Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Marilou Barsam

1. How Customers Choose Solution ProvidersInsight into Key Buying Criteria for Services and Solutions—North America Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Marilou Barsam Senior Vice President Client Services andCorporate Marketing TechTarget

2. Successful companies map their marketing strategy and tactics to the buying process Relationship Stages Awareness Interest Confidence Loyalty Buying Process Search Alternative Evaluation Selection and Purchase Post-Purchase Evaluation • Clarify objectives and solution specifications • Identify alternatives (short list) • Solicitproposals • Evaluate alternatives • Select the provider • Negotiate the contract • Ultimate sign-off • Evaluate satisfaction • Measure value delivered

3. ITSMA has come to recognize that there is another buying process stage that is often overlooked Relationship Stages Awareness Interest Confidence Loyalty Epiphany Buying Process Search Alternative Evaluation Selection and Purchase Post-Purchase Evaluation Need Recognition • Explore the possibilities • Identify a needor opportunity • Clarify objectives and solution specifications • Identify alternatives (short list) • Solicitproposals • Evaluate alternatives • Select the provider • Negotiate the contract • Ultimate sign-off • Evaluate satisfaction • Measure value delivered

4. IT Pros are Always Researching

5. Consideration Decision Awareness IT Buyers Use Multiple Content Types at Different Stages of Buying Cycle Vendor demos Trial software IT vendors Live events Virtual trade shows Search engines Published research Case studies White papers Webcasts IT publishers IT videos Industry magazines IT newsletters Q4 2007 TechTarget and CMO CouncilTechnology Buying and Media Consumption Survey, Report 4 IT blogs Widgets Podcasts IT wikis

6. Consideration Decision Awareness IT Buyers Use Multiple Content Types at Different Stages of Buying Cycle Vendor demos Trial software IT vendors …used at different stages of the buying cycle Live events Virtual trade shows Search engines …offer more choice and broaden reach to strengthen online branding opportunity Published research Case studies White papers Webcasts IT publishers Multiple content types IT videos Industry magazines IT newsletters Q4 2007 TechTarget and CMO CouncilTechnology Buying and Media Consumption Survey, Report 4 IT blogs Widgets Podcasts IT wikis

7. Today’s Presentation • Results from the ITSMA-TechTarget How Customers Choose Survey • Buying behavior at three stagesof the Buying Process: Awareness Interest Epiphany Search Alternative Evaluation Need Recognition

8. Research Methodology Sample sources: TechTarget IT Research Panel ITSMA in-house list

9. What companies were included in our sample? What is your company’s primary business? % of Respondents (N=216) Approximately, what is your company’s annual revenue, is it ___? % of Respondents (N=216) Note: Other includes: Healthcare (7), Retail (3), Wholesale Distribution (3), Education (3), Legal (2), Consulting (2), IT Services (2), Multi-industry, Energy, Non-profit Ministry, IT Outsourcing, Distribution, Transportation Services, Information Management, Oil & Gas, Utilities, Marketing, Wholesale, Construction, Non-profit, Defense Contractor, Biotechnology Source: ITSMA, How Customers Choose Study, North America, 2008

10. Who did we speak to? Are you an business or IT professional? % of Respondents (N=216) What is your job title? % of Respondents (N=216) C-level, GM, President (15%) Business (35%) Director (40%) VP/Assistant VP (17%) IT (65%) Manager (28%) Source: ITSMA, How Customers Choose Study, North America, 2008

11. How are they approaching investments given the current economic climate? Which would you say is driving your technology investment focus right now? % of Respondents (N=214) Which of the following is more important to you and your company in the current economic environment? % of Respondents (N=105) Other (9%) Cost reduction (35%) Adding new functionality and capabilities (56%) Reducing costs (46%) Increasing revenue or sales (54%) Source: ITSMA, How Customers Choose Study, North America, 2008

12. 74% are either increasing or maintaining their IT budgets What is happening to your spending for technology-enabled business initiatives so far in 2008? % of Respondents (N=212) Will it increase by moreor less than 10%? % of Respondents (N=75) Increase (35%) Stay the same (39%) Decrease (25%) Will it decrease by moreor less than 10%? % of Respondents (N=53) Source: ITSMA, How Customers Choose Study, North America, 2008

