enterprises were quite satisfied with their future laptop suppliers (see Figure 4 and see Figure 5). We learned that PC manufacturers nailed the basics, with satisfaction levels in the low nineties across product features, quality, and price. But they didn’t fare as well in product support and overall business relationship, with customer satisfaction levels in the mid-eighties. We compared Dell, HP, and Lenovo and found that:7

· Lenovo, Dell, and HP all offer solid features. There is little variation among the top three laptop manufacturers around customer satisfaction and product features. All three boasted satisfaction levels in the mid-to-low nineties. Lenovo came out on top with its ThinkVantage design, thanks to features like its magnesium-alloy roll cage, a shock-mounted hard drive, and an integrated fingerprint reader. Forty-six percent of Lenovo’s enterprise customers were very satisfied, compared with 44% of Dell’s and 38% of HP’s. Dell meanwhile is pushing features like solid state drives and integrated Wi-Fi locator switches in its Latitude line. HP has touted the benefits of enhanced security through its HP ProtectTools, its Illumi-Lite and Night Light displays, and even an integrated camera that can read business cards. All of the major PC manufacturers by now have introduced wide-area wireless into their notebook lineup. Although desktop managers might not be willing to pay for all of these features, it’s critical for the manufacturers to innovate and provide more product differentiation.

· Lenovo gets the nod on product quality. Enterprises’ satisfaction levels with product quality were almost as high, with an overall average of 92%. But this category also brought more differentiation across suppliers, with Lenovo taking top marks. Cutting a bit into Dell’s dominance, 59% of Lenovo’s laptop customers reported that they were very satisfied with their product’s quality, compared with 51% of Dell’s and 49% of HP’s. When both the very satisfied and satisfied buckets are included, the three tier one manufacturers were again competing for the top spot with Lenovo, edging out the others with a 93% satisfaction level (compared to 92% for Dell and 90% for HP). Despite product quality concerns stemming from the former China base of the PC manufacturer, Lenovo has successfully won over enterprise buyers that are seeing it deliver superior quality. Although this might surprise some who figure customers choose Dell for price alone, Dell fared well compared to HP with regard to the quality of its Latitude notebooks and Precision mobile workstations.

· Dell easily came out on top with pricing. As expected, enterprises gave Dell the highest marks for product pricing. Nearly 95% of enterprises reported that they were satisfied or very satisfied with the vendor’s pricing. Although Lenovo was not far behind, with 88% of its customers satisfied, only one-third considered themselves very satisfied, the lowest percentage in this category among the three leading manufacturers. HP fared slightly better with very satisfied customers, but with 12% of enterprises reporting a less than satisfactory view of pricing, this area needs to improve if HP wants to continue its assault on Dell and further pull away from Lenovo. Overall, enterprises are very satisfied with their suppliers’ PC pricing. An impressive satisfaction level of 91% is fueled by enterprises that can significantly customize their mobile platforms and aren’t forced into buying features they don’t want.



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· Dell and Lenovo lead the way with product support. Dell and Lenovo were locked in a virtual tie for product support. Nearly half of the desktop managers who identified Dell or Lenovo as their primary laptop provider for future purchases reported that they were very satisfied with the level of support they received. HP came in below the overall average due in large part to supporting a much larger client base. Although 82% of its laptop customers cited some level of satisfaction, 15% were only somewhat or not satisfied. Increased levels of dissatisfaction are often caused by laptops shipping with more and more integrated features, increasing the likelihood that something will go wrong. But the No. 1 cause of dissatisfaction is the inability to get a qualified customer service representative (CSR) on the phone in an acceptable timeframe. PC manufacturers continue to be plagued by the never-ending tradeoff between hiring more CSRs versus training them thoroughly.

· Lenovo has the strongest business relationship with its enterprise customers. Lenovo was the clear leader for business relationship, with 45% of enterprises reporting being very satisfied, compared to 37% of Dell’s and 27% of HP’s customers. Overall, average satisfaction with business relationship was the lowest across the five key areas we asked about, just 85% of enterprises reporting some level of satisfaction, a key indicator of concern and likelihood of not renewing. Through conversations with our enterprise clients, we found that what hurts the PC manufacturers the most is lack of communication combined with rotating account representatives. Too often, we heard enterprises complain that their PC manufacturers couldn’t, or wouldn’t, give them a glimpse at the product roadmap that would help desktop managers better prepare their corporate environments for the next two years. PC manufacturers must balance the here-and-now with forward-looking content to answer the wide range of questions desktop managers struggle with every day.



