TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
Oct. 7, 2014
Converged Systems: From Infrastructure Alternative to Data Center Standard
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Converged Systems: Data Center Standard
Christian PerrySenior Analyst and Content Manager, Data Center
Email: [email protected]: @ITwriter
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Enterprise-level owners are evolving their approach to workload deployments on converged systems
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• Enterprise-level owners of converged systems report strong levels of satisfaction, driving plans to purchase more systems.
• Workload plans are evolving as customers’ requirements shift from data-centric to business-centric.
• Customer satisfaction reveals distinct differences between vendors in the space, particularly when comparing customers in different global regions.
Converged Systems: Data Center Standard
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
TBR’s Converged Infrastructure Global Landscape Report examines adoption, workloads, purchase factors, recommendations and more
Report Overview
TBR designed its Converged Infrastructure Global Landscape Report to examine multiple elements of the converged systems market:•Opportunity: What are customers spending, and what do they plan to spend?
o Budget: How much are customers paying for converged systems? What is their expected budget for converged systems in the next 12 months?
o Market size: What is the U.S. addressable market for converged systems?•Organizations and industries: What are the sizes and revenues of companies adopting converged systems? Which verticals are adopting converged systems? •Workloads: Which workloads are influencing purchases? Which workloads are deployed after purchase? Which workloads do customers plan to deploy on converged systems in the next 12 months?•System attributes: What is the importance of system attributes, including quality and reliability, to the purchase decision?•Satisfaction and buy again/recommend: How satisfied are customers with the performance and attributes of their systems? Would customers recommend systems to peers?•Vendors: How are vendors expanding their converged infrastructure portfolios to differentiate? What are their strengths, weaknesses, opportunities and threats?
TBR defines a converged system as a preconfigured and/or prevalidated combination of compute, storage, networking and system management software
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Converged systems are the go-to alternative to complex piece-part infrastructure, sparking a $17.8B global market opportunity
Piece-part infrastructure
Cloud
IT complexity Businesschallenges
Conv
erge
d sy
stem
s
OPPORTUNITYData center customers continue to seek
alternatives to piece-part IT infrastructure that increases in complexity as businesses grow. Converged systems have become the go-to
alternative. Customers in the U.S., EMEA and APAC at organizations with 1,000 or more
employees report an expected median budget of $455,000 over the next 12 months for
converged systems. This represents a global market opportunity of $17.8 billion over that
time period.
OPPORTUNITY-PLUSFor nearly half of the respondents in TBR’s Converged Infrastructure Global Landscape
Report, the purchase does not begin and end with the system itself. Many customers
are purchasing support and integration services as well as additional hardware and
software.
Converged Systems: Data Center Standard
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TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
ERP will emerge as a key influencer of purchases; although data-centric workloads remain a primary target of converged system customers
Although data-centric workloads (e.g., big data analytics, database, data warehousing) are heavy influencers of converged system purchases in the U.S., APAC and EMEA, regional differences are apparent. For example, while ERP was just the No. 5 workload to prompt purchases in the U.S., it was the No. 1 most influential workload in EMEA and No. 3 in APAC. However, the landscape will shift in the next 12 months.
Although the influence of ERP on converged systems purchases is strong in all regions, the influence will increase over the next 12 months. U.S., EMEA and APAC customers cited that the top workload they plan to deploy in the next 12 months is ERP.
Although traditional infrastructure is inherently capable of running today’s data center workloads, increased complexity is driving customers to converged systems to quickly deploy and reliably run workloads that will drive their businesses. Even if the initial investment may be more
expensive, customers are willing to pay for converged systems to hit the ground running with analytics, ERP and other business-impactful workloads.
Current
Future
Converged Systems: Data Center Standard
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APAC customers valued support more than customers in the U.S. and EMEA, while customers in all regions purchased additional products
APAC customers were by far the most influenced by support factors, including technical support, proactive and automated updates, and proactive systems alerts and insights, when it comes to a converged system purchase. By contrast, EMEA customers considered many support factors influential but not critically influential. For example, 52% of APAC customers were critically influenced by technical support, compared to just 29% of EMEA customers.
Data analysis and data management were the top two additional software products purchased with converged systems across all three regions. TBR observed differences in hardware pull-through, however, as U.S. and EMEA customers most often purchased additional networking equipment with their converged servers, while APAC customers most often purchased additional x86 servers.
The market for converged systems is quickly maturing as vendors increase their investments in the architecture and expand their portfolios. This growth is spawning opportunities for support and
product pull-through.
Converged Systems: Data Center Standard
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Cisco and IBM earn leading satisfaction positions in the U.S., while Dell earns high marks in EMEA
In the U.S., Cisco and IBM earned leadership positions in customer satisfaction across multiple attributes, including improved workload performance (over traditional infrastructure) and improved infrastructure management. Dell, on the other hand, struggled to keep pace with Cisco, HP, IBM and Oracle in a wide range of factors.
