TBR. Corporate IT Buying Behavior & Customer Satisfaction Study x86-based Servers Second Quarter Publish Date: Aug. 5, 2015

Transcription

1 Corporate IT Buying Behavior & Customer Satisfaction Study x86-based Servers Second Quarter 2015 Publish Date: Aug. 5, 2015 Contributors: Angela Lambert Engagement Manager/Senior Analyst Matt Bowden, Analyst Zachary Rabel, Research Analyst Greg Richardson, Practice Manager, Engagement Services T EC H N O LO G Y B U S I N ES S R ES EAR C H, I N C. T EC H N O LO G Y B U S I N ES S R ES EAR C H, I N C.

2 Contents Table of Contents 3 Executive Summary 8 Key Findings 17 x86-based Server Attribute Analysis 22 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction 41 Appendix B: x86-based Server Attribute Analysis Product Satisfaction 63 Appendix C: x86-based Server Attribute Analysis Service and Support Satisfaction 91 Appendix D: Firmographics 98 Appendix E: Analytical Procedures and Survey Instrument 107 Coverage 109 About 2 2Q15 x86-based Servers Customer Satisfaction Study

3 Executive Summary 3 2Q15 x86-based Servers Customer Satisfaction Study

4 Executive Summary Lenovo s System x leads in x86 server satisfaction in sales, product and service categories but continues to lag in loyalty builds its index from 4 key attribute areas comprising 24 total factors 4 Attribute Dell 2Q15 x86-based Servers Customer Satisfaction Study HP Lenovo (System x) Sales Mean Satisfaction Purchase Price/Acquisition Cost One-time Services and Setup Delivery Time and Product Availability Sales Responsiveness Post-purchase Customer Care Online Product Information Product Mean Satisfaction Initial Hardware Quality Ongoing Hardware Reliability Performance Virtualization, Efficiency, Scalability Total Cost of Ownership Management Capabilities Product Design/Features Service Mean Satisfaction Phone Support Availability Phone Support Technical Expertise On-site Response Time On-site Technical Expertise Online Technical Support Ongoing Services and Maintenance Replacement Parts Availability Self-support/Automated Support Social Media Support Loyalty Index Will buy again Would recommend SOURCE: 2Q15 Rolling 6-Month Mean Satisfaction Note: Detailed explanation of methodology and calculations can be found in the technical appendix (slide 98). Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Dell HP Lenovo (System x) Sales Satisfaction Index Product Satisfaction Index Service Satisfaction Index Loyalty Index Importance Multiplier 99.4% 99.9% 100.7% Weighted Satisfaction Index SOURCE: 2Q15 Rolling 6-Month Satisfaction Index

5 Executive Summary Dell and HP struggled to keep pace with Lenovo s System x satisfaction rates, as the vendor took a share of the top spot in 22 attributes IT decision makers place high importance on performance, reliability and quality attributes 5 Attribute Dell Dell 2Q15 x86-based Servers Customer Satisfaction Study HP Lenovo (System x) Sales Mean Satisfaction Purchase Price/Acquisition Cost One-time Services and Setup Delivery Time and Product Availability Sales Responsiveness Post-purchase Customer Care Online Product Information Product Mean Satisfaction Initial Hardware Quality Ongoing Hardware Reliability Performance Virtualization, Efficiency, Scalability Total Cost of Ownership Management Capabilities Product Design/Features Service Mean Satisfaction Phone Support Availability Phone Support Technical Expertise On-site Response Time On-site Technical Expertise Online Technical Support Ongoing Services and Maintenance Replacement Parts Availability Self-support/Automated Support Social Media Support Loyalty Index Will buy again Would recommend SOURCE: 2Q15 Rolling 6-Month Mean Satisfaction Dell tied for the No. 1 spot in five attributes and placed second in all three indices. However, Dell s loyalty score trailed HP s, causing Dell to finish in third place overall, just behind HP. HP HP only finished in the top spot for three attributes; however, despite its industry ranking improving in 10 attributes compared to 1Q15, HP tied Dell in many product and sales attributes. Although HP finished in last place in the sales, product and services satisfaction indices, the company placed second overall due to strong customer loyalty. Lenovo (System x) Lenovo s System x customers reported slight increases in their level of satisfaction for many attributes, propelling the vendor to the top spot in every attribute as it also claimed first place overall. Lenovo s customer satisfaction was significantly higher than that of competitors in all service attributes except for replacement parts availability. The vendor lags behind leader HP by three percentage points in buy again and recommend. Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

