ITSMA, in partnership with Pierre Audoin Consultants (PAC), conducted the 2009 version of its acclaimed How Customers Choose research across three continents.

1. How Customers Choose Solution Providers, 2009:
The Importance of Personalization, Epiphanies,
and Social Media
ABBREVIATED SUMMARY
Final Data Report | September 2009
Prepared by:
Julie Schwartz
Senior Vice President
Thought Leadership and Research
ITSMA
Katie Espinola
Senior Research Analyst
ITSMA
Olivier Nguyen Van Tan
Managing Director
PAC
AND
Final Data Report | Abbreviated Summary | F016AS

2. Summary: How is buyer behavior changing?
Cost containment is giving way Recovery is around the corner in 2010. Prepare now.
to innovation and expansion.
Social media usage is up. Almost non-existent two years ago, social media is If you are not
now becoming central to the technology-based already playing,
solutions buying process. get in the game.
Buyers want marketing to add Only thought leadership will capture buyers’ attention Invest, collaborate,
value. and keep them engaged. and innovate.
Expectations for A strong reputation and proven track record are table Do your
personalization and stakes. Today, buyers expect you to know and homework.
customization are higher. understand their unique business issues.
There are many paths to reach There is no silver bullet marketing tactic. You need a Find your
buyers. combination of on- and off-line channels to create customer’s
demand and generate and nurture leads. preference.
Everything seems to be Facing tighter budgets and a demand for greater Develop reusable
important. personalization, marketers have a resource issue. campaign assets.
How can you stand out in such a market? You need Partner with sales.
to differentiate account by account with precision-
targeted value propositions.
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 2

3. The recovery is in sight for 2010
PAC Forecast: Worldwide IT Spending (in million USD)
CAGR
$1,586,337
2009–2013
$1,489,473
$1,404,450 4.5%
$1,332,099 $1,340,224
IT Services
789,849 (CAGR 4.6%)
742,601
701,893
660,414 670,253
Software
Products
288,869 310,124
271,487 (CAGR 4.8%)
256,660 258,962
Hardware
415,026 411,009 415,026 458,003 486,364 (CAGR 4.0%)
2009 2010 2011 2012 2013
Source: PAC, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 3

4. We entered this recession with lean IT spending; little
room to cut compared to the previous recession
What is happening to your IT spending (including hardware, software and IT
services) so far in 2009? Compared to 2008, has your 2009 budget…
% of Respondents (N=355)
25
15 15
14 14
11
7
Strongly Decreased Slightly Stayed more Slightly Increased Strongly
decreased (between -5% decreased or less the increased (between +5% increased
(more than and -10%) (between -2% same (between +2% and +10%) (more than
-11%) and -4%) (between -2% and +4%) +11%)
and +2%)
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 4

5. Companies are either protecting themselves from a riskier
environment and/or making the most of their current IT
resources
What are the top Back-up, archive, disaster recovery 50
three technologies IT security 34
IT optimization 33
that you consider as
Virtualization 28
priorities for your
Microsoft .NET 16
company in 2009? Cloud computing 13
% of Respondents Risk and compliance 13
(N=352) Web technologies (HTML, PHP, etc.) 12
Open source 10
Java 9
Systems maintenance 8
Networking 7
ERP 7
Business intelligence 7
Unified communications 7
Green IT 4
Collaboration tools and technologies 4
CRM 3
Systems upgrades 3
Mobility 2
SOA 1
Note: Up to three responses allowed. Other 7
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 5

6. Now, more than ever, marketers need to base their
activities on customers’ buying processes
ITSMA’s Relationship Model/Buying Process
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Processes Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 6

7. Stage 1. Create demand. Help potential customers
identify problems and opportunities
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Process Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Epiphany  Create idea- and trend-based thought leadership
Marketing
Process  Help clients discover and respond to the most important business issues
they face
 Take clients out of the day-to-day to collaborate and spark new ideas
 Arm partners/sales/business developers with content
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 7

8. Solution providers are only moderately helpful at
sparking epiphanies
How helpful are solution providers in bringing you new ideas and showing
you the possibilities to solve your business challenges?
% of Respondents (N=355)
Not at all helpful = 1 10
2 17
3 34 Mean = 3.2
4 23
Very helpful = 5 16
Note: Mean rating based on a 5-point scale where 1=not at all helpful and 5=very helpful.
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 8

