Mobile Enterprise Trends 2015 - Emergence Capital

63,806 views
65,004 views

Published on

Emergence Capital's Kevin Spain reports on Mobile Trends in 2015.

Published in: Mobile, Business, Technology
4 Comments
126 Likes
Statistics
Notes
  • @Upquire In our view, enablers should consider building both web and mobile aspects to their products. For now, it's a multi-platform world for many apps. Focusing on a mobile only strategy in the enabler world could prove limiting in terms of market opportunity.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • @Upquire The $40/worker figure is a swag. Our research shows that about $400/year is spent on software for desk workers -- and we assume that non-desk workers won't monetize as well. We could be wrong about this, of course.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Great insights. Would love to know how you got to the $40/knowledge worker figure though. Also for the enablers, given that there are only a few thousand apps that really become successful (I believe only 27,000 apps have been downloaded more than a million times), does it make sense for vendors to build solutions for developing apps better/faster, easier analytics or new ways to engage the app's audience? Or should they rather stick to building solutions for the web itself? Of course, on the other hand, there's also the fact that users are spending increasingly more amount of time using mobile apps.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Great Deck. Check out Mobile Action to learn any app's data and insights : http://mobileaction.co
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
63,806
On SlideShare
0
From Embeds
0
Number of Embeds
13,747
Actions
Shares
0
Downloads
1,168
Comments
4
Likes
126
Embeds 0
No embeds