6 Executive Summary A high level of satisfaction with product attributes drives brand loyalty while sales and support attributes provide differentiation Total cost of ownership is a key factor in the decision to remain loyal SOURCE: TCOSOURCING.COM Sales and support attributes are the key to differentiation SOURCE: THEFINANCIALBRAND.COM Regardless of vendor, dissatisfaction with total cost of ownership (TCO) is one of the topthree reasons customers are not planning to buy again from their vendor, creating the potential for customer bases to shrink. Vendors can work to improve TCO satisfaction by better aligning customer expectations with results they can realistically expect, avoiding surprise expenses and a less-than-satisfactory experience. All three vendors historically perform well in product-related attributes as these are table stakes for the industry in which organizations demand a high-level of performance, reliability and quality. Key sales and support attributes important to organizations include ongoing support and maintenance, delivery time, on-site support and phone support. Vendors can differentiate by providing superior customer experiences in these areas, which will improve customer satisfaction and brand loyalty. Customers have unique reasons for why they will not buy again SOURCE: BRAINSINS.COM While customers typically cited the same reasons they will buy again from their vendor, they indicated varying reasons for why they would not purchase again. Dell customers reported they were buying a different brand of server, HP customers reported issues with on-site support and Lenovo System x customers indicated they were turned off by high prices. As each vendor has unique strengths and weaknesses, there is opportunity for all to strengthen their portfolios. 6 2Q15 x86-based Servers Customer Satisfaction Study

7 Executive Summary Service attributes provide vendors the opportunity to differentiate and form lasting customer relationships as organizations demand high uptime Customers rated attributes as critical, important or less important Customers continue to place a high level of importance on attributes related to ensuring high uptime, with ongoing hardware reliability and replacement parts availability increasing in importance compared to 1Q15. Vendors that enable their customers to achieve high uptime levels by providing reliable products and quick turnaround on parts for maintenance are more likely to score higher satisfaction. Online product information (separate from online support) and sales responsiveness are two of the least important attributes organizations consider when making a purchase decision, indicating customers consider attributes such as reliability, management and on-site/phone support as more valuable than sales. Performance Ongoing Hardware Reliability Initial Hardware Quality Virtualization, Efficiency, Scalability Total Cost of Ownership (TCO) Product Design/Features Replacement Parts Availability Purchase Price/Acquisition Cost Ongoing Services and Maintenance Management Capabilities On-site Response Time Delivery Time and Product Availability On-site Technical Expertise Phone Support Technical Expertise Phone Support Availability Online Technical Support Post-purchase Customer Care Self-support/Automated Support One-time Services and Setup Online Product Information Sales Responsiveness Social Media Support The stacks of attributes shown on the scales above are listed in order of the importance of each attribute to overall customer satisfaction this quarter, with the most important attributes at the top of each stack. 7. 2Q15 x86-based Servers Customer Satisfaction Study

8 Key Findings 8 2Q15 x86-based Servers Customer Satisfaction Study

9 86.2% 88.7% 85.4% 86.5% 86.3% 85.6% 87.4% 85.1% 82.6% 84.7% 82.8% 82.7% 83.7% 83.2% 80.8% Key Findings Dell continues to lead customer likeliness to buy again, although by a smaller margin than the previous 2 quarters 100% 6-Mo. VENDOR HISTORICAL SERVER LIKELINESS TO BUY AGAIN 90% 80% 70% 60% 50% SOURCE: 2Q15 perspective 2Q14 3Q14 4Q14 1Q15 2Q15 Vendor loyalty continued to decline in 2Q15 for Dell and Lenovo, while HP s customer loyalty increased slightly from 1Q15; however, HP continues to trail Dell in overall likeliness to buy again. Regardless of brand, the likeliness of customers to purchase again is driven by three key factors: reliability, performance and integration with existing IT environments. Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

10 Key Findings Dell was the only brand for which customers cited purchasing another brand as one of the top 3 reasons they were unlikely to buy again Top criteria for customers buying again and considering switching 6-Mo. DELL LOYALTY: WILL BUY AGAIN 15% 2% Yes Will buy again % of Yes Servers are reliable 73.2% Server performance meets our expectations 54.1% 84% Yes Maybe No Servers integrate well with our IT environment 38.9% Maybe/Will not buy again % of Maybe/No Dissatisfied with TCO 24.0% SOURCE: 2Q15 We are buying another brand of servers instead 20.0% Servers are not reliable enough 16.0% 10 2Q15 x86-based Servers Customer Satisfaction Study