13. Create Demand: Build and nurture relationships before your potential customer is ready to buy Relationship Stages Awareness Interest Confidence Loyalty Epiphany Buying Process Search Alternative Evaluation Selection and Purchase Post-Purchase Evaluation Need Recognition • Explore the possibilities • Identify a needor opportunity • Clarify objectives and solution specifications • Identify alternatives (short list) • Solicitproposals • Evaluate alternatives • Select the provider • Negotiate the contract • Ultimate sign-off • Evaluate satisfaction • Measure value delivered

14. Buyers perceive solution providers to be moderately helpful when it comes to identifying business problems How helpful are solution providers in working with you and your organization to identify and clarify business problems or opportunities? % of Respondents (N=199) Mean Rating: 3.1 Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all helpful and 5=very helpful. Source: ITSMA, How Customers Choose Study, North America, 2008

15. Likewise, there is room for improvement when it comes to bringing new ideas to potential clients How helpful are they in bringing you new ideas and showing you the possibilities to solve your business issues? % of Respondents (N=199) Mean Rating: 3.2 Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all helpful and 5=very helpful. Source: ITSMA, How Customers Choose Study, North America, 2008

16. Topical InfoCenterUnified Communications Thought Leadership Example: • TechTarget editorial content on the left side • 100% share of voice for sponsor surrounding the content • 10 content links along the right side of the editorial content • Banners

17. E-Guide—Storage Virtualization Thought Leadership Example: • Four articles on Storage Virtualization produced in rich-media format • Up to four pages for sponsor messaging integrated with editorial content, including: advertisements, resource links, and other information about sponsor’s company or products.

18. Buyers are looking for thought leadership that is proven, practical, and relevant In your view, how much does each of the following contribute to compelling, high quality thought leadership? Mean Rating (N~185) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all a factor and 5=a major factor. Source: ITSMA, How Customers Choose Study, North America, 2008, adapted from the Bloom Group, 2007

19. Vendor Case Study • Title: NASA Federal Credit Union Discovers Online Data Backup • Topic: Backup/ Recovery • Promotion Site: SearchStorage.com • Sponsor: EVault, Inc. • Best Practice: Marketed well-known partner • Benefit-Oriented positioning paid off • Performed 29% better than case studies promoted on site during same period

20. Third-Party Case Study • Title: Forrester Consulting Case Study on Database Security & Compliance • Sponsor: Guardium • Topic: Risk Management • Promotion Site: SearchSecurity.com • Best Practice: Marketed third-party endorsement • Third-Party association delivers results • Performed 42% betterthan all white paperspromoted on site during same period!

21. The most valuable relationship building activities are those that facilitate the exchange of ideas and foster community Which three solution provider relationship-building programs do you think provide the greatest value to you? % of Respondents (N=184) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Up to three responses allowed. Source: ITSMA, How Customers Choose Study, North America, 2008

22. Huge, Active Online Communities

23. Generate Leads: Make it easy for potential buyers to find you Relationship Stages Awareness Interest Confidence Loyalty Epiphany Buying Process Search Alternative Evaluation Selection and Purchase Post-Purchase Evaluation Need Recognition • Explore the possibilities • Identify a needor opportunity • Clarify objectives and solution specifications • Identify alternatives (short list) • Solicitproposals • Evaluate alternatives • Select the provider • Negotiate the contract • Ultimate sign-off • Evaluate satisfaction • Measure value delivered

24. IT buyers are actively researching new solution providers What percentage of the time would you say you do research and find appropriate solution providers versus they contact you first? Mean % of the Time (N=191) The solution provider contacts me first (31%) I do the research and find the appropriate solution providers (69%) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Source: ITSMA, How Customers Choose Study, North America, 2008

25. Professional peers are the most important “search tool” followed by online sources When you have a business problem, what are the first three steps you take to identify alternative solutions? % of Respondents (N=194) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Up to three responses allowed. Source: ITSMA, How Customers Choose Study, North America, 2008

26. Buyers turn to both informal and formal peer networks % of Responses (N=197) Speak to peers who participate in exclusive councils or communities you belong to (25%) Speak to colleagues in your company for referrals (40%) Speak to colleagues at other companies for referrals (35%) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Source: ITSMA, How Customers Choose Study, North America, 2008

