Leading Suppliers of Workplace Management & Transformation in Germany 2012

Transcription

1 Workplace Management & Transformation I Germany I 2012 Leading Suppliers of Workplace Management & Transformation in Germany 2012 Scoring results T-Systems Unlimited reprint rights

2 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Table of contents Objective of this report...4 Report license...5 Introduction...6 Workplace management & transformation definition...8 PAC RADAR methodology...9 Introduction to the methodology...9 Selection of providers for the PAC RADAR...12 Evaluation methodology in the PAC RADAR...12 General PAC methodology...17 Workplace management & transformation in Germany important trends and results from the analysis...18 General market development...19 Technology trends...20 Developments in terms of positioning and offer...21 PAC RADAR: the leading providers of workplace management & transformation in Germany Positioning within the PAC RADAR...25 Scoring results T-Systems...26 Best in Class : T-Systems (final grade: 1.83)...26 About Pierre Audoin Consultants (PAC)...27 About the PAC RADAR...27

3 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I List of figures Clusters und sub-clusters of the PAC RADAR according to which the providers are evaluated...9 Description of the PAC methodology...17 PAC RADAR for workplace management & transformation in Germany Document information Author: Karsten Leclerque (k.leclerque@pac-online.com) Co-authors: Dr. Andreas Stiehler Publication date: November 9, 2012 Latest update: n/a Scope ID: Workplace Management & Transformation I Germany I 2012 Portfolio ID: SITSI I Horizontals I PAC RADAR Related reports: DACH Outsourcing Research Program

4 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Objective of this report The purpose of the PAC RADAR from the market research and strategic consultancy Pierre Audoin Consultants (PAC) is to provide a holistic evaluation and visual positioning of leading IT providers within a defined services segment on a local market. Using predefined criteria, the providers revenue volumes and development and market share are assessed and compared alongside their performance and specific competences in the relevant market segment.

5 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Report license PAC RADAR Leading Suppliers of Workplace Management & Transformation in Germany 2012 PAC RADAR report license unlimited reprint rights Within the framework of the license with unlimited reprint rights the customer receives a PAC RADAR short report and a PAC RADAR graphic. Their usage and distribution to external parties is expressly permitted, without any limitations. The customer is entitled to use the contents of this PAC RADAR short report as well as the PAC RADAR graphic, either completely or partially (e.g. individual text sections or graphics), for all marketing and communications purposes. In any usage and distribution, all contents of the PAC RADAR short report and the PAC RADAR graphic must always be marked with the PAC source reference. However, the contents must not be manipulated or deployed in such a way that changes the context. The usage rights defined within the license with unlimited reprint rights refer to the PAC RADAR short report and the PAC RADAR graphic, however, under no circumstances include the usage of the contents of the full version of the PAC RADAR report. In addition, the PAC RADAR copyright terms and conditions apply (see About the PAC RADAR on the last page of this document).

