Magic Quadrants Let’s start with our Qualitative Research methodologies. Clients frequently ask, “Which technology provider is the best partner for my.

Magic Quadrants Let’s start with our Qualitative Research methodologies. Clients frequently ask, “Which technology provider is the best partner for my needs?” The Gartner Magic Quadrant Methodology is established and proven. It provides clients with a snapshot of a market to guide their IT decision making. These reports are highly valued, trusted and actionable, allowing CIOs and IT Leaders to be confident in the technology recommendations they provide their organizations Let’s look at Magic Quadrants. The Magic Quadrant is Gartner’s top branded research methodology. It has been published for over twenty years and is Gartner’s most searched and viewed document. Magic Quadrants are actionable, graphical strategic planning models that give CIOs and IT Leaders confidence to make technology recommendations within their organizations. We create Magic Quadrants where a distinct market can be identified with multiple providers to compare. Magic Quadrants position providers in a market based on their relative strength on two dimensions: “Ability to Execute” and “Completeness of Vision”. “Completeness of Vision” ranks providers on several criteria such as innovation, strategy, business model, and whether or not the provider’s market view matches Gartner’s. You can think of “Completeness of Vision” as how well the provider understands the future. “Ability to Execute” summarizes organization characteristics like overall viability, marketing execution, product development, sales channels, and customer experience. For each Magic Quadrant, analysts compile information from providers, clients, partners, competitors, reference checks, and Gartner’s extensive knowledge of market requirements to rate providers. 1

Research Processes Behind Methodologies
Qualitative Insight Research Magic Quadrants Market Scopes Hype Cycles Vendor Ratings Quantitative Market Research SLIDE – INTRODUCTION Gartner Research Methodologies are a proprietary set of processes used by our analysts use to conduct Gartner research. These methodologies are based on detailed, in-depth Market Research and often include easy-to-understand visual summaries of complex ideas. They contain careful analysis of extensive amounts of information. They are peer reviewed and regularly refined. There are two overarching types of Methodologies, qualitative and quantitative. Qualitative research is based on the collection and analysis of information from multiple sources, combined with the analysts’ own experience and expertise. This results in published analysis and recommendations. The following are examples of qualitative research methodologies:  Gartner Magic Quadrants Market Scopes Hype Cycles Vendor Ratings Critical Capabilities IT Market Clocks Strengths, Weaknesses, Opportunities and Threats or SWOTs Quantitative research focuses on the collection and analysis of data. It also includes the analyst’s analysis of the data as a basis for published recommendations and advice. The following are examples of quantitative research methodologies:  Gartner Market Forecast Market Share reports. For each methodology, we will review its definition and description, client value, competition and sales process. Each methodology can be used to differentiate Gartner from the competition. Clients are confident in them due to our stringent research processes. The resulting analysis and recommendations are critical to our clients’ key technology, strategy and business investment decisions. Let’s get started. Market Forecasts Market Share 2

Magic Quadrant: Leaders
High “Ability to Execute” and “Completeness of Vision” Strong Companies Satisfied Customer base More resources Value-priced Focused on broadest market Size and Strength in challenging environment Based on how they score on these criteria, providers are then placed into one of four quadrants: Leaders, Challengers, Niche players, and Visionaries. “Leaders” are rated high on “Ability to Execute” and “Completeness of Vision”. These are strong companies with a satisfied customer base and the ability to allocate more resources into the market than others. They have the size and financial strength to remain viable in a challenging environment. “Leaders” value price and are focused on the broadest market segment. 3

Magic Quadrant: Challengers
High “Ability to Execute” Lower “Completeness of Vision” No clear idea of market future Weaker plan for future success Must develop their vision “Challengers” are rated high on “Ability to Execute”, but are weaker on “Completeness of Vision”. These companies are less clear on where the market is heading and have a weaker plan for future success. To become “Leaders”, they must further develop their vision. 4

Magic Quadrant: Niche Players
Low “Ability to Execute” and “Completeness of Vision” Narrow Focus Less capability or strategic narrow focus “Niche Players” are rated low on both “Ability to Execute” and “Completeness of Vision”. These companies have a narrow focus because they either do not have the capabilities to do more, or believe a narrow focus is the best business strategy. 5

Magic Quadrant: Visionaries
Low “Ability to Execute” High “Completeness of Vision” Vision aligns with Gartner’s market views Do not have proven capabilities Often first to introduce new technology “Visionaries” are rated low on “Ability to Execute”, but high on “Completeness of Vision”. Their vision aligns with where the market is heading, but they do not have the proven capabilities to execute against this vision. These companies are often the first to introduce a new technology. 6

