by September 6, 2007 0 comments



Our loyal readers who’ve been following PCQuest for many years would know
that September issue is special, wherein we track the progress of IT brands in
the country. We’ve used a variety of methodologies and models in the past, and
every year we make some change to highlight something interesting. Earlier, we
used to track which brands are being used and which ones are likely to be
purchased in the near future by a consumer. This was known as Users’ Choice.
Last year, we converted this to the most wanted IT brands, and tracked many
other aspects of a brand like its movement, loyalty, pull, persuasiveness, and
future readiness.

This year, we’ve gone further with the most wanted IT brands survey and added
a few new things to it. For one, we’ve increased our sample size for the
enterprise brands part of the survey. We went out to 456 of the 1000 top
enterprises in the country for the survey. Secondly, we’ve given the future
readiness of each brand in more detail. So apart from saying how future ready is
it, we’ve also mentioned what’s the expected future users’ share. In other
words, if each brand has an ‘x’ number of existing customers. We’ve shown how
many users is it likely to get in the near future. Last year, we did a separate
online survey for personal consumer brands in the September issue itself. This
year however, we’ll be carrying that in the next issue, and will concentrate
only on the enterprise IT brands in this story. Originally, we had kept 22
categories in this segment, which included software, hardware, solutions, as
well as services. However, one of the categories, enterprise all-in-ones had to
be dropped after we received the survey results. Within the target audience we
surveyed, HP is a clear leader in this category, with a very heavy current user
base. In fact, HP owns more than 90% of it. Under such a scenario, it doesn’t
make sense analyzing this category, since other players have only marginal
bases.

Key observations
There are several key observations from our survey this time. For one,
familiarity with key brands across various categories is pretty high. So for
every IT category, there are a few key brands that are recalled immediately.
This is good, but not ‘good enough’, simply because the next level of
association, of trusting the brand enough to use it in the future is not as
enthusiastic. In fact, in most of the cases, it’s really low. That’s a case
where we say that the brand is just not persuasive enough. Though brands command
the mind share of a lot of people, they’re not able to woo the IT buyer and
convert it into business.

There’s a joker in the pack
The joker in a pack of cards can be converted into any other card in many
games. Apparently, there’s a joker in the pack in our survey as well. When we
asked CIOs to identify brands they’d prefer to buy in the future, a majority of
them were not sure. While we can understand and even expect this to happen for
some categories, we didn’t expect it to happen across the board. In some cases,
this figure was as high as 75%. When so many CIOs are not sure of which brand to
choose for the future, it’s alarming! It reduces the loyalty of a brand. They
may not switch out to another brand, but they’re definitely not sure whether to
continue with the same one.

This observation is alarming indeed, but at the same time, it can be treated
as an opportunity. Vendors who own various brands now have an open space in the
minds of the IT decision makers. They can try and fit their brand there and
ensure that the CIO will not only recall the brand but also prefer to use it in
the future.

Understanding data
There’s quite a lot of data we’ve gathered in this survey, and we’ve tried
to represent it in the best manner possible so that you can easily understand
it. So, every brand category has been given a page. In this, you’ll find our
interpretations of the survey results along with the following four key
elements:

  1. Brand Persuasion graph: This graph maps the brand persuasion of key brands
    in each category on a logarithmic scale. All brands that are closer to the
    diagonal are more persuasive, and those further away from it are less
    persuasive. Please see the survey methodology to understand how we calculate
    brand persuasiveness.
  2. Brand Movement: This 100% stacked bar shows three aspects of each brand in
    a particular category. It shows the brand loyalty percentage, i.e. of the
    customers who’re already using a particular brand, how many are likely to
    continue using it in the future as well. It shows the shift out percentage,
    i.e. of the existing customers, how many are likely to move out to another
    brand. Lastly, we show the percentage of existing customers who’re not sure
    which brand to shift to in the near future and all these three add up to 100%
    who currently own that brand. They’re the indecisive lot of CIOs who could
    tilt the brand loyalty figure of a particular brand in either way. It’s
    important for a vendor to leverage such non-surety to its advantage.
  3. Brand Momentum: This plots the logarithmic values of the future readiness
    of each brand, i.e. its Brand Momentum on a graph. This helps us determine
    whether a brand is ‘speed’ driven, or ‘mass’ driven. Please see survey
    methodology to understand this terminology.
  4. Brand MomentuxTM Index Table: This is giving the data to highlight three
    critical points. One is a relative index of the momentum of each brand, i.e.
    if the top brand is moving at a speed of 100, then how fast are the others
    moving relative to it. The other two columns are showing the current user
    share and the expected future user share for each brand. Current user share is
    the existing number of customers of a particular brand, and the future user
    share is the percentage of users that are likely to be using it in the future
    based on what’s the momentum for a particular brand.

