Post on 14-Jul-2015
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IDC IT ADVISORY TOOLS
IDC’s IT Advisory Tools are designed to optimize yourtechnology sourcing and lifecycle decisions by providingactionable data and market intelligence that can saveyour organization thousands of dollars. IDC haspioneered IT price indexing for large organizations andis the undisputed leader in the industry for its rigorous,fact-based approach to benchmarking and advisingglobal sourcing and asset management professionals.IDC’s SmartTools will lay the foundation- your vendormanagement process by helping you benchmark andassure best pricing for your long-term IT contracts.
SmartAnalysisCOST MANAGEMENT is clearly a major focus for large companies and government agencies. Successfulorganizations utilize benchmarking data to ensure they get the best deals possible, but locating relevantintelligence is difficult. Often competitors are the closest peers, and that makes intelligence gatheringnearly impossible!
IDC’s SmartAnalysis tool assists senior sourcing, procurement, and asset management professionals withcompetitive intelligence and market analysis. SmartAnalysis provides exacting peer pricing benchmarksand cost reduction insights, ensuring decision makers have actionable intelligence and objective data.
• IDC offers a peer pricing (deal level) analysis of prices paid by comparable buyers for price several ranges:
- Average peer- Best in class- Best in industry
• IDC profiles each buyer and places them into peer categories by spend, volume, geography, product class, etc.
• Profile is combined with thorough examination ofmarket conditions to produce recommendations on savings
- Expectation setting/goal validation- Secure best rates in RFP process before
it’s too late
• Custom SmartAnalysis is available:
- Custom price performance analysis- Custom savings opportunity analysis
Market Dynamics
Competitive Analysis
Peer Price Analysis
Recommendations
Discount reports
IDC’s IT Advisory Tools
SmartAnalysis SmartFMV
Benchmarks/Pricing to best-in-class deals
SmartIndex &SmartBuy
“What are the best prices available for my level of commitment?”
Cos
ts
Time
Valu
e“How do I secure pricing on long
term and strategic deals?”
“What are my assets worth at the end of a lease or at any other point in their lifecycle?”
Accurate, objective evaluation of IT assets
Sustains Long Term Pricing & Value
SmartIndex & SmartBuyCorporations typically negotiate strong preliminary pricing - a “honeymoon” period - only to give awaythose cost savings later in the contract to their supplier. IDC’s SmartIndex tool is designed to ensurethat buyers will maintain competitive pricing over the course of their contract with their IT supplier.SmartIndex is a monthly or quarterly benchmark focused on a buyer’s specific system configurations,providing the most accurate and relevant competitive pricing benchmark.
• SmartIndex is the industry standard benchmark for pricing
- Used by over 50% of Global Fortune 500
• Normalized product comparisons that benchmark pricing on a wide variety of products, including PC's,portables, peripherals, services and storage
• IDC establishes a price index for each configuration
- Your discount can be discount applied to IDC SmartIndex on periodic basis either monthly, orquarterly
IT Hardware Cycle
IT Advisory Tools Specific Coverage Areas:�Services �Commodities
�Infrastructure �Peripherals
Smart Fair Market Value (SmartFMV)An objective third-party solution, IDC’s Smart Fair Market Value tool saves corporations time andmoney when establishing financial terms for used IT hardware acquisitions, end-of-lease purchases,liquidation of IT assets, or analysis related to fair market value (FMV). Given the state of the industryand the need to tightly manage costs, Smart Fair Market Value is an invaluable resource for accurate,objective pricing which ensures that clients realize the best value. IDC has assisted companies that aredownsizing or restructuring IT hardware to find hidden revenue in their IT assets.
Smart Fair Market Value provides a mutually acceptable solution with accurate FMV on almost any IThardware asset. These values are based on the actual liquidity value and resale costs of the products inthe secondary market.
