Conducted by

1. Phase II Quantitative Study Sept, 2001 Conducted by

2. Summary of Phase I Key Findings Economic Realities Increased scrutiny on technology initiatives to “make or save money” IT Professionals Most Influential in Process for All Technologies Infrastructure = Everything “invisible or transparent” and “what it takes to power applications”(servers, network hardware, bandwidth, collocation, OS, etc.) Back-office/network software = “Intelligence. Make it work.”(decision support, security, ERP, databases, content management, web site monitoring, etc. ) Customer facing applications = “What users see and touch ”(CRM, HR or benefits, financial applications, ecommerce, etc. ) Importance of Functional IT/Specifiers for all Technologies Critical in all steps of infrastructure purchases and in RFP/RFI stages of all other purchases Executive Management and Steering Committee Involvement Limited to 30,000 Foot View Involved in setting strategic vision and in approval of large IT expenditures, not involved in choosing brands and products

3. Introduction Methodology and Audience Research conducted by Gartner Griggs-Anderson on behalf of CMP BTG Quantitative, phone interviews of 492 business technology professionals fielded July 15 – August 28, 2001. Respondents: Split between corporate and IT management. Recruited using CMP lists for IT professionals and D&B lists for corporate respondents. Screened for involvement in purchase process for specific technologies in the last six months. Reflect a variety of industry and company size 40% 50-499 employees 30% 500-4,999 employees 30% 5,000+ employees

4. Why IT Projects are OverruledBusiness Reasons Q: Under what circumstances did executive or corporate management, or a steering committee overrule the recommendation? N= 182

5. IT is Feeling the HeatYet, Companies Lack Formal Metrics Q: Has the need to measure ROI for IT projects increased, decreased or remained the same as compared to what it was 6 months ago? Q: Does your company have a formal ROI measurement system or informal payback scenarios? N=240 IT N=162 corporate N=93

6. Money Still Being Spent Budgets, Increasing or Remaining the Same? • NOTABLE DATA • Average increase: 26% • Average decrease: 22% • 50% of mid-size companies expect an increase. The average increase is 18%. • 31% of large companies. expect decreases. The average is 14%. Q: Do you anticipate that your total IT budget will increase, decrease or remain the same in 2001 as compared to 2000? N=321

7. “Must Buys” versus “Back-Burner” Keeping the Business Running Q: In light of the current economy, what technologies are you continuing to invest in? What technologies do you consider “must buys” in the next 6 months? Q: What specific technology investments or projects have recently been cancelled or put on the back burner? N=492

8. Business Initiatives Driving Technology:Must Make Money or Save Money Q. What are the top business initiatives driving the purchase of technology in the next 6 months for your company? N=492

9. Specific Technology Modules Purchase Process Involvement Respondents involved in purchasing specific technology in the last six months Addressing (insert modules) • Back-Office Applications • Customer-Facing Business Applications • Digital Convergence • Infrastructure Hardware • Security • Consultants • Data Management and Storage • Ebusiness • Network Systems Management • Mobile & Wireless • Service Providers

10. Business Publications Conferences or Seminars Consultants Consumer Publications Educational Institutions E-mail Newsletters General Daily Newspapers Peers or colleagues Radio Research firms (reports) Information Sources Used to Make Technology Decisions • Research firms (consulting) • Technology B-to-B Publications • Television (technology programs) • Television (technology advertising) • Trade Shows (vendor sponsored) • Trade Shows (non-vendor sponsored) • Web Sites (media or news) • Web Sites (vendor)

11. Information Sources Used to Make Technology Decisions At Different Stages (Top 4 out of 18 ) Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]?

12. Information Sources Used to Make Technology Decisions At Different Stages(Top 4 out of 18 ) Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]?

13. Phase II Findings Steering Committee/CXO Work with IT Executives in Setting Priorities and Direction Executive IT and corporate management determine strategy and vision which IT management translates into actionable technology initiatives. Steering committees/CXOs not involved in product or brand recommendations. Centralization of Technology Budgets Majority of companies have centralized IT budgets. Many have moved to centralization recently. Companies Increasing Budgets; Focus on Back to Basics Majority of companies report increased budgets, yet companies are evaluating initiatives according to returns: “Makes Money or Saves Money”. IT Professionals Most Influential in All Technology Categories Purchase process changes based on technology, yet IT management and staff is involved in all technologies and “own” core enterprise technologies. B2B Technology Publications, Internet Sites and Peers/Colleagues Most Valuable Information Sources During Purchase Process