6 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Introduction Next to data center services and application development/ maintenance, the management of workplace environments is the third large cost factor in IT expenditure. The proportion of employees who are equipped with desktop computers and/ or similar, increasingly mobile end devices has been growing continuously over the last few years. According to the Federal Statistical Office, in 2011, 63 percent of all employees in Germany used a computer regularly for their work. In some vertical sectors, such as the financial services industry, this share is virtually 100 percent, and even in sectors with low IT penetration such as the hotel and restaurant sector or the construction industry, it lies at over 30 percent. Moreover, over the years very heterogeneous desktop architectures have evolved, which are difficult to manage due to their complexity. Not only do they tie up IT resources unnecessarily and lead to higher costs for the IT operation, they also affect the productivity of the business and employee satisfaction. Many companies address these challenges through strict optimization strategies focused on CMO ( current mode of operation). Furthermore, they are examining the future viability of the workplace architecture in order to be ready for trends such as the increasing mobility of employees, unified collaboration & communication (UCC), bring-your-own-device (BYOD), cloud, desktop virtualization, etc. And more and more often, an optimization strategy be it in terms of managing the existing architecture or a transfer to new concepts goes hand in hand with the externalization of parts or the entire workplace operation to an external provider. In 2011, a total of 2.5 billion roughly 15 percent of outsourcing in Germany was generated with workplace management (WPM) services. Workplace management traditionally also termed desktop outsourcing is generally considered a mature market, the service being a commodity. Nevertheless it makes sense to take a closer look at the provider landscape and their offers. First, only the commoditization of a service allows the development of really innovative concepts that are attractive for the customer. Second, the providers ability in terms of transforming workplace infrastructures into efficient future workplaces has greatly increased in importance. Never before was it that important for IT managers to actively push innovations, apart from optimization and protecting the status quo. Topics such as desktop virtualization, enterprise mobility or the implementation of UCC concepts on workplaces, discussed as vision only a few years ago, are now regular parts in users requirement lists. Today, ICT managers are facing the challenge of developing the traditional desktop view towards a more comprehensive view of the entire workplace environment and they hand on this task to the

7 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I providers. A special focus of the recent PAC RADAR Workplace Management & Transformation in Germany 2012 was thus on the capability of the providers to support both the management and the transformation of workplaces.

8 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Workplace management & transformation definition The PAC RADAR at hand focuses on the topic of workplace management & transformation in Germany. In particular, this RADAR focuses on longer-term (> 1 year) SLA-based contracts about workplace architectures (end-devices, workplace software, network, mobility, unified communication, collaboration, etc.) that are managed by an external provider. These contracts may include the transfer of employees and/or assets from the customer to the provider ( desktop outsourcing ) or be pure service agreements ( managed services/ outtasking ), without any transfer of employees or assets. Equally the contracts may include hardware and/or software provision or be limited to services. We have explicitly considered contracts that include the support of customers based in Germany. This regards both purely Germany contracts and contracts with an international scope. It includes customers headquartered in Germany and German subsidiaries of customers headquartered abroad. Not included are stand-alone user help desk services (which are not part of a workplace management/ outsourcing contract), pure maintenance contracts or independent projects (harmonization projects, roll-out, etc.); not even when they are provided by a sub-contractor on behalf of an outsourcing/ managed services provider, i.e. within the framework of an outsourcing contract. The services analyzed in this RADAR comprise decentralized workplace management approaches (e.g. IMAC), centralized management models (e.g. remote management) or hosted or cloud services (e.g. virtual desktop infrastructures and workplace-as-a-service offerings such as the provision of workplace software [OS, Office, communication & collaboration] as a service).

9 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I PAC RADAR methodology Introduction to the methodology The aim of the PAC RADAR is to aid the holistic evaluation of IT providers. PAC publishes a PAC RADAR two to four times per year for different segments. Every PAC RADAR targets a specific IT services sector, for which up to 15 leading providers in a local market are assessed. In the PAC RADAR, the performance, competence and market position of the key providers in a services segment are assessed and compared using approx. 50 predefined criteria. The criteria are arranged according to clusters and can be assigned to the main features, "Competence" and "Relative Market Strength" as well as the underlying clusters and sub-clusters (see the graph below). There is an overall rating from the evaluation of the criteria as well as sub-ratings per cluster and sub-cluster. With the help of the weighted evaluation of all criteria and the resulting overall rating, each provider is given a characteristic position in the PAC RADAR (see chapter Position within the PAC RADAR). The following applies to the PAC RADAR: The better the evaluation for competence and relative market strength, the closer a provider is to the center. The closer to the center a provider is, the closer the provider is to customer requirements for that segment. Evaluation of Criteria at Cluster and Sub-Cluster Levels Main Cluster Cluster Know-how & Expertise Offering & Sales Competence Delivery & Support Strategy & Stability Relative Market Strength Sub-Cluster Skills & Qualifications Experience Value of Offering Quality of Sales & After-Sales Maturity & Quality of Delivery Local & Global Support Importance of Topic for the Supplier Company s Stability Market Power Performance PAC Clusters und sub-clusters of the PAC RADAR according to which the providers are evaluated