9. Stage 2. Generate Leads. Make it easy for
potential buyers to find you
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Processes Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Awareness  Develop and implement integrated awareness campaigns—on- and off-line
Marketing
Process  Balance both push and pull marketing
 Amplify reputation through word of mouth marketing
 Work with sales to develop solution-specific value propositions
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 9

10. When companies identify a need, they proactively
seek out alternative solutions
When you have a business problem that requires a technology-based
solution, what percentage of the time would you say you do research and find
appropriate solution providers versus them contacting you first?
Mean % of Time (N=355)
The solution provider
contacts me first (37%) I do the research and
find the appropriate
solution providers
(63%)
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 10

11. Buyers rely on their colleagues to point them to
alternative solutions; nothing else comes close
Total
What are the Speak to colleagues for referrals 33 17 19 68
first three Do an online search including, company websites, 11 14 14 39
steps you take whitepapers, podcasts, Webcasts, etc.
to identify Speak to your existing solution providers and 9 13 11 32
alternative hardware and software vendors
solutions? Get advice from consultants 9 8 12 28
% of
Check the blogosphere, social networks, or online 8
Respondents chat boards
10 11 27
(N=355) Speak to or check publications of industry
8 11 5 23
analysts such as Gartner, PAC, IDC
Speak to or check publications of financial
6 8 6 19
analysts such as Merrill Lynch or Goldman Sachs
Read business and trade publications 5 6 9 19
Pay closer attention to advertisements 6 5 5 15
Respond to emails and cold calls from consultants
4 5 6 14
or solution providers
Other 1 1
Note: Numbers may not add up due to rounding. Step One Step Two Step Three
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 11

12. Three-quarters of buyers are using social media in
the purchase process—that’s huge!
Which of these Web-based tools do you use to gather information and
communicate with colleagues during the purchase process?
% of Respondents (N=350)
Which of these Web-based tools do you use to gather information
and communicate with colleagues during the purchase process?
% of Respondents (N=264)
None LinkedIn 58
(25%)
(75%) Blogs 50
Facebook 47
Twitter 41
Plaxo 39
Note: Multiple responses allowed.
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 12

13. US buyers trail their European and Brazilian peers
when it comes to social media…by a lot!
Which of these Web-based tools do you use to gather information and
communicate with colleagues during the purchase process? (By country)
% of Respondents
US UK France Germany Brazil
(N=170) (N=50) (N=50) (N=50) (N=30)
2
6 6 7
45
None
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 13

14. Stage 3. Personalize and customize. Know the
buyer’s unique business issues
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Processes Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Interest  Develop and implement coordinated, multiphase, multichannel lead
Marketing
Process
nurturing programs
 Turn qualified leads over to sales
 With sales, develop targeted value propositions based on knowledge of the
customers’ business issues
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 14

15. Today, everything is important; no particular
attributes stand out
When evaluating alternatives and selecting the company to help you
implement the solution, how important are the following to your decision?
Mean Rating (N=355)
A commitment to deliver measurable business results 3.5
Knowledge and understanding of your unique business issues 3.5
Available resources to meet deadlines and speed time to market 3.5
Quality of software support 3.4
Knowledge and understanding of your industry 3.4
Previous experience with your company 3.3
A proven track record backed by customer references 3.3
A highly-tailored, customized solution 3.3
IT skills and certifications 3.2
Proactively offered innovative and insightful ideas 3.2
Thought leadership on the solution areas you are most interested in 3.2
Local presence 3.0
Offshore and nearshore resources 2.9
International presence 2.9
Note: Mean rating based on a 5-point scale where 1=not at all important and 5=very important.
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 15

16. Stage 4. Provide proof points to mitigate risk
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Processes Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Confidence  Provide TCO/ROI data and tools
Marketing
Process  Mitigate risk via case studies, references, and demos
 With sales, develop targeted, role-based value propositions
 Provide sales with proposal development support
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 16

