0 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

IBM System x® x86 servers: Delivering customer satisfaction

by excelling in hardware and support services

May 2013

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

1 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

Enterprise customers view IBM as a trusted partner and provider of x86 hardware and support services. The increased usage of virtualization in server environments and private, public and hybrid cloud computing architectures intensifies the requirements of its System x® solutions. These technology trends play a significant role in the growing amount of mission- and business-critical data streaming through server hardware and analytics software, leading to a higher frequency of user interaction. In addition to providing near-instant access to important data, today’s servers are responsible for managing the entire lifecycle of data storage and transmission. According to customers surveyed in TBR’s 1Q13 Corporate IT Buying Behavior & Customer Satisfaction Study: x86-based Servers (x86-based Server CSAT Study), enterprises rely on IBM’s engineering and product expertise, proactive hardware management tools and support services, as evidenced by IBM’s No. 1 ranking in all three satisfaction indices: product, sales and service satisfaction. What role do server and support vendors play, and why? Enterprise IT departments virtualize IT infrastructures to support emerging business intelligence and analytics applications, software distribution, application hosting and other support functions, emphasizing the importance for vendors to provide efficiently managed enterprise server networks. Through its quarterly x86-based Server CSAT Study, TBR surveys x86 server customers to determine the essential server attributes for successful and efficient IT operations. Enterprise customers reported they more highly value a partner that can provide a server solution that excels in: Hardware Quality and Reliability: Enterprises deploy servers in increasingly diverse environments, tasking servers with a growing number of business-critical applications and demanding workloads. Customers in TBR’s x86-based Server CSAT Study determine the quality of server hardware — and their manufacturers — by evaluating the total value of the servers’ capabilities at the time of purchase as well as ongoing maintenance costs. Enterprise customers reported that vendors with an established reputation of high-quality products and support services have a competitive edge in their server purchasing decisions. Service and Support: Enterprise IT departments deploy hardware that meets the demands of business processes and applications, and choose vendors as partners to enhance their in-house support organizations.

Enterprise customers’ satisfaction scores demonstrate System x® hardware quality and support services are the key differentiators that separate IBM from the pack

TBR believes IBM servers are capable of adapting to application and network requirements that are constantly becoming more complex and play a vital role in helping enterprises meet business objectives.

2 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

TBR’s 1Q13 x86-based Server CSAT Study indicates enterprises are demanding more from their IT departments, and subsequently choose vendors that offer comprehensive add-on services and support to assist in-house support resources. Additionally, customers were the least satisfied with online support and self-support and ranked them as less important than on-site services.

Total Cost of Ownership (TCO): According to TBR’s 1Q13 x86-based Server CSAT Study, customers cite TCO as one of the most important factors in x86 server purchase decisions. Enterprises determine long-term value by evaluating the longevity of the server hardware and the strength of the services provided to support the servers’ uptime. Historically, purchase price was one of the primary decision factors for potential x86 server customers; however, enterprises are increasingly leveraging TCO to gain a more accurate view of long-term business impact. Customers recognize the added value servers provide as they are tasked with increasingly demanding workloads such as analytics, leading TCO to outweigh initial price in purchasing decisions. Replacement Parts Availability: TBR’s 1Q13 x86-based Server CSAT Study found that enterprises value replacement parts availability as one of the essential elements in server purchases and overall vendor satisfaction. While server vendors do everything they can to ensure the reliability of their products, customers demand readily available replacement parts for when failures occur to maximize uptime, one of the foremost goals of IT departments worldwide. Virtualization, Efficiency, Scalability: Enterprise IT departments leverage virtualization to improve server efficiency and cost-effectiveness by reducing overhead and operating expenses. Additionally, customers seek to efficiently scale network resources and maximize server hardware capabilities by centralizing administrative tasks through automation based on activity or applications. As more enterprises virtualize IT infrastructures, energy efficiency is increasingly important to manage the costs associated with the demanding workloads placed on servers. How does IBM meet these essential server requirements? IBM continually invests in the development of new server technologies and services with its customers’ primary needs and value points in mind. IBM earned a No. 1 ranking in TBR’s 1Q13 x86-based Server CSAT Study, demonstrating strong customer sentiment toward its continued delivery of servers and related services. IBM positions System x® servers as systems with a strong value proposition based on high-quality, highly capable solutions for the evolving demands enterprises place on their server environments. Additionally, IBM’s service and support programs

IBM is positioned as a leader in x86 servers due to its proven track record of providing high-quality hardware, proactive support and flexible management tools.

