Download - Mark Hollands Principal ITR
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Mark Hollands
Principal
ITR
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Whitebox buying beliefs of Australian SMBs
The Price is . . . Mark Hollands,
Principal
Strategies to Differentiate
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The Whitebox Market
What do we mean by ‘whitebox’ 1 Custom-built computer with name-brand internal components 2 Generic computer systems that don't carry any mainstream
brand names 3 Sometimes called clones, not major brands such as IBM, Dell etc.
Research on whitebox in Australia is thin Estimates of Market size
IDC 46% Gartner 44% AMD internal figures - 50+%
We interviewed Small Businesses and Government agencies
To find 100 companies that use whitebox computers, we had to ring 251 organisations
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Opportunities & Challenges in the Whitebox Market Competitive Challenge:
Price, Price Price Making brand name computers more affordable Move from PCs to Notebooks Organisations embracing wireless and mobile computing
Differentiation & Advantage
Service, Service Service Customers looking to differentiate beyond price
Flexibility Major attraction to generic brands
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‘Whitebox’ incidence among 251 organisations
60
7
22
37
0 20 40 60 80 100
None
Notebooks or laptops
Servers
PCs or workstations
% of Respondents; All Contacts (n=251)
This chart shoes the penetration of whitebox computers among 251
Australian organisations. From this sample, 40% of
organisations are currently running some
whitebox systems.
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How common are whitebox computers?
Base: Total Respondents (n=100)
Most are whitebox
18%
Some are whitebox
20%
Very few are whitebox
44%
Don’t know1%All are
whitebox17%
Q.5. Within your organisation, are all of your computers whitebox, most of them, some of them or very few of them?
Business Size: Number of Business Size: Number of EmployeesEmployees
Don’t knowDon’t know
Very few are Very few are WhiteboxWhitebox
Some are Some are WhiteboxWhitebox
Most are Most are WhiteboxWhitebox
All are All are WhiteboxWhitebox
--3%3%--
47%47%42%42%42%42%
18%18%24%24%18%18%
24%24%12%12%18%18%
12%12%18%18%21%21%
100-250100-25020-9920-99>20>20
Base: Organisations with ‘whitebox’ computers
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Recency of purchasing a whitebox computer
36
17 17
7
22
10
10
20
30
40
50
Within the last 6months
Up to 1 year ago
Up to 2 years ago
Up to 3 years ago
More than 3
years ago
Don’t know
% o
f R
esp
on
den
ts (
n=
10
0)
Base: Organisations with ‘whitebox’ computers
Purchase within the last year = 53%
Purchase within the last 3 years = 77%
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30
2624
12
6 7
0
10
20
30
40
50
A local computershop (not a chain
store)
Direct from localassembler (e.g.Soltek, Optima,
Compucon)
Computer Distributor Service provider whomaintains and
repairs your systems
A Major retailer Other
% o
f R
esp
on
den
ts (
n=1
00)
Where organisations buy whitebox computers?
Base: Organisations with ‘whitebox’ computers
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Overall satisfaction with whitebox purchase
33
52
33
15
45
42
39
53
13
3
15 21
53
9 3
4 39
0%
20%
40%
60%
80%
100%
Total(n=100)
< 20 Employees(n=33)
20-99(n=33)
100-250(n=34)
% o
f R
esp
on
den
ts
Very Satisfied Satisfied Very Disatisfied
Ambivelant
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Perceptions of whitebox computer reliability
Very Reliable Reliable Unreliable Don't know
35354848
3030 2626
5656
4848
6767
5353
8833 33
1818
11 33
0%0%
20%20%
40%40%
60%60%
80%80%
100%100%
TotalTotal(n=100)(n=100)
< 20 Employees< 20 Employees(n=33)(n=33)
20-99 Employees20-99 Employees(n=33)(n=33)
100-250 Employees100-250 Employees(n=34)(n=34)
% o
f R
esp
on
den
ts%
of
Resp
on
den
ts
Base: Organisations with ‘whitebox’ computers
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Are businesses loyal to whitebox vendors?
44
20 22
11
3
0
20
40
60
80
100
Always purchase fromthe same vendor
Mainly purchase from thesame vendor
Use a combination ofvendors
Use different vendorseach time
Don’t know
% o
f Res
pond
ents
(n=
100)
Base: Organisations with ‘whitebox’ computers
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Do they specify build or rely on advice?