10 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I SAMPLE CRITERIA WORKPLACE MANAGEMENT & TRANSFORMATION IN GERMANY 2012 Cluster 1 Know-how & experience : Know-how/ qualification Certifications (quality, security, manufacturer) Scope of supported devices Transformation consulting WPM&T resources worldwide WPM&T resources for Germany Share of innovative topics (BYOD, VDI, UCC, mobility, etc.) within existing business Cluster 1 Know-how & experience : Experience Workplace management history and other workplace-related services Number of devices supported worldwide and in Germany Outsourcing experience Medium-sized business vs. large customers Cluster 2 Offering & sales : Value of portfolio Completeness of portfolio Standardized workplace transformation packages/ concepts Concepts/ approaches for innovative topics (BYOD, VDI, UCC, etc.) Roadmap/ further development of WPM-related portfolio Cluster 2 Offering & sales : Sales- & after-sales quality Manufacturer independence Predefined modular services packages WPM customer evaluation of bidding phase WPM customer evaluation of account management Cluster 3 Delivery & support : Delivery maturity & quality References for workplace transformation projects WPM customer evaluation of service provision quality

11 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Partnerships Cluster 3 Delivery & support : Local & global support Field services in Germany and worldwide Help desk for Germany and worldwide Global reach Cluster 4 Strategy & stability : Significance of offering for provider Topic-related R&D, participation in research institutes, etc. IT services and outsourcing focus Focus on workplace management Focus on German market Cluster 4 Strategy & stability : Company stability Sector & customer size mix Company size, development of revenue and profit over the last three years Dependence on few large customers Cluster 5 Relative market strength : Market position Revenue and market share of workplace management in Germany Innovation strength Strength of references Cluster 5 Relative market strength : Performance Customer satisfaction WPM customer evaluation Development of WPM revenue over the last three years Renewal rate

12 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Selection of providers for the PAC RADAR In order to be selected for the evaluation in the PAC RADAR, certain criteria must be fulfilled. For the services segment workplace management & transformation in Germany, the most important selection criterion was a provider s relevance for the German market. The assessment was based on the revenue volume, but also on criteria such as the strategic relevance of the services offering for the provider, the portfolio s market relevance and a broad customer base. For this PAC RADAR, 11 providers have been assessed. In total, they are responsible for the (external) operation of close to two million desktop PCs, laptops and thin clients in Germany. In terms of workplace management revenue they represent approx. 80 percent of the German market. All providers positioned in the PAC RADAR were invited to support the analysis process with a detailed self-disclosure and the provision of four customer evaluations. The five providers mentioned by name in the PAC RADAR Atos, Computacenter, Pironet, T- Systems, Unisys participated in the complete process, i.e. they answered the detailed selfdisclosure and submitted customer evaluations. The other six providers Bechtle, Cancom, CSC, Fujitsu, HP und IBM decided against a participation in this extensive assessment process or withdrew their participation during the process. They were evaluated and positioned in accordance with our proven PAC methodology (cf. next chapter). Evaluation methodology in the PAC RADAR The evaluation of every provider is carried out on the basis of an extensive voluntary self-disclosure form, an assessment of the provider by their customers and supplementary estimates based on triedand-tested PAC methodology. All providers mentioned by name in the PAC RADAR have passed through the complete evaluation process. The assessment of the other six providers is primarily based on our proven PAC methodology. Voluntary self-disclosure by the providers In the voluntary self-disclosure process, the providers were asked about aspects such as topicoriented experience, skills and resources, portfolio, service provision, established contract types and pricing models, sales structures, customer focus, topic-related strategy and further development, etc.

