InformationWeek

May 22, 2000

Behind The Numbers:
Desktop PCs Continue To Evolve

volution leads to two possible outcomes: extinction or adaptation. Although today's fast-paced business environment might mark the end for some business tools, we have yet to see the demise of the desktop PC.

Today's PC is more efficient and less cumbersome than it used to be, and the role it plays in business has become more important. Desktop PCs continue to be tapped for office productivity, collaboration, and enterprise-access tasks, but they can also store vast amounts of data that used to require mainframes or minicomputers to process. PCs might not be the most glamorous of business tools, but few companies could survive without them.

According to a recent survey by CMP Media Research, a shift in business desktop strategies is developing, mainly because of hardware innovations and greater bandwidth. The survey of 536 IT and business professionals examined the present and future strategies for desktop services and management, and found almost half of those polled are replacing their desktop PCs more frequently than in the past. Most do so to take advantage of new applications and operating systems, while improved performance and declining prices are prompting others. More than half of the respondents who are upgrading sooner report a reduction in the time devoted to reconfiguring desktops.

Even with falling prices, companies need to justify their upgrades. Most choose to purchase the hardware outright: Almost 90% of re-spondents reported purchasing the equipment, while a few opt to lease.

Outsourcing is gaining momentum in desktop strategies. Almost 20% of businesses outsource all end-user support, 70% use third parties to set up hardware, and 36% outsource for software and system-configuration needs.

What does your company expect from its desktop services? Let us know.

Own the data behind InformationWeek Research. See our available reports at informationweek.com/reports

Elisabeth Goodridge
Assistant Editor
egoodrid@cmp.com

This week in Behind The Numbers:

Few Lease Desktops

Configuration Is A Challenge

Performance Is Equally Important

Faster Turnover On The Desktop

Few Lease Desktops
It might appear that the most challenging decision managers must make is picking which brand or model of PC to buy--but deciding how the purchase will be financed is just as important. When it comes to funding desktop investments, most businesses forgo leasing. Instead, 17 in 20 firms surveyed by CMP Media Research choose to buy their desktop PCs outright and depreciate the cost over time. Only about one in 10 leases the equipment. Among those electing this option, 6% lease desktops directly from a PC vendor, while another 5% make arrangements with a reseller.

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Configuration Is A Challenge
Grunt work is something with which everyone must contend. But business and IT managers are always looking for ways to streamline time spent on mundane tasks. Most managers and workers would rather spend their time on important company initiatives.

When it comes to configuring desktop PCs, some companies are still struggling to reduce service hours. Although 53% have made progress in this area, there's an almost equal number of companies still trying to find their way. Bottom line: The configuration problem hasn't stopped many businesses from buying PCs.

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Performance Is Equally Important
When it comes to hearing why service expectations aren't being met, few customers are willing to give a vendor any slack. And as service-level agreements become standard business practice, companies also don't want to dig into their own pockets to remedy performance problems. Among those companies that have shortened their desktop PC replacement cycles, 46% say the primary reason is the promise of improved performance. The assurance of better IT manageability is what draws 22%, while the possibility of consistent configuration lures 21% of companies polled. Overwhelmingly, however, it's the appeal of new applications and operating systems that make most businesses decide to upgrade their PCs sooner.

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Faster Turnover On The Desktop
Businesses have three choices when it comes to adopting cutting-edge technology. They can opt to be a front-runner and risk failure, which is very possible when exploring uncharted territory. They can be fainthearted and choose to wait until an IT innovation has proven too valuable to ignore. Or they elect to be laggards, choosing to deploy at their own pace, even if that means being the last to do so.

When it comes to replacing desktop PCs, most companies don't want to be left behind. Forty-three percent of those polled report they have shortened the time between upgrades.

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