All the write-ups have tried to interpret what’s been represented in the
above four graphs. We suggest you go through the survey methodology to
understand the various terms used in this survey to understand it better. We
would also be posting more data from the survey on our forum.

Survey Methodology


Mrutyunjay Mishra and Sanjay Tiwari, JuxtConsult

Our survey this year focuses primarily on the enterprise segment, wherein
we’ve covered key decision makers from top 1,000 companies in India. We are
really grateful to the 456 key decision makers who could take out time from
their schedule to respond.

Our methodology remains the same as last year. The first question we’ve asked
each respondent is on ‘top of mind recall’ for each category. The other two
questions remain the same as last year, wherein the second asks them for their
‘most likely’ choice of the primary brand if they were to buy the same category
of products in the coming six months and the third asking them to identify the
‘primary’ brand they currently ‘own’ for the same product category.

This was to essentially capture and measure both current market (user) share
as well as current mind share of brands. A combination of these two determines
the real ‘equity’ of the brand; or shall we say its ‘future readiness’? To
assess and measure this future ‘readiness’, we used JuxtConsult’s proprietary
Brand Momentuxâ„¢ Model, which is a simple but unique brand tracking model based
on the time tested ‘theory of momentum’ from the world of physics. Just as the
combination of a body’s mass and speed (velocity) is used to measure the
‘momentum’ with which the body is moving, the combination of a brand’s mass (its
current market share) and its speed (its current mind share) can be used to
measure the ‘momentum’ with which a brand is moving in to the future to compete
for market shares.

So the PCQuest Most Wanted IT Brands have been decided based on their ‘future
readiness’ (Momentum) evaluated with response of key decision makers in the
enterprise space.

Brand MomentuxTM Model
Each ‘measure’ in the model reflects a ‘milestone’ in a consumer’s
interaction with the brand during the buying process-from recall to
consideration, to intention to buy, to usage. To measure how well a brand is
performing at each of these 3 critical ‘transition points’, the JuxtConsult
Brand MomentuxTM Model uses a set of simple but effective diagnostics:

  • Brand Persuasion: How much is the consumer
    convinced about a brand to not just consider it but also ‘prefer’ it over
    other brands in a particular category (by intending to buy it). It reflects
    the ‘persuasive’ power of the brand (of its positioning, proposition,
    benefits, image, value, etc).
  • Brand Pull: How much is a brand able to
    attract and convince consumers of competing brands or non-users of the
    category to prefer or ‘switch over’ to the brand. It reflects the ‘consumer
    pull’ power of the brand.
  • Brand Loyalty: How much is a brand able to
    convince its existing consumers to ‘continue’ to prefer and buy the brand. It
    reflects the retention or ‘loyalty’ power of the brand.

Brand Momentum: It is measured as a combination of the current ‘mass’ of
consumers the brand has, together with the ‘current speed’ at which it is
(likely to) gain or lose consumers as a result of its current marketing
performance. Symbolically, brand momentum indicates the future ‘market share’
potential of the brand.

The current ‘mass’ of the brand is measured as the ‘cumulative’ market (or
user) share the brand has accumulated in the market place. This is reflected by
its existing consumer base (including historical buyers who are still using the
brand).

To measure the ‘speed’ at which a brand is moving in the market place, the
model uses the three critical speed ‘acceleration’ factors from the brand’s
current performance parameters. These are the brand’s current ‘persuasion’
power, ‘consumer pull’ power and ‘loyalty’ power.
In simple marketing terms, the model states that the number of consumers a brand
is likely to gain in the future depends on how many consumers prefer the brand
today, how many are likely to switch-into the brand and how many are likely to
continue to stay with the brand. We’ve done this calculation for each brand and
mentioned it in the individual category pages.