13 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I The providers were asked to give their views on the following criteria: SAMPLE CRITERIA WORKPLACE MANAGEMENT & TRANSFORMATION IN GERMANY 2012 Cluster 1 Know-how & experience : Know-how/ qualification Certification (quality, security, manufacturer) Scope of supported devices Transformation consulting WPM&T resources worldwide WPM&T resources for Germany Proportion of innovative topics (BYOD, VDI, UCC, mobility, etc.) within existing business Cluster 1 Know-how & experience : Experience History of workplace management and other workplace-related services Number of supported devices worldwide and in Germany Outsourcing experience Medium-sized business vs. large customers Cluster 2 Offering & sales : Value of portfolio Completeness of portfolio Standardized workplace transformation packages/ concepts Concepts/ approaches for innovative topics (BYOD, VDI, UCC, etc.) Roadmap/ further development of WPM-related portfolio Cluster 2 Offering & sales : Sales- and after-sales quality Manufacturer independence Predefined, modular services packages WPM customer evaluation of bidding phase WPM customer evaluation of account management Cluster 3 Delivery & support : Maturity and quality of delivery References for workplace transformation projects WPM customer evaluation of services provision Partnerships Cluster 3 Delivery & Support : Local and global support Field services in Germany and worldwide Help desk for Germany and worldwide Global reach

14 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Cluster 4 Strategy & stability : Significance of offering for provider Topic-related R&D, participation in research institutes, etc. Focus on IT services and outsourcing Focus on workplace management Focus on German market Cluster 4 Strategy & stability : Company stability Sector & customer size mix Company size, development of revenue and profit over the last three years Dependence on few large customers Cluster 5 Relative market strength : Market position Revenue and market share of workplace management in Germany Innovation strength Strength of references Cluster 6 Relative market strength : Performance Customer satisfaction Assessment by WPM customer WPM revenue development over the last three years Renewal rate Information from the providers end customers Apart from the voluntary self-disclosure process, evaluations from four workplace management clients at German level were requested we included contracts with customers based in Germany and also international contracts with a significant German share. However, not all providers submitted four customer evaluations. With fewer than four customer evaluations, the rating was set at average, i.e. with statements of satisfactory or service provision in accordance with agreement. Submitting customer evaluations thus provided an opportunity to rise above mediocrity. If more than four customer evaluations were submitted, we used the four best grades for the final evaluation. The providers were evaluated by their customers using the following criteria for a grading scale of 1.0 ( agreement clearly exceeded or extremely satisfied ) to 5.0 ( clearly fallen short of agreement or very dissatisfied ):

15 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I SUBJECTS FOR CUSTOMER EVALUATION (INCL. SAMPLE CRITERIA) Quotation phase Reaction time, completeness Comprehensibility, transparency Flexibility/ innovation: Pricing structure/ models Level of coverage with the requirements Proactivity Consulting services during pre-sales phase General behavior/ communication Account management Response to change requests Availability of account manager Reaction time of account manager Specialist competence of account manager General behavior/ communication Behavior in the event of escalation/ under stress Service provision Budget and deadline compliance Realization of requirements Quality of results Specialist competence (technology & processes) Industry competence Teamwork with the customer Proactive approach, contributing innovation Implemented methods & tools Project management competence Knowledge transfer If applicable: collaboration with offshore resources

16 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Weighting of the criteria CRITERIA FROM THE VOLUNTARY DISCLOSURE PROCESS AND CUSTOMER EVALUATION WITH HEAVIER WEIGHTING Certifications (quality, security, manufacturer) Diversity; scope of supported devices Proportion of innovative topics (BYOD, VDI, UCC, etc.) within existing business Transformation consulting Number of supported devices in Germany WPM&T resources for Germany Cloud / VDI approaches Completeness of portfolio Predefined concepts/ approaches for innovative topics (BYOD, VDI, UCC, etc.) Roadmap/ further development of WPM-related portfolio WPM customer evaluation of bidding phase WPM customer evaluation of account management Big deal capabilities References for workplace transformation projects WPM customer evaluation of services provision Field services in Germany Global reach WPM customer evaluation of proactivity in delivery Focus on German market Focus on workplace management Innovation strength (related to WPM) Customer satisfaction WPM customer evaluation WPM revenue development over the last three years Renewal rate