11 Key Findings HP customers cited issues with on-site support as a reason they were unlikely to purchase again Top criteria for customers buying again and considering switching 6-Mo. HP LOYALTY: Yes Will buy again % of Yes WILL BUY AGAIN Servers are reliable 75.5% 16% 1% Server performance meets our expectations 59.1% 83% Yes Maybe No Servers integrate well with our IT environment 33.5% Maybe/Will not buy again % of Maybe/No Dissatisfied with TCO 28.8% SOURCE: 2Q15 Servers are not reliable enough 26.9% Dissatisfied with on-site support 23.1% 11 2Q15 x86-based Servers Customer Satisfaction Study

12 Key Findings Lenovo System x customers remain loyal to the brand due to high server reliability and the vendor s ability to meet expectations Top criteria for customers buying again and considering switching 6-Mo. LENOVO (SYSTEM X) LOYALTY: WILL BUY AGAIN 17% SOURCE: 2Q15 2% 81% Yes Maybe No Yes Will buy again % of Yes Servers are reliable 81.6% Server performance meets our expectations 59.0% Servers integrate well with our IT environment 44.7% Maybe/Will not buy again % of Maybe/No Servers are too expensive 22.4% Dissatisfied with TCO 20.7% Server performance did not meet our expectations 15.5% Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

13 85.9% 84.2% 85.2% 84.0% 81.1% 87.1% 84.0% 82.8% 78.9% 84.8% 84.6% 80.9% 78.7% 83.8% 80.8% Key Findings A sequential decline in Dell s customer satisfaction score led to HP claiming the top spot as the vendor most likely to be recommended 100% 90% 6-Mo. VENDOR HISTORICAL SERVER LIKELINESS TO RECOMMEND 80% 70% 60% 50% SOURCE: 2Q15 Top customer recommendations 2Q14 3Q14 4Q14 1Q15 2Q15 While all three vendors are less likely to get recommendations compared to a year ago, HP and Lenovo System X improved from 1Q15, with Lenovo System x crossing the 80% threshold for the first time since 3Q14. Dell customer HP customer After getting to the correct support person on the phone, they can determine the problem resolution quickly. Happy with the hardware and it supports our most mission-critical production environment. Lenovo customer 13 Its services are much better than some of the other companies we've tried and we always end up back at IBM. Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

14 Key Findings Dell was just behind HP in 2Q15 due to marginal declines across nearly all satisfaction and loyalty attributes Attribute 2Q15 Satisfaction Industry Rank Satisfaction vs. 1Q15 Purchase Price/Acquisition Cost % One-time Services and Setup % Delivery Time and Product Availability % Sales Responsiveness % Post-purchase Customer Care % Online Product Information % Initial Hardware Quality % Ongoing Hardware Reliability % Performance % Virtualization, Efficiency, Scalability % Total Cost of Ownership % Management Capabilities % Product Design/Features % Phone Support Availability % Phone Support Technical Expertise % On-site Response Time % On-site Technical Expertise % Online Technical Support % Ongoing Services and Maintenance % Replacement Parts Availability % Self-support/Automated Support % Social Media Support % Loyalty 2Q15 Loyalty Metric Industry Rank Loyalty vs. 1Q15 Will buy again % Would recommend % SOURCE: 2Q15 14 Dell: 6-Mo. Server Performance Dashboard 2Q15 x86-based Servers Customer Satisfaction Study Dell s satisfaction scores declined in 17 of the 22 attributes compared to 1Q15 Satisfaction scores for Dell continue to fall after peaking in 4Q14, resulting in the vendor s industry rankings falling in seven attributes. Dell now occupies just five No. 1 rankings, down from 15 in 4Q14, putting the vendor in third place this quarter behind HP and Lenovo System x. Sales attributes remain a bright spot for Dell as it improves its industry rankings despite declining satisfaction Despite declining in many attributes, Dell improved its industry rankings in delivery time and online product information, tying with Lenovo s System x for the top spot and giving Dell three No. 1 positions among sales attributes. Dell s strength in sales attributes, the only index in which it didn t receive a third-place ranking, provides the vendor with a lever to improve its overall position by building strong customer relationships to increase satisfaction beginning with a customer s first purchase. Industry rank indicates position of an attribute s mean satisfaction score compared to industry peers. Arrows represent positive or negative change in industry rank from the previous quarter. For mean satisfaction, positive or negative changes of +/- 5% are highlighted green and red, respectively.

