1. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Tiffani Bova Gartner VP Research Indirect Channel Programs & Sales Strategies WW tiffani.bova@gartner.com Reading the Tea Leaves State of the Market

2. Channel Trends

3. Voice of the Customer

4. IT Spend Still Focused on “Run”

5. CIO-Identified Top Business PrioritiesRanking of Business Priorities for CIOs AllAPACEMEANA Increasing enterprise growth1111 Attracting and retaining customers2222 Reducing enterprise costs3934 Creating new products and services (innovation)4353 Increasing profitability (margins)5745 Improving efficiency6467 Improving marketing and sales effectiveness7-78 Improve governance, compliance, risk and security8--6 Creating or improving customer channels9-109 Implementing finance and controls10-8- What is Driving Business Leaders?

6. 2012 CIO Regional Strategic Priorities CIO-Identified Top Strategic PrioritiesRanking of Business Priorities for CIOs AllAPACEMEANA Delivering projects and enabling business growth 1121 Reducing the cost of IT 261- Developing/managing a flexible infrastructure 3386 Expanding the use of information and analytics 42-2 Implementing mobility solutions 5--3 Implementing business process improvements 610-4 Improving the business/IT relationship 7549 Consolidating IT operations and resources 8-3- Improving IT operations 9-97 Implementing e-commerce and channel solutions 1045-

7. Notes: Asia/Pacific: third = other, seventh = security, ninth = customer sales and service North America: sixth = security Strategic Technologies Ranking of the Technologies That CIOs Selected as One of Their Top Five Priorities in 2012 by Region AllAPACEMEANA Business Intelligence/Analytics1221 Mobility2132 Legacy Modernization3614 Clouds4473 SOA5-4- CRM6865 Virtualization71088 Collaboration8557 BPM9-109 IT Management10-9 Technology Priorities Call for Strengthening the Customer Experience

8. $100 investment allocation N = 108 2013 IT Priorities - Total Q26. What do you consider your organization/subsidiary/region/country's top three IT project priorities for 2013? Up to three responses allowed Brazil Mexico N = 112

9. Communication and Collaboration Trends

10. UC Enables a Stronger Mobility Experience With Handset Replacement Slow, multidecade trend away from wired handsets Emphasis on smartphones and tablets -Investment in iPhones and Androids Enhanced mobile upsell opportunities -Single-number reach, unified messaging, speech to text -Location-based services -Mobile device management * Illustrative of trend, not an actual forecast Mobile substitution happening now

11. The Pace of UCC Evolution Is Accelerating: Comms and Collab Drives Competitiveness Communicate Productivity Cost avoidance E-mail Calendar Audio conferencing Voice/Telephony Discussion forums Video conferencing Network Competitiveness Agility Responsiveness Decentralized decisions Self-organization Trust/social capital Ecosystem engagement Share Effectiveness Process consistency Resource optimization Productivity Business Value Gen 1 Gen 2 Gen 3 1980-20002000-20072007-2012 Aggregate Tap broader audiences Work with more context Locate experts Facilitate swarming Gen 4 2010-2015 Shared workspaces Web conferencing Instant messaging Presence Documents Reporting Blogs, wikis User-generated content Activity streams Social profiles Microblogging Expertise location Universal dashboard Social analytics Co-editing Location awareness

12. UCC: Junction of 2+ Markets UCC represents a broad set of functions. Growing, evolving, changing, adapting. Few companies have the same requirements. CommunicateShareNetworkAggregate "UC" E-mail Web conferencing Instant messaging Presence Directory Collaboration Team/shared workspaces Wikis, blogs, filtering Social software and analytics Expert location and context-aware applications Collaborative/real-time authoring "UCC" Other collaboration tools Communications Telephony Voice mail Audio conferencing Unified Messaging Videoconferencing Call center

13. Factors Driving Change and Trends in UCC Consumerization Social Software Cloud Contextual Deployment Multitasking Multimodal New User Comm & Collab Paradigms Mobility

14. IT related actions over the next 12 months (Midmarket) Multiple responses allowed n= n 720

15. Channel Eco-System Evolution

16. The Channel Company Evolution

17. Key Attributes of Key Business Models – Value Close to Product

18. Supplier to Trusted Partner

19. Channel Playing Specific Roles in Cloud Source: Gartner (April 2012) n=313

20. Product and Services Mix

21. Partner Services Evolution Consulting Services Professional Services Customer Value Stacks Infrastructure Management Application and IT Management Business Services Supporting Services Service Assets Product Support Services Service Delivery Options Partner Delivered Provider Delivered Resale PartnerMSP Partner Provider Delivered Partner Delivered Services Partner Provider Delivered Partner Delivered Outsourcing Partner Partner Delivered Provider Delivered Plan – Build, Reactive, Proactive, Preemptive, Operate  Provider Does More Partner Does More  Amount of Partner Investment  Technical ServicesManaged Services Advanced Services

22. Right Skills for Same Type of Business Lack of Skills for Advanced Offerings Source: Gartner (April 2012) n=313

23. Without Sales Aligned – New Offerings Stall Source: Gartner (April 2012) n=313

24. Marketing Yourself in Today’s Market

25. You’re Selling Solutions

26. Differentiation

27. Marketing is a Discretionary Expense

28. Final Thoughts and Recommendations

29. Distance buyer from technology and marry them to the outcome If you miss a shift you are at risk Prepare your company for success New era of computing New buyers of technology New partner types Always reinvent your business, there is no ‘end game’ Growth requires leadership Create differentiated value Meet market demand Make IT relevant Moving from tactical ‘supplier’ to strategic ‘partner’ doesn’t happen overnight Recommendations

30. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Tiffani Bova Gartner VP Research Indirect Channel Programs & Sales Strategies WW tiffani.bova@gartner.com Tiffani_Bova Reading the Tea Leaves State of the Market