Reading charts
The relative position of the brands in a graph needs to be understood and
interpreted in two different ways:

  • Firstly, the ‘position’ of the brand falling on either side of the
    diagonal and in any of the four quadrants. This position represents a brand’s
    ‘performance’ on the measured attribute (brand persuasion, brand pull, brand
    loyalty or brand momentum).
  • The second way to interpret the graph is to look at the brand’s relative
    positions along the diagonal starting from the bottom to the top. This
    reflects the ‘size’ of the brand in the market place for the measured
    attribute (brand persuasion, brand pull, brand loyalty or brand momentum). The
    higher is a brand positioned along the diagonal towards the top, the higher is
    its share (‘size’) for that parameter and a bigger player it is on that
    parameter in the market place.

Reading the Brand Momentum Map
The brand falling on the left of the diagonal is being driven more by its
‘mass’ (current cumulative consumer base) than by its speed accelerators
(current marketing performance): Market Share Driven. It means the brand is
‘slowing down’ in the race for the future. In contrast, the brand falling on the
right of the diagonal is being driven more by ‘speed accelerators’ but has a
correspondingly lower cumulative consumer base currently: Mind Share Driven. It
means the brand is ‘gearing up’ for the race for the future.

Reading the Brand Persuasion Map
If the brand falls on the left of the diagonal then it means that its
conversion from brand recall to intention to buy is relatively lower. This
implies that the brand has been less effective is persuading the consumer who
recalled the brand to also think of buying the brand (for whatever reasons). On
the other hand, for a brand which falls on the right of the diagonal it means
that more consumers are thinking of buying the brand than recalling it. It
implies that the brand has been relatively more effective in persuading the
consumers to not just think about it per se but to think about buying it (for
whatever reasons).

On the other hand, for a brand which falls on the right of the diagonal, more
consumers are thinking of buying the brand than recalling it. It implies that
the brand has been relatively more effective in persuading the consumers to not
just think about it per se but to think about buying it (for whatever reasons).

Reading brand movement
The brand movement graph is a simple representation of any brand’s current
users pattern of likely movement, i.e., how many will continue to use the brand
they are using today forms the bottom third of the bar, how many are likely to
move out of the brand (possible switch outs) forms middle third of the bar and
the top third is formed by the ones currently not too sure of which brand they
may move to in the next three months.

Application Servers


Microsoft IAS server stands out as the most persuasive brand in this segment,
even though its cumulative ownership is only 7%, which is less than half that of
the top brand IBM WebSphere. Oracle 9i/10g is also quite persuasive at number
two, followed by Tomcat & IBM WebSphere. IBM enjoys the highest top of mind
recall amongst 38% of the CIOs, but only 10% of them said that they’re likely to
buy it in the near future. That’s why it stands last in brand persuasion.

Microsoft’s IAS also enjoys the highest brand loyalty, which is almost double
of others. About 67% of Microsoft IAS’s existing users said that they’re not
likely to switch to another brand in the near future. The brand loyalty for all
other brands hovers between 31% and 38%. However, this is not because their
users want to shift to another brand. The shift is miniscule. The only shifts
worth mentioning are for Oracle and Tomcat. About 8% of existing Oracle 9i/10g
users said that they’re likely to shift to another brand, and 5% of existing
Tomcat users said the same thing. There’s negligible shift amongst IBM’s
enterprise users, and zero percent shift amongst Microsoft IAS’s current
ownership base.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
IBM WebSphere 100% 19% 31%
Oracle 9i/10g 62% 14% 19%
Microsoft IAS 57% 7% 18%
Tomcat 36% 9% 11%

Besides Microsoft, all other brands have a significant set of uncertain CIOs
who are not sure about which brand are they likely to switch to. These could
swing the brand loyalties to either direction. Coming to brand momentum, IBM
WebSphere is the most future ready, largely due to its current mass. Moreover,
it’s got enough momentum in the market to help it grow its future user share to
31% from the existing 19%. That’s quite a lot. Oracle has the next highest brand
momentum, and at the current pace, it is likely to gain user share, but only by
5%. Microsoft IAS Server is the next in line, and although its brand momentum is
around 50% of IBM, it’s likely to gain user share considerably from the current
7% to more than double at 18%. The brand with the lowest brand momentum is
Tomcat, but even then, it’s not likely to loose user share in the future.

Business Intelligence Solutions


SAP’s Business Information Warehouse has the highest current cumulative user
base in this segment, and interestingly, is also the most persuasive brand of
the lot. In other categories, the general trend has been that brands with lower
cumulative ownership tend to have higher brand persuasion. Here, it’s the
reverse, which shows that SAP has a dominant position in the BI category. The
remaining brands have good spontaneous recall, but the likelihood of purchasing
them is much lower, as can be seen from the graphs. On a relative scale,
Microsoft’s SQL Server is the next most persuasive brand, followed by Oracle,
and finally IBM’s Intelligent Miner.

