Brazil SMB PC

StudyMay 2019

Table of Contents

2

• Methodology 3• Executive Summary 4• PC Usage, Refresh Cycles 13• PC Repair & Maintenance Issues, Cost of Owning 20• PC Purchase Intent 29• Attitude towards Windows 10, Windows 7 EOS 34

Methodology

3

Survey was conducted in April-May 2019A 30 minute questionnaire was administered to each respondentRespondents were IT & Business decision makers200 completes were achieved – unique SMBsSampling quota was fixed by size of business by no. of PCs

N= 25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs

Brazil 200 60 50 50 40

Executive Summary:Magnitude of older PCs in use within SMBs

4

SMBs(1-999 employees)

100%of SMBs have 4+ years old

PCs

34%of PCs are 4+ years old

76%of SMBs may replace older PCs,

but only….

21%of older PCs may be replaced

33%of PCs are on older Windows

3.2years average PC Refresh

cycle

34%of SMBs either do not have a refresh policy or do not

follow defined policy

Executive Summary:Older PCs increase operational costs for SMBs

5

A PC which is 4+ years old has 2.3X likely chance to be repaired resulting in 189 hours of productive time lost which is 2.8X of newer PCs

The total cost of owning a 4+ year old PC is US$1,024, which is 2.3X of newer PCs

Executive Summary:Nearly half are aware of vPro, nearly two-third may consider, incur costs per PC at

desk-support

6

42% of SMBs are aware of vPro technology, 39% within small

businesses

61% may think about purchasing PCs with vPro (after explaining what

is vPro) but 28% are unsure

IT support staff visits employee’s desk an average of 5.0 times per

month and spends 29.2 minutes per visit

US$421 is spent by SMBs

per PC per year on IT support staff

physically visiting an employee desk to fix/monitor PCs

Executive Summary:Newer PCs positively impact SMB costs, manageability and cloud connectivity

7

EASY MANAGEABILITY

84% of SMBs

managing newer PCs is improving IT

efficiency

REDUCE COSTS

85% of SMBs

newer PCs reduce overall maintenance

costs

BETTER SECURITY

82% of SMBs

able to better secure & protect data on

newer PCs

IMPROVE EFFICIENCY

83% of SMBs

newer PCs provide better cloud

connectivity & usage experience

IMPROVED MOBILITY

81% of SMBs

Enable work from anywhere, anytime

Executive Summary:Performance, security & manageability are key drivers of Windows 10 based new PC purchases

8

Likely to purchase Windows 10 PCs because of Improved performance

Likely to purchase Windows 10 PCs because of Improved security

Likely to purchase Windows 10 PCs because of Improved manageability

83%of SMBs 64%

68%of SMBs

Executive Summary:PC Purchase Intent

9

• storage capacity, security, quick startup are the top three features considered when purchasing

PCs• 1/5th of SMBs find 2in1 tablet mode and availability of Inking/digital pen to be useful

features but less than 1/20th consider them during purchase

PC FEATURES

• 63% of PCs purchased will be for replacements & 37% will be additions

• 76% of 4+ years PC users may replace PCs

ADDITIONS OR REPLACEMENTS

• Of the SMBs planning to purchase PCs, 88% of SMBs will likely buy desktops and 100% will purchase notebooks

• Percent of notebooks purchase intent is higher at 61% than desktops which is at 39%

FORM FACTOR

• Lower cost of maintaining new PCs, Software updates that cannot be supported by the PC are

two dominant reasons for purchasing new PCs

PC PURCHASE REASONS

86%

Executive Summary: Windows 7 EOS

10

47% of SMBs (planning to purchase) plan to

downgrade Windows 10 in new PCs planned to

purchase

84% of SMBs are aware of Windows 7 EOS,

82% of SMBs are more likely to replace PCs

because of Windows 7 EOS

73% of SMBs find that Windows-as-a-Service will make them more likely to

purchase new PCs

27% of SMBs are unclear about Windows-as-a-Service functionality

90% of SMBs are aware of Windows-as-a-Service

33% of SMBs who are aware are planning to

adopt

Option to acquire latest technology faster, reduce IT deployment workloadare key reasons for using

PCaaS

61% of SMBs are aware of PC-as-a-Service, lowest awareness is in small

businesses

WINDOWS 7 EOS

WINDOWS-AS-A-SERVICE

PC-AS-A-SERVICE

Executive Summary:Security is top of mind, nearly 50% of SMBs experienced breach in last 1 year

11

Security is top 2nd IT priority

38% SMBs experienced PC security & data theft breaches in the last 1 year, however, as high as 53% may have experienced security breach

Executive Summary: IT Priorities

12

47%

60% 35%

53% 46%Cloud

PCs

Mobility

Security

Managed services

PC Usage, Refresh Cycles

How is IT Managed

14How is IT managed in your organizationWho is responsible for fixing PC problems when they occur?

