comptia 3q research round-up

CompTIA Research Roundup

September 2012

Tim Herbert, VP Research & Market Intelligence

Who We Are | What We Do

Education

Certification

Advocacy

Philanthropy

The CompTIA Research and Intelligence Portfolio

Channel Focused Research State of Channel Partner Programs Managed IT Services Managed Print Services Cloud Computing Partnering Trends: Telecom and IT Channels Operational Efficiency Whitepaper Business Transformation Whitepaper Warranty Fraud

✓

✓✓

✓✓✓✓

✓

Market Vertical Focused Research Retail Sector Education Sector Government Sector Legal Services Sector SMB Market UK SME Market Healthcare Sector

✓✓✓✓✓✓✓

Workforce, Policy and Business Research State of IT Skills Gaps Youth Opinions of Careers in IT 2012 IT Industry Outlook Quarterly Business Confidence Index Employer Perceptions of IT Certifications Tax Policy Issues The Presidential Election and Tech Policy Issues

✓✓✓✓✓✓✓

Technology Focused Research Security Mobility Social Media Use in the Enterprise Unified Communications and Collaboration Big Data / Storage Cloud Computing Green IT IPv6

✓✓✓✓✓✓✓✓

On Tap for Today

Part 1: Big Data

Part 2: Retail Sector

Part 3: Cloud

The Big Picture

Will the pattern of volatility continue?

IT Industry has held up relatively well thanks to innovation

CompTIA 2012 industry forecast of 4.0% still on track

IT execs most concerned about demand, margins and paralysis

Source: CompTIA 2012 IT Industry Outlook | Quarterly Business Confidence Index

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Forecast

44

46

48

50

52

54

56

58

60

62

64

U.S. IT Industry Business Confidence Index

Confi

denc

e Ra

ting

| 10

0=H

ighe

st R

ating

Part 1: Big Data

Where to Start with the Topic of Big Data?

Volume of world’s data doubling every two years (source: IDC); data now measured in zettabytes

Unstructured data accounts for 90% of the digital universe (source: IDC)

Data increasingly important to businesses of all types (net 87% important rating)

Two-thirds of executives agree to the statement, “If we could harness all of our data, we'd be a much stronger business”

Silos Reduce Data Utility for Many Businesses

Degree of Data Silos

16%

56%

28%

High Degree of Data Silos

Little or No Data Silos

Moderate Degree of Data Silos

1. Wasted time that could have been spent in other areas of the business

2. Inefficient or slow decision-making / Lack of agility

3. Internal confusion over priorities

4. Reduced margins due to operational inefficiencies

5. Inability to effectively assess staff performance

Top 5 Consequences of Ineffectively Managing/Using Data

A Framework for Defining Big Data

End User Familiarity with the Concept of Big Data

37%

63%

Familiar (NET)

Unfamiliar (NET)

Big Data DefinitionA volume, velocity and variety of data that exceeds an organization’s storage or compute capacity for accurate and timely decision-making.

Assessing How Companies Feel About Their Data Capabilities

1. Providing remote or mobile access to corporate data2. Tracking/analyzing website traffic patterns3. Search capabilities across organization's entire universe of data4. Real-time analysis of incoming data5. Assessing email marketing campaign effectiveness

1. Assessing email marketing campaign effectiveness2. Customer profiling and segmentation analysis3. Real-time analysis of incoming data4. Predictive analytics to forecast sales and other trends5. Metrics and Key Performance Indicators (KPIs)

1. Pattern recognition2. Data visualizations3. Relationship analysis and testing (e.g. correlations, A/B testing)4. Search capabilities across organization's entire universe of data5. Providing remote or mobile access to corporate data

Currently Doing Well1

Needs Work2

Not Doing, But Want to Start3

Meeting Tomorrow’s Data Storage Needs

Begin using a new cloud-based storage solution

Increase usage of cloud-based_x000d_ storage solutions already deployed

Use extra capacity on existing_x000d_ servers or storage solutions

Deploy more on-premise storage solutions

Virtualization or deduplication strategies to better utilize existing servers or storage solutions

19%

28%

37%

40%

46%

Source: CompTIA’s Big Data Insights & Opportunities studyBase: 500 U.S. business and IT executives (aka end users)

Only 1 in 3 businesses report having a comprehensive BC/DR plan in place.

IT Firms Begin to Build Out Their Big Data Offerings

Big Data Storage and Management

Big Data Collection (e.g. facilitating the efficient collection of streams of data)

Big Data Analytics (e.g. business _x000d_intelligence, predictive analytics)

Big Data Consulting or Advisory services

Big Data Application Deployment_x000d_ or Integration services

12%

11%

9%

14%

12%

25%

26%

27%

28%

31%

Currently offering to customersPlan to begin offering over next 12 months

Source: CompTIA’s Big Data Insights & Opportunities studyBase: 435 U.S. IT companies

Big Data’s Long-term Outlook Mostly Promising, but Some IT Firms See Many Unknowns

Big Data Hyped at Appropriate Level

Hyped at the appropriate level; long-term outlook

still unknown

24%30%

Hyped at the appropriate level; long-term outlook

very promising

Big Data Currently Over-Hyped

Over-hyped; long-term

outlook still unknown

39%

7%

Over-hyped; long-term

outlook very promising

Source: CompTIA’s Big Data Insights & Opportunities studyBase: 400 U.S. IT firms

Part 2: The Retail Sector

Vertical Market Analysis: The Retail Sector

It’s a big space!