No notes for slide

Mobile Enterprise Trends 2015 - Emergence Capital

  1. 1. MOBILE ENTERPRISE TRENDS 2015 Kevin Spain Ÿ September 8, 2015
  2. 2. §  Mobile represents the next major technology platform shift for businesses. Like the SaaS platform shift, mobile will create tremendous opportunities for enterprise-focused entrepreneurs. §  We estimate that mobile enterprise will ultimately represent an annual revenue opportunity for entrepreneurs of at least $100 billion. §  This report will review the current state of the enterprise mobile market and will share our predictions as to where this market is headed. OVERVIEW
  3. 3. WHY MOBILE MATTERS TO ENTERPRISES
  4. 4. WHAT IS DRIVING GROWTH IN MOBILE ENTERPRISE? 3 MORE MONEY FOR MOBILE Enterprise spending on mobility-related technologies is expected to more than double over the next five years. 1 WORKERS LOVE IT Nearly half of workers state that their mobile device is very or somewhat important for their work. 2 BYOD TAKES HOLD Businesses are increasingly allowing workers to use their own mobile devices for work. 74% of organizations have or plan to have bring-your-own-device (BYOD) policies in place. 4 THERE’S AN APP FOR THAT As mobile budgets grow, entrepreneurs are focusing more on building mobile applications for business. As a result, there are more apps available to solve a wide range of business challenges. 4 DYNAMICS DRIVING MOBILE ENTERPRISE GROWTH SOURCE: Tech Pro Research, Pew Research Center, IDC
  5. 5. WHERE ARE WE TODAY?
  6. 6. Native or web-based mobile applications that are: (a) used by businesses and (b) valuable to users in large part because of their mobile functionality. These applications may also have a desktop interface. MOBILE ECOSYSTEM: APPLICATIONS & ENABLERS APPLICATIONS ENABLERS Technology solutions that help mobile application developers do their jobs more effectively. &
  7. 7. §  Emergence publishes a landscape of mobile enterprise application companies annually •  Our 2015 mobile enterprise landscape includes 313 companies, up from 258 companies in 2014 and 95 companies in 2013. •  The landscape is segmented by key application categories, both functional and industry-related. §  The landscape is segmented by key application categories, both functional and industry-related. MOBILE ENTERPRISE APPLICATIONS
  8. 8. H O R I Z O N T A L V E R T I C A L BANKING GOVERNMENT OTHER VERTICALSEDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT. RESTAURANTS ACCOUNTING, FINANCE, ITSALES, MARKETING & SERVICE PAYMENTS HOSPITALITY CONTENT COMMUNICATION TASK MANAGEMENT & CALENDAR MOBILE FORMS EVENTS & CONTACTS OrderAhead HR & RECRUITNG BI & ANALYTICS ACQUIRED RETAIL TRANSPORTATION MANUFACTURING MOBILE ENTERPRISE APPLICATIONS LANDSCAPE 2015 KURADO PRODUCTIVITY
  9. 9. §  The number of mobile enterprise application companies has grown by 20% in the last year §  While this isn’t a high growth rate, it is similar to the early days of SaaS when entrepreneurs were learning to capitalize on a new platform and the pace of company creation was modest. §  Industry-focused apps are playing a prominent role §  Approximately 1/3 of the companies on the landscape focus on specific industries. This is different from the early days of SaaS when nearly all companies were cross-industry. §  Early M&A has centered around productivity apps •  Microsoft has played a prominent role having acquired three productivity-focused mobile enterprise companies to date (6Wunderkinder, Sunrise, and Acompli). MOBILE ENTERPRISE APPS: LANDSCAPE TRENDS
  10. 10. WHERE ARE WE TODAY? EARLY STAGE MOBILE APP FUNDING HAS BEEN INCREASING EVERY YEAR SINCE 2010, GIVING RISE TO A HANDFUL OF LATER STAGE APPS WITH MASSIVE GROWTH ROUNDS SOURCE: Emergence analysis based on Crunchbase data *”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have raised more than $50M. Dropbox $600,000,000 Box $544,000,000 Square $480,500,000 Slack $338,450,000 Evernote $181,250,000 ServiceMax $120,000,000 Doximity $81,800,000 Airstrip Technologies $65,000,000 LATE STAGE MOBILE APPS FUNDING* TO-DATE 20   34   55   97   99   0   20   40   60   80   100   120    $-­‐          $100,000,000      $200,000,000      $300,000,000      $400,000,000      $500,000,000      $600,000,000      $700,000,000     2010   2011   2012   2013   2014   #ofdeals TotalAmountRaised(USD) EARLY STAGE MOBILE APP FUNDING* (2010-2014)
