Magic Quadrant for Global Enterprise Note-
book PCs, 2H06
Gartner RAS Core Research Note G00142670, Mikako Kitagawa, Brian Gammage, 17 October 2006 R2124 06302007
nlike the general notebook market, in which
Our quantitative assessments are based on
Uprice is often the main purchase criterion, the externally available financial and market data as well
global enterprise market also requires consistent
hardware configurations, appropriate life cycle
services, global support and fast turnaround on
warranty repairs.
as information submitted to Gartner by vendors in
response to a questionnaire.
MAGIC QUADRANT
Market Overview
WHAT YOU NEED TO KNOW
Commoditization and saturation are major notebook
market trends in most regions. In a commoditized
market, price becomes the major purchase criterion,
while market saturation increases the pressure for
vendors to lower prices. But while these forces apply
to the general market for notebooks, they are less
visible in the global enterprise segment. For large-
enterprise customers, price is not usually the primary
purchase criterion. Instead, their purchase decisions
consider various criteria, including each vendor's
ability to provide appropriate levels of services and
support globally. Working with vendors that can meet
these requirements helps reduce the total cost of
ownership for notebooks.
This Magic Quadrant is designed to assist global
enterprise customers with users spread across
multiple regions in selecting notebook suppliers. Our
analysis combines evaluations of the notebook
vendor attributes that matter most to large-enterprise
customers: product portfolio, geographical coverage,
financial health, and service and support capabilities.
Each vendor's position in the Magic Quadrant
accurately reflects our analysis of the factors
considered. However, we encourage notebook
buyers not to use these results as the sole criteria for
selecting a vendor. Instead, customers should
assess their own organization's priorities and
consider these when performing due diligence as
part of their vendor evaluation process. It is not
uncommon for customers with unique requirements
to find that a lesser-known vendor is best-suited to
meet their needs.
Gartner regards global presence as a significant
criterion for evaluating potential notebook suppliers.
The leaders in this Magic Quadrant are all
international vendors that can provide consistent
products and services across multiple regions. While
smaller vendors can also play effectively in this
market, a lack of global capabilities for delivery
and/or support would put them into a Niche Players
or Challengers position. Such smaller vendors are
typically specialized in certain vertical markets.
The Magic Quadrant for global enterprise notebook
PCs is updated each year to reflect changes in
market dynamics. For the 2006 update, we have
added two new evaluation processes to our
quantitative assessment of vendors:
• Qualitative analysis of each vendor's capabilities
and processes, based on interviews with the
vendor and a range of submitted case studies
Market Definition/Description
The global enterprise notebook market is defined as
follows:
• Subjective evaluations of vendors against a range
of criteria, based on feedback from Gartner clients
to each of our user-facing client computing
analysts
• The products in this market are notebook PCs, in
various form factors and configurations. Mobile
thin-client terminals and PDAs are not included in
this Magic Quadrant.
• The main customers in this market fall into three
private-sector segments:
exploited to create opportunity for the provider. Our
evaluation of a vendor's completeness of vision is
based on the following criteria:
Evaluation Criteria
Ability to Execute
This axis evaluates notebook vendors on the quality
and efficiency of the processes, systems, methods or • Market understanding, which includes
procedures that enable their performance to be
competitive, efficient and effective, and to positively
impact revenue, retention and reputation. Ultimately,
global enterprise notebook providers are judged on
their ability and success in capitalizing on their
vision. Our evaluation of a vendor's ability to execute
is based on the following criteria:
mechanisms for customer feedback
• Marketing strategy, which includes the vendor’s
ability to provide various professional services
• Sales strategy, which includes the vendor’s ability
to work with customers through its sales force and
sales tools
• Product strategy, which includes the vendor's
strength of R&D, capability in product design and
its ability to offer image stability
• Product, which includes the breadth and
availability of the vendor's product portfolio
• Overall viability, which includes product quality
and consistency as well as the vendor's financial
strength
• Vertical/industry strategy, which includes the
vendor's ability to provide vertical-specific product
and service
• Sales execution, which includes the availability of
specialized sales teams
• Innovation, which includes the vendor's ability to
have investment resources, expertise or capital for
consolidation, defensive or pre-emptive purposes
• Market execution, which includes the vendor’s
market share in the global enterprise market
• Geographic strategy, which includes the vendor's
ability to provide products and services globally
• Customer experience, which includes the vendor’s
ability to provide support and services
• Operations
Leaders
Notebook PC vendors in the Leaders quadrant
register the highest scores on Ability to Execute and
Completeness of Vision. These vendors have wider
geographic coverage, comprehensive sales
organization, financial stability, comprehensive
customer support, broader product portfolio, longer
product availability, and larger market presence.
