IDC PRESENTATION
RAY BOGGS
Vice President, Small and Medium Business and
Home Office Research
1

WORLDWIDE SMB IT SPEND GROWTH
OUTPACES TOTAL SPEND GROWTH
EACH YEAR
Worldwide SMB IT spending
Worldwide total corporate IT spending
Source: IDC SMB Research and IDC Black Book 2008 and 2009
2

IMPACT OF CONCERN ABOUT
ECONOMY ON IT PURCHASING
NEXT 12 MONTHS
Small Mid-Sized
Business Business
38.1% 28.2%
Delay IT spending
33.9% 41.7%
Reduce IT spending
17.8% 29.8%
Focus spending on tactical
projects (immediate benefits)
11.8% 22.8%
Focus spending on strategic
projects (long term benefits)
4.7% 6.3%
Move to hosted/outsourced
solutions from ones we own
1.9% 4.5%
Reduce IT investments in
remote locations/branches
Multiple response!
Source: IDC’s SMB Survey, 2008
3

FACTORS ENCOURAGING USE OF
SOFTWARE-AS-A-SERVICE
Small Mid-Sized
Business Business
Pay for capabilities as needed 57.2% 39.3%
Ability to integrate in current apps. 25.5% 26.4%
environment
Ability to add new users without 24.6% 33.3%
difficulty
Ability to bring capabilities in-house 20.4% 18.8%
if needed
Remote management that eases IT 20.4% 18.8%
staff workload
Easier to support branch offices/ 15.3% 21.0%
remote offices
Multiple response!
Source: IDC’s SMB Survey, 2008
4

FACTORS DISCOURAGING USE OF
SOFTWARE-AS-A-SERVICE
Small Mid-Sized
Business Business
Concern about data security 52.8% 50.3%
Concern about recurring cost of 45.5% 36.7%
ownership
Concern about not ―owning‖ 34.9% 34.7%
software
Concern about service reliability 34.4% 25.6%
(including availability & backup)
23.7% 23.1%
Loss of control of IT dept over
applications
23.7% 21.2%
Prefer S/W and data remain onsite
Same rank!
Source: IDC’s SMB Survey, 2008
5

ESSENTIAL GUIDANCE
1. Economic concerns cut across regions:
– Spending/IT investments curtailed. Longer sell cycles.
– Near-term payback focus. MBs acting like SBs.
2. Supplier excitement about new technology not
as shared by SMBs:
– Practical realities more important than theoretical benefits.
– MBs are seeing benefits in next generation solutions —
especially ―cloud computing‖ and virtualization.
– Interest in online business resources growing as broadband
and local networking penetration grows.
3. For vendors, patience will be key while they inform
and excite SMBs about new technology.
6

SMALL & MEDIUM BUSINESS:
NO LONGER BUSINESS AS USUAL
LAURIE MCCABE
Partner
7

NO LONGER BUSINESS AS USUAL
SMBS ARE BEING SQUEEZED
Demands Constraints
How can IT help my
business navigate
Increase business Greater economic
value from IT uncertainty
through uncertainty
today…
Adopt new solutions Shrinking capital
to stay competitive
Uncertain cash flow
Solutions that do more
for less Scarcer IT resources
Higher, faster return-on- Fewer IT staff
investments
Growing IT
…and innovate
Reduce risks and costs complexity and
to get on a confusion
growth
More flexibility
trajectory for
tomorrow?
8

NO LONGER BUSINESS AS USUAL
WHAT SMBS WANT FROM VENDORS
Give me a smarter, easier, better and less
expensive way to manage my IT infrastructure.
Fix problems before they negatively affect
my business.
Free up my time so I can focus on helping
my business survive and thrive.
9

NO LONGER BUSINESS AS USUAL
WHAT VENDORS NEED TO PROVIDE
 24/7 monitoring Clear Business Value Easy to find,
and support  Cut Costs evaluate and buy
 Increase revenues  Transparent pricing
 Proactive  Streamline operations  Clear service
diagnostics and agreements
remediation
 Fast, responsive
resolution
Trusted Advisor Reduce risks
  Lower upfront
Understand my needs
 Strong data and  Proven expertise investments
network security   Predictable costs
Provide guidance
  Proactive support
Keep me informed
 Scalability   Flexible and scalable
No finger pointing
10

DELL SMB SERVICES…
SERVICES REDEFINED

THE TIME IS NOW…
12

MANY CHALLENGES
Downtime means IT must be easy;
lost revenue & resources are
productivity limited
IT solutions
Security is
that grow with
essential
my business
13

NEW SERVICES APPROACH
Accelerated... Web-based…
Flexible...Servi
Less complexity. Delivered remotely.
ces at the speed of
Faster results.
your business.
 

Easy to turn on Remote
Faster
or off monitoring &
deployment,
management
less cost
 Pay only for


what you need Free up people
Free up people
for more
faster to work
 Access latest strategic work
on more
innovation important
 Get up and
projects
running faster
 with less
Quickly scale
resources
up and down
14

DELL’S SERVICES MODEL
15

PROMANAGE-
MANAGED SERVICES
NATIONWIDE
16

AVAILABLE SERVICE PLANS
Select service level & add-on LEVEL 3
services as needed MANAGEMENT
7/24/365 End-User support desk
Vulnerability scanning
Patch management
& asset tracking
LEVEL 2 Support for Exchange and SQL
RESOLUTION Quarterly assessment & planning
Service Desk
7/24/365 remote remediation with patch scanning
LEVEL 1 Annual assessment and quarterly planning available
ALERTS Up to 2 hours on-site customer support monthly
Remote monitoring of networks, systems and applications
7/24/365 fault, performance and security alerts
Monthly reporting by email
Optional Add-on Services
• Troubleshooting & repair • Data storage & backup
• Virus & spyware issues, including OS • Installation
• Software Support • Network assessment & design
• Data Migration • Security assessment & design
17

LEVEL 1 – ALERTS
Automatic Alerts
Your Business
24x7x365
24x7x365
Remote
Remote
Monitoring
Monitoring
Dell Network
Operating Center
18

LEVEL 2 – RESOLUTION
On-site Assistance
Remote Resolution
Local Technical
Your Business Consultant
24x7x365
24x7x365
Remote
Remote
Monitoring
Monitoring
Dell Network
Operating
Service Desk
Center
19

LEVEL 3 – MANAGEMENT
On-site Assistance
Remote Resolution
IT Management
Local Technical
Your Business Consultant
24x7x365
24x7x365
Remote
Remote
Monitoring
Monitoring Dell Network
Operating
Help &Service Center
Desks
20

FOCUS ON YOUR BUSINESS
NOT YOUR IT
Less downtime with 24x7 proactive, remote monitoring
of PCs, services and networks
More uptime for employees and systems
Ability to shift resources to more innovative and
strategic initiatives
Faster resolution of problems when they do occur
NO upfront investment, no binding long-term contracts
Local reach backed by world-class capabilities
21

A SOLID DEFENSE
―We’ve had more success in the past three
months with Dell Managed Services than
we ever have in the past.‖
AronFogiel, Owner
Hoffbrau Steaks Restaraunts/HB Meats
“I’ve got a whole IT team. It’s Dell.‖
Tom Peters, IT Manager
Salesian Missions
22

CUSTOMER CHOICE
MANAGED SERVICES FOR PARTNERS
SALES AGENT CO-DELIVER PLATFORM
Available now!
Available now! ...by end of 2009
23

THANK YOU!