15 Key Findings HP benefitted from improved sales and support satisfaction scores, lifting the vendor into second place overall Attribute 2Q15 Satisfaction Industry Rank Satisfaction vs. 1Q15 Purchase Price/Acquisition Cost % One-time Services and Setup % Delivery Time and Product Availability % Sales Responsiveness % Post-purchase Customer Care % Online Product Information % Initial Hardware Quality % Ongoing Hardware Reliability % Performance % Virtualization, Efficiency, Scalability % Total Cost of Ownership % Management Capabilities % Product Design/Features % Phone Support Availability % Phone Support Technical Expertise % On-site Response Time % On-site Technical Expertise % Online Technical Support % Ongoing Services and Maintenance % Replacement Parts Availability % Self-support/Automated Support % Social Media Support % Loyalty 2Q15 Loyalty Metric Industry Rank Loyalty vs. 1Q15 Will buy again % Would recommend % SOURCE: 2Q15 15 HP: 6-Mo. Server Performance Dashboard 2Q15 x86-based Servers Customer Satisfaction Study HP improved its industry ranking in 10 of the 22 attributes, bolstering its overall score While HP experienced a sequential decline in satisfaction for 11 of the 22 attributes, the vendor improved its industry rankings in 10 attributes, signaling scores are trending back toward the industry average. HP s improvements helped the vendor finish in second place behind Lenovo s System x, despite only finishing in first place for three of the 22 attributes. Support attributes require the most improvement for HP to catch up to peers; however, satisfaction scores are rising HP improved its industry ranking in six of the nine support attributes but no longer ranks first in any of these attributes. However, HP started generating positive momentum for support attributes, with only four attributes experiencing a slight sequential decline. Continued improvements in support can help HP improve its overall weighted satisfaction score and challenge Lenovo s System x for the top spot. Industry rank indicates position of an attribute s mean satisfaction score compared to industry peers. Arrows represent positive or negative change in industry rank from the previous quarter. For mean satisfaction, positive or negative changes of +/- 5% are highlighted green and red, respectively.

16 Key Findings Lenovo System x customers reported the largest sequential increases in satisfaction, with significantly higher scores in half the attributes Lenovo (System x): 6-Mo. Server Performance Dashboard Attribute 2Q15 Satisfaction Industry Rank Satisfaction vs. 1Q15 Purchase Price/Acquisition Cost % One-time Services and Setup % Delivery Time and Product Availability % Sales Responsiveness % Post-purchase Customer Care % Online Product Information % Initial Hardware Quality % Ongoing Hardware Reliability % Performance % Virtualization, Efficiency, Scalability % Total Cost of Ownership % Management Capabilities % Product Design/Features % Phone Support Availability % Phone Support Technical Expertise % On-site Response Time % On-site Technical Expertise % Online Technical Support % Ongoing Services and Maintenance % Replacement Parts Availability % Self-support/Automated Support % Social Media Support % Loyalty 2Q15 Loyalty Metric Industry Rank Loyalty vs. 1Q15 Will buy again % Would recommend % SOURCE: 2Q Q15 x86-based Servers Customer Satisfaction Study Increases in satisfaction helped Lenovo System x continue improving its industry rankings Lenovo System x now holds a share of the top spot in all 22 attributes, up from 18 in 1Q15, as the vendor experienced increases in satisfaction for 16 attributes. Lenovo s improvements in support attributes helped the vendor secure significantly higher satisfaction scores than its competitors in eight of the nine attributes, with the exception of replacement parts availability. While Lenovo is performing well in all three attribute indices, sales-related attributes offer room for improvement Lenovo experienced improvements of 1% or more in most product- and support-related attributes; however, four of the six sales attributes declined marginally. While Lenovo remains a leader for these attributes, declining satisfaction will open the door for Dell and HP to challenge the vendor s No. 1 ranking. Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Industry rank indicates position of an attribute s mean satisfaction score compared to industry peers. Arrows represent positive or negative change in industry rank from the previous quarter. For mean satisfaction, positive or negative changes of +/- 5% are highlighted green and red, respectively.

17 x86-based Server Attribute Analysis 17 2Q15 x86-based Servers Customer Satisfaction Study

18 2Q15 Results by Vendor Report attributes and statistical significance key Sales Attributes 1. Purchase Price/Acquisition Cost 2. One-time Services and Setup 3. Delivery Time and Product Availability 4. Sales Responsiveness 5. Post-purchase Customer Care 6. Online Product Information Product Attributes 7. Initial Hardware Quality 8. Ongoing Hardware Reliability 9. Performance 10. Virtualization, Efficiency, Scalability 11. Total Cost of Ownership 12. Management Capabilities 13. Product Design/Features Statistical Significance Key Service and Support Attributes 14. Phone Support Availability 15. Phone Support Technical Expertise 16. On-site Response Time 17. On-site Technical Expertise 18. Online Technical Support 19. Replacement Parts Availability 20. Ongoing Services and Maintenance 21. Self-support/Automated Support 22. Social Media Support Higher Mean than Dell 99% confidence level Higher Mean than Dell 95% confidence level Higher Mean than Dell 90% confidence level Higher Mean than HP 99% confidence level Higher Mean than HP 95% confidence level Higher Mean than HP 90% confidence level Higher Mean than Lenovo (System x) 99% confidence level Higher Mean than Lenovo (System x) 95% confidence level Higher Mean than Lenovo (System x) 90% confidence level Note: Statistical Significance Key applies to slides 19, 20, 21, 23, 26, 29, 32, 35, 38, 42, 45, 48, 51, 54, 57, 60, 64, 67, 70, 73, 76, 79, 82, 85 and Q15 x86-based Servers Customer Satisfaction Study

