T-Systems recently updated NelsonHall on its virtual desktop service offering, Dynamic Workplace, its new brand name for Future Workplace, a virtual desktop offering introduced in 2013.

T-Systems Dynamic Workplace was introduced to address client needs for virtual desktop and mobility overall, based on a centralized approach to applications and data. T-Systems with this offering has taken several decisions:

• Lowering the TCO of its hardware and service offering in order to drive adoption. T-Systems has redesigned its virtual desktop service architecture, and selected technologies from lesser-known technology vendors e.g. Allen Systems Group , Cortado and Gladinet, as well as still relying on Microsoft and Citrix
  - T-Systems highlights its single standard architecture approach has allowed it to very significantly automate to the point where it only uses a tenth of the operations personnel used previously
  - The company is also promoting a server-based computing (SBC) approach, as opposed to the more expensive VDI options
  - Along with this effort, T-Systems is promoting the use of self-service and delegated administration portals to reduce desktop service-related costs
  - Using a centralized virtual desktop, resulting in lower costs related to onsite support, roll out and energy
• Expanding its service portfolio beyond a pure virtual desktop to include application services, e.g. preparing applications for enterprise mobility. This is taking the form of a self-service corporate apps store combined with a workflow engine for authorization purposes
  - T-Systems highlights its workplace transformation practice can speed up migrations by using a template database of over 10k previously virtualized applications
  - Other services include SaaS/centrally hosted based services to complement its offering in areas such as collaboration tools and communication, and document management.

T-Systems has a modular pricing model based on the general use of a core, virtual service plus options and add-on services. T-Systems continues to enhance the offering. Its current V2 of Dynamic Desktop includes MDM and MAM capabilities, Windows 8.1, a thin client option, and the latest version (v7.5) of Citrix XenApp/XenDestkop as well as an offline option for Microsoft Office/Lotus Notes.

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In total, for a client, the price of virtual desktop, depending on options, ranges from €200 to ~€320 per user per year. This includes offline management, mobile & collaboration (Microsoft Exchange, SharePoint and Lync) applications.

For large enterprises, the pricing is adequate largely because virtual desktops bring additional benefits in terms of centralization of security, storage and because they enable mobility.

T-Systems Dynamic Workplace seems to be resonating relatively well in the market: the company has 50k users on Dynamic Workplace. And it has a pipeline that could represent an additional 125k seats by mid-2015, working with ~40 potential clients. This probably means that T-Systems is growing faster than the market for virtual desktop services.

Nevertheless, NelsonHall remains cautious about potential acceleration of spending in virtual desktop services. Key inhibitors remain cost-related (which T-Systems in addressing) and overall lack of client appetite for changing the way they use and consume desktop services. In many respects, the recent rebound in PC shipments in H2 2014 indicates that organizations still prefer procuring traditional PCs rather than massively adopting VDs.

NelsonHall has published an extensive profile of the virtual desktop services activities of T-Systems. The profile is available here for subscribers. For further information, contact Guy Saunders at [email protected].