Magic Quadrants Sources
Providers are placed into one of four “quadrants”: Leaders Challengers Niche players Visionaries SLIDE Magic Quadrants help clients assess technology provider options and select the best partners. They help end-user clients decide which technology provider will best meet their needs. Magic Quadrants help technology provider clients and professional services firms understand their position in the competitive landscape. They help investment professionals assess a market’s participants, maturity, and direction to make more informed investment decisions. You can find Magic Quadrants by searching on gartner.com. Clients can also go to the Explore tab on the My Gartner homepage. There is a Magic Quadrant specific search that can be filtered by vendor, topic, or industry. The Magic Quadrant publication schedule provides visibility into future and planned MQs to help clients align projects and vendor selection activities. Leverage MQ Video here 7

Example: Magic Quadrant for Application Delivery Controllers
Let’s look at the Magic Quadrant for Application Delivery Controllers When we select Cisco Systems, provider analysis is presented along with Strengths and Cautions. At the time this Magic Quadrant was published, Cisco Systems, one of the largest high-tech companies in the world is rated as a “niche player”. This does not mean that Cisco is a niche player in high-tech, but ONLY that they are a niche player in the market of Application Delivery Controllers. In other markets, such as routers, Cisco Systems is rated as a stand-out Leader. 8

Example: Magic Quadrant for Global Enterprise Notebook PCs
Global Enterprise Notebook PCs Very important to largest clients Clients use this report to make purchasing decisions Dell, HP, Lenovo are high in the Leaders quadrant Toshiba is high in “Completeness of Vision” Apple and Panasonic are niche players Let’s show an example of the Magic Quadrant using Global Enterprise Notebook PCs, a market that is very important to many of our clients. When selecting a technology provider to supply their notebook PCs globally, companies would use this research report to help them make the right decision. You can see that Dell, HP, and Lenovo are high in the Leaders quadrant because they are strong on both “Ability to Execute” and “Completeness of Vision”.  Fujitsu is high on “Completeness of Vision”, but they do not have the same “Ability to Execute” as the three strongest suppliers. Toshiba is rated as a Visionary rather than a Leader because of relative weaknesses in their “Ability to Execute”. Apple and Panasonic are considered niche players in this market. 9

Magic Quadrant vs Forrester Wave
Gartner Advantages: Gartner has produced 5 times of Magic Quadrant than Forrester Wave Gartner holds 6 times the number of vendor briefings as Forrester. Gartner uses many more data sources to develop Magic Quadrants, which result in more objective analyses. Let’s take a look at the competition. Here are a few items to keep in mind when differentiating the Gartner Magic Quadrant from Forrester’s Wave. Gartner covers more markets and technology providers than Forrester. Gartner in turn produces many more Magic Quadrants. Gartner holds six times the number of vendor briefings as Forrester and thus has access to better information. Gartner utilizes many more data sources which results in a more objective analysis. Gartner analysts research and write the Magic Quadrant, while Forrester outsources their vendor analysis to an outside company, sacrificing direct control of an important data source. This insight into the competition will help you demonstrate why Gartner offers a superior methodology. 10

MarketScopes MarketScopes evaluate providers in a specific market space Magic Quadrants are used in the prime of the market cycle MarketScopes are used early or late in a market’s evolution Clients often ask, “Which technology providers, in a new or mature market, are the best match for my needs?” Like Magic Quadrants, MarketsScopes evaluate providers in a specific market space. While Magic Quadrants are used in the prime of the market cycle, MarketScopes are used in the early or late portions of a market’s evolution. The early stage can be extremely dynamic which makes provider comparisons difficult. In the late stage, providers can be so similar that they are hard to differentiate. MarketScopes rate providers in a limited number of categories from “strong positive” to “strong negative”. They provide insight into the company’s performance against Gartner’s vision for that market. MarketScopes also evaluate the market in terms of maturity and long-term viability. 11

MarketScopes Systems The strongest providers is Microsoft Use caution when considering Open-Xchange Here is a MarketScope for Vulnerability Assessment. This one suggests the strongest providers are McAfee, Qualys, Rapid 7 and Tenable Network Security. Use caution if considering Trustwave. MarketScope for Vulnerability Assessment 9 September 2013 | ID: G  Kelly M. Kavanagh 12

