CompTIA 4Q 2011 IT Research Roundup

CompTIA  Research  Roundup  

December  2011  

Carolyn  April,  Director  Industry  Analysis  

Tim  Herbert,  VP  Research  

Housekeeping  

Mute  phones  |    Unmute  computer  speakers        

 Hashtag:  #comp.a  

Submit  quesHons  via  the  Q&A  panel  through  WebEx  

Slides  and  recording  distributed  via  email  aLerwards  

Who  We  Are  |  What  We  Do  

Educa.on        

Cer.fica.on                            

Advocacy                        Philanthropy      

About  CompTIA  Research  Program  

Why/How:  

What:  

Where:   hOp://www.compHa.org/members/research    

•  Measure,  track,  explore,  interpret,  data  to  intelligence  •  Member-­‐driven  program    •  Strict  research  controls  |  Independent  data  collecHon    

•  Channel  intelligence  •  Technologies  (e.g.  UC,  Security,  Cloud)  •  Business  models  (e.g.  Managed  Services,  Cloud)  •  VerHcals  (e.g.  Healthcare,  Government,  SMB)  •  Workforce  •  Special  topics  (e.g.  Business  Confidence,  Green  IT)  

Unwrapping  Today’s  PresentaHon  

Part  1:    Business  TransformaHon  in  the  channel  

 Part  2:    Managed  IT  Services    Part  3:    The  Print  /  MPS  market    Part  4:    Healthcare  IT  market  

Part  1:  Business  TransformaHon  in  the  Channel  

“Evolu'on  is  not  mandatory;  but  then  again,  neither  is  survival.”  

Some  New  “Change”  Factors…Many  Classic  Factors  

MARKET  FACTORS  1  

TECHNOLOGY  FACTORS  2  

MODEL  FACTORS  3  

•  Economic  factors    •  CompeHHon  /  commodiHzaHon  •  ShiLing  expectaHons  

•  AlternaHve  delivery  models  •  Mobile  business  capabiliHes  •  Emerging  technologies  

•  Declining  margins  è  complexity  •  Engagement  type  /  cash  flow  •  OperaHonal  excellence  

The  Channel  of  the  Future?  

HYBRID  REALITY    •  IT  Customers  will  consume  a  mix  of  technology  soluHons  in  a  mix  of  

delivery  models  from  a  variety  of  value  chain  resources  

•  Solu.on  Providers  will  conHnue  to  operate  exisHng  models  while  adding  new  models  and  offerings*  

•  IT  Vendors  will  maintain  channel  programs  for  “tradiHonal”  partners,  while  adding  offerings  for  evolving  partners  

Channel  EvoluHon  Vectors  

Technology  Delivery  Model  1  

Customer  Engagement  Model  2  

Technology  Stack  Layer  3  

Technology  /  Solu<on  Por>olio  4  

Customer  Segment  /  Specializa<on  5  

On-­‐Premise   Hybrid   Off-­‐Premise  

Transac.onal   Project   Recurring  

Infrastructure   Applica.on   Process  

Product   Package   Solu.on  

Size   Ver.cal   IT  Style  

CriHcal  AssumpHons  

Never  Forget  The  Human  Factor  No  maDer  how  smart  the  model  is  …  you  s'll  need  the  people  to  be  willing  and  able  

Manage  The  Ripple  Effect  Every  decision  will  affect  mul'ple  dimensions  of  the  model  …  manage  the  interdependencies  

Size  Ma[ers  …  For  Be[er  &  Worse  Significant  changes  take  'me,  especially  for  bigger  companies  …  but  they  also  cost  money  

Evolu.on  …  Not  Revolu.on  Capitalize  on  strengths  …  change  what  needs  to  be  changed  …  go  deliberately  

Customer  Alignment  Ma[ers  Most  Target  audience  should  determine  model  …  not  the  other  way  around  

Channel  TransformaHon:  The  Cloud  

42%  

22%  

22%  

15%  

13%  

16%  

30%  

41%  

Not  involved  in  cloud  

End  user  of  cloud  only  

Sell  cloud  services,  but  don't  use  internally  

Both  sell  and  use  cloud  soluHons  

2011   2010  

85%  of  channel  companies  idenHfied  

as  having  heavy    to  moderate  

involvement  in  cloud    

Channel  momentum  behind  cloud  compu.ng:  2011  vs.  2010  

Part  2:  Managed  Services  

Outsourcing  Trends  by  Business  FuncHon  

Mostly  Outsourced  

Mixed    Model  

Mostly  Done  Internally  

Payroll   28%   14%   54%  

Call  center   14%   16%   54%  

IT  funcHons   12%   31%   56%  

Supply  chain/logisHcs   12%   22%   63%  

Public  relaHons/communicaHons   11%   27%   61%  

Finance/accounHng  funcHons   9%   22%   63%  

Human  resources   6%   14%   78%  

78%  of  end  user  organizaHons  report  being  very  or  mostly  sa.sfied  with  their  outsourcing  experience,  compared  with  just  4%  ciHng  the  most  negaHve  response.  