In the U.K, France and Germany, the tables turned. Dell assumed a customer satisfaction leadership position across a wide range of attributes, including product design and features, ease of doing business, technical support and improved workload performance. IBM, unlike its performance in the U.S., struggled against its competitors in multiple areas, including technical support.
Customer sentiment for converged systems is strong, driving overall high satisfaction across many system and purchase attributes across all vendors. However, regional differences reflect
opportunity for certain vendors to better position against persistent competition.
In China, India and Japan, where customers tend to emphasize a smaller set of system and purchase attributes, no vendor emerged as a leader in customer satisfaction. However, while Dell, HP, IBM and Oracle remained competitive across most attributes, Cisco fell behind in several customer satisfaction areas, including product design and features, technical support, and proactive updates and system alerts.
Converged Systems: Data Center Standard
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TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Converged Systems: Data Center Standard
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Influence of System Attributes on Purchase of Converged Systems
16%
11%
14%
10%
9%
6%
55%
60%
52%
50%
45%
41%
29%
29%
34%
40%
46%
53%
0% 20% 40% 60% 80% 100%
Open architecture
Product design/features
Hardware quality & reliability
Systems arrive fullytested/integrated
Improved workloadperformance
Improved reliability
Influence of System Attributes on Purchase of Converged Systems
Less influential Influential Critically influentialn=537SOURCE: TBR CONVERGED INFRASTRUCTURE GLOBAL LANDSCAPE, JULY 2014
TBR Findings• More than half of all customers reported improved
reliability was a critical influence on their converged systems purchase decision. TBR believes vendors’ sales teams must be able to demonstrate the reliability of their converged offerings to appeal to most customers.
• Although hardware quality and reliability remains an influential attribute for buyers of converged systems, it does not have the same influence as it does for other purchases, such as for traditional servers.
Improved reliability and workload performance were key drivers in the purchase decisions of converged systems customers worldwide
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Influence of Support Attributes on Purchase of Converged Systems
18%
17%
16%
11%
7%
9%
58%
55%
52%
50%
53%
48%
24%
27%
32%
39%
39%
43%
0% 20% 40% 60% 80% 100%
Legacy management support
Single point of support
Multivendor/third-partysupport
Proactive system alerts andinsights
Proactive and automatedupdates
Technical support
Influence of Support Attributes on Purchase of Converged Systems
Less influential Influential Critically influentialn=537SOURCE: TBR CONVERGED INFRASTRUCTURE GLOBAL LANDSCAPE, JULY 2014
Purchases worldwide were most often influenced by a vendor’s technical support and proactive updates
TBR Findings• Technical support, proactive updates and proactive
system alerts were the three support attributes that most often influenced converged systems purchases.
• Having a single point of support was one of the least influential support attributes. TBR believes many customers are operating heterogeneous data centers and as a result place less importance on having a single point of support, as they are accustomed to working with support personnel from multiple vendors.
Converged Systems: Data Center Standard
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TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Converged Systems: Data Center Standard
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8% 5% 5% 9% 10% 9% 13% 11% 6%15% 14% 12%
21% 15% 9% 12% 17%7%
42% 49%35%
47%55%
34%48% 57%
48%47% 54% 57%
53% 59%56%
60% 59%60%
50% 46%60%
44% 35%57%
39% 32%46% 38% 32% 31% 26% 26%
35% 28% 24%33%
0%
20%
40%
60%
80%
100%
U.S.n=219
EMEAn=136
APACn=182
U.S.n=219
EMEAn=136
APACn=182
U.S.n=219
EMEAn=136
APACn=182
U.S.n=219
EMEAn=136
APACn=182
U.S.n=219
EMEAn=136
APACn=182
U.S.n=219
EMEAn=136
APACn=182
Improved reliability Improved workloadperformance
Systems arrive fullytested/integrated
Hardware quality &reliability
Open architecture Product design/features
Influence of System Attributes on Purchase of Converged Systems by Region
Critically influential Influential Less influentialSOURCE: TBR CONVERGED INFRASTRUCTURE GLOBAL LANDSCAPE, JULY 2014
TBR Findings• TBR’s research indicates improved reliability and improved workload performance were the two system attributes
that were most critically influential to converged system purchases in all three regions. • A key value proposition of converged systems is ease of deployment, as reflected by the “Systems arrive fully
tested/integrated” attribute. TBR believes data center customers are looking for opportunities to decrease time spent integrating newly purchased architecture in their environments.