Benefits of MarketScopes
Help select the best partners in new or mature markets Show position and the competitive landscape Show benefits and risk investing in new or mature markets MarketScopes help technology clients evaluate provider options and select the best partners in a new or mature market.They help Professional services firms and technology provider clients understand their position in the competitive landscape. MarketScopes help investment professionals understand any unique risks associated with investing in new or mature markets. Marketscopes are the only widely-used methodology focused on comparing providers in emerging and mature markets. MarketScopes rate the market itself. 13

The Hype Cycle Clients will ask: How is this technology going to evolve? End users, technology providers and investors use Gartner Hype Cycles to track and monitor the commercial viability of 2,000 technologies, applications and trends in 100 IT, business and consumer markets. They predict the lifecycle for emerging technologies and evaluate them along the dimensions of visibility and maturity. Visibility is the frequency of press coverage or word of mouth about the technology. It usually peaks early in the technology’s life cycle. Maturity is the measure of time needed for development and stabilization of a technology. Gartner research has shown that technologies typically follow a predictable five-stage cycle as they develop. 14

The Hype Cycle: Technology Trigger
New product or technology is introduced. Commercial viability is unproven New technology generates inflated expectations and unrealistic projections Hype Cycles begin with a “innovation trigger”. When a new product or technology is introduced there is often excitement and energy. Sometimes however, there is not a useable product and commercial viability is unproven. 15

The Hype Cycle: Peak of Inflated Expectations
Few successes with technology and many failures Typically ‘hype’ around the new technology generates inflated expectations and unrealistic projections, culminating in the second stage of the Hype Cycle: the “Peak of Inflated Expectations”. This stage is marked with few successes and many failures. 16

The Hype Cycle: Trough of Disillusionment
Technology has entered mainstream and there is little media attention Technology only continues if they improve their products During the “Trough of Disillusionment,” the technology has entered the mainstream, and media attention has decreased. Interest wanes and investment in the technology only continues if the surviving providers improve their products to meet the needs of early adopters. 17

The Hype Cycle: Slope of Enlightenment
Technology is understood and can be applied Second- and third-generation products appear Few remaining bugs to be worked out In the “Slope of Enlightenment” the technology is better understood and can be easily applied. Second- and third-generation products appear and there are few remaining bugs to be worked out. There are often fewer providers in this consolidated market as well. 18

The Hype Cycle: Plateau of Productivity
Benefits of the technology are accepted Technology has been adopted by most enterprises Broad market applicability The final stage is the “Plateau of Productivity”. It occurs when the benefits of the technology are accepted and it has been adopted by most enterprises. The height of the plateau depends on whether the technology has broad, or niche, market applicability. 19

The Hype Cycle Here is a Hype Cycle for Healthcare Payers technologies. You can see that Remote Monitoring and Device Management is moving up the slope of enlightenment and is predicted to be less than two years away from mainstream adoption. The Priority Matrix predicts the potential benefit resulting from the technology. At the top of the Benefits scale are transformational technologies that enable new ways of doing business, and therefore have strategic implications. A low Benefit rating means that the technology will drive only slight financial benefit or minor process improvement. The next dimension of this matrix is ‘anticipated years to mainstream adoption of the technology’, and can range from less than two years to more than ten years. Together, these dimensions provide a valuable look at which technologies impact their organization, how much, and when. Clients should interpret the analysis according to their unique needs. Hype Cycle for Healthcare Payers, 2013 23 July 2013 G  Analyst(s): Robert H. Booz Remote monitoring and device management are predicted to have high benefits to organizations in less than two years Automated billing solutions for US Healthcare Payers show a longer time before mainstream adoption Mobile applications for U.S Healthcare Payers have even greater potential impact, but show a longer time before mainstream adoption. 20

The Hype Cycle: Summary
Help clients to implement new and existing technologies Help clients get a look into the future to inform product development strategy and investment decisions Provide insight for marketing messages Help investment professionals determine which companies are best positioned to benefit from IT trends   Hype Cycles help technology executives determine the best time to implement a new and emerging technology. Hype Cycles help them determine whether to make an early commitment, or wait until the market matures. Hype Cycles help professional services firms and technology provider clients make product development strategy and investment decisions. They provide marketing insight and help clients better understand a technology’s value. Hype Cycles also help investment professionals determine which companies are best positioned to benefit from current IT adoption trends. 21