SAP also enjoys the highest brand loyalty in this segment, with very few
switch outs. Only 3% of its existing customers said that they’re likely to
switch to another brand. There’s uncertainty amongst its remaining 63% users
over whether to continue with the same brand or switch out to a different one.
MS SQL Server has the next highest brand loyalty, but at the same time, an
alarming 24% of its existing customers said they’re likely to switch to a
different brand. 12% of them are likely to move to Oracle, and 6% each to SAP
and SAS. Oracle is next at 23% brand loyalty, with 10% wanting a switch out to
various other brands, and another 67% as uncertain. IBM has the lowest
percentage of loyal customers at 15%, and another 11% are likely to switch out,
mostly to Oracle and SQL Server. It needs to get hold of the remaining 74%,
who’re not sure whether
to continue with the brand or switch out.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
SAP (Business Information Warehouse) 100% 15% 47%
Oracle 32% 9% 15%
IBM (Intelligent Miner) 16% 6%  7%
   MS SQL  15%  4% 7%

The inference is quite obvious from the results in this segment. SAP has the
highest existing mass and also moving with the highest speed… hence, highest
brand momentum. Due to that, it’s likely to increase its user base three fold.
Oracle is largely speed driven, because it doesn’t have the same mass as SAP.
It’s also likely to almost double its current user base if it continues at this
pace. Both IBM and Microsoft’s BI brands have relatively very lower brand
momentum. However, if they continue at the current speed, they might increase
their user base by a few percent.

Customer Relationship Management


Despite having a relatively lower cumulative user base amongst the target
audience we went to, Microsoft has the highest brand persuasion. While 10% CIOs
could recall it, 4% said that they were also likely to shift to it. SAP was the
next most persuasive, and also with the highest cumulative user base. Against
the 47% CIOs who could recall it, 10% said they’re likely to use it as well.
Oracle was the third most persuasive in this category, and with the second
highest current user base. 10% CIOs could recall it, while 4% were likely to use
it as well. Overall, the brand persuasion levels in this category are pretty
low, because of the top of mind recall vs likely purchase ratio is so low.

Microsoft also enjoys the highest brand loyalty in this segment, but 9% of
its existing customers are likely to shift out, mostly to Oracle. SAP has the
next highest loyal set of customers, and the percentage shift out is also pretty
low, which is good. 66% of its customers were also indecisive over whether to
continue with the brand or shift out. Oracle had the lowest brand loyalty, and
11% of the existing customers wanting to move out. On top of that, a whopping
70% of its customers are not sure about whether to continue with the same brand
or shift out, and it becomes a concern.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
SAP 100% 14% 40%
Microsoft 47% 5% 19%
Oracle 34% 8% 13%

SAP has the highest brand momentum, largely due to its current mass. With the
current speed, the brand’s doing very well, and could almost triple its current
user base. Microsoft is largely a speed driven brand, and though its relative
brand momentum is lower than SAP, it is surging ahead at a rapid pace. It’s
likely to considerably increase its future user share. Oracle also doesn’t have
to worry, despite a lower brand momentum. It’s also likely to increase its
future user base at the current speed. The overall scenario in this segment is
that brand loyalties are low, with a lot of uncertainty over which brand to
choose. A little bit of awareness could set the right direction for this set of
enterprise community.

Enterprise Resource Planning


SAP continues to own the highest user share in this segment, followed by
Oracle, and Microsoft Navision. Last year, Ramco had sufficient user share to be
considered in the analysis. This year, however, their user share is very low
amongst the audience we targeted, and therefore could not be considered for the
analysis. The new entrant in our survey this year is Microsoft Navision, which
has been very active in this area. Brand persuasion continues to be low in this
area. On a relative scale though, SAP has the highest brand persuasion, followed
by Oracle and MS Navision.

Both Oracle and SAP enjoy the same level of brand loyalty among their
respective customers. Oracle however needs to be a little concerned because 11%
of its existing customers said that they’re likely to shift to other brands. 6%
of them said they’re likely to move to SAP. On the other hand, SAP enjoys a high
degree of brand loyalty and minimal switch outs by its existing customers to
other brands. Navision has a lower brand loyalty than the other two and needs
some attention. While it has 13% customers who’re likely to remain with the
brand, there’s another 13% who said that they’re likely to switch to SAP. The
remaining 75% of the customers were indecisive over which brand would they
switch out to. This could be an opportunity that MS could leverage.