Base: Organisations with ‘whitebox’ computers
57
17 16
10
0
20
40
60
80
100
Components specified Joint effort Leave to Service Provider(who maintains and services
PCs)
Leave to Distributor(who builds PCs)
% o
f R
esp
on
den
ts (
n=1
00)
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5
1
3
4
4
5
6
8
8
56
0 20 40 60 80 100
Other
Speed of delivery
Local purchase
Customer Service
Not my choice
Support/Maintenance
Reliability/Quality/Guarantee
Performance
Specification
Price
% of Respondents (n=100)
Price is driving organisations to purchase ‘whitebox’…
Base: Organisations with ‘whitebox’ computers
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Influences on the PC purchasing decision
Base: Organisations with ‘whitebox’ computers
6864
60 5952 52
45 43
21
0
20
40
60
80
100
Support/Maintenance
CustomerService
Specification Price Replacementpolicy
Purchasefrom regulardistributor
Purchasefrom localsupplier
Speed ofdelivery
Brand name
% o
f R
esp
on
den
ts (
n=
10
0)
% Highly Important
[Extremely / Very Important]
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Influences on the PC purchasing decision
21
43
45
52
52
59
60
64
68
42
48
31
35
38
36
31
29
22
37
9
23
12
10
5
8
6
9
1
1
1
1
1
0 20 40 60 80 100
Brand name
Speed of Delivery
Purchase from local supplier
Replacement Policy
Purchase from reg dist
Price
Specification
Customer Service
Support/ Maintenance
% of Respondents (n=100)
Highly Important {1-2} Moderately Important {3-4} Not Important {1-2} Don't know
Base: Organisations with ‘whitebox’ computers
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Base: Total Respondents (n=100)Base: Total Respondents (n=100)
Don’t KnowDon’t Know7%7%
More expensiveMore expensive1%1%
No difference in No difference in priceprice24%24%
Less expensiveLess expensive68%68%
Perceptions of whitebox computer prices
Base: Organisations with ‘whitebox’ computers
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Are brand-name systems preferred over whitebox?
Base: Total Respondents (n=100)Base: Total Respondents (n=100)
YesYes56%56%
Don’t KnowDon’t Know5%5%
NoNo39%39%
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Reasons for brand-name system preference
38% Better Customer Service
27% Better Warranty/Guarantee
27% Trusted Brand Names
21% Reliability
9% Maintenance and Support
9% Quality/Better Product/Performance
20% Other
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Processor Preference
Base: Total Respondents (n=100)Base: Total Respondents (n=100)
OtherOther5%5%
AMDAMD2%2%
No preferenceNo preference34%34%
Intel/ Pentium/ P4Intel/ Pentium/ P459%59%
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Claimed annual PC spend
9
1720
14
810
3
9 10
0
10
20
30
40
50
Less than$5,000
$5,001-$10,000
$10,001-$20,000
$20,001 -$40,000
$40,001 -$50,000
$50,001 -$70,000
$70,001 -$90,000
$90,000 +Don’t know
% o
f R
esp
on
den
ts (
n=
100)
Base: Organisations with ‘whitebox’ computers
Average Spend = $36,000
Median Spend = $18,375
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Expected trends in PC spend over the next 12 months
Base: Total Respondents (n=100)
No change65%
Don’t know2%Decrease spend
7%
Increase spend26%
Base: Organisations with ‘whitebox’ computers
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Percentage increase expected over the next 12 months
7474
101055
11 22 33 11 11 3300
2020
4040
6060
8080
100100
No increaseNo increase1-10%1-10% 11-20%11-20% 21%-30%21%-30% 31-40%31-40% 41%-50%41%-50%51%-60%51%-60%More thanMore than100%100%
Don’t Don’t knowknow
% o
f R
esp
on
den
ts (
n=
100)
% o
f R
esp
on
den
ts (
n=
100)
Base: Organisations with ‘whitebox’ computers
Average Increase in PC Spend = 5.86%
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Large Company and Govt. agencyDesktop Buying intentions
% Respondents (n=300)
See rating colours
Increase29%
Remain The Same54%
Don't Know1%Decrease
15%
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Desktop buying intentions by vertical
3929 27 27 24
4955 54 58
52
12 16 18 1224
1 2
0%
20%
40%
60%
80%
100%
Health (n=51) Finance & insurance(n=49)
Manufacturing (n=95) Government (n=84) Utilities (n=21)