27. Search methods vary by role, so adapt your marketing to your target audience When you have a business problem, what are the first three steps you take to identify alternative solutions? % of Respondents * * * * * * * * Relationship Stages Epiphany Awareness Interest Confidence Loyalty Notes: Mean rating based on a 5-point scale where 1=not at all effective and 5=very effective. * Indicates a statistically significant difference. Source: ITSMA, How Customers Choose Study, North America, 2008

28. What should be important to IT marketers? Q: Which is the single most effective information source? Q4 2007 TechTarget and CMO CouncilTechnology Buying and Media Consumption Survey, Report 4

29. Web 2.0 is slowly gaining momentum, yet resistance to adoption persists Are you using or have you used any new Web 2.0 or social media tools such as blogs or social networks to seek out information on possible solutions? % of Respondents (N=202) Don’t know (4%) Yes (37%) (Primarily blogs) No (59%)(Why not? not reliable, not trustworthy, time consuming, content not valuable, no need, against organization policy, security issues) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Source: ITSMA, How Customers Choose Study, North America, 2008

30. The marketing vehicles that are most effective are content rich and highlight problem solving Which types of marketing vehicles do you believe are most effective in getting your attention and encouraging you to learn more? Mean Rating (N~185) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all effective and 5=very effective. Source: ITSMA, How Customers Choose Study, North America, 2008

31. Provide Proof: Buyers are looking for a proven track record Relationship Stages Awareness Interest Confidence Loyalty Epiphany Buying Process Search Alternative Evaluation Selection and Purchase Post-Purchase Evaluation Need Recognition • Explore the possibilities • Identify a needor opportunity • Clarify objectives and solution specifications • Identify alternatives (short list) • Solicitproposals • Evaluate alternatives • Select the provider • Negotiate the contract • Ultimate sign-off • Evaluate satisfaction • Measure value delivered

32. When evaluating the solution, feature-function and ROI win Once you have created your short list and you are evaluating alternative business solutions, which one factor is most important to your decision? % of Respondents (N=193) Mean Rating Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all important and 5=very important. Source: ITSMA, How Customers Choose Study, North America, 2008

33. When evaluating providers, an impeccable reputation tops the list When evaluating alternatives and selecting the company to help you implement the solution, which one factor is most important to your decision? % of Respondents (N=188) Mean Rating Relationship Stages Epiphany Awareness Interest Confidence Loyalty Note: Mean rating based on a 5-point scale where 1=not at all important and 5=very important. Source: ITSMA, How Customers Choose Study, North America, 2008

34. Knowledge and experience with the technology and industry are important, but not sufficient Which of these would you say gives you more comfort that a solution provider can deliver? Knowledge and experience with… % of Respondents (N=189) Your industry (e.g., banking or healthcare) (11%) The technology (35%) The business process (26%) Your company and your business (28%) Relationship Stages Epiphany Awareness Interest Confidence Loyalty Source: ITSMA, How Customers Choose Study, North America, 2008

35. Marketer Challenge: What content types and specific media will be most effective to reach buyers at each stage of the buying cycle? • First step—What is your primary challenge? • Attracting prospects from competition? Capturing share in a subsegment? Finding best leads in a booming market? • Based on that—Which decision-making stage and content to focus investment

36. Online, prospects enter, exit, progress with different needs. Information need = opportunity

37. Match content type and content topic to decision making stage

38. Case Study: Smurfit-Stone (#247 on the Fortune 500), LAN Specialist Researching IT Solutions Value of multiple content topics and assets extends to developing a prospect online “Tech Description,” April 2006 Vendor focus/overview “Overview doc,” March 2006 Editorial/expert “Service Offering Description,”May 2006 Case study

39. Recommendations: Map your marketing strategy and tactics to the buyer’s process Epiphany Awareness Interest • Need Recognition:Create Demand • Build relationships based on thought leadership and community • Show the possibilities • Align your content to the buying stage • Search:Generate Leads • Ease the burden; make the buyer’s search effortless • Emphasize word of mouth and online marketing • Rely on pull marketing, but don’t completely abandon push marketing • Evaluation:Provide Proof Points • Show, don’t tell • Demonstrate validity and practicality through case studies • Personalize and customize: Know the buyer’s unique business issues And then turn the lead over to sales to close the deal!

40. Thank You!