A Review of IBM Support Services and Their Strategic Planning
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- Barnard Harris
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1 A RETROSPECTIVE ANALYSIS OF IBM SUPPORT SERVICES CUSTOMER SATISFACTION IBM consistently meets high customer expectations with its broad services catalog November 2011 Summary Consistent delivery on support services quality defines IBM s No. 1 ranking in s service and support customer satisfaction study IBM has established and met a high expectation for consistency among its customers over time. IBM, as shown by s syndicated quarterly Corporate IT Service & Support Customer Satisfaction Study, has done so by delivering high levels of quality within its service and support for System x x86 servers. Such high demands ultimately place a burden on IBM to perform better in Technology Business Research s quarterly customer satisfaction tracking studies. While hardware quality makes IBM customers among the most loyal in the industry, evidenced by IBM s performance in s x86-based Server Customer Satisfaction Study, it is the technical support that completes the picture of IBM as a trusted partner for businesses working to optimize infrastructure capabilities and value. IBM has held the No. 1 status in s quarterly Corporate IT Service & Support Customer Satisfaction Study for the past six quarters, racking up a total of 24 competitive strength points across multiple support offering categories against competition that failed to deliver any strengths. assigns a competitive strength when survey participants rate a vendor substantially higher than average, outpacing competitors across at least three of the five tests applies relative to the customer experience. Weighted Satisfaction Indices CUSTOMER SATISFACTION WITH SERVER SUPPORT, 1Q10 to 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 IBM s WSI score (compilations of its ability to meet customer expectations across nine different server support offerings) has lead for the past six quarters in s study. SOURCE: 1Q10 through 2Q11 Corporate Service & Support Customer Satisfaction Studies TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 1
2 With IT organizations struggling to handle the increasing complexities of new technology solutions in the datacenter under the restrictions of carefully scrutinized budgets, customers are looking for ways to balance the capabilities of their internal resources against outside assistance and that assistance needs to come from a trusted partner. believes its study results demonstrate IBM has been the most successful at putting these pieces together through its broadly differentiated support services. In preparing this summary, analyzed IBM s competitive performances in the past six quarters within our Corporate IT Service & Support Customer Satisfaction Studies in the x86-based server segment. This retrospective analysis focuses on the evidence supporting the premise that IBM has effectively delivered what customers expect relative to support for both x86-based servers and storage solutions. IT organizations need a balance of internal resources and OEM-provided talent to meet today s dynamic support requirements With s 2Q11 study indicating that customers are in the midst of a significant server and storage product refresh cycle, it is critical that customers balance the needs these changes create between internal IT staff and external sources of support. Against technologies that dynamically grow in complexity, support infrastructure needs must adapt in concert with these changes while retaining a level of simplicity and, as s studies have consistently shown, most internal support organizations lack the expertise to go it alone. Consistently-stated challenges of internal support organizations include lack of appropriate expertise/training, particularly of the specialized variety, insufficient coverage of staff resources, replacement parts availability, and IT complexity. Broadly differentiated support services define IBM s success model Most IT organizations utilize a mix of in-house staff and support provided by their OEM or authorized support partner. IBM customers consistently rate IBM highly across all key aspects of the support experience, leading to IBM s No. 1 ranking in s Corporate IT Service & Support Satisfaction Study for the past six quarters. has identified the strength of IBM s support model through its regularity continually meeting extremely high customer expectations; its consistency delivering uniform quality experiences; and its reputation as a trusted source for deep technical expertise. TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 2
3 In reviewing IBM s support model specifics, recognizes several features that align to these results: IBM provides a very large pool of service & support professionals that enjoy direct access to IBM R&D in a collaborative model; IBM s support services are consequently integrated to the extent that these close links provide uninterrupted support enhanced by the expertise of all of IBM s departments; IBM s support services are driven by proven, consistent methods that support change management in an increasingly dynamic environment; IBM s support operations are centralized, providing a single point of accountability and delivering great consistency; IBM s support offerings are modular, customizable and available at multiple levels to meet the varying needs, goals and budgets of its customers; The combination of all of the above provides the necessary balance for a comprehensive solutions network between its customers internal support teams and IBM professionals. IBM provides the proper mix of technical expertise to help customers adapt to change IBM s portfolio of warranty and post-warranty support services provides a broad framework from which customers can select the program most suitable for their goals. Among the features of IBM s support offerings are a simple yet robust portfolio including: a single point of accountability to manage multiple sourced solutions and parts; proactive (preventative) and automated event monitoring; SLA fulfillment that adapts to meet the dynamics of changing workloads; flexible options (service levels, response times) to provide customers with more customized services; a large pool of support experts with deep technical knowledge and proven expertise; and a comprehensive set of specialized, customized or prepackaged services. On the surface, it appears all server vendors offer similar support services portfolios, designed to meet the needs of customers based on extensive research. So what is different about IBM, in that s study results have consistently rated its levels of customer satisfaction higher than competitors? s study results strongly suggest there is a difference in customer experience between IBM s and competitors support offerings. has developed expertise in analyzing and understanding customer feedback throughout the past 15+ years of the study s history. In the case of IBM and support services for its x86-based server line and storage solutions, has identified several key factors that underline IBM s success and differentiate its support services. 1. Consistently delivers its support services to meet the high demands of its customer base no surprises, always as expected; s study results show this through the number of consecutive wins across multiple categories. 2. Providing the same quality support services under all conditions, manner of requirement, type of customer, etc.; the uniformity of IBM support services is demonstrated through strong customer opinion consensus among IBM customers interviewed. 3. Positions itself as a trusted source for technical expertise; this is highlighted by IBM s dominance within the technical expertise category as well as its success that extends across multiple aspects of the support experience, covering on-site, phone & online support, parts availability, and the perception of value. TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 3