End  users  are  generally  posi.ve  about  the  concept  of  outsourcing,  believing  it  to  be  a  good  business  pracHce;  fewer  hold  posiHve  opinions  of  offshoring  and  automaHon.    

End  User  Managed  Services  Usage  Rates  

8%  

52%  

26%  Less  than  1  year  

2-­‐less  than  5  years  

5+  years  68%  

29%  

3%  Use  Managed  Services  

Do  Not  Use  Managed  Services  

Don't  know  

Current  Managed  Service  Usage  Rate  

 Number  of  Years  Using  Managed  Services  

Half  of  end  users  today  are  working  with  between  2-­‐4  MSPs,    though  4  in  10  cite  a  preference  for  working  with  a  lone  provider.  

Demand  Drivers  for  Managed  Services  

32%  

13%  

13%  

14%  

11%  

11%  

9%  

34%  

43%  

43%  

35%  

39%  

38%  

30%  

34%  

44%  

44%  

51%  

51%  

52%  

61%  

To  handle  management  of  remote  offices  

Lack  of  Hme/resources  to  manage  IT  in-­‐house  

Lack  of  in-­‐house  experHse  with  IT  funcHons/systems  

Improve  security  

Gain  access  to  most  current  technologies  

Free  staff  up  to  focus  more  on  core  competencies  

Cost  savings  

Major  Reason    

Minor  Reason  

Not  a  Reason  

Managed  Services  in  the  Channel  

49%  

37%  

10%  5%   Dedicated  MSP  

Hybrid  business  

Primarily  reseller  

New  to  managed  services  

62%  of  channel  companies  offering  managed  services  have  done  so  for  5  years  or  longer.  

Among  firms  offering  managed  services  

MSP  Challenges:  Importance  vs.  ExecuHon  

Importance*  Execu.on  Difficulty**  

Achieving  operaHonal  efficiency   70%   81%  

SelecHng  right  managed  services  soLware   67%   69%  

Customer  acquisiHon   63%   81%  

Required  level  of  human  investment   60%   75%  

Required  level  capital  investment   56%   70%  

Availability  of  trained  consultaHve  sales  and  tech  staff   56%   66%  

Time  takes  to  reach  profitability   54%   80%  

Determining  correct  monthly  pricing  model   54%   62%  

MigraHng  sales  staff  to  new  model   49%   65%  

*Items  rated  as  ‘Very  Important’  **Items  rated  ‘Extremely’  or  ‘Somewhat’  difficult  to  achieve  

Part  3:  The  Print  Market  

Key  AssumpHons  

Enterprise  print  volumes  holding  steady,  but…      Changes  are  underway  due  to  business  process  automaHon,  mobility  and  imaging      Document  management  and  prinHng  costs  expected  to  increase  or  stay  at  same  levels      SaHsfacHon  rates  with  print  and  document  management  funcHon  generally  high,  but…  

RaHng  of  Process  for  Maintaining/TroubleshooHng  Print/Document  Management  FuncHon  

47%  

42%  

11%  

29%  

59%  

12%  

18%  

61%  

21%  

Fine  as  is  

Could  be  somewhat  beOer    

Could  be  significantly  beOer  

Large  firms  

Medium-­‐size  firms  Small  firms  

Managed  Print  Market  PotenHal  &  Demand  Drivers  

Considera.on  of  Managed  Print  Services  Adop.on  

Over  Next  12  Months  

26%  32%   30%  

7%  5%  

Net  will  Not  Consider  

Net  MPS  ConsideraHon  

Elements  of  MPS  that  Most  Resonate  with  Customers  

May  or  May  Not  Consider  

Definitely  will  Consider  

Probably  will  Consider  

85%  Cost  savings  /  lower  TCO    85%  Consistent  and  reliable  service    75%  ProacHve  approach  to  printer  

 maintenance    73%  Greater  print  cost  predictability    72%  Reduced  energy  consumpHon  

 through  device  consolidaHon    72%  Freeing  IT  staff  from  printer  

 maintenance  duHes  

Overview  of  Managed  Print  Service  Providers  

Hybrid  approach  dominates.  Only  6%  of  channel  firms  self  classify  as  an  MPS,  but  much  larger  segment  claims  to  offer  MPS      Market  dominated  by  small  (<$10  million  in  sales)  providers  that  operate  locally  or  regionally      Most  MPS  firms  rely  on  internal  staff  for  service,  although    about  1  in  3  use  third  party  sources      Indicators  point  to  solid  growth  of  MPS  market  