  11. 11. WHERE ARE WE TODAY? MOBILE ENTERPRISE APPS – TOTAL FUNDING BY CATEGORY H O R I Z O N T A L V E R T I C A L OrderAhead 18 companies $108M 38 companies $216M 23 companies $94M 10 companies $54M 15 companies $656M 19 companies $1,407M 35 companies $300M 32 companies $90M MANUFACTURING 4 companies $30M 10 companies $51M 7 companies $49M 10 companies $140M 10 companies $92M TRANSPORTATION 6 companies $20M HOSPITALITY 1 company $9M BANKING 3 companies $8M GOVERNMENT CONTENT 43 companies $622M COMMUNICATION TASK MANAGEMENT & CALENDAR 15 companies $98M MOBILE FORMS 7 companies $25M EVENTS & CONTACTS 12 companies $75M PRODUCTIVITY ACCOUNTING, FINANCE, ITSALES, MARKETING & SERVICE PAYMENTSHR & RECRUITING BI & ANALYTICS OTHER VERTICALSEDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT. RESTAURANTS RETAIL
  12. 12. §  Early stage funding is taking off §  Annual dollars invested in early stage mobile enterprise app companies has grown at a CAGR of 38% over the last 5 years. §  Several late stage breakout companies are emerging §  Beyond well-known names such as Box, Square, and Slack, other companies such as Doximity and ServiceMax are approaching “unicorn” status. §  Several landscape categories have been particularly appealing to investors •  Productivity app companies have been the largest recipients of capital. Payments, healthcare, and sales/marketing have also seen meaningful investor interest. MOBILE ENTERPRISE APPS: FUNDING TRENDS
  13. 13. §  Emergence publishes a landscape of mobile enterprise enabler companies annually •  Our first landscape was published this year and includes 220 companies. §  The landscape is segmented by problems that application developers are aiming to solve §  Sometimes an enabler might help its customers solve multiple problems. In this case, we show the enabler in what we feel is its “primary” problem solving area. MOBILE ENTERPRISE ENABLERS
  14. 14. WHERE ARE WE TODAY?     APPURL Turnpike Tapku Babble-on WireKit API LAYER DEVELOPMENT USER ACQUISITION ENGAGEMENT MONETIZATION MOBILE ENABLER LANDSCAPE 2015 APP DISCOVERY APP LANDING PAGES APP STORE OPTIMIZATION APP STORE DATA & RESEARCH A/B TESTING ANALYTICS NOTIFICATIONS MOBILE MARKETING AUTOMATION MARKETING ATTRIBUTION MONETIZATION DEEP LINKING DEMO TOOLS PAYMENT EMAIL LOCALIZATION MOCKUP/PROTOTYPING TELEPHONY APP TESTING FEEDBACK & SUPPORT APP BUILDER DEV PLATFORM ACQUIRED
  15. 15. §  Judging by the number of companies in each landscape category, user engagement and development efficiency are key pain points in mobile §  Over half of the companies on the landscape are focused in these two areas. §  Acquisition activity has been heaviest in analytics §  Many mobile analytics companies continue to emerge, which may suggest app developers’ analytics needs are still evolving. §  The user acquisition and monetization categories are surprisingly uncrowded •  These are clearly areas of interest for app developers. Big problem plus minimal competition could be opportunity for entrepreneurs. MOBILE ENTERPRISE ENABLERS: LANDSCAPE TRENDS
  16. 16. EARLY STAGE MOBILE ENABLERS SAW A STEP FUNCTION INCREASE IN FUNDING FROM 2013 TO 2014, JUST ONE YEAR BEHIND MOBILE APPS 13   31   36   38   48   0   10   20   30   40   50   60    $-­‐          $50,000,000      $100,000,000      $150,000,000      $200,000,000      $250,000,000      $300,000,000      $350,000,000      $400,000,000     2010   2011   2012   2013   2014   #ofdeals TotalAmountRaised(USD) EARLY STAGE MOBILE ENABLER FUNDING* (2010-2014) SOURCE: Emergence analysis based on Crunchbase data *”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have raised more than $50M. Stripe $190,000,000 Twilio $99,000,000 Optimizely $87,000,000 Xamarin $82,000,000 Applause $80,800,000 Zendesk $79,000,000 Appcelerator $78,100,000 Mixpanel $76,500,000 Quixey $74,200,000 Tapjoy $51,000,000 LATE STAGE MOBILE ENABLER FUNDING TO-DATE*
  17. 17. PAYMENT APP DISCOVERY APP LANDING PAGES ANALYTICS APP STORE OPTIMIZATION NOTIFICATIONS MOBILE MARKETING AUTOMATION MARKETING ATTRIBUTION MONETIZATION DEEP LINKING DEMO TOOLS USER ACQUISITION ENGAGEMENT FEEDBACK & SUPPORT MONETIZATION APP STORE DATA & RESEARCH    API LAYER EMAILTELEPHONY DEVELOPMENT DEV PLATFORM LOCALIZATION MOCKUP/PROTOTYPING APP BUILDER APP TESTING     32 companies $395M 2 companies $190M 5 companies $237M 6 companies $73M 8 companies $192M 10 companies $82M 16 companies $152M 10 companies $94M 10 companies $96M A/B TESTING 8 companies $101M 11 companies $100M 4 companies $72M 11 companies $111M 5 companies $82M 11 companies $80M 18 companies $121M 17 companies $91M 12 companies $29M 4 companies $1M 8 companies $1M 13 companies $107M MOBILE ENABLERS 2015 – TOTAL FUNDING BY CATEGORY