SAP continues on its rampage in this segment with the highest brand momentum,
primarily due to its current mass. However, the interesting thing is that it has
enough speed to double its future user share.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
SAP 100% 30% 60%
Oracle 33% 14% 19%
Microsoft Navision 5% 4% 3%

Compared to that, Oracle is at a much lower brand momentum. While that’s not
a threat to Oracle, it’s nothing to write home about either.

At this pace, it’s likely to increase its future user share by a few
percentage points. Microsoft Navision, despite being a new and active entrant
has a very low brand momentum relatively when we compare it with SAP. It needs
to pick up speed if it wants to gain users’ share in this market.

Human Resource Management


Both SAP’s MySAP ERP and Oracle’s PeopleSoft division have nearly similar
brand persuasion, with a gap of only 1% (in favor of Oracle). The third most
persuasive brand also belongs to Oracle, and it’s the E-Business Suite. SAP
enjoys the highest current user base in this segment, even after we combine both
of Oracle’s brands. The overall brand persuasion in this segment is pretty low
as can be seen from the graph.

The overall brand loyalty figures are pretty low in this segment. Relatively,
Oracle’s PeopleSoft enjoys the highest brand loyalty among its existing
customers, and there’s a miniscule percentage of them wanting to shift to some
other brand. There’s a large 67% of them who’re not sure whether to switch out
or not. SAP’s mySAP ERP is in a similar situation. Oracle’s E-Business Suite has
17% existing customers that are likely to shift to other brands. Of course,
there’s a large chunk of its customers that aren’t sure. So like every other
segment, here also there are a large chunk of CIOs who aren’t sure about which
brand to really shift to, if they were to do so.

Lastly, SAP enjoys the highest brand momentum, primarily due to its current
mass. That will help it increase its future user base by a significant amount,
if it continues moving at the same pace. Oracle’s PeopleSoft is a speed driven
brand, and has second highest brand momentum. Here again, there are no real
worries, because the brand is likely to increase its future base. Oracle’s
E-Business Suite has the lowest brand momentum, and is moving at a fairly slow
speed. It needs to increase its brand awareness and strengthen it if it wants to
increase its future base. At the current pace, it’s likely to lose some of its
user base.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
SAP-mySAP ERP 100% 18% 38%
Oracle-PeopleSoft Human Resources 50% 7% 19%
Oracle-E-Business Suit 12% 5% 4%

Last year, we found quite a few companies running their own in-house/custom
developed HR software. This year, we hardly found any. This could mean that the
HR management software vendors are very active in the market, converting
home-grown HR software into commercial solutions.

Messaging Solutions


Only two brands have sufficient responses worth analyzing in this segment and
neither of them is a surprise.Microsoft’s Exchange enjoys the highest top of
mind recalls, followed by IBM’s Lotus Notes/Domino platform. Linux based
messaging platforms are there, but their current user base, in this segment, is
far too low for us to do their analysis.

Against 34% CIOs who could recall Lotus as top of mind, only 12% said that
they’re likely to purchase it in the near future as well. Nevertheless, this
still gives a better brand persuasion index relative to Microsoft Exchange. In
case of Exchange, 54% CIOs could recall it spontaneously, and only 16% out of
those said that they’re likely to purchase it as well. Therefore, both brands
need to pump up their persuasiveness considerably. Perhaps the new versions of
both will do the trick, since both are talking about unified messaging features
being built in.

Brand loyalties are a concern for both brands, as they hover around 33% for
Exchange and only 35% for Domino. The good thing is that only a few CIOs said
that they’re likely to switch to other brands, but the concern here are the
number of uncertain CIOs. 61% of Exchange’s existing owners are not sure which
messaging platform would they shift to in the future. Likewise, a whopping 55%
of the CIOs using Domino said the same thing. So it’s a concern, because the
pendulum could swing either way. Domino needs to worry more because 10% of its
existing customers said that they’re likely to switch to another brand. Exchange
need not worry too much because the customers wanting to switch brand in its
case are only 6%.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
MS-Exchange 100% 40% 47%
LotusNotes/Domino 68% 26% 32%

Lastly, we come to the brand momentum. Exchange, of course, has a higher
brand momentum, largely due to its current mass. This will help it gain expected
user share in the future to 47% from the current 40%. Even notes is moving at a
decent pace, although it’s only 68% of Exchange’s pace. It’ s also likely to
grow its user share to 32% from the current 26%.

