Information Technology Outsourcing (ITO) Market Update: October 2010 Preview Deck Topic: Virtual Desktop Infrastructure Supplier Assessment
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1 Information Technology Outsourcing (ITO) Market Update: October 2010 Preview Deck Topic: Virtual Desktop Infrastructure Supplier Assessment
2 Background and scope of the research Background of the research Virtual Desktop Infrastructure (VDI) is getting considerable attention as an alternate desktop delivery mechanism Everest reached out to major multinational corporations (MNCs) and Indian suppliers serving the desktop market in North America to understand their VDI strategies. We analyzed their VDI capabilities along the key dimensions of their experience, size/scale, global capabilities and strategy We also developed a framework to analyze critical factors a supplier should incorporate to make its VDI strategy successful MNC suppliers appear to be better placed in providing VDI solutions than their Indian counterparts due to their history of desktop management, local presence, and domain knowledge of virtualization The scope of analysis includes Capability assessment of major suppliers in terms of providing VDI services in North America Profiles of major MNCs and Indian desktop management provider Analysis of desktop management and VDI strategies of suppliers 2
3 Table of contents Topic Page no. Section I: Methodology 4 Summary 5 Description of methodology 6 Key dimensions of assessment 7 Section II: Supplier assessment 9 Summary 10 Assessment of MNC suppliers 11 Assessment of Indian suppliers 12 Section III: Supplier profiles 13 Summary 14 Profiles 15 Section IV: VDI strategy critical success factors 34 Summary 35 Critical success factors 36 Appendix 38 3
4 Overview and abbreviated summary of key messages (page 1 of 2) This report is a subsequent effort to an earlier research piece on the VDI market. Major suppliers are assessed in this report based on their capabilities to serve large VDI buyers in the North American market. Everest developed a comprehensive framework within which these suppliers were assessed and given relative strengths. Various parameters such as experience in desktop management, virtualization technologies, depth of infrastructure services and VDI strategy going ahead, were analyzed to provide an overall score to each supplier. Key sections in the report are Methodology Everest reached out to major suppliers to understand their global delivery capabilities in desktop management, size and scale of their operations, view on the VDI market and their strategy to tap the market The outreach was followed with an interaction with each supplier to understand in more depth its offerings, strategy and future plans Different weights were assigned to various parameters including qualitative analyst insights on their strategy Supplier assessment The data gathered in the outreach was fed into a comprehensive framework to arrive at overall assessment of each supplier MNCs came out as more capable to provide VDI services to North American buyers due to their understanding of the virtualization landscape, competence in desktop management and their plans for the future 4
5 Overview and abbreviated summary of key messages (page 2 of 2) Supplier profiles We profiled all the major suppliers along the key dimensions of experience, size/scale, global capabilities and their strategy A comprehensive analysis was done leveraging Everest insights into the VDI market to comprehend suppliers inclination towards VDI market, its strategy and offerings The profile consists of their view on desktop virtualization in general and VDI in particular. It also discusses suppliers view on the desktop management tool market, global delivery and general desktop management VDI strategy- Critical success factors We developed a framework using which a supplier s VDI strategy can be evaluated and assessed The framework consists of elements such as focused offerings, modularization, platform agnosticism and alliances/partnerships, each having different relative weights 5
6 This study assesses major suppliers in terms of their capabilities to provide VDI services in North America VDI capability assessment framework Suppliers VDI capability assessment RFI and supplier interviews Everest analyst insights Everest proprietary database Public information Quantitative analysis Qualitative analysis Years of experience in infrastructure/desktop management Understanding of virtualization technologies Revenue from desktop management Virtual desktops supported Helpdesk calls handled Offshore/local implementation capabilities Market view and strategy for desktop virtualization Key industry alliances Recent infrastructure deals Large virtual desktop implementation Differentiating services Supplier capability assessment Suppliers Experience Size/scale Global capabilities Overall Supplier A ` ` ` Supplier B ` ` ` Supplier C ` ` Supplier J ` ` Illustrative profile of CSC Illustrative VDI market view and strategy of TCS CSC is an established player in datacenter management and virtualization Has deployed large VDI base for UK s NHS, covering 26,000 seats Has alliances with Citrix (CSC Dynamic Desktops) and Sun (CSC Anywhere Desktop) Key dimensions Global capabilities Achieves ~50% offshoring in desktop management Leverages its own service centers and partner network to provide desk-side support services Has significant local VDI implementation and delivery capabilities Supports over 250,000 virtual desktops (includes presentation virtualization, Citrix instances, terminal services etc.) Handles ~4,600 calls per day Desktop management Offerings Modularized service catalogs, factory model, etc. Strategy To focus on desktop as a managed service going forward and increase offshoring Transformational engagements for end-user computing leveraging consulting, technology, and innovation Desktop management service model Service scope Provides full desktop support services Sees more bundling of desktops with other infrastructure towers Delivery model Significant offshoring of 60-70% in desktop management; plans to increase it further Desktop virtualization Market view Believes that VDI along with application virtualization will gain traction Strategy Established a global VDI lab to test technologies, develop business cases, etc. Develop CoE (Centerof Excellence) for specific technologies to help customers evaluate and implement (already created CoE for Microsoft) Desktop management tools Market view Limitation of tools supporting vpro is a challenge Integration of various tools into one single platform makes a lot of sense Partnerships and alliances Partnerships/alliances with major tool vendors such as Microsoft, IBM, BMC, DELL, EMC, Cisco, etc. Source: Everest Research Institute (2010) 6
7 Appendix: Additional ITO research recommendations The following documents are recommended for additional insight on the topic covered in this Research Report. The recommended documents either provide additional details on the topic or complementary content which may be of interest 1. Desktop Virtualization A Cautious March (ERI R-0443); 2010: This report analyses desktop virtualization with more focus on VDI. Comprehensive business cases include analysis of ROI for virtualized versus traditional desktops, virtualized versus offshored/automated desktop set-up and up-front costs needed to develop a VDI ecosystem. Buyers concerns and strategies of top desktop management providers (MNCs and Indian) have been elaborated along with key dimensions of their divergence. The report also predicts the most likely scenario of VDI evolution 2. ITO Request for Information 2010 A Market Insights Report (ERI R-0427); 2010: This report analyses various key trends across global ITO market using data from major suppliers about their top ITO deals across Infrastructure outsourcing, ADM outsourcing and ITO bundling. The 19 participating suppliers represent MNCs having headquarters in North America and Europe as well as Indian suppliers. The analysis is segregated into various segments across buyer revenue, signing geography, industry segments, offshore/mnc suppliers and pricing models. Buyers and suppliers will get key insights into the trends of ITO markets For more information on this and other research published by the Everest Research Institute, please contact us: Ross Tisnovsky, Vice President: Chirajeet Sengupta, Research Director: Soumit Banerjee, Senior Research Analyst: Yugal Joshi, Senior Research Analyst: ITO Team: rtisnovsky@everestgrp.com chirajeet.sengupta@everestgrp.com sbanerjee@everestgrp.com yugal.joshi@everestgrp.com ITOresearch@everestgrp.com Everest Research Institute Two Galleria Tower Noel Road, Suite 2100 Dallas, TX Phone: info@everestresearchinstitute.com 7
8 Everest Group leads clients from insight to action Contact us for more information about our consulting, research, and industry resources. Dallas (Corporate Headquarters) India New York Australasia Canada UK Netherlands & Continental Europe
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