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Figure 4 How Enterprise Buyers Rate Their Laptop Suppliers On Features, Quality, And Price


"How satisfied are you with your primary laptop supplier with regard to product features?"4-1

"How satisfied are you with your primary laptop supplier with regard to product quality?"4-2

"How satisfied are you with your primary laptop supplier with regard to price?"4-3

Don't know or does not apply to me

Not satisfiedSomewhat dissatisfiedSatisfiedVery satisfied

3%1%

1%

1%

1%

3%

3%

6%

3%

11%

5%

5%

51%

47%

55%

51%

43%

38%

33%

40%Overall (n=483)

Lenovo (n=83)

HP (n=90)

Dell (n=270)

Base: PC decision-makers at North American and European enterprises who named a primary laptop vendor for future purchases

(percentages may not total 100 due to rounding)Souce: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2007

1%

1%

1%

1%

4%

6%

5%

4%

51%

56%

48%

51%

44%

38%

46%

43%Overall (n=483)

Lenovo (n=83)

HP (n=90)

Dell (n=270)

1%

1%

1%

1%

1%

7%

7%

6%

7%

41%

41%

34%

40%

51%

49%

59%

52%Overall (n=483)

Lenovo (n=83)

HP (n=90)

Dell (n=270)

2%

1%



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Figure 5 How Enterprise Buyers Rate Their Laptop Suppliers On Support And Business Relationship

DELL, HP, AND LENOVO WILL RETAIN THEIR ENTERPRISE MINDSHARE DOMINANCE

Overall, a significant portion of customers who purchased desktops and laptops from Dell, HP, or Lenovo in the past 12 months will continue their relationship with the same vendor for future purchases (see Figure 6). Dell will maintain the strongest hold on its customers, with 86% of existing Dell desktop customers, and 89% of laptop customers, choosing the vendor as their primary supplier for future purchases. These figures were much higher than those of HP and Lenovo across desktops and laptops, both of which had rates in the mid-to-low seventies. We also analyzed where enterprises considering a shift from each of the tier one desktop and laptop manufacturers were expecting to turn. We found that Dell customers prefer to turn to HP rather than Lenovo; HP customers have a clear preference for Dell; and Lenovo customers prefer HP over Dell.


“How satisfied are you with your primary laptop supplier with regard to product support?”5-1

“How satisfied are you with your primary laptop supplier with regard to business relationship?”5-2

Base: PC decision-makers at North American and European enterprises who named a primary laptop vendor for future purchases

(percentages may not total 100 due to rounding)

Don’t know or does not apply to me

Not satisfiedSomewhat dissatisfiedSatisfiedVery satisfied


3%10%48%37%Overall (n=483)

5%6%43%45%Lenovo (n=83)

6%11%56%27%HP (n=90)

2%11%49%37%Dell (n=270)

1%

1%

1%

5%10%40%46%Lenovo (n=83)

2%10%41%46%Dell (n=270)

1%13% 2%51%31%HP (n=90)

2%

3%11%42%43%Overall (n=483)

1%



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Figure 6 Patterns Emerge Among Enterprises That Will Not Renew With A Current PC Supplier

W H A T I T M E A N S

VISTA WILL FINALLY BE ADOPTED AS MID-2008 KICKS OFF THE NEXT PC REFRESH CYCLE

For the past year, desktop operations managers have been extending PC life and stalling their next major corporate PC refresh. What drove IT to extend the lives of existing PCs? Windows Vista. Companies have been testing line-of-business applications for compatibility with the new operating system, addressing all incompatibilities, and building their new corporate images as applications succeeded. This process has taken enterprises anywhere from 6 to 12 months or 12 to 18 months depending on the application’s complexity. Starting in mid-2008, most enterprises will


“Which vendor is your primary or lead supplier for future purchases of desktops?”6-1

“Which vendor is your primary or lead supplier for future purchases of laptops?”6-2

Base: PC decision-makers at North American and European enterprises who have purchased PCs from each major vendor in the last 12 months

(percentages may not total 100 due to rounding)Source: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2007

AcerApple

DellHP

LenovoToshiba

OtherWe don’t plan to purchase this item

Don’t know

Dell (n=307)

0%1%

5%2%0%0%1%4%

HP (n=155)