Vendor Ratings Rates the provider’s overall corporate financials, organization, management, marketing strategies, and support Based on assessment of the provider’s strategy and ability to deliver for a product or service.   Clients frequently ask, “How healthy is a specific technology provider organization?” Vendor Ratings consider a provider’s overall corporate financials, organization, management, marketing strategies, and support. Product-related issues such as strategies, pricing, and marketing plans are also considered. Each Rating is based upon Gartner’s assessment of the provider’s strategy and their ability to deliver a product or service. It is not a comparison relative to the provider’s competitors. Gartner monitors and evaluates 200 IT companies across multiple service and product platforms using the Vendor Rating Methodology. 22

Vendor Ratings: 5 Point Scale
roviders are rated on a five-point scale, from ‘strong positive’ to ‘strong negative’. A provider’s location on this scale has implications. For example, “Caution” means that the provider faces challenges in one or more areas. Current customers of this provider must understand challenges in relevant areas and develop contingency plans. Prospective customers considering this provider should note challenges as part of their due diligence. A “Strong positive” rating indicates a solid provider of technology or services. Current customers should continue investments and potential customers should consider this provider a strong choice for strategic investments. 23

Vendor Ratings: Example
Vendor Rating: Oracle 3 September 2013 | ID: G  Bill Hostmann… Let’s look at the Vendor Rating for Oracle. You can see that Oracle is rated on many dimensions. This methodology gives an indication of the health and vitality of a provider organization. Clients can scan a Vendor Rating for information on a technology they are evaluating. In this example, Oracle’s overall viability is Positive. However, if a client is considering a purchase from Oracle, they should exercise caution when negotiating price because their pricing structure is rated a Stong Negative. 24

Vendor Ratings: Summary
Help assess provider’s health, capabilities and markets and services Provide key support for provider’s purchase and renewal decisions Companies can see their own perceived strengths and weaknesses, and the strengths and weaknesses of their competitors and suppliers Help investment professionals make decisions and manage risks   Vendor Ratings help technology-users assess a provider’s health, capabilities, markets and services. They also give support for key purchase and renewal decisions. Vendor Ratings help professional services and technology provider enterprises understand their own strengths and weaknesses as well as those of their competitors and suppliers. They help investment professionals make decisions and manage risk within their technology provider portfolio. 25

Vendor Ratings Competition
Forrester’s Vendor Scorecard evaluates a company only in terms of a particular product. Vendor Ratings consider the provider as a whole, not just as a product, division, or subsidiary. Gartner produces a holistic assessment of technology provider organizations and the products they offer. 26

Critical Capabilities
Identifies features of a product or service that differentiate it Rates each of the products only on those features Uses weight to classify its importance to the evaluation of the product as a whole The weights always total 100 percent    The Critical Capabilities research methodology answers the question, “What are the most important product features I should consider, and which vendors best meet my needs?” Critical Capabilities identifies the product or service features that differentiate a product from the competition. It then rates each product based on those features.  Each identified Critical Capability is given a weight to classify its importance to the evaluation of the product as a whole. Some Critical Capabilities have a greater influence than others, and adding different weights to these Capabilities allows that difference to be included in the final evaluation. For example, a product might have Critical Capabilities such as manageability and pricing. If manageability is considered less important, it could be given a weight of 16 percent whereas pricing could be given a weight of 18 percent of the final score. The weights always total 100 percent. Each product is rated on a scale of one to five against its ability to meet the needs of the Critical Capability. These ratings are then multiplied by the weights, before adding to the total score for the product.  Critical Capabilities acknowledges the different ways products will be used by something called ‘Use-Cases’. Each ‘Use-Case’ has a different set of weights, resulting in different scores for the product depending on its use. This guides clients on how to use the product most effectively.  A product viability score assesses a product’s Strategy, Support, Execution, and Investment from the vendor. Viability is rated Outstanding, Excellent, Good, Fair, or Poor. 27

SWOT Analysis Let’s take a look at SWOT analysis. Your clients may ask, “Which key strengths and weaknesses should I focus on to improve my competitiveness?”  SWOT analysis uses a simple graphic to show Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis assesses a provider in the following categories: Company or Market, Product or Service Offerings, Finance, and Operations. Gartner rates the importance of more than 30 factors ranging from Strategic Vision, Execution, Profitability, Ongoing Investments, IT Infrastructure, Operations Quality, and Processes. Analysts review and weight each category, then assign it to the vendor.  Once the scores are established the graphic shows where the technology provider should focus its attention. 28

