Microsoft’s Virtualization in Retail

Survey Research Results

Survey of Technology Decision-Makers

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Survey Methodology
DATA COLLECTION DATES: February 21 – March 10, 2008

METHOD: Telephone survey

SAMPLE SIZE: 205 Technology decision-makers

SAMPLE: Decision-makers who have IT management

responsibilities for store locations or regional/national
headquarters for retail companies with annual
revenues of $250 million or more

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Executive Summary

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Executive Summary
• Close to three quarters (71%) of the retail companies surveyed use virtualization
technologies to isolate operating system instances, applications, data or transaction
services in their stores or headquarters.
– More than eight in ten (82%) respondents who support their store locations say they use this technology.
– Health and Personal Care companies were most likely to say they use this technology (84%), while
Specialty Retail (59%) and General Merchandise (43%) companies are least likely.
– Among the 29% who say they are not using this technology at this time, one-quarter (25%) say their
company is considering implementing this technology.

• Among those currently using or considering implementing virtualization to isolate

operating system instances, applications, data or transaction services:
– More than a third (37%) say they are using or considering using this technology both within their store
locations and their centralized locations and data centers.
• However, these companies appear more likely to want to use them within their centralized locations and datacenters
(40%) rather then their store locations (15%) if they chose between the two.
– Only 12% of companies who say they are currently using this technology acknowledge that they are also
using it for other purposes.
• Among these respondents they are most likely to say they are using it for Applications (41%).
– Retail companies who are using this technology are more likely to say they have implemented Server
virtualization (82%) – followed by Application (51%), Desktop (41%) and Presentation (36%).
• Interestingly, companies with revenues of $1 billion or more are more likely to say their company has implemented
Application (71% vs. 43%) and Presentation (57% vs. 29%) virtualization technology.
• Among the 15 companies who say their company is still considering implementing virtualization technology, 87% of them
say they are considering implementing Server virtualization.

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Executive Summary
• Companies who acknowledge using virtualization technologies within their store
locations say numerous reasons impacted their company’s decision to do so, with
half of them saying cost savings (49%) played a part.
– Additionally, more than four in ten respondents say how this technology makes it easier to
respond to issues and failures of applications and systems (46%) as well as how it helps
them save space (43%) played a part.
– Being easier to respond to issues and failures of applications and systems (23%) received
the most responses when asked which reason impacted their company’s decision the
most.
• This was especially true among companies with annual revenues under $500 million (32%).

• Among those who are not using or considering implementing virtualization to isolate
operating system instances, applications, data or transaction services, half say the
main reason is the cost (51%). Another 41% say the main reason is that this is not a
priority at this time.
• Close to three-quarters (71%) of all respondents say they would consider Microsoft
based virtualization technologies when determining their next IT purchase, with more
than a third (37%) saying they would “definitely” consider them.

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Detailed Findings

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Currently Using or Considering Virtualization Technology

IF NO/DON’T KNOW – Is your company considering using

Does your company use virtualization technology to isolate
virtualization technology to isolate operating system
operating system instances, applications, data or transaction
instances, applications, data or transaction services in your
services in your store locations or headquarters?
store locations or headquarters?

71% 28% 25% 75%

Yes No/Don't know Yes No/Don't know

Base: BDM=78, TDM=85 www.krcresearch.com

Where are they using Virtualization Technology?

N=146 – Does your company use virtualization at store locations or at centralized locations such as datacenters?

N=15 – Is your company considering using virtualization at store locations or at centralized locations such as data centers?

Combined Results

14%
Yes, store locations only 15%
20%

42%
Yes, Central/Datacenter only 40%
20%

36%
Yes, both 37%
47%

7%
No/Don’t know 7%
14%

Using (n=146) Considering (n=15)

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What else are they using Virtualization for?

N=146 – Does your company use virtualization for any other purposes? If yes, please tell us how else your company is using
virtualization technology?

No/Don’t know 88%

Yes 12%

Applications 41%

Servers 18%

Card accounts 18%

Desktops 18%

Patient processing/roll 12%

Payroll/punch clock purposes 12%

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Types of Virtualization

N=146 – Which of the following types of virtualization has your company implemented?

Server 82%

Application 51%

Desktop 41%

Presentation 36%

NONE OF ABOVE 1%

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Impact of decision to implement Virtualization
N=74 – Which of the following reasons impacted your company’s decision to implement virtualization within its stores or remote locations
the MOST? From the same list, please tell me if you think any of these reasons impacted your company’s decision to implement
virtualization within its stores or remote locations?

MOST Impacted decision

Save space 14% 43%

Cost savings 15% 49%

Energy savings 18% 31%

Easier to centralize deployment/management of applications 14% 35%

Easier to respond to issues/failures of applications/systems 23% 46%

Easier to provide security (centralized) 12% 38%

GRC, Governance Regulatory and Compliance (e.g. PCI or DSS) 3% 4%

Other/Don’t know 2% 1%

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Main reason not implementing Virtualization

N=37 – Which of the following do you believe is the main reason your company is holding off on implementing virtualization?

Cost 51%

Not a priority 41%

Complexity 3%

Legacy issues 3%

OTHER 3%

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 Likelihood to consider Microsoft

How likely would you be to consider Microsoft-based virtualization technologies when determining your next IT purchase?

Would consider:
• Definitely 37%
• Probably 19%
Might or might
not 24% • Possibly 15%

Would not Would not consider:

consider 4% • Definitely not 1%
• Probably not 2%
Would consider
71%
• Possibly not 1%

Base=All Respondents

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Appendix

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Respondent Profile
Retail category Primarily Support
Convenience/Gas 6 Store locations 50
Specialty Retail 21 Regional headquarters 56
General Merchandise 7 National headquarters 50
Food and 37 Revenue
Beverage/Service
$250 million to under $500 million 29
Health and Personal Care 28
$500 million to under $1 billion 42
$1 billion or more 13
Job Title
REFUSED (but over $250 million) 16
CTO 30
SVP, IT stores operations 8
SVP, IT Enterprise 2
architecture
VP, IT stores operations 11
VP, IT Enterprise 8
architecture
Director, IT stores 20
operations
Director, IT Enterprise 1
architecture
OTHER 23

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