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Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
Enterprise and Government Mobility Solutions - Market Update & Outlook 2010
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Enterprise and Government Mobility Solutions - Market Update & Outlook 2010

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The slides from this webcast provide a market update and 2010 outlook, drawing from VDC Research's extensive market data on the enterprise and government mobility solutions market. Between 2009 and …

The slides from this webcast provide a market update and 2010 outlook, drawing from VDC Research's extensive market data on the enterprise and government mobility solutions market. Between 2009 and 2010, the enterprise and government mobility market will have undergone as much change as we have seen in the past decade. While the market is expected to return to growth in 2010 – following an 18 month period of massive contraction - in order to remain competitive vendors will need to address a broad range of technical, commercial and operational issues.

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  • 1. Enterprise Mobility Solutions Market Update & 2010 Outlook Mobile & Wireless Practice David Krebs, Director
  • 2. Recording Available These slides are from a webcast presented on 01/06/10 01/06/10. A full audio recording is available for download at: http://www.vdcresearch.com/market_research/mobile_wirele ss/freeresearch.aspx
  • 3. VDC Research Complimentary insights & marketing data on the enterprise mobility market available at: www.vdcresearch.com
  • 4. Today’s Speaker • David Krebs, Director – Mobile & Wireless Solutions Practice  10 + years covering the markets for enterprise and government mobility solutions, wireless data communication technologies and automatic data-capture research and consulting.  Focus on identifying the key drivers and enablers in the adoption of mobile and wireless solutions among mobile workers in the extended enterprise.  Consulting and advisory experience including: technology and market opportunity assessments, technology penetration and adoption enablers, partner profiling and development, new product development and M&A due diligence support.  Extensive primary market research management and execution experience to support market sizing and forecasting, total cost of ownership (TCO), comparative product performance evaluation, competitive benchmarking and end user requirements analysis.  Boston University (BSBA). 3– 2009 VDC Research Group, Inc.
  • 5. Enterprise Mobility Solutions Market Update & 2010 Outlook Mobile & Wireless Practice David Krebs, Director
  • 6. Enterprise Mobility Market Overview Improvement in market conditions • Market conditions to improve in 2010:  Following a immensely challenging 2009 campaign the market for enterprise mobility solutions is poised for growth in 2010  However, the first half of 2010 will likely remain challenging and performance will sputter in some sectors • Aging installed base driving failure and TCO concerns  Postponement of planned upgrades over past 18 months resulted in spike in average age of installed base  Drove increase in average failures rates of mobile devices which increased TCO • Increasing complexity of mobile applications and changes to end user demographics driving next generation mobile device requirements  Intense price pressures in market – best evidenced by increased adoption of smartphones for a broader spectrum of enterprise mobility applications  Next generation of mobile users driving ‘consumerization’ of enterprise class devices and acceptance of new form factors, I/O functionality • Management of mobile solutions a top of mind concern…still  With an expanding installed base of mobile devices by device type, user type and application end users hungry for more seamless approach to device and application management  Managed service and hosted business models will be increasingly relevant – questions remain around who is best positioned to deliver 5– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 7. Global Rugged Mobile Market Substantial contraction in H1 2009 across all form factors, regional markets Large Form Factor Shipments Small Form Factor Shipments $1,500 600 $1,400 1421.3 1600 1482.0 $1,400 1500 Hardware Shipments (USD Millions) Hardware Shipments (USD Millions) $1,300 494.6 $1,300 500 1400 $1,359 $1,200 Unit Shipments ('000) Unit Shipments ('000) $1,385 412.4 $1,300 $1,200 423.8 1300 $1,100 $1,100 400 1200 1,088.8 $1,175 $1,000 $1,000 1100 $1,016 $900 $947 $900 300 1000 $800 $800 900 $700 200 $700 800 1H 2007 1H 2008 1H 2009 1H 2007 1H 2008 1H 2009 The global rugged mobile computer market – comprising both large and small form factor mobile computers was down substantially during H1 2008. Large form factor shipments declined by 22% while small form factor shipments declined by just over 30%. 6– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 8. Global Technology Revenue Strong similarities with 2001 Recession… so far 600 Global Technology Sector Revenue & Y/Y Growth 40% (source: Morgan Stanley) 30% 500 20% 400 Quarterly Revenues ($B) 10% 300 0% 200 -10% Strong Similarities (so far) 100 -20% 0 -30% Q3: 09E Q4: 09E Q3: 01 Q1: 08 Q1: 96 Q3: 96 Q1: 97 Q3: 97 Q1: 98 Q3: 98 Q1: 99 Q3: 99 Q1: 00 Q3: 00 Q1: 01 Q1: 02 Q3: 02 Q1: 03 Q3: 03 Q1: 04 Q3: 04 Q1: 05 Q3: 05 Q1: 06 Q3: 06 Q1: 07 Q3: 07 Q3: 08 Q1: 09 Revenue ($B) Y/Y Growth 7– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 9. Global Rugged Mobile Market Forecast Growth to resume in 2010 following substantial contraction in 2009 Global Rugged Hardware Forecasts Hardware Revenues (USD millions) 3,500.0 • Tier one account contribution • Renewed retail investments 3,000.0 • Field mobility solutions 2,500.0 2,000.0 1,500.0 1,000.0 500.0 - 2008 2009E 2010E 2011E 2012E 2013E Large Form Factor Small Form Factor 8– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 10. Growth Expectation by Industry Varies Considerably According to channel organizations most sectors poised to rebound substantially in 2010 Annual Revenue Growth Expectation by Sector 2010 12% 2009 -11% Wholesale 4% 6% Utilities/ Telco 10% -17% Transportation 10% -21% Retail 13% 4% Prof. Service 13% -13% Manufacturing 11% -15% Industrial/ WH 21% 9% Health Care 11% State/ Local -6% 13% -6% Public Safety 7% 8% Military 17% Federal Non-Military 6% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 9– 2009 VDC Research Group, Inc. Mobile and Wireless Practice
  • 11. Margin Pressures Across All Offerings Continue Hardware margins worsened considerably over second half of 2009 for channel organizations Minimum and Target Margins by Core Hardware Offerings 4.9% 11.0% Rugged Handheld/ PDAs 6.5% 19.8% 4.8% 7.5% Smartphones/ Handheld Computers 5.6% 14.6% 4.7% 8.8% Rugged Notebooks 6.3% 14.6% 4.1% Minimum 2H 7.1% Minimum 1H Notebooks Target 2H 5.3% Target 1H 13.3% 0% 5% 10% 15% 20% 25% 10 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
  • 12. Mobile Investment Barriers Prioritization of mobile and wireless solutions over other investments remains a challenge Leading Mobile Solution Investment Barriers (% of Respondents) Other capital projects with higher priority 46% Unclear return on investment 29% Desire to wait for proven applications & technology in 17% this industry Security issues 4% Lack of people with appropriate skills 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Mix of IT and operational issues represent primary investment barriers Source: Enterprise Mobility End-User Survey; Conducted June, 2009 (n=687) 11 – 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 13. Tangible Mobile Investment Benefits Realized Mobile solution ROI and technology investment drivers are consistently strong Considering your organization's most recent mobile deployment, what level of benefits has your organization achieved? Improved real time decision making Increased mobile worker productivity Improved customer loyalty and repeat business Increased first time fix Reduced asset failures Increased SLA compliance Reduced operating costs Increased sales/revenues 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% End users reporting substantial improvements in a variety of workflows, processes, customer service and revenues as a result of mobile solution investments. 12 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
  • 14. Mobile Device Requirements TCO emerging as a key requirement Mobile Device Selection Criteria (% of Respondents) Broadband wireless functionality 51% Battery life 49% Total cost of ownership 45% Device weight and ergonomics 29% Operating system 29% Level of ruggedisation 25% Integrated bar code scanner 21% Integrated voice AND data capability 20% Ability to print in the field 17% Touchscreen display 16% Integrated GPS/ Location awareness 15% 0% 10% 20% 30% 40% 50% 60% Although organizations are increasingly deploying non-rugged devices to support traditional rugged applications, total cost of ownership remains a critical device evaluation criteria. 13 – 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 15. Leading Mobility Investment Concerns Minimizing device downtime is a top of mind issue for organizations Rate the following mobility issues or concerns in terms of their level of importance to your firm (1=Extremely unimportant; 6=Extremely important) Minimizing device downtime user productivity loss Ensuring user friendliness of mobility solutions Preventing data breaches Reducing support costs Security policies for handling lost/stolen devices/data Remote helpdesk Remote provisioning of devices Clear mobile asset and software inventory management Provide real time remote training to field users Managing SW license conformance Locate/track devices Supporting dual mode devices (work and personal use) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations deploying mobile solutions. 14 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