  18. 18. §  Early stage funding of mobile enterprise enablers is accelerating §  Dollars raised by enablers in 2014 nearly doubled from 2013. §  Many of the later-stage enablers service both mobile and web developers §  This is unsurprising as many app companies have both mobile and web-based interfaces to their applications. Additionally, many leading enablers that started as web-only have added good mobile capabilities to their offerings. §  Analytics, deep linking, and telephony categories have received the most funding •  Payments and development platforms have also seen heavy investment. MOBILE ENTERPRISE ENABLERS: FUNDING TRENDS
  19. 19. WHAT’S NEXT? PREDICTIONS & OPPORTUNITIES
  20. 20. Continued growth of “horizontal” mobile apps, many focused on productivity improvements. WE PREDICT THREE AREAS OF GROWTH FOR MOBILE ENTERPRISE Expanding use of mobile apps for non-desk workers, with a focus on key verticals such as healthcare, construction, and field service. 1 2 DESK EXTENSION DESKLESS ENTERPRISE 3 GLOBAL MOBILE Adoption of mobile enterprise applications in emerging markets that are inherently mobile-first. These applications will be some of the first business apps used in these markets.
  21. 21. PREDICTION: GROWTH OF DESK EXTENSION APPS1 KEYS TO SUCCESS EXAMPLE COMPANIES § Leveraging and blending mobile and web, as the workers that use these apps are deskbound at times and mobile at others. § Utilizing mobile native access to email, calendar, and contacts to make integration with key data sources easier, while enhancing virality. Continued adoption of “horizontal” mobile apps, many focused on productivity improvements. Nearly all of the top 20 most downloaded apps on our landscape are productivity-oriented. *TOTAL RAISED: $3.7 BILLION SOURCE: AppAnnie, Emergence analysis
  22. 22. PREDICTION: GROWTH OF DESKLESS ENTERPRISE APPS2 KEYS TO SUCCESS EXAMPLE COMPANIES § Deep domain expertise in an industry that is dominated by deskless workers. § Extraordinary focus on simple user experience; Apps for deskless workers must be easy to use in the field. § Robust offline functionality so that the app is functional when online access isn’t possible. Expanding use of mobile apps for non- desk workers, with a focus on key verticals such as healthcare, construction, and field service. Non-desk workers represent 80% of the global workforce. *TOTAL RAISED: $855 MILLION
  23. 23. PREDICTION: GROWTH OF ENTERPRISE APP USAGE IN EMERGING ECONOMIES 3 Adoption of mobile enterprise applications in emerging markets that are inherently mobile- first. These applications will be some of the first business apps used in these markets. 50% ASIA PACIFIC 10% LATIN AMERICA 10% MIDDLE EAST + AFRICA % OF MOBILE ENABLED WORKERS IN 2020 SOURCE: Citrix, IDC, Emergence analysis
  24. 24. MOBILE ENTERPRISE OPPORTUNITY: $100+ BILLION X 3.0 BILLION GLOBAL WORKERS $40+ PER WORKER PER YEAR *CLOUD REVENUE IN 2005: <$500 MILLION *MOBILE ENTERPRISE REVENUE TODAY: <$500 MILLION $100+ BILLION ANNUAL REVENUE OPPORTUNITY SOURCE: Emergence analysis
  25. 25. §  Enterprises are shifting more IT budget to mobile initiatives §  In response, a growing number of entrepreneurs are developing mobile enterprise applications that help both desk workers and non-desk workers become more productive §  Growth in funding for mobile enterprise applications and mobile enablers is growing rapidly §  We are in the early innings of the mobile platform shift in enterprise. Ultimately, the opportunity in mobile enterprise applications is over $100 billion annually. SUMMARY
  26. 26. ABOUT EMERGENCE CAPITAL @emergencecap Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital firm focused on early and growth-stage enterprise cloud companies. Its mission is to invest in the cloud visionaries who are building the most important business applications. The firm's investments include companies such as Salesforce.com (CRM), SuccessFactors (acquired by SAP), Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box. Emergence Capital has $910 million under management. More information on Emergence Capital can be found at http://www.emcap.com. Published by Kevin Spain, General Partner, Emergence Capital, @kevinspain kspain@emcap.com ABOUT EMERGENCE CAPITAL

×