Historically, retail has been under-invested in technology, but that may be changing

Innovation in many areas

What Keeps Retailers Awake at Night?

1 Finding/implementing more effective marketing strategies

Reducing costs/overhead

Improving staff productivity and capabilities

Better leveraging technology to improve customer engagement and sales efficiency

Enhancing or refreshing product lines

2

3

4

5Source: CompTIA’s Retailer Technology Adoption Trends study

Base: 500 U.S. retailers

And, What May Help Them Sleep Better?

Digital Signage – Not There Yet, but On Its Way

% Digital Signage Use or Capability

71% Sales or promotional announcements

46% Photo display (e.g. images of customers using various products)

38% Custom videos (e.g. tutorials, advice, customer testimonials, etc.)

35% Internet connectivity (e.g. to display store website, Facebook page, etc.)

31% Real-time product info (e.g. inventory quantities, product shipment dates, etc.)

30% Entertainment (e.g. TV or movie) to keep kids or others occupied while shopping

30% Touch screen display that allows customers to directly engage with the display

25% Product reviews from customers or third parties (e.g. Amazon, etc.)

18% App-enabled

Source: CompTIA’s Retailer Technology Adoption Trends studyBase: 500 U.S. retailers

Technology Changes the Nature of Payment

Mobile checkout via payment-enabled smartphones or tablets

Self-service, in-store kiosk

Direct sales via a third party website, i.e. eBay, Amazon, Etsy

Alternative POS payment processing, i.e. Square, PayPal

Accept orders via website_x000d_ that are processed offline

Direct sales via own website, using online processing and payment

19%

15%

15%

17%

18%

20%

13%

19%

24%

30%

45%

47%

Currently In PlacePlan to Deploy/ Adopt


Retailers Rely Heavily on Email and Facebook for Customer Engagement

Social coupon initiative,_x000d_e.g. Groupon

Geo-location initiative,_x000d_ e.g. Foursquare

QR codes used in_x000d_ marketing material

Blog geared towards_x000d_ customer engagement

Digital customer loyalty_x000d_ program (app-based)

Email-based marketing campaigns

Facebook page geared toward customer engagement

24%

28%

26%

23%

27%

20%

15%

18%

21%

25%

30%

31%

62%

65%

Currently Utilizing

Planning to Use


Managed Services May Be a Good Fit for Many Retailers, but Awareness is Low

Rating of Interest in the Concept of Managed IT Services

17%

28%

18%

0.23

0.08

NET Uninterested

NET Interest

Neutral

Very Interested

Interested

1. Consistent and reliable IT operations

2. Lower total IT costs

3. More technical expertise

4. Better security / loss prevention

5. Proactive approach to IT fixes, maintenance, etc.

6. Greater staff productivity due to less IT downtime

7. Greater capacity to manage peak busy times (e.g. holiday season)

Aspects of Managed IT Services Most Appealing to Retailers

26%

40%


Part 3: The Cloud

Connecting the Dots: The Maturing Cloud

Cloud-Driven Changes Alter IT Departments

Reduction in number of IT staff

Contracted with outside company_x000d_ (e.g. IT solution provider)

New monitoring/management tools

Restructured IT department

Adapted monitoring/management tools

New policy/procedure for cloud use

Change to existing IT policy/procedure

20%

21%

29%

33%

44%

55%

57%

Source: CompTIA’s 3rd Annual Trends in Cloud Computing studyBase: 415 U.S. IT or Business executives (aka end users) using cloud solutions

Cloud Procurement and Its Impact on the IT-LOB Relationship

Involvement of IT Team in Cloud Procurement

39%

13%

48%

Consulted without final approval

Approved procurement

Cloud-Related Needs/Incidents Requiring IT Team to Step In

Only informed/Not involved

Cloud solution not working as expected

Cloud solution required integration with other business systems

Cloud solution went down/unavailable

Security breach/data leak associated with cloud solution

Source: CompTIA’s 3rd Annual Trends in Cloud Computing studyBase: 415 U.S. IT or Business executives (aka end users) using cloud solutions

Cloud Continues to Re-Make the Channel

Not involved in cloud

End user of cloud only

Sell cloud services, but don't use internally

Both sell and use cloud solutions

42%

22%

22%

15%

13%

16%

30%

41%

14%

17%

36%

34%20112012

2010

Source: CompTIA’s 3rd Annual Trends in Cloud Computing studyBase: 279 U.S. IT channel partners

New Revenue Opportunities | Working to Offset Costs and Challenges

Top Costs/Challenges in Cloud Transitioning

1. Time/cost for training

2. Start-up investment (e.g. tools, technology, marketing, etc.)

3. Transition costs (including opportunity costs)

4. Evaluating cloud vendors

Vertical customization

Pre- and post-sales consulting

Integration

44%

48%

54%

Top 3 Service Attach Opportunities Garnered from Cloud Engagements

com

ptia

.org

Want to know more?

As the voice of the IT industry, CompTIA has hundreds of tools, market intelligence reports and training programs to help IT channel organizations grow their business through education, certification, advocacy and philanthropy.

Check it out at www.comptia.org.