3 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

for x86 servers play a prominent role in the evolution and management of the server environment lifecycle. Hardware Quality: IBM develops its System x® solutions with an eye on reliability. As a result, the company has earned a strong reputation for quality, leading to high customer expectations. Despite high expectations, IBM customers demonstrate high satisfaction with System x® reliability and quality, as evidenced by IBM’s top spot in hardware reliability and quality mean satisfaction in TBR’s x86-based Server CSAT Studies in 3Q12, 4Q12 and 1Q13.1 Service and Support: Customer feedback in TBR’s 1Q13 x86-based Server CSAT Study demonstrates that IBM delivers a high level of service across its support offerings. IBM earned the highest mean satisfaction scores in seven service and support categories in 1Q13, continuing a streak of high satisfaction generated throughout 2012. IBM earned the highest mean satisfaction in phone, on-site and online support attributes in each of the last four quarters. IBM positions its services teams to help enterprises minimize server downtime, cost-efficiently manage application deployments, quickly troubleshoot any issues and carry out routine maintenance. Purchasing IBM’s servers allows enterprises to focus on supporting business-critical applications, services and processes, while IBM provides assistance or entirely manages the infrastructure lifecycle. The company’s Global Services business has earned a reputation for quality service through its network of experienced IT professionals. IBM also leverages affiliated partner resources to deploy hardware solutions and software services for current and emerging needs of an enterprise’s IT operations. IBM offers a single point of accountability and a proactive partner throughout the entire server lifecycle for businesses upgrading to newer server environments or updating infrastructures. Total Cost of Ownership: Customers surveyed in TBR’s x86-based Server CSAT Study rated IBM as the leader in TCO mean satisfaction in 3Q12 and 1Q13, and the company was the only x86 vendor with sequential TCO satisfaction improvement from 4Q12. The firm leverages high-quality hardware, support services and environmental efficiency to reduce TCO, drive long-term value and improve satisfaction for System x® customers. Enterprises demand server hardware that has easy usability in day-to-day operations and cost-effective scalability, maximizing server uptime. System x® servers’ hardware quality and reliability, simple management and variety of upgrade options enable IBM to accelerate customers’ ROI and to reduce TCO.

1 TBR changed the reporting of mean customer satisfaction scores from a three-month period to a rolling six-month period in 1Q13 to limit drastic quarter-to-quarter fluctuations.

Enterprises can rely on IBM’s experienced support professionals and business process knowledge to discover new opportunities to meet their IT business goals.

4 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

Replacement Parts Availability: IBM ranked highest in mean satisfaction in TBR’s 3Q12, 4Q12 and 1Q13 editions of the x86-based Server CSAT Study. The company maintains an extensive inventory of replacement parts for its System x® servers and a variety of warranties for the various budgetary and support requirements of different enterprises. In addition to readily available replacement parts, IBM has a network of 6,500 service technicians and a parts network of 125 major locations in the U.S. to facilitate its support and repair services. Virtualization, Efficiency, Scalability: IBM’s System x® virtualization, efficiency and scalability capabilities ranked first in mean satisfaction in 1Q12, 3Q12 and 1Q13 according to customer feedback in TBR’s quarterly editions of the x86-based Server CSAT Study. Enterprises utilize System x® virtualization tools and functionality to customize performance per workload for specific business objectives. While server virtualization enables IT departments to simplify infrastructures and increase operational efficiencies, it places an increased workload on servers, emphasizing the importance of energy efficiency for server vendors. IBM differentiates its x86 servers by integrating energy-saving features such as more efficient cooling systems with on-board energy management tools into its System x® solutions. The company positions System x® servers to offer flexible configurations with high-speed I/O, enhanced memory and processing optimized to take advantage of the cost reductions and operational efficiencies offered by virtualization. Conclusion IBM continually develops its System x® portfolio with an eye to helping customers leverage capabilities around scalability, performance and reliability. Based on consistent customer feedback in TBR’s quarterly x86-based Server CSAT Study, IBM meets high standards for quality, value and service by aligning its portfolio of offerings and services with the core needs of its customers. IBM positions System x® solutions to meet the evolving demands of today’s enterprises through high-quality servers that are easy to deploy, manage, configure and support, driving the company to the No. 1 ranking in TBR’s 1Q13 x86-based Server CSAT Study.

TBR believes IBM’s System x® virtualization and scalability capabilities provide enterprises a foundation on which to build adaptable and cost-effective infrastructures.

5 IBM System x® Server CSAT White Paper | May 2013 ©2013 Technology Business Research Inc.

TBR

About TBR’s Quarterly Customer Satisfaction (CSAT) Studies

Technology Business Research Inc. (TBR) measures the expectations,

satisfaction and loyalty of enterprise customers in its quarterly CSAT

studies. TBR surveys more than 1,200 individuals responsible for the

purchases of x86 servers and PCs at North American enterprises with more

than 500 employees on a quarterly basis. TBR ranks major vendors in each

form factor area through a series of indices including sales satisfaction,

product satisfaction, service satisfaction and loyalty.

About TBR

Technology Business Research, Inc. is a leading independent technology

market research and consulting firm specializing in the business and

financial analyses of hardware, software, networking equipment, wireless,

portal and professional services vendors. Serving a global clientele, TBR

provides timely and accurate market research and business intelligence in

a format that is uniquely tailored to clients’ needs. TBR analysts are

available to further address client-specific issues or information needs on

an inquiry or proprietary consulting basis.

For More Information

TBR has been empowering corporate decision makers since 1996. For more information, visit www.tbri.com.

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