Network Infrastructure Mgmt Solutions


HP OpenView and IBM Tivoli own the lion’s share in this segment, with HP
having the highest current user base and IBM close on its heels. The other two
names in this segment are also fairly well known, Microsoft’s SMS Server and
CA’s Unicenter. The overall persuasiveness of brands in this category is pretty
low, i.e. each brand has a very high top of mind recall, but low likelihood of
purchasing. Relatively though, Microsoft’s SMS Server is the most persuasive,
followed by CA Unicenter, HP OpenView and IBM’s Tivoli.

SMS Server enjoys the highest brand loyalty among all brands from its
customers. However, 11% of its existing customers are likely to switch to
another well known brand, Novell’s ManageWise. CA’s Unicenter is close on the
heels of SMS Server in brand loyalty, and 7% of its existing customers said
they’re likely to shift to HP OpenView. Interestingly, both OpenView and Tivoli
enjoy the same level of brand loyalty from their respective customers. However,
Tivoli seems to have a better grip over its existing enterprise customers than
OpenView. 11% of OpenView’s existing customers said that they’re likely to
switch to a different brand. In case of IBM Tivoli, the switch out was only for
4% of its existing customers. But then, there’s a high number of existing
customers of both Tivoli and OpenView who are not sure about which brand to
switch to.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
HP Open View 100% 14% 23%
IBM Tivoli 96% 13% 22%
Microsoft SMS Server 35% 4% 8%

HP OpenView has the highest brand momentum, which is clearly due to its
current mass, meaning it’s a mass driven brand. If it continues at the same
pace, it’s likely to increase its future users share. IBM Tivoli has the next
highest brand momentum index, and is also a mass driven brand. At the current
speed, this brand is likely to grow at the same pace as HP OpenView. Both
Microsoft SMS Server and CA Unicenter are speed driven brands. Even though their
relative brand index is lower than Tivoli and OpenView, they’re not under any
kind of threat of loosing user share. In fact, even if they continue at their
current respective paces, they’re likely to gain user share.

Server and Network OS


This segment is largely dominated by different versions of Windows servers,
with Windows 2003 Server having the highest current ownership overall. RedHat is
the most dominant among all Linux brands, as far as cumulative ownership is
concerned.

While 6% CIOs recalled Linux as top of mind for a server OS, 4% said they’re
likely to purchase it as well. So even though the cumulative ownership of Linux
OS is miniscule as compared to the top brand Windows, it has a relatively higher
brand persuasion. This is because against 54% CIOs who had Windows 2003 Server
on top of mind, 21% were most likely to buy it.

The brand movement is interesting in this segment. RedHat enjoys the highest
brand loyalty. 35% of its existing customers said that they’re not likely to
switch. Only 19% of its existing customers plan to make a switch. Windows 2003
Server has the second highest brand loyalty, and the percentage of switch outs
by existing customers is also very low. There is however a huge 62% of the
population of existing Windows 2003 Server users who’re not sure about which
brand to switch to. It’s surprising to see that some people still refuse to let
go of Windows 2000 Server. 26% of the existing user base of Windows 2000 Server
still remains loyal to it, whereas a strong 48% want to switch out. The good
news for Microsoft is that a majority of them would be upgrading to Windows 2003
Server. There are a small percentage of owners of ‘Other version of Windows’,
which even include Windows NT. They seem to be a confused lot, and are
indecisive as to which brand to shift to.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
Windows 2003 server 100% 53% 51%
RedHat Linux 17% 7% 9%
Other Windows 9% 6% 4%
WIN 2000 Server 1% 7% 1%

The brand momentum figures are quite evident. Windows 2003 Server is clearly
a mass driven brand, and enjoys the highest brand momentum because of that.
RedHat Linux is the next mass driven brand, and if it wants to remain where it
is or grow its current user base by a few percent, then it doesn’t have to do
anything. Windows 2003 Server doesn’t have anything to worry about. Even if it
looses slightly from its current user base, it will gain from the user base of
other Windows versions.

High-End Servers


Four brands had a sufficient cumulative user-base to be considered for the
analysis here. IBM had the highest current ownership, followed by HP, Sun, and
Dell. However, none of these brands are persuasive enough, which can be clearly
seen from their distance from the diagonal line on the brand persuasion chart.

