EMC Digital Professional Services

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1 Vendor Profile EMC Digital Professional Services Chad Huston Gard Little IDC OPINION IDC believes that EMC is well equipped to provide cloud professional services and big data professional services to both customers that have implemented (or will implement) EMC products/solutions and customers utilizing other products/solutions because of EMC's vendor-agnostic approach to professional services. In addition, EMC's significant assets across the company's federation of technology products/solutions mean that: EMC can provide differentiated digital professional services to customers that utilize more than one of EMC's products. The digital professional services can generate demand for further EMC's products/solutions. IN THIS VENDOR PROFILE This IDC Vendor Profile highlights EMC's digital professional services activities related to implementing 3rd Platform digital technologies and solutions, in particular cloud, business analytics, enterprise mobility, and enterprise social technologies. SITUATION OVERVIEW Company Overview EMC is a product and services technology vendor that goes to market around a "federation of business" that consists of: EMC Information Infrastructure Pivotal RSA Information Security VCE Virtustream VMware EMC's global services business provides consulting, technology, operations, and support services across EMC's federation of businesses, with the mission of helping EMC achieve its overarching strategic goals to: Ensure EMC customers have well-run hybrid clouds. Win the battle for off-premise workloads. Become the clear leader in software-defined, flash, and big data storage. November 2015, IDC #US

2 For the purposes of this Vendor Profile, IDC focuses only on EMC's consulting services, which provide strategic guidance and solutions architecture services, and EMC's technology services, which provide solution implementation and integration services. EMC's operations services and support services are not considered professional services based upon IDC's Worldwide Services Taxonomy, 2015 (IDC #254824, March 2015). In addition, this Vendor Profile focuses only on digital professional services based upon IDC's taxonomical definition. Table 1 details IDC's estimate of the size of EMC's digital professional services business in CY15. Out of EMC's aggregate digital professional services revenue, estimated to be$612 million for CY15, $367.2 million is related to cloud professional services, $102 million is related to big data professional services, and $142.8 million is related to "trust services," which is closely aligned with IDC's security professional services definition (see Table 1). TABLE 1 EMC Revenue and Resources for Digital and Traditional Services, CY15 Digital Services (3rd Platform) Traditional Services (2nd and 1st Platform) EMC Total Services IDC estimate of revenue ($M) , ,882.9 IDC estimate of FTE 2,147 4,775 6,923 IDC estimate of revenue generated per FTE ($) 285, , ,000.0 Source: IDC, 2015, and EMC Analyst Relations, 2014 Company Strategy EMC's digital services portfolio is categorized into four main dimensions: Application services, such as cloud advisory services, help customers develop cloud strategies and align application workloads with the optimal cloud delivery model (on-premises and off-premises). Other EMC services help customers migrate applications to clouds, retire unused applications, transform 2nd Platform applications, and develop end-user computing strategies. In addition, EMC provides DevOps and PaaS development services and creates custom applications optimized for big data and mobile delivery. Infrastructure services help customers build a cost-efficient, agile, and secure infrastructure for private and hybrid clouds. Services focus on standardizing and consolidating datacenters, protecting platforms through continuous availability, disaster recovery, and data protection and transitioning to a software-defined infrastructure including federation technologies from EMC, VMware, and VCE. Operating model services help customers address people and process aspects of their IT operation: financial management, organizational design, operations strategy, automation of routine tasks, services strategy and catalog, and creation of self-service portals for easy consumption of services by business and IT users. In addition, EMC provides services that help service providers or IT departments create XaaS offerings IDC #US