17. The attributes that are most differentiating during
the selection process are relationship-based
Think about a recent competitive bid situation. Which of these factors truly
differentiated one solutions provider from another?
% of Respondents (N=355)
The company that knew our business needs better than the others 36
The company with which we had a past relationship, so we knew what to expect 29
The company with better client references 29
The company that brought all the right resources into the selling process 28
The ―safer‖ choice based on brand reputation 26
The company that was more collaborative throughout the selling process 25
The company that brought more new thinking and ideas to the selling process 23
The company that offered the better price 22
The company with the strongest recommendations from analysts or consultants 22
The company that had the best knowledge of the technology 20
The company that was more open and upfront than the others 19
The company with the best understanding of the industry 10
Other 1
Note: Up to three responses allowed.
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 17

18. Stage 5. Measure and communicate the value you
provide
Relationship Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
Stages EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Buying Need Search Alternative Selection and Post-Purchase
Processes Recognition Evaluation Purchase Evaluation
 Explore the  Clarify objectives  Finalize the  Select the  Evaluate
possibilities and solution short list provider satisfaction
specifications
 Identify a need  Solicit proposals  Negotiate the  Measure value
or opportunity  Identify contract delivered
 Evaluate
alternatives
alternatives  Ultimate sign-off
(short list)
Loyalty  Provide tools to measure ongoing value delivered and progress toward
Marketing
Process customers’ solution KPIs
 Manage advocacy, reference, and community-building programs
 Work with sales to monitor and nurture customer satisfaction
Source: ITSMA, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 18

19. The most common relationship-building programs
are business content focused, small and personal
In which of Executive-level business events (e.g., seminars, meetings) 60
these solution
Private briefings 57
provider
relationship- One-on-one, executive-to-executive relationships 57
building Small, intimate, local peer networking events 52
programs do Client reference programs 51
you Online communities/social networking that the solution
50
participate? provider facilitates
Dedicated ―microsite‖ or portal for your company with
% of information about their project work and thought leadership 49
Respondents Account-based or one-to-one marketing programs 49
(N=355) Customer advisory councils or boards 45
Social or recreational activities (e.g., golf outings, dinners) 44
Joint PR/advertising/co-branding 41
Other 3
Note: Multiple responses allowed.
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 19

20. Research Methodology
 355 telephone interviews
 Conducted June and
July 2009
 Five countries:
– US
– UK
– France
– Germany
– Brazil
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 20

21. Who did we speak to?
Are you a business or IT professional? What is your job title?
% of Respondents (N=355) % of Respondents (N=355)
Manager (16%)
C-level, GM,
President (37%)
Business Director
IT (50%) (17%)
(50%)
VP/Assistant VP (30%)
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 21

22. Geographic Distribution
Country % of Respondents (N=355)
Brazil (9%)
Germany (14%)
US (49%)
France (14%)
UK (14%)
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 22

23. Which companies were included in our sample?
Approximately, what is your company’s What is your company’s primary business?
annual revenue, is it ___? % of Respondents (N=355)
% of Respondents (N=355)
7 Other
23
22 7
Business services
10
15 Financial services (e.g., banking, insurance,
14 14 11 investments)
13
Public sector (federal and state or large local
11 only, NOT education)
Retail/distribution
12
Energy/utilities
13
Healthcare
$200– $500– $1– $5– $10– Over
499M 999M 4.9B 9.9B 20B $20B 14 Communications (telcos, media,
entertainment)
Manufacturing (consumer and industrial
15 products)
Source: ITSMA and PAC, How Customers Choose Study, 2009
Final Data Report | Abbreviated Summary | F016AS How Customers Choose © 2009 ITSMA and PAC. All Rights Reserved. 23

24. Contact Julie Schwartz Olivier Nguyen Van Tan
Senior Vice President Managing Director
Thought Leadership PAC
and Research o.nguyen@pac-online.com
ITSMA Phone: +1-646-277-7255
jschwartz@itsma.com Cell: +1-917-744-7902
+1-781-862-8500, Ext. 112
Katie Espinola
Senior Research Analyst
ITSMA
kespinola@itsma.com
+1-781-862-8500, Ext. 114
Final Data Report | Abbreviated Summary | F016AS How Customers Choose AND
© 2009 ITSMA and PAC. All Rights Reserved. 24