% o
f R
esp
on
den
ts
Increase Remain The Same Decrease Don't Know
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Average desktop spend increase
‘Average % spend increase’
22.9019.77 18.70
16.18 16.12
0.00
10.00
20.00
30.00
40.00
50.00
Utilities Manufacturing Health Finance &Industry
Government
% o
f Res
pond
ents
(n=3
00)
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Notebook Buying Intentions
% Respondents (n=300)
See rating colours
Increase37%
Remain The Same46%
Don't Know1%Decrease
16%
![Page 27: Mark Hollands Principal ITR](https://reader036.vdocuments.mx/reader036/viewer/2022062408/56813985550346895da1171f/html5/thumbnails/27.jpg)
67
41 3932 32
19
3949
51 51
1420
1217 14
1 2
0%
20%
40%
60%
80%
100%
Utilities Health Finance & insurance Manufacturing Government
% o
f R
esp
on
den
ts
Increase Remain The Same Decrease Don't Know
Norebook buying intentions by vertical
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Average notebook spend increase
‘Average % spend increase’
23.7620.77 19.18 19.07 18.32
0.00
10.00
20.00
30.00
40.00
50.00
Health Government Finance &Industry
Manufacturing Utilities
% o
f Res
pond
ents
(n=3
00)
![Page 29: Mark Hollands Principal ITR](https://reader036.vdocuments.mx/reader036/viewer/2022062408/56813985550346895da1171f/html5/thumbnails/29.jpg)
Back to the White Box
community . . .
![Page 30: Mark Hollands Principal ITR](https://reader036.vdocuments.mx/reader036/viewer/2022062408/56813985550346895da1171f/html5/thumbnails/30.jpg)
Likelihood of vendor loyalty through price guarantee
44443333
55554444
1414
1515
991818
42425151
3636 3838
0%0%
20%20%
40%40%
60%60%
80%80%
100%100%
TotalTotal(n=100)(n=100)
< 20 Employees< 20 Employees(n=33)(n=33)
20-99 Employees20-99 Employees(n=33)(n=33)
100-250 Employees100-250 Employees(n=34)(n=34)
% o
f R
esp
on
den
ts%
of
Resp
on
den
ts
Total likelyTotal likely Total UnlikelyTotal UnlikelyDon't know/Makes no difference to meDon't know/Makes no difference to me
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Usage of the Internet to purchase
Base: Total Respondents (n=100)
Don’t Know5%
No47%
Yes48%
Q.14 Have you or someone in your organisation used the Internet to purchase a “whitebox”
computer for the organisation?
Q.14a. Would you consider using the Internet to purchase “whitebox” computer in the future?
Base: Organisations with ‘whitebox’ computers
Base: Total Respondents (n=100)
No87%
Yes13%
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Interest in on-site PC evaluation
Base: Organisations with ‘whitebox’ computers
Base: Total Respondents (n=100)
No48%
Don’t Know4%
Yes48%
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Importance of PC disposal policy
126
1812
36
30
33 44
5161
48 44
0%
20%
40%
60%
80%
100%
Total(n=100)
< 20 Employees(n=33)
20-99 Employees(n=33)
100-250 Employees(n=34)
% o
f R
esp
on
den
ts (
n=1
00)
Highly Important Moderately Important Not Important
Base: Organisations with ‘whitebox’ computers
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Meeting new challenges
Exploit flexibility and expertise 57% spec their own systems 17% want help Specs are 2nd highest criteria for buyer
Price Key competitive advantage in this market -
don’t lose sight of that!don’t lose sight of that! 39% would go to brand name if budget permitted 44% want price guarantee - only 7% say ‘no’
Emphasise support Brands do badly here, especially cheaper end Lay-out strong replacement policy & on-site
evaluation (48% want this service)
![Page 35: Mark Hollands Principal ITR](https://reader036.vdocuments.mx/reader036/viewer/2022062408/56813985550346895da1171f/html5/thumbnails/35.jpg)
Meeting new challenges
Market still spending PC growth projected at 10+% 1:4 say they will increase spend 65% to maintain spend Only 7% to decrease
Loyalty weak - no ‘80-20 Rule’ 52% buy from regular distributor 45% from local supplier Increase marketing in niche / SMB areas to exploit
lack of loyalty Strategise offers aimed at loyalty - eg price
guarantee etc. Exploit lack of brand value equity of competitors
Drive Internet purchase Take cost out of your own business to keep prices low