  • 16. Average Mobile Device Failure Rates After trending down, failure rates are again increasing For your most recent mobile device deployment, what percent of your installed base failed at least once? • Average Productivity Lost per Failure • Large Form Factor: 85-90 minutes 18.0% • Small Form Factor: 50-75 minutes 16.0% • Average Internal Support per Failure • Large Form Factor: 95-110 minutes 14.0% • Small Form Factor: 65-70 minutes 12.0% • Over the course of the past 2-3 years average failure rates – 10.0% especially for non-rugged devices – 8.0% 16.6% have trended down. 13.7% • This was largely in response to the in- 6.0% creased focus on designing more durable devices (integration of flash memory was 4.0% 7.9% a key contributor). 4.6% • However, in response to the recent 2.0% economic pressures, end-users have extended the life cycle of mobile devices 0.0% and adopted less expensive solutions Large Form Factor - Large Form Factor - Small Form Factor - Small Form Factor - Commercial Grade Rugged Commercial Grade Rugged (such as netbooks) resulting in an increase in failure rates. 15– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 17. TCO Cost Breakdown Productivity loss represents a significant proportion of TCO – especially for non-rugged units Five Year TCO by Form Factor and Key Contributor Productivity Loss as a Small Form Factor - Rugged 27.3% Percent of TCO Small Form Factor - Commercial Grade 40.8% Hard Costs IT Support Large Form Factor - Rugged 29.2% Productivity Loss Large Form Factor - Commercial Grade 49.8% $0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 Total Cost of Ownership (Five Years) 16– 2009 VDC Research Group, Inc. Mobile & Wireless Practice
  • 18. Factors Driving Shift Towards Managed Services Seamless mobile support and simplification of mobile solutions key drivers Which of the following are the most important factors driving the shift towards a service-based mobility deployment model? Simplifying end user mobility Integrating the full set of technologies required for enterprise… Simplifying day to day IT and compliance operations Ensure endpoint and data security Ensuring universal connectivity and access control Eliminating need to invest capital to continually grow a mobility… Providing support for any mobile application Multi-device support Consolidated operations and reporting 0% 5% 10% 15% 20% 25% Managed services opportunity driven by demand for an easier and more convenient approach to mobile solutions 17 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
  • 19. Benefits and Challenges of Mobility Solutions Many mobility investment challenges can by addressed by managed service model OUT OF BOX EXPERIENCE EFFICIENT APP DEPLOYMENT • OTA device • OTA push of applications provisioning Deployment Application and updates • Software configuration Complexity Management • Seamless version control Customer Issues • Security • Device diagnostics Remote Security • Remote lock and wipe • OTA fixes Management Management • Validate settings LOWER TCO DATA SECURITY 18 – VDC Research Group, Inc.
  • 20. How VDC coverage will help clients stay on top of the market in 2010? The 2010 Enterprise Mobility Solutions Intelligence Service • Track 1: Enterprise Mobility Hardware • Track 2: Enterprise Mobility Software • Track 3: Enterprise Mobility Professional Services • Track 4: Vertical Market Reports with Demand Curves • Track 5: Enterprise Mobility Solutions Channel Tracker STUDY PUBLICATION DATE ACTUAL MARKET SIZE/SUPPLIER SHARE FORECAST MARKET SIZE Service Year 2010 2009 2010-2013 19 – 2009 VDC Research Group, Inc.
  • 21. Q&A Session Thank You for Attending this VDC Webinar For more information about VDC Research coverage of the global markets for embedded software and tools – including the Enterprise Mobility Solutions: 2010 Market Intelligence Service – please contact: David Krebs Director, Mobile & Wireless Solutions Practice davidk@vdcresearch.com | 508-653-9000 ext.136 Gerrald Smith Account Executive gsmith@vdcresearch.com | 508-653-9000 ext.113 20 – 2009 VDC Research Group, Inc.

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