Relatively though, Dell has better brand persuasion than others, despite its
comparatively lower cumulative user-base. The next most persuasive brand is Sun,
followed by IBM, and then HP.

There’s an interesting twist in the brand loyalty tale in this segment. There
aren’t too many switch outs to other brands. For instance, only 4% of IBM’s
existing customers said that they’re likely to switch to HP in the future. 10%
of HP’s existing customer base said they’re likely to move to other brands, and
only 6% of Dell’s and Sun’s respective customers said that they’re likely to
switch to other brands. The remaining customers in all brands aren’t too sure of
which brand they’re likely to switch to. This is possibly because high end
servers last for many years, and the decision to shift to a different brand
would not be so easy. Nevertheless, Dell enjoys the highest brand loyalty,
followed by IBM, Sun, and then HP.

Overall, there’s no stopping for IBM, as it has the highest brand momentum,
primarily due to its current mass. Even if it continues doing what it’s been
doing in generating mind share, it’s going to increase its existing user share
by more than 10%. HP, of course, has the next highest brand momentum, again due
to its current mass. It can easily sail through without doing much, and continue
enjoying the same 28% user share. But a little bit of additional effort could
see that number improve. Dell and Sun follow the pack, and are also doing fairly
well. Even at their current pace, they could increase their user share by 6 and
2% respectively.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
IBM 100% 31% 42%
HP 67% 28% 28%
Dell 31% 7% 13%
Sun 22% 7% 9%

Next year should be very interesting, because the x86 based multi-core
servers would be thriving by then. Let’s see if they push the big irons further
up the niche.

LCD Monitors


Last year, we’d included LCD monitors in our consumer brands survey. This
time we decided to find out the enterprise side of the story. The results we got
were quite interesting. You might have noticed that more PC/laptop brands are
visible in our list than pure LCD monitor brands. This is not surprising,
because most pure LCD monitor vendors are also OEM partners for PC brands.
Therefore, a growth in PC market directly affects the LCD monitor market.

Only about half of the decision makers could decisively mention the brand
they are most likely to buy in the near future. This makes most of the brands
less persuasive. Relatively (irrespective of the absolute numbers) Dell has the
highest brand persuasion even though its cumulative ownership share a fifth of
the top brand HP-Compaq’s cumulative ownership. IBM, HP-Compaq, LG, and Samsung
follow in that order.

Dell has the best loyalty & least (zero) switch to others brands, none of its
existing customers are likely to switch to another brand. The brand loyalty for
others hovered between 24% to 38%, and likely brand shifts ranged from 12% to
27%; making most of them losing brand pull. Though we have not considered the
indecisive percentage of CIOs-the joker in the pack, who are not too sure about
which brand to shift to. It could swing the brand loyalty, as well as, switch-in
& switch-out either way for each brand.

Brand Momentum
Index
Brands Relative Index Current User Share Expected Future User Share
HP-Compaq 100% 25% 25%
Samsung 84% 22% 21%
Dell 54% 5% 13%
IBM 44% 10% 11%
LG 22% 5% 5%

HP-Compaq is clearly ahead of the pack with highest brand momentum, primarily
due to its current mass. Even if it continues to do what it has been doing in
generating mind share, it will not lose its existing user share. In fact, its
future user share will remain the same. Samsung has the next highest brand
momentum, but if it doesn’t speed up a little, its user share could be slightly
affected. Dell has the fastest momentum of all brands, and if it continues at
this pace, then it’s existing user share is more likely to double. Likewise for
IBM, but the gain would be lesser. LG can remain at the same position without
doing any additional effort.

Large Volume Storage


Three names stand out with enough cumulative user base for us to analyze.
These are HP, IBM, and EMC. Other key brands, like Dell, Sun, Hitachi, and
Veritas (now, Symantec) are also there, but their sample bases are much lower.
HP enjoys the highest brand recall in large volume storage, followed by IBM and
EMC. Others, including Dell, are well below the top three.

Brand recall alone is not sufficient. The brand has to be persuasive enough
for somebody to buy it. Unfortunately, the overall brand persuasion in large
volume storage is low. For instance, 40% of the respondents could spontaneously
recall HP, but only 13% said that they’re likely to purchase the same brand in
the next 3 months. Likewise, 25% of the CIOs could recall IB

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