19 2Q15 Results by Vendor Dell and HP tied with or barely trailed Lenovo System x in most sales attributes as the vendor continued to dominate with 6 No. 1 finishes 5.13 OVERALL SERVER CUSTOMERS' AVERAGE SATISFACTION BY SALES ATTRIBUTE (6 MONTHS) Sales Satisfaction Drivers Sales attributes provided little opportunity for vendors to differentiate as they all earned relatively similar scores, with HP and Dell challenging Lenovo System x in nearly every attribute with the exceptions of one-time services and post-purchase customer care. Lenovo System x holds a significant advantage over Dell and HP in one-time services and setup. Customer Comment 19 SOURCE: 2Q15 Professionalism and customer care are part of the Dell team that has assisted us since we established a partnership with this company. Dell customer Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

20 2Q15 Results by Vendor Lenovo System x took the top spot in all 7 product attributes, including 5 attributes in which it was the sole owner of the No. 1 spot OVERALL SERVER CUSTOMERS' AVERAGE SATISFACTION BY PRODUCT ATTRIBUTE (6 MONTHS) SOURCE: 2Q15 Product Satisfaction Drivers Lenovo System x took the top spot in all seven product attributes with Dell tying in two attributes and HP tying in one. Customers were most satisfied overall with performance, ongoing hardware reliability and initial hardware quality, three critical attributes to purchasing decisions. Customer Comment [The server is] very easy to manage and gives us almost no problems. It performs like a champ day in and day out. Lenovo (System x) customer Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

21 2Q15 Results by Vendor Lenovo System x has a significant advantage over Dell and HP in every support attribute except replacement parts availability OVERALL SERVER CUSTOMERS' AVERAGE SATISFACTION BY SUPPORT ATTRIBUTE (6 MONTHS) Service Satisfaction Drivers Overall, customers are satisfied with the support attributes; however, social media support remains a challenge for all three vendors as customers indicate they don t like to use social media. Lenovo System x dominated in support attributes, with significant advantages in eight of the nine attributes. Customer Comments 21 SOURCE: 2Q15 [We always] get someone on the phone and never get transferred. With that, problems are always solved on the first call. Dell customer All questions were answered and [the] problem got solved. HP customer Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Q15 x86-based Servers Customer Satisfaction Study

22 Appendix A x86-based Server Attribute Analysis: Sales Satisfaction 22 2Q15 x86-based Servers Customer Satisfaction Study

23 Appendix A: Purchase Price/Acquisition Cost Trends Dell s slight drop in purchase price/acquisition cost satisfaction score led to a tie with Lenovo for first place SOURCE: 2Q Mo. PURCHASE PRICE/ACQUISITION COST SATISFACTION TRENDS 2Q14 3Q14 4Q14 1Q15 2Q15 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 6-Mo. PURCHASE PRICE/ACQUISITION COST SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell s six-month purchase price/acquisition cost satisfaction score dropped slightly in 2Q15, leading to a tie for first place with Lenovo. Dell scored highest among customers within small IT departments, bolstering the vendor s overall score. In 2Q15 HP s six-month purchase price/acquisition cost satisfaction score had a small sequential increase, but the vendor still came in last place. HP customers within medium IT departments were least satisfied with the vendor compared to those in small and large departments Lenovo s six-month purchase price/acquisition cost satisfaction score increased sequentially, enabling the vendor to tie with Dell for first place. Unlike other vendors customers, Lenovo s customers considered purchase price/acquisition cost to be important rather than critical. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

24 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Purchase price/acquisition cost: Analysis by IT department size 6-Mo. SMALL IT DEPT. PURCHASE PRICE SATISFACTION 5.28 SOURCE: 2Q Mo. MEDIUM IT DEPT. PURCHASE PRICE SATISFACTION 5.07 SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. PURCHASE PRICE SATISFACTION SOURCE: 2Q Small IT Customers Medium IT Customers Large IT Customers Dell: The overall price and TCO make Dell a great value for our organization. Lenovo (System x): Was just right for the budget and what we wanted to achieve. HP: Good value for the price. Dell: It is the lowest in the industry with a real brand name. Dell: Great total cost profile. HP: Low price for a lot of performance. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 24 2Q15 x86-based Servers Customer Satisfaction Study

