1. Additional VOIS Ranking Details, by Industry © 2010 Enterprise Strategy GroupSource: ESG Research Brief, 2010 Vertical Opportunity Index Score (VOIS) Rankings, January 2010. ESG VOIS (low score= better relative IT business opportunity in 2010) Calendar quarter in which most IT capital spending is expected* Position relative to 2009 rankings Comments Health Care13Q1↔ 333,200 new U.S. health care jobs added in past 12 months. 67% of health care organizations will increase IT spending in 2010, driven by compliance and security requirements. Billing and business intelligence are top application priorities. Government (Federal)17Q3↔ Information security initiatives continue to be top priority. Consequently, improving security and risk management is viewed as the most important criteria in justifying 2010 IT investments. PC vendors will benefit as 34% of respondents plan large-scale desktop/laptop refreshes in 2010. Financial19Q1↑ Improved IT spending outlook and positive job growth in the last 90 days raises Financial in the VOIS rankings. Managing data growth is top 2010 IT priority. 31% will make significant 2010 investments in data reduction technologies. Education26Q3N/A Improved collaboration is major driver of IT spending. Major priorities include server virtualization and improving backup, but respondents report serious shortages of skills in those areas. Public sector significantly less healthy than private institutions. Communications & Media28Q4↔ 63% will increase IT spending in 2010 and 48% will add IT staff. 19% have multiple data center construction projects underway, more than any other industry. High interest in data reduction, file storage solutions, and power-efficient servers. Retail29Q2↑ 2.9% Y/Y increase in holiday sales and steadily slowing job losses boosts optimism for 2010 and raise Retail 2 spots in VOIS rankings. 28% expect business growth to be a driver of IT spending, more than any other industry. Top IT priorities include business intelligence applications, improved security and network upgrades. Business Services32Q2↑ Increase in temporary staffing boosts employment (and modest IT spending gains) in services sector. Enterprise content management / document management is top 2010 application priority. Government (State & Local) 34Q2↓ Poor economic conditions continue to be felt in budget pressures and job cuts (close to 10 thousand in past 30 days). 47% say their IT organization is still in cost reduction mode. Industry most likely to have IT hiring freeze in effect. Critical lack of virtualization skills leads to services opportunities for vendors. Transportation & Logistics36Q3↓ Continuing job losses and virtually no expected growth in 2010 IT spending growth causes drop in 2010 rankings. This is the industry most likely to characterize IT spending as being in major cost reduction mode. Many organizations looking to renegotiate contracts with IT vendors in effort to reduce costs. Manufacturing41Q2↔ IT spending increases this year after 2009 declines. 46% will look to contain costs via the purchase of new technologies that offer an improved ROI, up from 24% in 2009. Data center consolidation, virtualization, and supply chain management are major priorities. LEGEND: ↑higher ranking relative to 2009 ↓lower ranking relative to 2009 ↔ ranking unchanged from 2009