1%1%

12%

3%0%2%1%6%

Lenovo (n=90)

0%0%8%

11%

1%2%0%7%

86%74%

71%

AcerApple

DellHP

LenovoToshiba

OtherDon’t know

Dell (n=304)

0%1%

4%3%0%0%4%

HP (n=120)

2%0%

10%

3%2%2%7%

Lenovo (n=111)

0%0%8%9%

2%2%5%

89%75%

75%



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begin their next major PC refresh cycle with Windows Vista as the new standard operating system. Corporations are leery to kick off their next major round of PC spending until later next year because they’ve been waiting for affordable PCs that can seamlessly run Windows Vista and Office 2007. Today’s standard PC configurations from major manufacturers include just 1 GB of memory, and the necessary 2 GB upgrade is prohibitive. The 2 GB of memory that will come standard with most configurations by mid-2008 will drive the next PC refresh cycle, which will last through 2012.

SUPPLEMENTAL MATERIAL

Methodology

The data used in this report was extracted from Forrester’s Business Data Services Enterprise And SMB Hardware Survey, North America And Europe, Q3 2007. The purpose of this study was to analyze trends in enterprise hardware purchasing and technology adoption. The survey probed topic areas including hardware budgeting, mobile devices, desktops and laptops, servers, server virtualization, systems management, storage, networking, the data center and disaster recovery, and hardware-related IT services.

Forrester surveyed 1,001 hardware decision-makers at North American and European enterprises. Geographically, 701 were from North America and 300 were from Europe. By company size, 43% were from large enterprises (1,000 to 4,999 employees), 35% were from very large enterprises (5,000 to 19,999), and 22% were from global 2,000 enterprises (20,000 or more employees). We screened all respondents for significant involvement in hardware purchasing decisions.

WNS fielded the telephone-based survey from April through June 2007 and motivated the respondents by offering them a summary of the results.

These statements conform to the principles of disclosure of the National Council on Public Polls.

You can find more information about the data on the Survey & Data page online. From this page, you will be able to download the Survey Instrument.

ENDNOTES1 Forrester defines an enterprise as any company with 1,000 or more employees.

2 Client management suites help IT with PC life-cycle management by providing tools that automate operating systems deployment, software distribution, and systems management, and provide visibility into the state of each corporate-owned PC. Forrester’s product-based evaluation of eight leading client management solutions across 98 criteria revealed that HP, Altiris (now part of Symantec), and CA have established client management suite leadership thanks to their integrated solutions and strong focus on policy-driven management. LANDesk, an Avocent company, has one of the strongest offerings with full management and security functionality, but it’s the smallest vendor in the evaluation and will have a hard



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time competing with much larger competitors long term. Novell and Microsoft offer solid capabilities today, but it is their vision of integrated security and management that is worth waiting for. BMC Software and IBM are both Strong Performers, but lack some of the more basic support and popular features users have come to expect from their client management vendors. See the July 24, 2007, “The Forrester Wave™: Client Management Suites, Q3 2007” report.

3 In previous years’ studies, we asked respondents about the ratio of desktops to laptops, which has been in the 75/25 range over the past few years within enterprises, but in the 2006 survey we went a level deeper. We wanted to understand whether firms plan to increase or decrease their deployment of desktops and different laptop forms in the next two years. See the August 17, 2006, “The State Of The Corporate PC 2006” report and see the December 11, 2006, “The State Of The European Corporate PC 2006” report.

4 In a July 2005 survey, 601 infrastructure and data decision-makers at North American enterprises reported that 75% of their company’s PCs are desktops, 22% are laptops or tablets, and 3% are other form factors. See the October 17, 2005, “The State Of IT Infrastructure Adoption” report. [35948]

5 Last year, HP earned 13% of laptop mindshare across North American enterprises and 21% across European enterprises. See the August 17, 2006, “The State Of The Corporate PC 2006” report and see the December 11, 2006, “The State Of The European Corporate PC 2006” report.

6 We asked about 10 specific PC vendors in this survey: Acer, Apple, Dell, Fujitsu Computer Systems (US)/ Fujitsu Siemens Computers (Europe), HP (including Compaq), Lenovo/IBM, Sony, Sun or Sun Ray, Toshiba, and Wyse.

7 Although Forrester collected laptop customer satisfaction ratings across all primary suppliers, due to sample size constraints we were able to statistically compare only the three tier one PC manufacturers.










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