Customers in the U.S., EMEA and APAC noted improved reliability as the most influential system attribute in their purchase decisions
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Converged Systems: Data Center Standard
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Customers in APAC display higher levels of satisfaction across nearly all converged systems attributes than customers in the U.S. and EMEA
5.51
5.61
5.66
5.81
5.79
5.85
4.88
5.02
5.04
5.11
5.15
5.02
5.08
5.08
5.09
5.25
5.39
5.47
4.00 5.00 6.00 7.00
Power savings
Capex/Opex savings
TCO
Scalability path
Easy to buy (single SKU)
Ease of doing business
U.S.n=219
EMEAn=136
APACn=182
SOURCE: TBR CONVERGED INFRASTRUCTURE GLOBAL LANDSCAPE, JULY 2014
Neutral Satisfied VerySatisfied
ExtremelySatisfied
Satisfaction with Cost and Purchase Attributes of Converged Systems by Region
5.55
5.75
5.91
5.67
5.76
5.75
5.88
4.86
5.03
5.21
4.97
5.15
5.15
5.22
5.14
5.26
5.26
5.29
5.31
5.33
5.37
4.00 5.00 6.00 7.00
Legacy management support
Application deploymentaccelerators/automation
Unified patchmanagement/firmware drift
management
Technical support
Simplified deployment
Time todeployment/production
Improved/simplifiedinfrastructure management
U.S.n=219
EMEAn=136
APACn=182
SOURCE: TBR CONVERGED INFRASTRUCTURE GLOBAL LANDSCAPE, JULY 2014
Neutral Satisfied VerySatisfied
ExtremelySatisfied
Satisfaction with Support and Deployment Attributes of Converged Systems by Region
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
IBMHP
ORACLEORACLE
Hardware quality/reliability Strong
Weak
Strong
Prod
uct d
esig
n/fe
atur
es
Weak
HP led the pack in the U.S. for product design and hardware quality and reliability, and Dell struggled to keep pace
Dell
OTHERCISCO
HP continues to leverage innovations and reliability measures born in its traditional ProLiant business to build a continually expanding converged infrastructure portfolio.
Despite Dell’s efforts to innovate through portfolio additions such as VRTX, customers perceive the vendor’s offerings as weaker in design and quality than competitors’ offerings.
Customer perception of IBM’s converged systems is strong but will be in limbo as Lenovo prepares to acquire IBM’s portfolio.
SOURCE: TBR
U.S. Customer Satisfaction: Product Design vs. Hardware Quality
Converged Systems: Data Center Standard
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TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
IBM
HP
Hardware quality/reliability Strong
Weak
Strong
Prod
uct d
esig
n/fe
atur
es
Weak
HP led in product design and hardware quality in EMEA, while customer perception of Dell in the region improved over its perception in the U.S.
DellOther
Cisco
HP’s ability to leverage innovations and reliability measures from ProLiant, its traditional converged infrastructure business, enabled the company to drive high satisfaction scores among EMEA customers.
Cisco obtained lower satisfaction scores in EMEA than in the U.S., which TBR attributes to the company’s much smaller install base outside its home market.
EMEA Customer Satisfaction: Product Design vs. Hardware Quality
OracleOracle
Dell’s satisfaction scores in EMEA were similar to those in the U.S. However, when compared to other top vendors, the company only trailed HP.
Converged Systems: Data Center Standard
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SOURCE: TBR
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
IBM
HP
Hardware quality/reliability Strong
Weak
Strong
Prod
uct d
esig
n/fe
atur
es
Weak
In APAC, Oracle broke out from the U.S. and EMEA packs through strong customer perception of the vendor’s system attributes
DellOther
Cisco
Whereas Oracle was in the middle of the pack for customer perception around hardware quality and reliability in the U.S. and EMEA, it led its OEM competitors by a wide margin in APAC.
As in EMEA, Cisco struggled to keep pace in APAC with its competitors around customer perception. Cisco’s customer perception is much stronger in the U.S.
APAC Customer Satisfaction: Product Design vs. Hardware Quality
Oracle
IBM customers in APAC have a much stronger perception of the vendor’s systems, in product design and features and hardware quality, than IBM customers in EMEA.
Converged Systems: Data Center Standard
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SOURCE: TBR
TBR
TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Converged Systems: Data Center Standard — Q&A
Questions?
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TBR Quarterly Webinar Series | 10.7.14 | www.tbri.com | ©2014 Technology Business Research Inc.
TBR regularly tracks data center infrastructure through extensive customer research
• TBR’s Converged Infrastructure Global Landscape Report identifies current and future business opportunities for converged system vendors, based on more than 1,300 surveys of converged system owners.
Supporting Research Studies
• TBR’s Hyperscale Server Customer Landscape Report identifies current and future business opportunities for hyperscale server vendors, based on nearly 300 surveys of enterprise hyperscale server owners.
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James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
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Converged Systems: Data Center Standard — Contact Information
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Christian PerrySenior Analyst and Content Manager, Data Center
Email: [email protected]: @ITwriterTelephone: 603.758.1828
TBR
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