17 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I General PAC methodology The following overview describes PAC's methodology for market analysis and key differentiation features. Local research and face-to-face communication are two core elements of PAC s methodology. In our market studies, we can draw on over 35 years of experience in Europe. SUPPLY DEMAND Vendor database Qualitative approach Quantitative approach Face-toface and phone interviews Situations and trends Quantitative results IT user database Market volumes Situations and trends Quantitative data Face-toface and phone interviews Qualitative approach Quantitative approach Market forecasts Bottom-up methodology Top-down methodology PAC references 35+ years of data tracking Macro-economic data/statistics Market modeling Key vendors, key market segments, key success factors, key trends Description of the PAC methodology Thus the evaluations of the 11 providers in particular of those that did not hand in any selfdisclosures or customer evaluations are also based on PAC s databases (this includes data from former PAC RADAR reports such as Desktop Management in Germany 2009 ). Moreover these evaluations are based on information we have gained from regular exchanges with providers, e.g. in the form of analyst briefings within the framework of our SITSI or DACH Outsourcing research and verified or supplemented by dedicated desktop research.

18 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Workplace management & transformation in Germany important trends and results from the analysis Current challenges for IT managers and providers Workplace infrastructure management is among the most important challenges for IT managers. They are caught between the high requirements in terms of equipment, quality and security on the one hand and tight budgets on the other. For example, the business today requires that employees with suitable (mobile) end devices can access the company IT anytime and independently from their location and communicate with each other via video conferences and social media. After all, the workplace equipment and the quality of workplace management directly affects the employees productivity and satisfaction. Moreover, the necessary end devices and applications (mobility, desktop-based video, etc.) are meanwhile technically mature and intensively used in the private life. Moreover, the integration of new end devices and applications is necessary to avoid a shadow IT, i.e. the uncontrolled usage of devices and applications such as social media which employees use in their private lives, and the resulting security risks. After all the increasingly mobile end devices can serve as gateways to the company IT. The flexible integration of ever newer end devices and applications up to the implementation of socalled bring-your-own-device concepts, however, will clearly lead to a higher complexity, which is increasingly difficult to manage. The modernization of the workplace environment and the resulting necessity to limit or diminish complexity is more and more often a reason to consider outsourcing the workplace management or to renegotiate outsourcing contracts. In fact, the homogenization and standardization of desktop landscapes, including the integrated technology and processes, can considerably decrease complexity and thus offer savings potential e.g. through synergy effects, less peripheral intervention, simplified license management and a high degree of centrally provided services. Simultaneously, homogenization represents an essential precondition to realize virtualization technologies on the desktop side and provide workplace applications network-based as a service. From an IT and cost point of view, a complete homogenization of the IT landscape would be desirable. However, the specific requirements of the individual business areas (sales, production, development, administration, etc.) and user groups (employees with diverse requirements) must equally be considered. The solution for this trade-off homogenization vs. considering the specific business