4 Study Details IBM is a frequent standout in s studies During the past six quarters, in which IBM has achieved solid No. 1 rankings in s study, we have observed some noteworthy performances. IBM has excelled across a variety of key areas that touch on each aspect of the support experience. Among IBM s records: Competitive strengths for overall break/fix services in five of the past six quarters (and in six of the past seven); Five successive wins for on-site technical expertise; Two successive wins for both phone support and parts availability; Competitive strengths for the past three quarters for perceptions of overall support services value. IBM SUPPORT COMPETITIVE STRENGTH WINS, PAST SIX QUARTERS IBM has accumulated 24 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Competitive Strength Overall Break/Fix Services points in the past six On-site Technical Expertise quarters. On-site Response Time/Commitment Telephone/Helpdesk Support Replacement Parts Availability Support Services Pricing/Value Online Support =-assigned Competitive Strength =Competitive Strength with Distinction = Neutral performance, comparable to industry averages SOURCE: 1Q10 through 2Q11 Corporate Service & Support Customer Satisfaction Studies IBM brought a total of five wins within the two most recent quarters in both the 1Q11 and 2Q11 quarters. IBM s satisfaction ratings were decidedly higher than average across six distinct measures as well as for the overall satisfaction rating. Its wins included three categories that sum up the overall support experience break/fix services, support services pricing/value, and overall satisfaction. TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 4
5 Mean Score, 7-Pt. Scale Break/Fix On-site Response Time On-site Expertise Phone Support SOURCE: 2Q11 Corporate Service & Support Customer Satisfaction Study IBM strongly addresses expectations for overall server/storage maintenance quality The overall break/fix services category in s study refers to basic hardware maintenance support, including both warranty and extended warranty coverage. It is a summation category that encompasses all methods of support opted by the customer, including both on-site and remote (phone, online) support services as well as parts replacement for self-maintainers. It is consistently ranked by study participants as one of the most critical categories measures. IBM has generally led the break/fix support category for the past three years. Mean Score, 7-Pt Scale Q11 CUSTOMER SATISFACTION BY SERVER SUPPORT OFFERING CUSTOMER SATISFACTION WITH OVERALL SERVER BREAK/FIX SERVICES 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Deep technical expertise is among IBM s greatest strengths in s studies Web Support SOURCE: 3Q08 through 2Q11 Corporate Service & Support Customer Satisfaction Studies On-site technical expertise is a category where IBM customers, in particular, express high expectations of their solutions partner. They have been conditioned to assume IBM will consistently deliver the specific expertise that IT departments may lack to maintain order in the datacenter. s study results indicate that high expectations within a customer group tend to drive satisfaction scores down. Yet, this has not been the case with IBM. Despite, or perhaps because of, high demands from its customer base, IBM manages to turn this challenge into strength. Remotely Managed Hardware Deployment Parts Availability Overall Value Overall Satisfaction During 1H10, satisfaction ratings soared in response to recent server spending sprees following pent-up demand during the 2009 recession. Scores subsequently corrected as the exuberance wore off. TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 5
6 At one time, customer expectations were not fully met by IBM for expertise. However, IBM leaned on its core trusted partner value proposition to overcome customer perception challenges. IBM is perceived as presenting the strongest value proposition for support services Before 2010, Dell Services led in terms of customer perception around the overall value of server and storage support services. However, a significant shift in customer sentiment occurred in 1Q10 and has persisted; IBM is now perceived by customers as offering the best value for the price with respect to technical support services, leading the competition for the past six quarters in this regard. Mean Score, 7-Pt. Scale About the Studies Mean Score, 7-Pt. Scale CUSTOMER SATISFACTION WITH SERVER SUPPORT ON-SITE TECHNICAL EXPERTISE 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 SOURCE: 3Q08 through 2Q11 Corporate Service & Support Customer Satisfaction Studies CUSTOMER SATISFACTION WITH OVERALL VALUE OF SERVER SUPPORT SERVICES 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 SOURCE: 3Q08 through 2Q11 Corporate Service & Support Customer Satisfaction Studies Over time, IBM s satisfaction ratings for server support services value have improved substantially and with very positive results competitively. s Corporate IT Service & Support Satisfaction Study has been published quarterly since its inception in 3Q00. The 2Q11 study, published in September 2011, was based on the views of 642 IT professionals that oversee technical support at midsized and large corporations in the United States and Canada. On average, these respondents manage the support requirements for 185 x86-based servers within their datacenters. s panel of respondents has been prequalified for participation, with the study implemented as an online questionnaire. TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 6
7 About specializes in providing in-depth and timely insights within the computer, software, telecom, mobility and professional services industries. These critical insights can provide value to all levels of your organization: executive, sales, marketing, product and business development, finance, procurement, and others. We deliver this intelligence in a format that is uniquely responsive and tailored to your needs, and we do so as an objective source, which allows you to look at the market from a fresh, impartial perspective. This document is the result of research performed by Technology Business Research, Inc. that was underwritten by IBM. believes its analysis of the findings is objective and represents the most reliable interpretation of the data available at the time of publication (November 2011). Sources: 1. Corporate IT Service & Support Customer Satisfaction Studies, 1Q08 through 2Q11 2. x86-based Server Customer Satisfaction Studies, 1Q97 through 2Q11 3. Key Tactical Support Considerations for SMART IT Infrastructures, an IBM whitepaper, August 2011 TECHNOLOGY BUSINESS RESEARCH, INC. P: (603) pg. 7
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