Lenovo leads in x86-based server customer satisfaction in 3Q15. November 2015 TBR T EC H N O LO G Y B U S I N ES S R ES EAR C H, I N C.

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1 Lenovo leads in x86-based server satisfaction in 3Q15 November 2015 TBR T EC H N O LO G Y B U S I N ES S R ES EAR C H, I N C.

2 Introduction In the global server market, s are increasingly replacing aging proprietary systems and deploying new solutions using x86-based servers to achieve better business outcomes. As a result, x86-based servers are used in demanding use cases such as enterprise resource planning (ERP), relationship management (CRM), business intelligence and analytics. To ensure continuous uptime for these mission-critical workloads, s require x86-based servers to have strong performance and reliability, backed by a vendor with a solid services and support organization. TBR s 3Q15 Corporate IT Buying Behavior and Customer Satisfaction Study: x86-based Servers (CSAT x86-based Servers Study) found s require a server vendor to excel in several areas, including sales processes, product quality, and services and support. Because qualified survey respondents made an x86 server purchase in the past 12 months, the IBM/System x sample represents s who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Satisfaction scores from TBR s 3Q15 CSAT x86-based Servers Study show s view Lenovo as a provider of high-quality x86-based servers, services and support. TBR measured 22 satisfaction attributes, and Lenovo was the outright leader or tied for the lead in rolling six-month mean satisfaction scores in all attributes. Lenovo s overall weighted satisfaction score, which includes sales, product and service attributes, was 76.5 out of a possible 100, surpassing Dell and HP, which scored 74.2 and 73.9, respectively. TBR believes Lenovo s leading satisfaction scores indicate the company is meeting x86-based server expectations through high-quality hardware and consistently strong sales, services and support. Vendors that excel in critical aspects of satisfaction best meet expectations Server uptime is vital to s in the data center market, as globalization trends require continuous uptime, particularly for business-critical workloads. TBR believes s place a premium on vendors with highly reliable hardware to prevent outages, as well as vendors with strong maintenance services and readily available replacement parts to get servers up and running quickly if failures occur. Leading server vendors Lenovo, HP and Dell have historically performed well in product-related aspects of x86-based server satisfaction, as s expect reliable, high-performing and high-quality x86-based solutions. As a result, differentiation through these product-related attributes has become more challenging, and vendors are turning to sales and support areas such as delivery time and product availability, ongoing services and maintenance, on-site support, and phone support to set their x86-based servers apart from the competition. On a quarterly basis, TBR surveys x86-based server s to determine the sales, product and service attributes most important to satisfaction. TBR s CSAT x86-based Servers Study ranks these attributes as critically important, important or less important. In the 3Q15 report, s rated performance; ongoing hardware reliability; initial hardware quality; virtualization, efficiency and scalability; total cost of ownership (TCO); product design/features; replacement part availability; and purchase price/acquisition cost as the most critical attributes to overall satisfaction with their x86-based servers. Services, support, maintenance and management attributes are secondary to product-centric satisfaction aspects, but TBR believes they are becoming more important as vendors seek new ways to differentiate. Initial hardware quality and ongoing reliability Customers are deploying a wider range of workloads on x86-based servers, including performance-intensive and business-critical applications. To support these workloads, s require x86-based server hardware that addresses their IT requirements, such as ensuring continuous uptime. This was demonstrated in TBR s 3Q15 CSAT x86-based Servers Study, which found initial hardware quality and ongoing hardware reliability are critical aspects to overall satisfaction. 2 System x Server White Paper November Technology Business Research, Inc.

3 Performance Server s are increasingly opting for x86-based solutions for their infrastructure consolidation efforts, and cloud, analytics and mobility IT initiatives. Server vendors invest in workload-centric solutions to provide greater performance in areas such as analytics, in-memory databases and business-critical enterprise applications. Virtualization, efficiency, scalability Data center s are taking advantage of server virtualization to improve server efficiency and reduce IT operating expenses. As server virtualization has a growing impact on enterprise data centers, businesses seek server hardware that can be scaled easily and cost effectively. Further, automation technologies simplify management for IT teams, and enable s to unlock additional business benefits by freeing IT staff to focus on business-critical initiatives. TBR expects s will continue to demand x86-based server hardware that is scalable, efficient and flexible, as the use of server virtualization continues to grow and s seek new avenues to reduce IT costs and increase efficiencies. Service and support To augment their in-house IT organizations, server s choose data center vendors with strong services, support and maintenance organizations. In TBR s 3Q15 CSAT x86-based Servers Study, seven out of nine service attributes were ranked by s as either critical or important to overall satisfaction, indicating s require highly available services and support backed by strong technical expertise. Further, TBR research finds sales and support attributes differentiate vendors and their otherwise similar products. High satisfaction levels in service attributes such as on-site and over-the-phone support indicate s continue to gain added value from their server purchases. Purchase price and total cost of ownership (TCO) In TBR s 3Q15 CSAT x86-based Servers Study, purchase price/acquisition cost and TCO remained critical factors to s overall x86-based server satisfaction. The rising influence of cloud, analytics and mobility IT trends shifts the value proposition in the global data center market from hardware to software and services, contributing to the commoditization of x86-based server hardware. As a result, s are increasingly demanding lower prices for their x86-based server purchases. Further, TBR research finds s consider TCO as more critical to satisfaction as they work to gauge the long-term business impact of x86-based server purchases more accurately. Lenovo outperforms competitors again in critical sales, product and support attributes In TBR s 3Q15 CSAT x86-based Servers Study, Lenovo increased its mean satisfaction score in 20 of 22 attributes, securing its No. 1 ranking in all attributes compared to Dell and HP. Lenovo invests in its x86-based server portfolio to meet expectations in critical product-related attributes such as initial hardware quality, ongoing hardware reliability and performance. In 3Q15 Lenovo increased its satisfaction score at least 1% sequentially in all product attributes, and over 2% in initial hardware quality and ongoing reliability satisfaction. Lenovo will continue to invest in its x86-based business to ensure it meets s product, sales and service expectations. Further, Lenovo will continue to use aggressive pricing as it aims to capture new s and build its brand in the global data center market. Initial hardware quality and ongoing reliability Lenovo develops its x86-based server portfolio to meet expectations for initial hardware quality and ongoing reliability, both of which are critical to s overall x86-based server satisfaction. In TBR s 3Q15 study, s reported strong satisfaction with System x initial hardware quality, resulting in Lenovo earning the No. 1 position in rolling six-month satisfaction over Dell and HP. [Servers are] easy to use and have no problems with performance. rack Lenovo s x86-based servers also achieved strong scores in ongoing hardware reliability in 3Q15, and the vendor was the leader for rolling six-month satisfaction in the category. Hardware reliability will remain critical to satisfaction and will play a key role in purchasing decisions of s deploying business-critical 3 System x Server White Paper November Technology Business Research, Inc.