19 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I requirements by involving new technologies for communication and collaboration offers room for innovative concepts that the providers use to differentiate themselves against the competition. General market development In spite of high maturity, the market for workplace management continues to show stable growth. PAC does not expect this to change over the next few years despite the ongoing financial and economic crisis in Europe, which is increasingly affecting the German market as well. Desktop management outsourcing is in demand in virtually every economic climate, contrary to other kinds of outsourcing. In a good economy, it is more important to handle complexity and growth, whereas in bad times, cost control and flexibility are in the foreground. These are further factors that account for stable growth: Shift from product to outsourcing revenues: Meanwhile nearly all PC manufacturers just like many resellers offer desktop management services that include the products and their maintenance. Equally, former pure hardware maintenance contracts are converted into SLAbased managed services contracts, not least because almost all system houses are thus trying to increase the share of recurring business. Dedicated leasing and financing models as they are meanwhile actively marketed by many providers either via captive leasing companies, which is generally the case among hardware manufacturers, or in cooperation with financial services providers: In particular in economically volatile times, these models contribute to stability. Parts of the WPM market are based on inclusive renting models that help transforming CAPEX into OPEX. Some outsourcing providers even offer adapted payment flows, e.g. to distribute the transition costs over the duration of the contract. Desktop management is often an introductory service in a customer s outsourcing career. Not as close to core business processes as e.g. application management and less critical than e.g. data center services, the risk of disturbances or breakdowns with significant effects on the business seems lower. Therefore, this kind of externalization is suitable for all sectors and is actually widespread in nearly all of them and thus less vulnerable to economic fluctuations. And not least the idea of an innovative partnership between customer and provider within the outsourcing relation is changing albeit only gradually. Transformation projects are increasingly part of management contracts, i.e. not only maintaining the actual state but also giving concrete targets to modernize the desktop landscapes. This is taking effect, in particular in the mature WMP market and is positively affecting growth.

20 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Technology trends Strong growth incentives and innovation surges are furthermore caused by the dynamic development of technology. Pushed by the ever wider spread of mobile devices and innovative collaboration systems such as social media, telephone, web and video conferencing, VoIP/UCC, etc., the further development in desktop virtualization and the spread of thin clients, the workplace infrastructure will change considerably. Enterprise mobility: PAC has observed not only a growing spread of mobile end devices, but also an increasing variety of types (tablet PC, smartphone, etc.) and operation systems (Android, ios, Windows). Moreover, the growing popularity of iphone and ipad in the corporate market is pushing the use of laptops and computers with Apple operation systems within the companies. Modern technologies for communication and collaboration: Social collaboration applications, desktop-based web and video conferences or IP telephony are increasingly turning into integral parts of workplace environments, alongside Word and . The reasons for this are a growing maturity in terms of technology in particular in IP- and software-based applications for real-time communication and the growing need for suitable communication and collaboration tools. Another factor is that many of these technologies are already intensely used in the consumer market (consumerization). UCC: The increasing variety of end devices and applications in the workplace environment has resulted in a growing need for suitable integration concepts. Separate IT and telecommunications applications will be replaced by integrated solutions for communication and collaboration also unified communication & collaboration (UCC). This trend will clearly be reinforced by large IT players such as Microsoft or Cisco. Desktop virtualization: Over the last few years, many companies have successfully virtualized their back-end systems. However, desktop virtualization, in particular in terms of externally hosted services and if real-time integration is required, is still in its infancy. But the mid- to long-term development promises a particularly dynamic environment. Software-based self/ auto-repair models that considerably reduce the necessity of manual intervention are turning into a standard in workplace management. Altogether PAC expects that centralized services from the data center and remote services will become more common whereas the importance of on-premise services, the so-called IMAC services will decline further. Cloud/ SaaS: SaaS solutions (software as a service) are increasingly chosen as an alternative or to supplement traditional desktop software (operation systems, collaboration, Office, mail, etc.) which is not least pushed by Microsoft s cloud initiatives (e.g. Office 365), but also by new, purely cloud-based competitors like Google. Most providers offer an optional

