Conducted by Phase II Quantitative Study Sept, 2001

Business Technology Research Summary of Phase I Key Findings Economic Realities –Increased scrutiny on technology initiatives to “make or save money” IT Professionals Most Influential in Process for All Technologies Infrastructure = Everything “invisible or transparent” and “what it takes to power applications” (servers, network hardware, bandwidth, collocation, OS, etc.) Back-office/network software = “Intelligence. Make it work.” (decision support, security, ERP, databases, content management, web site monitoring, etc. ) Customer facing applications = “What users see and touch ” (CRM, HR or benefits, financial applications, ecommerce, etc. ) Importance of Functional IT/Specifiers for all Technologies –Critical in all steps of infrastructure purchases and in RFP/RFI stages of all other purchases Executive Management and Steering Committee Involvement Limited to 30,000 Foot View –Involved in setting strategic vision and in approval of large IT expenditures, not involved in choosing brands and products

Business Technology Research Introduction Methodology and Audience –Research conducted by Gartner Griggs-Anderson on behalf of CMP BTG –Quantitative, phone interviews of 492 business technology professionals fielded July 15 – August 28, –Respondents: Split between corporate and IT management. Recruited using CMP lists for IT professionals and D&B lists for corporate respondents. Screened for involvement in purchase process for specific technologies in the last six months. Reflect a variety of industry and company size –40% employees –30% 500-4,999 employees –30% 5,000+ employees

Business Technology Research Why IT Projects are Overruled Business Reasons Q: Under what circumstances did executive or corporate management, or a steering committee overrule the recommendation? N= 182

Business Technology Research IT is Feeling the Heat IT is Feeling the Heat Yet, Companies Lack Formal Metrics Q: Has the need to measure ROI for IT projects increased, decreased or remained the same as compared to what it was 6 months ago? IT N=162 corporate N=93 Q: Does your company have a formal ROI measurement system or informal payback scenarios? N=240

Business Technology Research Money Still Being Spent Budgets, Increasing or Remaining the Same? Q: Do you anticipate that your total IT budget will increase, decrease or remain the same in 2001 as compared to 2000? N=321 NOTABLE DATA Average increase: 26% Average decrease: 22% 50% of mid-size companies expect an increase. The average increase is 18%. 31% of large companies. expect decreases. The average is 14%.

Business Technology Research Q: In light of the current economy, what technologies are you continuing to invest in? What technologies do you consider “must buys” in the next 6 months? Q: What specific technology investments or projects have recently been cancelled or put on the back burner? “Must Buys” versus “Back-Burner” Keeping the Business Running N=492

Business Technology Research Business Initiatives Driving Technology: Must Make Money or Save Money Q. What are the top business initiatives driving the purchase of technology in the next 6 months for your company? N=492

Business Technology Research Specific Technology Modules Purchase Process Involvement Respondents involved in purchasing specific technology in the last six months Addressing (insert modules) Back-Office Applications Customer-Facing Business Applications Digital Convergence Infrastructure Hardware Security Consultants Data Management and Storage Ebusiness Network Systems Management Mobile & Wireless Service Providers

Business Technology Research Information Sources Used to Make Technology Decisions Business Publications Conferences or Seminars Consultants Consumer Publications Educational Institutions Newsletters General Daily Newspapers Peers or colleagues Radio Research firms (reports) Business Publications Conferences or Seminars Consultants Consumer Publications Educational Institutions Newsletters General Daily Newspapers Peers or colleagues Radio Research firms (reports) Research firms (consulting) Technology B-to-B Publications Television (technology programs) Television (technology advertising) Trade Shows (vendor sponsored) Trade Shows (non-vendor sponsored) Web Sites (media or news) Web Sites (vendor) Research firms (consulting) Technology B-to-B Publications Television (technology programs) Television (technology advertising) Trade Shows (vendor sponsored) Trade Shows (non-vendor sponsored) Web Sites (media or news) Web Sites (vendor)

Business Technology Research Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]? Information Sources Used to Make Technology Decisions At Different Stages (Top 4 out of 18 )

Business Technology Research Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]? Information Sources Used to Make Technology Decisions At Different Stages (Top 4 out of 18 )

Business Technology Research Phase II Findings Steering Committee/CXO Work with IT Executives in Setting Priorities and Direction –Executive IT and corporate management determine strategy and vision which IT management translates into actionable technology initiatives. –Steering committees/CXOs not involved in product or brand recommendations. Centralization of Technology Budgets –Majority of companies have centralized IT budgets. Many have moved to centralization recently. Companies Increasing Budgets; Focus on Back to Basics –Majority of companies report increased budgets, yet companies are evaluating initiatives according to returns: “Makes Money or Saves Money”. IT Professionals Most Influential in All Technology Categories –Purchase process changes based on technology, yet IT management and staff is involved in all technologies and “own” core enterprise technologies. B2B Technology Publications, Internet Sites and Peers/Colleagues Most Valuable Information Sources During Purchase Process