3 Big data services help organizations build a comprehensive road map to successfully apply and implement new big data solutions. This is done by leveraging a use-case approach to identify the ramifications of the business intelligence and analytics systems, asses the current environment, and document the impact on it from big data. EMC data scientists ascertain the level of data quality, governance, and security maturity; review cloud capabilities; and provide solutions to address big data challenges. EMC then structures its services around "go-to-market" conversations within these four dimensions. Table 2 provides details of how these conversations are organized within each portfolio dimension and aligned with final service offerings. In addition, EMC has a formalized digital professional services development process that is integrated with EMC's single global process and aligned with the dimensions and go-to-market conversations (see Table 2). This service development process is centered around an iterative framework that exhorts the concepts of rationalize, standardize, and reinvent. TABLE 2 EMC Digital Professional Services Portfolio: IT Transformation Portfolio Dimensions Go-to-Market Conversations Aligned Services Application transformation Infrastructure transformation Operating model transformation Business transformation with big data Source: IDC, 2015 Modernize the application portfolio and software development processes Upgrade the end-user experience Transition to software-defined infrastructure Consolidate datacenters Transform people and processes for ITaaS Reengineer IT financial management for cloud Accelerate strategic business initiatives with big data analytics Build big data platforms Application classification advisory Application alignment advisory Cloud advisory DevOps Cloud foundry road map and onboarding EUC strategy and design End-user application catalog design EUC implementation Service for federation enterprise hybrid cloud solution Strategy services for OpenStack Datacenter consolidation and migration Service center advisory IT role advisory Service costing design and pilot Service chargeback Big data vision workshop Big data proof of value Big data analytics implementation Big data technology advisory Big data proof of technology Big data technology implementation Federation business data lake implementation 2015 IDC #US

4 IDC MarketScape Overview IDC has completed five IDC MarketScapes that focus on digital professional services. These are: 2013 Cloud Professional Services 2014 Cloud Professional Services 2013 Enterprise Mobility Consulting 2015 Business Analytics Services 2015 Digital Transformation Consulting and Systems Integration Services EMC participated in one of these IDC MarketScapes (2014 Cloud Professional Services) and achieved a ranking of "Major Player." For readers unfamiliar with IDC MarketScape methodology, vendors are rated across a variety of metrics and then ranked in order from "Leader" (the highest rating) to "Major Player" to "Contender" to "Participant" (the lowest rating). As a part of the IDC MarketScape process, vendors are asked to submit customer references that have recently procured the digital service being analyzed in the IDC MarketScape. In aggregate, IDC received 299 customer references in these five digital professional services IDC MarketScapes. Although the names of these customer references are kept under NDA, Figure 1 compares the vertical distribution of customer references submitted by EMC with the aggregate of all vendors from these IDC MarketScapes. EMC's vendor references were more heavily weighted toward financial services, with half of the company's references coming from this vertical. Public sector services (which include both healthcare and government) were also heavily represented, with 30% of respondents coming from this vertical IDC #US

5 FIGURE 1 Industry Sector of EMC IDC MarketScape References Compared with the Participant Aggregate Source: IDC, 2015 FUTURE OUTLOOK The October 2015 announcement by Dell of its intent to acquire EMC, if completed in 2016 as described, makes it likely that the future outlook of EMC will be different from what is possible to envision today. However, the following scenario is based on an evaluation of EMC's professional services business only, with the assumption that it continues as a discrete unit separate from the current Dell Services organization: IDC estimates a 5% increase in services-related revenue and head count. IDC predicts the next most likely industry client target to be financial services. The biggest competitive threats will come from Accenture and IBM IDC #US

6 ESSENTIAL GUIDANCE Advice for EMC EMC should emphasize with prospects and clients its ability to deliver vendor-agnostic professional services to dispel the notion that its services are only related to product offers from the EMC federation of businesses. Likewise, EMC should continue to emphasize what the company's clients have told IDC are EMC's strengths: managing risk, providing a full spectrum of IT services related to cloud, and providing good project value for fees paid. On the other hand, opportunities exist to improve customer perception around optimizing the ratio of onshore/offshore efforts on projects and leveraging talent and resources globally. LEARN MORE Related Research Worldwide Digital Transformation Professional Services Forecast, (IDC #259106, September 2015) IDC MarketScape: Worldwide Digital Transformation Consulting and Systems Integration Services 2015 Vendor Assessment (IDC #255870, May 2015) IDC MarketScape: Worldwide Business Analytics Services 2015 Vendor Assessment (IDC #255276, April 2015) IDC MarketScape: Worldwide Cloud Professional Services 2014 Vendor Analysis (IDC #250238, August 2014) IDC MarketScape: Worldwide Cloud Professional Services 2013 Vendor Analysis (IDC #242401, August 2013) IDC MarketScape: Worldwide Enterprise Mobility Consulting 2013 Vendor Analysis (IDC #241030, May 2013) 2015 IDC #US

7 About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make factbased decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Global Headquarters 5 Speen Street Framingham, MA USA idc-insights-community.com Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. [trademark] Copyright 2015 IDC. Reproduction is forbidden unless authorized. All rights reserved.