25 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Purchase price/acquisition cost: Blade vs. rack server rankings Customer Comments Great deals and educational discounts. Dell rack customer We are able to meet our clients requirements on price. HP rack customer Well within our purchase requirements/budget. Lenovo (System x) rack customer Performance [is] better than other servers at the same cost. HP blade customer DELL HP IBM SOURCE: 2Q15 6-Mo. PURCHASE PRICE/ACQUISITION COST SATISFACTION Blade Rack 6-Mo. PURCHASE PRICE/ACQUISITION COST IMPORTANCE Lenovo Dell HP (System x) Server Critical Critical Important Blade Critical Critical Critical Rack Critical Important Important 25 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

26 Appendix A: One-time Services and Setup Trends Despite a sequential score decrease, Lenovo was first in one-time services and setup satisfaction for the fourth consecutive quarter SOURCE: 2Q15 3-Mo. ONE-TIME SERVICES AND SETUP SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 6-Mo. ONE-TIME SERVICES AND SETUP SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell s six-month one-time services and setup satisfaction score decreased sequentially in 2Q15, putting the vendor in a tie with HP. Dell had the highest satisfaction score among customers within small IT departments but had the lowest among customers within large ones. HP s six month one-time services and setup satisfaction score slightly decreased from 1Q15, keeping the vendor in last place. HP s customers within large IT departments gave the vendor the highest scores over those in small and medium IT departments. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, Lenovo s six-month one-time services and setup satisfaction score decreased sequentially but kept the vendor in the No. 1 spot with a significantly higher score than Dell or HP. Customers within medium IT departments scored Lenovo higher than other vendors, bolstering Lenovo in this attribute.

27 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction One-time services and setup: Analysis by IT department size 6-Mo. SMALL IT DEPT. ONE-TIME SERVICES AND SETUP SATISFACTION 5.07 SOURCE: 2Q Mo. MEDIUM IT DEPT. ONE-TIME SERVICES AND SETUP SATISFACTION 4.88 SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. ONE-TIME SERVICES AND SETUP SATISFACTION 4.86 SOURCE: 2Q Small IT Customers Medium IT Customers Large IT Customers Lenovo (System x): Very efficient installation process. Dell: Setup is very easy, saving our staff time. Dell: Servers deliver and setup [is] on or before the promised date. HP: Installation is straightforward. Services are always included. Dell: Fast delivery and setup times. HP: Quick to go from box to running OS. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 27 2Q15 x86-based Servers Customer Satisfaction Study

28 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction One-time services and setup: Blade vs. rack server rankings Customer Comments The delivery and setup is prompt and professional. Dell blade customer Easy setup as promised. Lenovo (System x) blade customer The servers were easy to setup and were delivered in a timely manner. HP rack customer [Servers were] setup efficiently, and staff was on time. Dell rack customer 6-Mo. ONE-TIME SERVICES AND SETUP SATISFACTION DELL Dell HP HP Lenovo IBM (System x) SOURCE: 2Q15 Blade Rack 6-Mo. ONE-TIME SERVICES AND SETUP IMPORTANCE Lenovo Dell HP (System x) Server Less Less Less Blade Less Less Important Rack Less Less Less 28 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

29 Appendix A: Delivery Time and Product Availability Trends HP s increase and Lenovo s decrease in delivery time and product availability satisfaction produced a three-way tie SOURCE: 2Q15 3-Mo. DELIVERY TIME AND PRODUCT AVAILABILITY SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q Q15 x86-based Servers Customer Satisfaction Study 5.12 SOURCE: 2Q15 6-Mo. DELIVERY TIME AND PRODUCT AVAILABILITY SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell s six-month delivery time and product availability satisfaction score decreased, putting the vendor in a three-way tie. Among the vendors, Dell scored the highest within small IT departments and lowest within large IT departments. After decreasing for two consecutive quarters, HP increased its six-month delivery time and product availability satisfaction score in 2Q15. HP s high scores among customers within large IT departments bolstered the vendor s overall score Lenovo decreased sequentially in its sixmonth delivery time and product availability satisfaction score, dropping the vendor from its leading position in 1Q15. Lenovo s rack server customers were the only customers more satisfied than the vendor s blade customers. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

