The document is a summary of a teleconference between Forrester Research analysts Frank Gillett and Tim Harmon about emerging hardware trends based on Forrester's Business Data Services survey data. Some key points: - Business Data Services surveys over 14,000 IT executives annually about hardware, software, budgets and priorities. - For enterprises, server virtualization and consolidation are top priorities but cloud computing is still emerging. Infrastructure makes up 35% of IT budgets on average. - For SMBs, virtualization is also growing and over 40% of IT budgets go to hardware. Cost management is a key focus in the current economic environment.

2. October 15, 2009. Call in at 12:55 p.m. Eastern time Teleconference The State Of Emerging Hardware Trends Frank E. Gillett VP and Principal Analyst Tim Harmon Senior Analyst Forrester Research

9. We can cut survey results based on the following:

11. Enterprise hardware budget trends match overall IT budget trends “ How do you expect the current global economic conditions will affect the following over the next 12 months?”

12. Infrastructure is 35% of NA enterprise IT budget “ In 2009, how much of your firm's IT budget will go specifically towards hardware and infrastructure — including storage, servers, PCs, systems management and operating systems?” Base: Enterprise hardware decision-makers who have budget knowledge

13. More enteprises prioritize cuts and justification over shifting to services “ Which of the following actions do you expect to take in the next year as a result of the current economic conditions?”

14. Half of enterprises will increase spending on storage “ How do you expect your firm's spending on the following IT infrastructure expenses to change over the next 12 months?”

15. Enterprises prioritize consolidation and virtualization, but not cloud “ Which of the following initiatives are likely to be your firm's/organization's top hardware/IT infrastructure priorities over the next 12 months?”

16. SMBs’ HW spending to outpace overall IT budget “ How do you expect the current global economic conditions will affect the following over the next 12 months?” Base: 792 North American and European SMB hardware decision-makers who have budget knowledge

17. HW makes up >40% of SMBs’ IT budgets “ In 2009, how much of your firm's IT budget will go specifically towards hardware and infrastructure — including storage, servers, PCs, systems management and operating systems?” Base: SMB hardware decision-makers who have budget knowledge

18. Cost management weighs on SMBs’ decisions “ Which of the following actions do you expect to take in the next year as a result of the current economic conditions?” Base: 792 North American and European SMB hardware decision-makers who have budget knowledge

19. SMBs’ storage and server spending on the rise “ How do you expect your firm's spending on the following IT infrastructure expenses to change over the next 12 months?” Base: 792 North American and European SMB hardware decision-makers who have budget knowledge

20. Virtualization, business continuity top SMB initiatives “ Which of the following initiatives are likely to be your firm's/organization's top hardware/IT infrastructure priorities over the next 12 months?”

22. x86 virtualization is widespread in enterprises “ What are your firm's plans to adopt x86 server virtualization?”

23. Enterprises plan big virtualization growth Percentage of your x86 server OS instances operated as virtual servers rather than run directly on server hardware: (average percent of servers virtualized in companies of respondents)

24. Few enterprises use cloud hosted servers today “ What are your firm's plans to adopt pay-per-use hosting of virtual servers (also known as cloud computing) at service providers such as Amazon Web Services, Savvis, or Rackspace/Mosso?”

25. Capacity and flexibility top enterprise reasons to use cloud hosted servers “ How important were the following in your firm's decision to adopt pay-per-use hosting of virtual servers (also known as cloud computing)?”

26. Few enterprises use cloud hosted storage “ What are your firm's plans to adopt pay-per-use hosted storage capacity (also known as cloud storage or storage-as-a-service) at service providers such as Amazon Simple Storage Service, EMC Atmos, Nirvanix, Planet, or AT&T?”

27. Security, costs top enterprise storage cloud concerns “ Why isn't your firm interested in pay-per-use hosted storage capacity (also known as cloud storage)?”

28. More enterprises use cloud services for disaster recovery options than for compute “ What are your firm's plans to adopt the following disaster recovery technologies?”

29. v86 virtualization is widespread for SMB too “ What are your firm's plans to adopt x86 server virtualization?” Base: 580 North American and European SMB hardware decision-makers who have at least one x86 server

30. SMBs plan big virtualization growth Percentage of your x86 server OS instances operated as virtual servers rather than run directly on server hardware: (average percent of servers virtualized in companies of respondents) Base: 211 North American and European SMB x86 server virtualization decision-makers

31. The SMB cloud computing market still developing “ What are your firm's plans to adopt pay-per-use hosting of virtual servers (also known as cloud computing) at service providers such as Amazon Web Services, Savvis, or Rackspace/Mosso?” Base: 593 North American and European SMB hardware decision-makers

32. Capacity, continuity drive cloud computing interest in SMBs “ How important were the following in your firm's decision to adopt pay-per-use hosting of virtual servers (also known as cloud computing)?”

34. More than 20% of enterprises use some form of client virtualization “ What are your firm's plans to adopt the following alternative client PC technologies?”

35. More enterprises cite Dell as supplier of PCs “ Which PC manufacturer is your firm’s PRIMARY provider for PCs?”

36. Windows XP leads for enterprises “ What percentage of your firm's PCs run the following operating systems?”*

37. Windows 7 shows promise for enterprise “ Twelve months from now, which operating system do you expect to be installed most frequently on new end user PCs?” (multiple responses accepted)

38. SMBs’ interests in alternative PC tech is high “ What are your firm's plans to adopt the following alternative client PC technologies?”

39. SMBs favor Dell, HP, Lenovo, Fujitsu, Toshiba, and Apple as HW vendors “ Which manufacturer(s) does your firm currently use for PCs?”

40. Windows XP dominates SMB OS preferences “ What percentage of your firm's PCs run the following operating systems?”

41. Windows 7 shows promise for SMBs “ Twelve months from now, which operating system do you expect to be installed most frequently on new end user PCs?” (multiple responses accepted)

43. Enterprises educate on power management “ Which of the following PC power management tactics, if any, does your firm currently use?”

44. SMBs’ interests in business continuity are high and getting higher “ Do you have a backup data center or other site that acts as a failover location in the event of a data center failure?”

45. Half of SMBs are provisioning their backup in the cloud “ You previously said that your firm has a backup data center(s). How does your firm provision its backup data center(s)?”

47. Web searches, peers, and sales staff are primary sources for enterprises’ purchase info “ When researching and comparing hardware and technology infrastructure products, how important is each of the following media as a source of information for informing your purchase decisions?”

48. For information, enterprise buyers prefer web sites, technology press, and peers “ How do you expect your usage of the following online sources to change in the next 12 months?”

49. Peers, web sites, and social media inform SMBs’ purchase decisions “ When researching and comparing hardware and technology infrastructure products, how important is each of the following media as a source of information for informing your purchase decisions?”

50. SMBs will increasingly tap search, webinars, and social media “ How do you expect your usage of the following online sources to change in the next 12 months?”