68%80%

92% 93%74%

92% 82%

13%8% 11%

6%18% 12% 8% 8% 15% 8% 12%1%

25-49 PCs 50-99 PCs 100-249PCs

250-499PCs

Smallbusiness

Mediumbusiness

SMB

How is IT managed

Full time internal dedicated IT staff Part time, internal IT staff

Fully outsourced to a third-party Internal Non-IT personnel

82

% 88

%

92

%

93

%

85

% 92

%

88

%

28

%

24

%

8%

8%

26

%

8%

18

%

3%

2%

2% 3%

3%

2% 3%

2%

2%

2% 8

%

2% 4%

3%

25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs Smallbusiness

Mediumbusiness

SMB

Who is responsible for PC support

In-house IT or non-IT staff External consultants

Reseller takes care of all breakdown issues PC manufacturer takes care of the problems

Age of PCs100% of SMBs have 4+ years old PCs, 34%of PCs are 4+ years

15Thinking about your Desktops, Notebooks, Convertibles/2 in 1s referred to as PCs, please tell us what percent of PCs are

19% 14% 17% 19% 16% 18% 17%

15%17% 15% 14% 16% 15% 15%

18% 18% 18%23%

18% 21% 19%

12% 17% 14%

16%

14%15% 14%

28% 25%21%

19%27% 21% 24%

9% 9%15%

8% 9% 12% 10%

25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs Small business Medium business SMB

Percentage PCs in use by age of PCs

< 1 year 1 year - Less than 2 years 2 years - Less than 3 years 3 years - Less than 4 years 4 years - Less than 5 years More than 5 years

Current OS being used:28% of PCs are using older versions of Windows (XP/Vista/7/8), excluding non-Windows PC –

33% of PCs are on older versions

16What percent of PCs in your company are running each of the following operating systems?

8% 3%9% 6% 5% 8% 6%

11%9%

15%10% 10%

13% 11%

11%13%

7%

11% 12%9% 11%

54% 63% 51% 58% 58% 54% 56%

8% 4% 9% 7% 6% 8% 7%

8% 8% 7% 8% 8% 7% 8%1% 1% 1% 1% 1% 1% 1%

25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs Small business Medium business SMB

Percentage PCs in use by OS

Windows XP/Vista Windows 7 Windows 8 Windows 10 Mac/Apple OS Google Chrome Other

Reasons for not replacing older PCs:Non-criticality & application compatibility are key inhibitors to replacing older PCs

17Please tell us the reasons why you have not replaced these older PCs with newer PCs?

51%45%

25% 23%19%

15%12%

6%

These PCs are notcritical to the overall

operation of thecompany

Applications runningon those machinesthat cannot work

with newer operatingsystems

We are concernedabout deploying

Windows 10

Newer PCs areexpensive

We do not have thebudget to replace

these PCs

There are no musthave capabilities in

new PCs to purchase

We purchasedTablets and

smartphones instead

There are too manychoices making

purchase decisionconfusing

Reasons for not replacing older PCs

PC Repair & Maintenance Issues, Cost of Owning

Comparison of frequency of problems experienced – newer vs. older PCs:Older PCs experience 2.3X the frequency of problems as newer PCs

All issues are a drain on employee productivity and IT staff efficiency

19Please think about the PCs in your company that are <4 years/4 years or older. Which of the following issues and problems has your company experienced on these PCs?

3,10

2,41 2,36 2,32 2,31 2,22 2,141,95 1,87 1,80 1,73

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

0%

10%

20%

30%

40%

50%

60%

70%

Slow to boot upand respond

Disk drivecrashes resulting

in data loss orreconfiguring

Notebookbattery depleting

too soon

Applicationcrashes

Power adapter /Motherboard

failures

Difficulties ininstalling

application /software updates

Mobility networkconnectivity

issues

Virus, malwareand spyware

infections

Securitybreaches / data

thefts

Lost / Theft ofnotebook PCs

Other problems

Comparison of frequency of problems experienced – newer vs. older PCs(Very Frequently + Frequently)

< 4 years 4+ years Ratio of frequency of issues (4+ years/< 4 years)