30 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Delivery time and product availability: Analysis by IT department size 6-Mo. SMALL IT DEPT. DELIVERY TIME SATISFACTION SOURCE: 2Q Mo. MEDIUM IT DEPT. DELIVERY TIME SATISFACTION SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. DELIVERY TIME SATISFACTION 5.04 SOURCE: 2Q Small IT Customers Medium IT Customers Large IT Customers Lenovo (System x): Always delivered on time. Dell: We get our servers very quickly after order, and they have very standard setups. HP: Delivery is very fast. [We] can often get equipment in-house a couple days after the order, when we need it. Lenovo (System x): The products arrived when promised. Dell: Always delivered on time when we needed it. HP: It s delivered as promised we plan around that, so that works. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 30 2Q15 x86-based Servers Customer Satisfaction Study

31 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Delivery time and product availability: Blade vs. rack server rankings Customer Comments Quick delivery and easy setup. HP rack customer We get quick delivery, and we set it up ourselves. Dell rack customer We are able to meet our clients requirements on time. HP blade customer Was delivered and set up in a timely manner. HP blade customer 6-Mo. DELIVERY TIME AND PRODUCT AVAILABILITY SATISFACTION DELL Dell HP HP Lenovo IBM (System x) SOURCE: 2Q15 Blade Rack 6-Mo. DELIVERY TIME AND PRODUCT AVAILABILITY IMPORTANCE Lenovo Dell HP (System x) Server Important Important Important Blade Important Important Important Rack Important Important Important 31 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

32 Appendix A: Sales Responsiveness Trends Lenovo remained in first place in sales responsiveness satisfaction for the fourth consecutive quarter SOURCE: 2Q15 3-Mo. SALES RESPONSIVENESS SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 6-Mo. SALES RESPONSIVENESS SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell s six-month sales responsiveness satisfaction score decreased sequentially, resulting in a second-place tie with HP. Dell s customers within small IT departments ranked the vendor highest, while those in large ones ranked it lowest. After two quarters of score stagnancy, HP s six-month sales responsiveness satisfaction increased sequentially. HP scored the same as Lenovo among customers within large IT departments, bolstering HP s overall score Lenovo slightly decreased in its sixmonth sales responsiveness satisfaction score in 2Q15 but maintained its first-place position for the fourth consecutive quarter. Lenovo was ranked highest among customers within medium IT departments but lowest of those within small IT departments. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

33 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Sales responsiveness: Analysis by IT department size 6-Mo. SMALL IT DEPT. SALES RESPONSIVENESS SATISFACTION 5.01 SOURCE: 2Q Mo. MEDIUM IT DEPT. SALES RESPONSIVENESS SATISFACTION SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. SALES RESPONSIVENESS SATISFACTION 4.77 SOURCE: 2Q Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 33 Small IT Customers Medium IT Customers Large IT Customers HP: We work with a reseller on the Western States Contracting Alliance (WSCA) contract [that] is simply outstanding and very responsive to all of our questions. Dell: The entire Dell team is very responsive to our needs. Lenovo (System x): They are exceedingly responsive to any need. HP: Received the information I was looking for in a timely manner. 2Q15 x86-based Servers Customer Satisfaction Study Dell: Dedicated sales team responds quickly. HP: The sales staff is impeccable.

34 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Sales responsiveness: Blade vs. rack server rankings Customer Comments Very responsive team. Lenovo (System x) rack customer We rely on our sales rep [he is] very helpful. Dell blade customer Customer service is nice and helpful. Lenovo (System x) blade customer Sales team is always quick to respond. Dell rack customer 6-Mo. SALES RESPONSIVENESS SATISFACTION DELL Dell HP HP Lenovo IBM (System x) SOURCE: 2Q15 Blade Rack 6-Mo. SALES RESPONSIVENESS IMPORTANCE Dell HP Lenovo (System x) Server Less Less Less Blade Less Less Less Rack Less Less Less 34 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

35 Appendix A: Post-purchase Customer Care Trends Lenovo maintained its first-place position in post-purchase customer care satisfaction for the fourth consecutive quarter SOURCE: 2Q15 3-Mo. POST-PURCHASE CUSTOMER CARE SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 6-Mo. POST-PURCHASE CUSTOMER CARE SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell s score decreased for the second consecutive quarter in six-month postpurchase customer care satisfaction, keeping the vendor in second place. Customers within small IT departments scored Dell highest, while those within large IT departments scored the vendor lowest. HP customers reported lower satisfaction in six-month postpurchase customer care from the previous quarter, positioning the vendor in last place. Unlike other vendors customers, HP s blade customers reported higher satisfaction than its rack customers Lenovo maintained its six-month post-purchase customer care satisfaction score in 2Q15, producing a first-place finish for the fourth consecutive quarter. Lenovo s customers within medium IT departments scored the vendor highest, bolstering its overall score. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