4 workloads. Lenovo s leading hardware reliability satisfaction score indicates the vendor is meeting expectations with highly reliable server hardware that enables s to prevent downtime. Performance In 3Q15 Lenovo s x86-based servers again achieved the highest rolling six-month mean satisfaction scores for performance in TBR s CSAT x86-based Servers Study. Lenovo s 3Q15 rolling six-month x86-based server performance satisfaction score of 5.54 was up 1.5% sequentially. Among businesses with medium IT departments (51 to 300 employees), Lenovo s System x server performance satisfaction score of 5.85 was higher than Dell s and HP s x86-based server performance scores of 5.28 and 5.49, respectively. TBR believes this demonstrates the vendor s success in leveraging System x to target midsized businesses. Virtualization, efficiency, scalability Lenovo s six month virtualization, efficiency, scalability satisfaction score increased 1.9% from 2Q15, helping the vendor maintain its No. 1 position in the category over competitors Dell and HP. Lenovo scored particularly well among s with medium IT departments, earning a score of 5.8 compared to Dell s and HP s scores of 5.22 and 5.24, respectively, in the segment. In the data center market, server s require a vendor that enables them to easily add server capacity and scale their infrastructure environments as their businesses grow, improving server longevity and TCO. Customers use server virtualization to add workloads without having to purchase new servers, supporting operational efficiency and providing cost savings. TBR believes Lenovo s leading virtualization, efficiency, scalability satisfaction scores indicate the vendor s s find its servers to be scalable, enabling users to increase capacity and add workloads as needed. Service and support In TBR s 3Q15 CSAT x86-based Servers Study, s surveyed were asked to provide feedback on nine attributes related to the services and support of their x86-based servers. Lenovo earned the No. 1 position in all nine services and support attributes, spanning phone, on-site, online, social media and automated support, as well as ongoing maintenance and replacement parts availability. This indicates Lenovo is leveraging its services and support staff to troubleshoot issues quickly and successfully, helping s minimize server downtime and drive efficiency. Purchasing x86-based servers from Lenovo enables organizations to focus on meeting their business goals such as reducing costs, improving profitability, gaining market share and expanding their portfolios. Lenovo offers multiple service options for s, ranging from support services to entirely managing servers throughout their life cycles. While Lenovo finalized the purchase of IBM s x86 business in October 2014, the vendors agreed for IBM to assist with System x support for a minimum of five years, helping Lenovo maintain its leading services and support satisfaction scores. TBR believes the vendors benefit from their experience with a similar agreement made when Lenovo purchased IBM s PC unit in 2005 and IBM provided services and support for a period of time for its divested PC business. Purchase price and TCO Lenovo earned the No. 1 ranking in rolling six-month satisfaction for both purchase price/acquisition and TCO in TBR s 3Q15 CSAT x86-based Servers Study. TBR believes TCO provides s a more accurate view of their spending on x86- based servers; however, purchase price remains a critical aspect of satisfaction. Lenovo continues to deliver strong value to its x86-based server s, demonstrated by its leading position in TCO and purchase price satisfaction in TBR s study. Scalability is crucial, and Lenovo lives up to its claims. We ve always been able to get in touch with Lenovo representatives quickly whenever we need to; very responsive. It is a good overall price." blade 4 System x Server White Paper November Technology Business Research, Inc.

5 Conclusion System x servers continue to meet and exceed s product, sales and service expectations for their x86- based servers. Customers surveyed in TBR s CSAT x86-based Servers Study are consistently satisfied with System x hardware dependability and quality; performance; virtualization, efficiency and scalability; services and support; and purchase price and TCO. Lenovo s No. 1 overall ranking in TBR s study demonstrates its sales process, hardware quality, pricing and services meet the growing demands of x86-based server s. About TBR s Quarterly Customer Satisfaction (CSAT) Studies Technology Business Research, Inc. (TBR) measures the expectations, satisfaction and loyalty of enterprise s in its quarterly CSAT studies. TBR surveys more than 1,200 individuals responsible for purchasing x86- based servers and PCs at North America-based enterprises with more than 500 employees on a quarterly basis. TBR ranks major vendors in each form factor area through a series of indices including sales satisfaction, product satisfaction, service satisfaction and loyalty. About TBR Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. For more information TBR has been empowering corporate decision makers since For more information, visit Technology Business Research, Inc. This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce. 5 System x Server White Paper November Technology Business Research, Inc.

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