IT Market Clock IT Market Clock answers the question, “How should I manage the replacement of all the products I have?” IT Market Clock uses a clock graphic to show the position of a product in its overall lifetime. It allows clients to choose a product replacement strategy that suits their needs based on how customized or commoditized the product is. Replacing highly customized products is difficult and costly. However, delaying replacement until a product is highly commoditized means other competitors can also purchase the product at the same price. Costs and risks associated with product replacement vary during a product’s lifetime. IT Market Clock tells clients the optimum time to upgrade, or the best time to negotiate with vendors. For a market, the products or assets available are rated in four areas: Level of standardization, Level of supplier choice, Ease of access to appropriate skills, and its Position in its market life. The first three are used to establish the level of commoditization for the asset, which shows how far the asset is from the center of the clock. The further the distance from the center, the more commoditized the asset. The market life is represented by the time on the clock. For example, an asset half way through its lifetime would be positioned at six o’clock. IT Market Clock helps clients decide when the time is right to implement their plans. Aggressive adopters of technology will make investments early in a product life, before four o’clock. Conservative adopters will be likely to invest in products that are positioned between 7 and 9 o’clock. IT Market Clocks provide client support above and beyond any competitor. 29

Market Share Market Share answers the question, “How does my market share compare to that of the competition?”  Through Market Share, we report on data in 37 key technology markets from over 1500 technology providers worldwide. Market Share combines primary survey and secondary source data. Multiple data points ensure that the reported statistics quantify the market accurately and objectively. Market Share data is kept current through quarterly and annual updates. 30

Market Forecasts Market Forecasts answers the question, “Where is this market heading?” A Market Forecast considers at-least two years of historical data and projections five years into the future to predict market growth or reduction. They are categorized by country or region. Gartner uses proprietary market models leveraging inquiry, end-user, and primary search surveys to understand buyer trends and user spending. Our analysts look at technology demand from global and local perspectives. We provide insight on the market from a “top-down” and “bottom-up” approach. This is a key differentiator from the small boutique research firms or large-scale ones like IDC. Boutique firms have a very specialized view of the market with a handful of analysts who offer a “top-down” view of macro market trends. Large-scale firms like IDC offer a bottom-up view of the market. IDCuses siloed analysts to gather country-level data that often does not add up when aggregated globally. Gartner knows what’s going on from a ground level as well as what’s going on at a high-level. This gives us a unique advantage because we offer a deep holistic view on demand driven technologies. Gartner publishes a quarterly market data book that provides a high-level analysis of IT end-user spending by region and market. Most Market Forecasts are updated quarterly. 32

Market Forecasts: Competition
Let’s look at an example of a Market Forecast for PCs & Associated Semiconductors. This report gives important insights for semiconductor vendors, investors, and others interested in this market. You can see that growth is projected by market segment, NOT by company. Growth is projected by market segment, not by company There is a projected annual increase of more than 50% in shipments of Basic Tablets through 2017 as well as a long term decline in shipments of traditional PCs. Leveraging these projections can help technology providers and professional services firms plan where to focus development and marketing resources. Market Forecasts help investment professionals decide where to invest. Again, IDC competes in this space by providing data taken directly from technology providers. However, they do not have end-user or demand source validation. Only Gartner provides multi-source, validated data that shows clients the rate at which markets are likely to grow from a holistic global and country level view 33

Sales Process How can research methodologies help you in the sales process? Use Gartner methodologies differentiate from competitors Learn your client’s business concerns and walk them through a relevant methodology report Show how analysis can help them reach the right decision Research methodologies are a great tool to better understand your prospect How can research methodologies help you in the sales process?  Learn about your client’s key initiatives and walk them through an applicable research report. Convey that methodologies can help them understand the past, assess the present and predict the future. Make sure your client is aware of the rigorous analysis that goes into each report. The analysis can help them reach the right decisions and communicate their rationale to stakeholders within their organization. Methodologies are also a great tool to better understand your prospect. Ask them which technologies or providers they are considering, and jointly review their placement in a Hype Cycle or Magic Quadrant. You now have a great set of tools to help you communicate with clients and demonstrate how Gartner sets itself apart from the competition. This concludes our review of the Gartner Research Methodologies. Please consult XYZ for more information. 34

Magic Quadrants Let’s start with our Qualitative Research methodologies. Clients frequently ask, “Which technology provider is the best partner for my.

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Magic Quadrants Let’s start with our Qualitative Research methodologies. Clients frequently ask, “Which technology provider is the best partner for my.

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