36 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Post-purchase customer care: Analysis by IT department size 6-Mo. SMALL IT DEPT. POST-PURCHASE CUSTOMER CARE SATISFACTION 5.12 SOURCE: 2Q Mo. MEDIUM IT DEPT. POST-PURCHASE CUSTOMER CARE SATISFACTION 4.93 SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. POST-PURCHASE CUSTOMER CARE SATISFACTION 4.76 SOURCE: 2Q Small IT Customers Medium IT Customers Large IT Customers Dell: Sales[people] are informed and quick to reply and online information is clear and concise. The relationship after the sale is ongoing and pleasant. Dell: Post-purchase customer care is easy to schedule. HP: [The] salespeople see the sale through and follow up afterward. Lenovo (System x): Sales and customer care folks are quick to respond to any question or issue. Dell: [Its] online customer care shows it cares about [its] clients and wants to be there for them. Lenovo (System x): Great customer service. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 36 2Q15 x86-based Servers Customer Satisfaction Study

37 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Post-purchase customer care: Blade vs. rack server rankings Customer Comments If I have any issues after purchase or installation, I know they can be addressed quickly. Dell rack customer They are always available for my needs and know how to explain how to fix things. HP rack customer Customer care is highly effective. Lenovo (System x) blade customer 6-Mo. POST-PURCHASE CUSTOMER CARE SATISFACTION DELL Dell HP HP Lenovo IBM (System x) SOURCE: 2Q15 Blade Rack 6-Mo. POST-PURCHASE CUSTOMER CARE IMPORTANCE Lenovo Dell HP (System x) Server Less Less Less Blade Less Less Less Rack Less Less Less 37 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

38 Appendix A: Online Product Information Trends Slight score decreases across vendors created a three-way tie in online product information satisfaction in 2Q SOURCE: 2Q15 3-Mo. ONLINE PRODUCT INFORMATION SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 6-Mo. ONLINE PRODUCT INFORMATION SATISFACTION TRENDS Q14 3Q14 4Q14 1Q15 2Q15 Dell declined in six-month online product information satisfaction for the third consecutive quarter, placing the vendor in a three-way tie. Unlike other vendor s customers, Dell s rack customers were more satisfied than their blade customers. HP s customers reported a decrease in six-month online product information satisfaction for the second consecutive quarter. HP scored higher than Dell and Lenovo among customers within large IT departments, bolstering HP s overall score Like other vendors, Lenovo decreased slightly into 2Q15 in its six-month online product information satisfaction score. Customers within medium IT departments scored Lenovo highest, boosting the vendor s overall score. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.

39 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Online product information: Analysis by IT department size 6-Mo. SMALL IT DEPT. ONLINE PRODUCT INFORMATION SATISFACTION 5.26 SOURCE: 2Q Mo. MEDIUM IT DEPT. ONLINE PRODUCT INFORMATION SATISFACTION 4.89 SOURCE: 2Q Customer Comments 6-Mo. LARGE IT DEPT. ONLINE PRODUCT INFORMATION SATISFACTION 4.88 SOURCE: 2Q Small IT Customers Medium IT Customers Large IT Customers Dell: Online product information is complete and contains everything needed to manage and support the servers. Lenovo (System x): Most questions are answered online and in depth. Dell: Online resources [are] extensive and complete. HP: Very good information online once the serial number is entered. Dell: Extremely good website with complete product info. HP: Online documentation is generally available and contains useful information. Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, For this study, defines IT department size in the following brackets: Small IT, 50 or fewer employees; Medium IT, 51 to 300 employees; Large IT, more than 300 employees. 39 2Q15 x86-based Servers Customer Satisfaction Study

40 Appendix A: x86-based Server Attribute Analysis Sales Satisfaction Online product information: Blade vs. rack server rankings Customer Comments Its site is easy to use and has most information to answer questions about products. Dell rack customer HP online support site provides excellent range and depth of support information. HP blade customer Product information is very specific and shows a lot. Lenovo (System x) rack customer Online information is timely and informative. Dell blade customer 6-Mo. ONLINE PRODUCT INFORMATION SATISFACTION DELL Dell HP HP Lenovo IBM (System x) SOURCE: 2Q15 Blade Rack 6-Mo. ONLINE PRODUCT INFORMATION IMPORTANCE Lenovo Dell HP (System x) Server Less Less Less Blade Less Less Less Rack Less Less Less 40 2Q15 x86-based Servers Customer Satisfaction Study SOURCE: 2Q15 Note: Because qualified survey respondents made an x86 server purchase in the past 12 months, the Lenovo (System x) sample represents customers who purchased from either IBM or Lenovo or both. Lenovo completed its acquisition of IBM s x86 server business on Oct. 1, 2014.