The  Managed  Print  Sales  Process  

14%  

17%  

69%  

Industry  average  costs  

Customer  actual  costs  

CombinaHon  of  actual  and  average  costs  

Basis  of  Customer  TCO  Es.ma.ons  

20%  

54%  

26%  

Rarely  or  Never  

Always  

Inclusion  of  Hardware  in  Ini.al  MPS  Engagement  with  Customer    

In  most  cases,  aOempt  to  opHmize  the  fleet  upfront  

Source:  CompTIA’s  Examining  the  Print  and  Document  Management  Market  study  Base:  247  U.S.  Managed  Print  Service  Providers  

Needs  of  Firms  Planning  to  Enter  Managed  Print  Services  Market  

21%  

28%  

30%  

32%  

34%  

36%  

36%  

41%  

Sales  training  

Business  training  /  MPS  best  pracHces  

IT  cerHficaHons  or  credenHals  in  MPS  

Insights  into  customer  pain  points  

MPS  markeHng  collateral  

Technical  training  

Quality  lead  generaHon  

BeOer  understanding  of  vendor  partner  programs  

Part  3:  Healthcare  IT  Market  

Key  AssumpHons  

Healthcare  is  a  big  market  gexng  bigger,  but…      The  current  path  is  unsustainable      New  approaches,  such  as  accountable  care  organizaHons  (ACOs)  taking  hold      Technology  is  at  the  heart  of  many  proposed  changes,  but…      Technology  is  only  a  means  to  an  end  

Mobile  Device  AdopHon  among  Healthcare  Providers  

17%   18%  

25%  

56%  

63%  

13%  6%  

21%  

11%   10%  

Netbooks  or  Notebooks  

Laptop  PC  (rugged)  

Tablets   Smartphones   Laptop  PC  (standard)  

Currently  Using  

Plan  to  Start  Using  

Medical  Apps  Usage  on  an  Upward  Trajectory  

Epocrates  

Medscape  

MedCalc  

Merck  Manual  

Sermo  

Skyscape  

ICD  9  /  STAT  ICD-­‐9  Coder  

Micromedex  

Lexi-­‐Drugs  &  Lexi-­‐Interact  

38%  

50%  

Currently   Expected  Usage  Next  

Year  

Top  Apps  in  Use*  %  Using  Medical  Apps  Daily  

*among  healthcare  providers  in  this  CompTIA  study  

Channel  Concerns  with  Tablets  in  the  HIT  Space  

22%  

23%  

32%  

36%  

36%  

38%  

39%  

Difficulty  in  add-­‐on  sales  or  consulHng  

CannibalizaHon  of  other  products  

IntegraHng  tablets  into  networking  infrastructure  

OpHmizing  legacy  applicaHons  for  tablets  

OpHmizing  workflow  to  include  tablets  

Dealing  with  customers  that  have  unrealisHc  expectaHons  for  tablets  

Dealing  with  security  issues  

61%  of  SoluHon  Providers  view  tablets  as  a  net  posiHve.  

SoluHon  Provider  PercepHons  of  Most  Challenging  Aspects  of  EMR/EHR  Meaningful  Use  Criteria  

53%  Maintaining  up-­‐to-­‐date  list  of  acHve  diagnoses  

48%  e-­‐Prescribing  

47%  Maintaining  acHve  medicaHon  allergies  list  

44%  Health  informaHon  exchange  

44%  InformaHon  security  risk  analysis  

41%  Clinical  decision  support  

36%  CPOE  

Networking  

Mobility  

AnalyHcs  

Security  

Interoperability  

Real-­‐Hme  data  

Service  Offerings  to  Healthcare  Customers  

15%  

32%  

29%  

35%  

23%  

39%  

31%  

43%  

55%  

47%  

30%  

27%  

42%  

43%  

47%  

54%  

54%  

57%  

59%  

61%  

64%  

64%  

Consumer  electronics  related  work  

Telecom/unified  communicaHons  

Reselling  of  IT  hardware  

Managed  IT  services    

EMR/EHR  soluHons  or  related  work  

Security  related  work  

Website/intranet  work  

Storage,  back-­‐up  or  disaster  recovery  

Network  setup,  integraHon  

IT  repair  or  maintenance  

Custom  applicaHon  development  

Firms  with  >50%  of  sales  from  HIT  

Firms  with  <50%  of  sales  from  HIT  

Thank  You  |  QuesHons?  

Carolyn  April  Director,  Industry  Analysis  [email protected]      

Tim  Herbert  VP,  Research  [email protected]