• Independent evaluation of in-place assetsfor all hardware categories
• Ideal for negotiating leases, buyouts,asset transfers or dispositions
• Report can be used as an independentvalidation of asset value withinoutsourcing contracts
• IDC tracks secondary pricing (RV andFMV) on a wide range of technology:
- PC/Portables- Servers- Storage- Network/telecom- Peripherals
Volume Purchase Price Chart:SmartIndex vs. Current Method
Market Price
Buyer Discount Price
$1,800
$1,400
$1,000
$600
1Q 2009 3Q 2009
Time
Pric
e
1Q 2010
SmartIndexCompetitive Average
IDCSmartFMV
Service
After-markets
Liquidators
Recyclers
Lessors
Recyclers
End of leasevaluations
Outsourced portfoliovaluations
Asset dispositionanalysis
Product LifecycleCost analysis
Fair market valueData and Analysis
Improve financial results with accurate, real time values!
Typical results are over 20-200% better with accurate data
Allows customers to establishprice assurance model thatbenchmarks pricing to themarket
Avoids “honeymoon period”pricing; benchmarks bestdeal throughout purchasingcontract
United States Postal Service Uses IDC to EnhanceVendor Management and Strategic SourcingBackground: The US Postal Service has been an IDC Tools client for over four years. Inthat time it has enhanced its vendor management process by employing independentbenchmarking data to obtain market pricing on IT hardware.
Process: IDC provides ongoing price indexing on a wide array of commodity technology,from notebooks to x86 servers. IDC also provides spot-deal analysis on enterprisetechnology, such as midrange servers, mainframes and storage.
Results: IDC is a trusted source of best in class pricing on enterprise deals; annual savings are significant.
Case Studies
“IDC’s price benchmarking tools havebecome a valuable part of ourongoing strategic sourcing practice”
- United States Postal Service
Vodafone Uses IDC To Achieve Best in Class Pricing and Cost Savings• Vodafone’s datacenter consolidation initiative included extensive price
benchmarking on infrastructure purchasing
• IDC Tools are used to validate deals and benchmark ongoing price assurance
• Findings communicated to management and investor community
IDC partnered with
Vodafone to achieve
unprecedented
savings
List Averageprice
Storage
Best price
VP price
List Averageprice
Servers
Best price
VP price
Data center consolidation
Vodafone leads in IT pricing
Scal
e do
es m
atte
r
1st time fully globalnegotiations and
commitments
18 month of global demandpooled into one e-auction
Discounts range from30-70%
Supply chain delivering best in class IT pricing
“Vodafone continues toreceive exceptionalpricing that is well
above ‘best in class’ for all classes of storage.”
- IDC
“Vodafone continues to achieve best in class
pricing.” - IDC
Source: Vodafone Group Press Release - Vodafone Analyst and Investor Event
US and Global Headquarters 5 Speen Street, Framingham, MA 01701 1.508.872.8200http://www.idc.com/prodserv/itadvisory.jsp
IDC IT ADVISORY TOOLS
North America • Asia Pacific • Europe • Latin America
In
novat
e, Advance the Company
Manage the Business
Acqu
iring the Technology
Managing I.T.Budget CriticalBest deals, best terms,
price assurance
Business CriticalBest suppliers & solutions to
support the business
Finding a solution that fits: Critical!
Mission CriticalRight partners, best technology,
Leverage Tech for competitive edge
Execution CriticalBest practices, training, networking
Portfolio management
Peer 2 Peer, ITEX &Conferences
Best practices on people/processOperations/finance/governance
IDC Insights & PVWSVertical Specific Research
Line of Business IT Analysis/AdviceVendor Landscape and Qualification
GITA & PVWSVendor & Technology ValidationIT Strategy Planning Support
Technology Trending and RoadmapMarket Forecast and Analysis
IT Advisory ToolsDeal and Peer Pricing Analysis
Price BenchmarkingAsset Valuation
Critical Focus IDC Solutions
How IDC/Insights fits into the IT value landscape