16%

42%

< 4 yrs 4+ yrs

% PCs upgraded

67,6

189,4

< 4 yrs 4+ yrs

Hours Lost

11%

49%

< 4 yrs 4+ yrs

% PCs repaired

7,2

16,3

< 4 yrs 4+ yrs

Frequency of repairs/year

Older vs. Newer PCs repairs, upgrades, hours lost comparisons

20

4.3X 2.3X

2.8X 2.6X

$441

$1.024

< 4 yrs 4+ yrs

Per PC Total cost

$111

$198

< 4 yrs 4+ yrs

Per PC upgrade cost

$243

$682

< 4 yrs 4+ yrs

Per PC lost Productivity cost

$87

$144

< 4 yrs 4+ yrs

Per PC repair cost

Total cost of ownership: older vs. newer PCs

21

< 4 years 4 years or more

No. of PCs 5 5

Direct Costs

PC repair cost $87 $144

Total cost to repair $433 $722

Upgrade Costs $111 $198

Total Upgrade Costs $557 $990

Total Direct Costs $990 $1,713

Lost Productivity Costs

Hours Lost 68 189

Total Hours lost 338 947

Productivity Cost $4,868 $13,636

Total Cost $5,857 $15,348

1.7X

Combining the visible costs – repair costs, upgrade costs & invisible costs – lost productivity, data reveals that an SMB with 10 PCs – 5 newer and 5 older is spending 2.6X on older PCs to own – which it would be better served by buying newer PCs

2.8X

1.8X2.3X

vPro awareness and intent to purchase (after explaining technology)42% of SMBs are aware of vPro technology, 61% of SMBs may be motivated to purchase PCs with

vPro

22Are you aware of Intel vPro technology?Intel’s vPro platform is a processor technology that enables a more productive and protected business with a comprehensive suite of performance, manageability and security solutions. Presence of vPro processor enables remote management and faster problem resolutions by IT staff and thereby streamlines productivity for both user and IT staff. Knowing what you know now, would purchase new PCs with vPro technology be interesting to your organization?

38% 40% 40%55%

39%47% 42%

62% 60% 60%45%

61%53% 58%

25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs Small business Mediumbusiness

SMB

Awareness of Intel vPro technology?

Yes No

58% 52%68% 67%

56%68% 61%

7%10%

12% 18%

8%

14%11%

35% 38%20% 15%

36%18%

28%

25-49 PCs 50-99 PCs 100-249 PCs 250-499 PCs Small business Mediumbusiness

SMB

PC purchase interest with vPro technology?

Yes No Not sure

PC Security solutions & concerns:SMBs are worried about malware attacks and data thefts; overall 38% experienced one more security

incident in the last one year

23With respect to PCs what are your biggest security concerns?

64%

59%

52%

49%

45%

40%

Virus or other malware attacks

Network intrusions

Identity theft

Transaction security

Data theft by employees orothers

Computing Device being stolenor lost

SMB: Biggest PC Security concernsYes28%

No67%

Don't Know /

Not Sure5%

Occurrence of notebook security breach

Yes25%

No69%

Don't Know /

Not Sure6%

Occurrence of notebook security breach

Yes26%

No68%

Don't Know /

Not Sure6%

Occurrence of notebook security breach

SMBSmall

businessMedium business

Yes27%

No63%

Don't Know /

Not Sure10%

Occurrence of lost or stolen laptops/notebooks

Yes24%

No68%

Don't Know /

Not Sure8%

Occurrence of lost or stolen laptops/notebooks

Yes31%

No57%

Don't Know /

Not Sure12%

Occurrence of lost or stolen laptops/notebooks

SMBSmall

businessMedium business

Adoption & Attitude towards Windows 10, Windows 7 EOS

Reasons for not purchasing or purchasing Windows 10 PCs:Improved performance, security & manageability are key drivers for Windows 10 PCs

25Why are you less likely to purchase new Windows 10-based PCs?Why are you more likely to purchase new Windows 10-based PCs?

44%

33%

23%

13%

5%

No real advantages over current versions ofwindows

Incompatibility with software applications

Other reasons

No time for employee and/or IT staff training

We do not know anything about Windows 10

SMB Reasons: Less likely to purchase Windows 10 PCs

83%

68%

64%

38%

34%

3%

Improved performance

Improved security

Improved manageability

Better integration with mobile devices(smartphones, tablets)

Only OS available on new PCs

Other reasons

SMB Reasons: More likely to purchase Windows 10 PCs