21 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I integration of third-party solutions on customer request, but it is not generally part of the standard portfolio. Developments in terms of positioning and offer In the following we have listed the most important findings from the current PAC RADAR Workplace Management & Transformation in Germany These offer valuable information as to how providers deal with the above-described opportunities and challenges. Competencies, offers and experience The prevalent ITIL (services processes) and ISO/ BS certifications (security, quality management, etc.) are today offered by all relevant providers in the WPM market. In addition there are several certifications through technology partners such as Microsoft, Cisco, Citrix, VMWare/ EMC or diverse hardware manufacturers. The latter s certificates naturally show differences depending on product or services strategies. In terms of vision and innovative capacity the providers that develop technologies, hardware, and/ or software themselves show the best results, but also those with a pronounced, innovative services culture. Even pure services providers can develop innovative services concepts and implement the most recent technologies, e.g. through close technology partnerships and active participation in research or similar groups. The growing centralization of workplace management services up to desktop virtualization and the integration of innovative concepts such as UCC, mobility, BYOD or cloud are among the hot topics of the near future. And all providers address these issues albeit with varying intensity, vision and investments. In desktop virtualization, we generally find strategic partnerships with one or several of the leading suppliers, such as VMWare, Citrix, Microsoft or Visionapp. MS Windows and this is hardly surprising is supported by all providers. Most of them have further experience in managing mobile end devices and operation systems which increasingly includes ios and Android, alongside Blackberry and Windows. Other operation systems can be offered as an option, on explicit request. Due to the high popularity of iphone and ipads in companies, Apple operating systems are becoming increasingly relevant. Very few providers offer the management of communication end devices such as IP and non-ip telephony, headsets, etc. and of peripheral devices like printers and copy machines some propose it as an option. In this way, only some providers have competencies for a holistic management of IT and communication and are thus able to support companies in the implementation and operation of UCC concepts. Today the management of workplace applications such as Office software, / groupware/ instant messaging, web/ video conferencing and collaboration software is an integral part of the offerings, just like network management and security. However, the providers differ

22 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I considerably in terms of their offerings and experience in operating communication applications. In particular the management of voice communication via IP-based or traditional telephone systems and related devices is rarely part of the standard portfolio and often not offered at all. Field services and support Nearly all providers consider centralized/ remote services such as software management/ distribution, system monitoring, hosting, asset & license management, etc. as an integral part of their WPM offerings. The same applies to 1 st - and 2 nd -level support. When it comes to field services, the positioning of the providers varies greatly. While some of them consider it as their core competency to maintain significant resources, others concentrate entirely on central tasks and service management, providing IMAC and logistics services only through partners. These are often smaller local system houses or, for logistics, also specialized companies such as UPS. Some of the providers included in the PAC RADAR even cooperate with each other. Off- or nearshoring is not playing a central role in WPM for German customers. In particular help-desk services fall under this category and partly centralized services such as monitoring or software distribution. A specific industry focus is rare. In terms of company sizes, however, the positioning is generally clear: The focus is either on mid-sized or on large customers. Companies that address both sizes, usually have a partner for the delivery, in particular of field services. The geographical scope varies as well: while some providers are particularly strong in servicing very international companies, others focus on Germany, Europe or specific regions. Industrialized services offers The degree of standardization and modularization varies considerably between the providers. Whereas some are extremely advanced and offer predefined services packages e.g. graded by response times, availability levels, etc. others have an individual approach. Hardly any predefined standard packages exist for transformation projects; those that exist are mainly in the form of quasi standards that reflect best practices, but follow no fixed-price model.

23 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Contracts & contract management There is no clear trend for outsourcing contracts with transfer of staff or for managed services contracts without transfer of staff. However, most providers are generally willing to integrate employees within the framework of an outsourcing contract. The contract duration in the WPM business lies in general between three and five years. For the future, it is expected that contracts with shorter duration (less than three years) will become more common. In terms of pricing models, there are clearly more price-per-seat models, generally complemented by services-based price components (i.e. price per additional service unit). Fixprice projects still exist as well. There are very different ways to manage a transformation as part of a workplace management contract. Some providers prefer separate contracts for management and transformation, others include the transformation. Penalties, e.g. for not achieving SLAs, are included in over 90 percent of the WPM contracts; incentives for exceeding them are becoming more common, but are still rare. Most providers claim that over 50 percent of the currently running German WPM contracts were extended at least once; once more a sign for the general maturity of the market.

