CompTIA Research Roundup Carolyn April, Director Industry Analysis Tim Herbert, VP Research December 2011
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About CompTIA Research Program Why/How: • Measure, track, explore, interpret, data to intelligence • Member-‐driven program • Strict research controls | Independent data collecHon What: • 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) Where: hOp://www.compHa.org/members/research
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
“Evoluon is not mandatory; but then again, neither is survival.”
Some New “Change” Factors…Many Classic Factors • Economic factors 1 MARKET FACTORS • CompeHHon / commodiHzaHon • ShiLing expectaHons • AlternaHve delivery models 2 TECHNOLOGY FACTORS • Mobile business capabiliHes • Emerging technologies • Declining margins è complexity 3 MODEL FACTORS • 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
CriHcal AssumpHons Customer Alignment Ma[ers Most Target audience should determine model … not the other way around Evolu.on … Not Revolu.on Capitalize on strengths … change what needs to be changed … go deliberately Size Ma[ers … For Be[er & Worse Signiﬁcant changes take me, especially for bigger companies … but they also cost money Manage The Ripple Eﬀect Every decision will aﬀect mulple dimensions of the model … manage the interdependencies Never Forget The Human Factor No maDer how smart the model is … you sll need the people to be willing and able
Channel TransformaHon: The Cloud Channel momentum behind cloud compu.ng: 2011 vs. 2010 Both sell and use cloud 41% soluHons 15% Sell cloud services, but 30% 85% of channel dont use internally 22% companies idenHﬁed as having heavy 16% to moderate End user of cloud only involvement in cloud 22% 13% Not involved in cloud 42% 2011 2010
Outsourcing Trends by Business FuncHon 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. Mostly Mixed Mostly Done Outsourced Model 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 User Managed Services Usage Rates Current Managed Number of Years Using Service Usage Rate Managed Services 3% Use Managed Services 8% Less than 1 26% year 29% Do Not Use 2-‐less than 5 Managed years Services 68% 5+ years 52% Dont know 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 Not a Minor Major Reason Reason Reason Cost savings 9% 30% 61% Free staﬀ up to focus more on core 11% 38% 52% competencies Gain access to most current technologies 11% 39% 51% Improve security 14% 35% 51% Lack of in-‐house experHse with IT funcHons/ 13% 43% 44% systems Lack of Hme/resources to manage IT in-‐house 13% 43% 44% To handle management of remote oﬃces 32% 34% 34%
Managed Services in the Channel Among ﬁrms oﬀering managed services 5% Dedicated MSP 10% Hybrid business 49% Primarily reseller 37% New to managed services 62% of channel companies oﬀering managed services have done so for 5 years or longer.
MSP Challenges: Importance vs. ExecuHon Execu.on Importance* 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
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 21% Could be signiﬁcantly beOer 12% 11% Large ﬁrms 61% Could be somewhat beOer Medium-‐size ﬁrms 59% Small ﬁrms 42% 18% Fine as is 29% 47%
Managed Print Market PotenHal & Demand Drivers Elements of MPS that Most Considera.on of Managed Resonate with Customers Print Services Adop.on Over Next 12 Months 5% Deﬁnitely will 85% Cost savings / lower TCO Consider 7% 85% Consistent and reliable service 75% ProacHve approach to printer maintenance 32% 30% Probably will 26% Consider 73% Greater print cost predictability 72% Reduced energy consumpHon through device consolidaHon 72% Freeing IT staﬀ from printer Net will Not Net MPS maintenance duHes Consider ConsideraHon May or May Not Consider
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 Basis of Customer Inclusion of Hardware in Ini.al TCO Es.ma.ons MPS Engagement with Customer CombinaHon of actual 69% and average costs 54% Customer actual costs 17% 26% 20% Industry average costs 14% Rarely or Always Never Source: CompTIA’s Examining the Print and Document Management Market study In most cases, aOempt to Base: 247 U.S. Managed Print Service Providers opHmize the ﬂeet upfront
Needs of Firms Planning to Enter Managed Print Services Market BeOer understanding of vendor partner programs 41% Quality lead generaHon 36% Technical training 36% MPS markeHng collateral 34% Insights into customer pain points 32% IT cerHﬁcaHons or credenHals in MPS 30% Business training / MPS best pracHces 28% Sales training 21%
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 63% Currently Using 56% Plan to Start Using 25% 21% 17% 18% 13% 11% 10% 6% Netbooks or Laptop PC Tablets Smartphones Laptop PC Notebooks (rugged) (standard)
Medical Apps Usage on an Upward Trajectory % Using Medical Top Apps in Use* Apps Daily Epocrates 50% Medscape MedCalc 38% Merck Manual Sermo Skyscape ICD 9 / STAT ICD-‐9 Coder Micromedex Currently Expected Lexi-‐Drugs & Lexi-‐Interact Usage Next Year *among healthcare providers in this CompTIA study
Channel Concerns with Tablets in the HIT Space Dealing with security issues 39% Dealing with customers that have unrealisHc 38% expectaHons for tablets OpHmizing workﬂow to include tablets 36% OpHmizing legacy applicaHons for tablets 36% IntegraHng tablets into networking 32% infrastructure CannibalizaHon of other products 23% 61% of SoluHon Providers view Diﬃculty in add-‐on sales or consulHng 22% tablets as a net posiHve.
SoluHon Provider PercepHons of Most Challenging Aspects of EMR/EHR Meaningful Use Criteria Networking 53% Maintaining up-‐to-‐date list of acHve diagnoses Mobility 48% e-‐Prescribing 47% Maintaining acHve medicaHon allergies list AnalyHcs 44% Health informaHon exchange Security 44% InformaHon security risk analysis Interoperability 41% Clinical decision support Real-‐Hme data 36% CPOE
Service Oﬀerings to Healthcare Customers 64% Custom applicaHon development 30% 64% IT repair or maintenance 47% 61% Network setup, integraHon 55% 59% Storage, back-‐up or disaster recovery 43% 57% Website/intranet work 31% 54% Security related work 39% 54% EMR/EHR soluHons or related work 23% 47% Firms with Managed IT services 35% >50% of sales Reselling of IT hardware 43% from HIT 29% 42% Firms with Telecom/uniﬁed communicaHons 32% <50% of sales Consumer electronics related work 27% from HIT 15%
Thank You | QuesHons? Carolyn April Tim Herbert Director, Industry Analysis VP, Research capril@compHa.org therbert@compHa.org