Completeness of Vision
This axis evaluates notebook vendors on their ability
to convincingly articulate logical statements about
current and future market direction, innovation,
customer needs, and competitive forces and how
well they map to the Gartner position. Ultimately,
global enterprise notebook providers are rated on
their understanding of how market forces can be
Table 1. Ability to Execute Evaluation Criteria
Table 2. Completeness of Vision Evaluation Criteria
Evaluation Criteria
Weighting
high
Evaluation Criteria
Market Understanding
Marketing Strategy
Sales Strategy
Weighting
high
Product/Service
Overall Viability (Business Unit,
Financial, Strategy, Organization)
Sales Execution/Pricing
Market Responsiveness
and Track Record
high
standard
standard
high
high
Offering (Product) Strategy
Business Model
standard
no rating
standard
high
Vertical/Industry Strategy
Innovation
Marketing Execution
Customer Experience
Operations
standard
high
Geographic Strategy
standard
standard
Source: Gartner
Source: Gartner
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Dell
Challengers
Dell’s scores for Ability to Execute are the highest
among all notebook vendors. Dell has an excellent
supply chain for notebook products and strong
marketing execution capabilities. Dell achieved the
highest overall viability score and remains the leader
in service and support for the largest global
enterprises. However, for smaller enterprises that do
not achieve “global account status” with Dell, the
level of service is often less. For such customers,
service and support may be inconsistent across
different regions, ranging from excellent in some
mature markets to barely adequate in others.
Challengers have high scores in Ability to Execute,
but their Completeness of Vision scores are not as
high as the leaders. Challengers often have a good
market presence and financial stability, but they may
have less geographic coverage or they lack an
innovative view of the products.
Visionaries
Visionaries have high scores in Completeness of
Vision; however, their Ability to Execute scores are
not as high as vendors in the Leaders quadrant.
Their market presence may be less than the leaders,
and their financial stability may not be as solid. Also,
their sales organization and customer support
mechanism my not be as comprehensive as the
leaders.
Recommendation: Global enterprises and large
organizations (irrespective of location) should
consider Dell as a prospective supplier for all
business notebook requirements. Midsize
organizations, especially those operating in multiple
geographic locations, should expect Dell’s level of
service and support to be less consistent.
Niche Players
Vendors in the Niche Players quadrant do not have
high scores in both axes. They have a low market
presence, and market coverage is limited.
Meanwhile, they may specialize in particular areas in
a vertical-market segment or have product portfolios
in which leaders may not have much focus.
Fujitsu/Fujitsu Siemens
Fujitsu and Fujitsu Siemens offer a common range of
global PC products, although they are two separate
entities. Thus, this Magic Quadrant evaluates these
two companies as a single aggregate vendor.
Vendor Comments
Acer
Fujitsu/Fujitsu Siemens is positioned in the Leaders
quadrant although its position is close to the border
of the visionaries quadrant. Fujitsu/Fujitsu Siemens
offers a range of quality enterprise notebooks. Its
ability to understand customer needs matches that of
leading competitors. Customer feedback
mechanisms and appropriate service offerings are
integrated into its operation. A challenge for
Fujitsu/Fujitsu Siemens is its inconsistent global
presence, which results in inconsistent levels of
services between regions. In particular, its
capabilities in North America lag those in other
regions, particularly Europe, the Middle East and
Africa (EMEA).
Acer is in the Challengers quadrant, but on the
border of the Niche Players quadrant. Acer has
global product offerings, with a highly efficient supply
chain and a strong market presence across many
regions. However, its core business targets
transactional customers (small business and retail),
and its business model is not focused on the higher-
volume requirements of large-enterprise customers.
Global service and support capabilities, as well as
account management, are far below those offered by
the market leaders. Acer’s lack of investment in
these enterprise capabilities limits our evaluation of
its ability to execute and completeness of vision as a
potential enterprise notebook supplier.
Recommendation: Fujitsu/Fujitsu Siemens should be
considered for global notebook PC contracts only by
organizations for which the majority of users are not
U.S.-based. Organizations with high numbers of
U.S.-based users should consider it as a potential
supplier only if they have some other compelling
Recommendation: Acer is recommended as a
potential supplier for global enterprise notebook
requirements only if standardization and global
account management are not required.
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reasons to do so (such as a broader portfolio
purchase with leveraged discounts). For pen-tablet-
based vertical solutions, Fujitsu/Fujitsu Siemens
should be considered as a supplier, regardless of
customer location.
Lenovo
Lenovo has the highest score for Completeness of
Vision; however, its Ability to Execute score is below
that of its leading competitors. Lenovo’s high score
for Completeness of Vision is because of its product
design/development capabilities and the level of
meaningful innovation it delivers with its enterprise
notebook products. Lenovo’s ThinkPad brand,
together with its ThinkVantage technology, is well-
regarded for IT deployments. Lenovo’s main
weakness is its high dependency on IBM for direct
sales, although the use of IBM's global services
organization means customers usually have access
to high-quality services. With IBM as its primary
distribution channel to global customers, Lenovo now
has less-direct access to and feedback from all but
its largest enterprise customers.