24 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I PAC RADAR: the leading providers of workplace management & transformation in Germany 2012 PAC, 09/2012 PAC RADAR for workplace management & transformation in Germany 2012

25 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Positioning within the PAC RADAR Positioning within the rings Using the calculated overall grade, each provider receives a characteristic positioning within a PAC RADAR ring. The following applies here: The closer the position is to the center, the closer the provider is to the customer requirements for that segment. The "customer requirements" at the center represent a cross-section of the market; the position of the provider represents the completeness with which the provider's offerings and competence correspond with the requirements of all potential customers; i.e. purely German clients, international key accounts and SMBs alike. The providers have been positioned with the 1st ring (inside) to the 4th (outside). The PAC RADAR rings have the following attributes: 1st ring: "Best in Class" (grade between 1 and 1.99) 2nd ring: "Excellent" (grade between 2 and 2.99 ) 3rd ring: "Strong" (grade between 3 and 3.99 ) 4th ring: "Solid" (grade between 4 and 4.99) Positioning around the ring The position of a provider along a ring does not represent an evaluation but additional information. It indicates the provider's specifications within the WPM business: Weight of local compared to the international business Weight of medium-sized vs. large customers, with medium-sized here being defined as companies with less than 1,000 employees. Size of the circles The size of the circles corresponds to the provider s market strength, i.e. the number of supported desktop devices (workstations/ PCs, laptops, thin clients) in Germany.

26 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I Scoring results T-Systems In the following, those criteria are highlighted have led to a considerably better evaluation of T- Systems compared to all other providers under assessment or have led to a downgrading in comparison. Best in Class : T-Systems (final grade: 1.83) ABOVE-AVERAGE EVALUATED CRITERIA: Proportion of innovative topics (BYOD, VDI, UCC, etc.) within existing business Workplace services- and workplace management-related resources in Germany and worldwide Number of supported devices worldwide and in Germany Outsourcing experience Business with and focus on large customers Completeness of portfolio Predefined, modular services packages Big deal capacities References for workplace transformation projects Remote services resources Field services in Germany Help-desk resources worldwide Topic-related R&D, participation in research institutes, etc. Focus on the German market Revenue and market share of workplace management in Germany Innovation strength in terms of workplace management Strength of references Revenue development in workplace management over the last three years CRITERIA THAT HAVE LED TO A DOWNGRADING: Business with and focus on medium-sized customers Dependence on large customers

27 SITSI I Horizontals I PAC RADAR I Workplace Management & Transformation I Germany I About Pierre Audoin Consultants (PAC) From strategy to execution, PAC delivers focused and objective responses to the growth challenges of Information and Communication Technology (ICT) players. Founded in 1976, PAC is a privately held research & consulting firm for the software and ICT services market. PAC helps ICT vendors to optimize their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies. For more information, please visit About the PAC RADAR The PAC RADAR is protected by Pierre Audoin Consultants (PAC) s copyright. The PAC RADAR is a graphical representation and written analysis of the positioning of various IT suppliers within a defined market segment at a specific point in time. The positioning and characterization of selected companies within the PAC RADAR is conducted on the basis of an analytical assessment of criteria which PAC previously defined for this analysis. The selection, positioning, and characterization of companies within the PAC RADAR is not subject to any vested interests whatsoever. PAC does not support any suppliers that are represented in the PAC RADAR, and does not give any recommendations to technology users. The PAC RADAR represents a result from market research only and must not be taken as a recommendation for action. The contents of the PAC RADAR have been created with utmost diligence and care. However, PAC cannot be held responsible for any errors or omissions. PAC excludes all express or implied claims, also if derived from warranties with respect to the PAC RADAR report, including any implied warranties of merchantability or fitness for a particular purpose. The PAC RADAR may only be used for a license fee and with the consent of PAC. Moreover, the use and publication of the contents and the results of the PAC RADAR are subject to the Terms & Conditions of Pierre Audoin Consultants (PAC) for the Use of PAC RADAR Licenses. Copyright Pierre Audoin Consultants (PAC), All rights reserved.