Gateway
Gateway is in the Niche Players quadrant. Since
acquiring eMachines, Gateway has expanded its
operation to Western Europe, Latin America and
Japan; however, it remains primarily focused on
retail and has shown no signs of building the
capabilities needed to be a global enterprise
notebook supplier. Gateway’s enterprise product
portfolio is good, and its direct sales capabilities
within the U.S. are adequate, although limited. The
lack of a strong track record with large-enterprise
customers is a barrier to Gateway strengthening its
position with this customer group.
Recommendation: Consider Lenovo as a
prospective supplier for all business notebook
requirements. Organizations should also investigate
the potential advantages and licensing costs of
extending use of ThinkVantage utilities to their PC
installed base. Customers that had originally
purchased notebooks from IBM should monitor
performance against associated service
Recommendation: Gateway is not recommended for
new global notebook PC contracts, but it should be
considered as a prospective supplier for small-to-
midsize quantities in the U.S. market. Outside North
America, customers should expect limited supply
capability.
commitments to ensure service levels and qualities
continue to be maintained by Lenovo.
HP
HP has well-balanced scores for Ability to Execute
and Completeness of Vision. HP achieves one of the MPC
highest scores for its service and support
MPC is positioned in the Niche Players quadrant.
capabilities. HP maintains excellent account
management for its largest global enterprise
customers, but the complexity of contracts when
channel partners are used can create confusion for
MPC offers good products, and its support capability
is well-regarded by customers. It has well-organized
mechanisms for customer feedback and is “high
touch” for its limited customer base. However, MPC’s
some customers. While coordination challenges may focus is the United States only, and the company
still exist for smaller-enterprise customers, the
patchy account management seen through 2004 has
disappeared, showing that the underlying
organizational issues are resolved. HP has a broad
product offering with a variety of form factors and is
regarded as best in class for its ongoing efforts to
understand user needs and customer satisfaction.
plans no global expansion.
Recommendation: MPC should not be considered for
global notebook contracts or for high-volume
deployments over short intervals. MPC’s capabilities
and customer approach mean it should be considered
as a prospective supplier for U.S.-only, midvolume
notebook contracts, or as a second source.
Recommendation: HP should be considered a
prospective supplier for global enterprise customers
regardless of size of the business. Customers with
multilocational requirements that involve use of third
parties should expect detailed contracts.
Toshiba
Toshiba is positioned in the Visionaries quadrant.
Toshiba’s engineering gives it excellent product
design and development capabilities, which boosts
its Completeness of Vision score. However, Toshiba’s
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execution for global customers lags that of leading
competitors. Toshiba has invested heavily in CRM
Recommendation: Toshiba should be considered as
a potential global supplier of notebook PCs,
systems and has good customer support and service especially if product quality and innovation is a high
capabilities, but it is yet to fully exploit these. The
result continues to be inconsistent sales execution
and customer support.
buying priority. However, customers requiring high
levels of service and support with their notebooks
can experience inconsistent execution, especially if
operating in multiple locations.
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Evaluation Criteria Definitions
Ability to Execute
Product/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This
includes current product/service capabilities, quality, feature sets, skills, etc., whether offered natively or through OEM
agreements/partnerships as defined in the market definition and detailed in the subcriteria.
Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall
organization’s financial health, the financial and practical success of the business unit, and the likelihood of the individ-
ual business unit to continue investing in the product, to continue offering the product and to advance the state of the
art within the organization’s portfolio of products.
Sales Execution/Pricing: The vendor’s capabilities in all pre-sales activities and the structure that supports them.
This includes deal management, pricing and negotiation, pre-sales support and the overall effectiveness of the sales
channel.
Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive
success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criteri-
on also considers the vendor’s history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization’s mes-
sage in order to influence the market, promote the brand and business, increase awareness of the products, and estab-
lish a positive identification with the product/brand and organization in the minds of buyers. This “mind share” can be driv-
en by a combination of publicity, promotional, thought leadership, word-of-mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients to be successful with the
products evaluated. Specifically, this includes the ways customers receive technical support or account support. This
can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, serv-
ice-level agreements, etc.
Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the orga-
nizational structure including skills, experiences, programs, systems and other vehicles that enable the organization to
operate effectively and efficiently on an ongoing basis.
Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers’ wants and needs and to translate those into prod-
ucts and services. Vendors that show the highest degree of vision listen and understand buyers’ wants and needs,
and can shape or enhance those with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization
and externalized through the Web site, advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling product that uses the appropriate network of direct and indirect sales, market-
ing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technolo-
gies, services and the customer base.
Offering (Product) Strategy: The vendor’s approach to product development and delivery that emphasizes differenti-
ation, functionality, methodology and feature set as they map to current and future requirements.
Business Model: The soundness and logic of the vendor’s underlying business proposition.
Vertical/Industry Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs
of individual market segments, including verticals.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment,
consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs of
geographies outside the “home” or native geography, either directly or through partners, channels and subsidiaries as
appropriate for that geography and market.
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