Enterprise & Government Mobility Solutions in 2011 and Beyond


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During this webcast, David Krebs, Director of VDC Research’s Mobile & Wireless Solutions Practice discussed the opportunities – and challenges – facing enterprise and government mobility solution providers in 2011, including: the expected investment climate in 2011; the markets segments that provide the strongest near term growth opportunities and those that are emerging, eroding or presenting opportunities for expansion; how enterprises and government organizations will leverage next generation tablet and media pad devices; the impact of social media and collaboration on core enterprise and government mobility solutions; when to emphasize new features or cost reduction in next generation designs; suppliers' ability to continue to grow in this market through the channel and make margin; and how consumer/individual liable technologies and the “consumerization of IT” will continue to impact enterprise and government mobility solutions.

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Enterprise & Government Mobility Solutions in 2011 and Beyond

  1. 1. VDC Research Webcast:Enterprise & Government MobilitySolutions in 2011 & BeyondMobile & Wireless PracticeDavid Krebs, Director
  2. 2. Frequently Asked Questions These slides are from a webcast presented on 12/15/10. A full audio recording is available at: http://vdcresearch.com/Landing/webcast121510.aspx1 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  3. 3. VDC Research Complimentary insights and marketing data on the enterprise & government mobility markets available at: www.vdcresearch.com2 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  4. 4. Today’s SpeakerDavid Krebs, Practice DirectorDavid has more than ten years experience covering the markets for enterprise and governmentmobility solutions, wireless data communication technologies and automatic data-capture researchand consulting. David focuses on identifying the key drivers and enablers in the adoption of mobileand wireless solutions among mobile workers in the extended enterprise. David’s consulting andstrategic advisory experience is far reaching and includes technology and market opportunityassessments, technology penetration and adoption enablers, partner profiling and development, newproduct development and M&A due diligence support. David has extensive primary market researchmanagement and execution experience to support market sizing and forecasting, total cost ofownership (TCO), comparative product performance evaluation, competitive benchmarking and enduser requirements analysis. David is a graduate of Boston University (BSBA).3 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  5. 5. Today’s Speaker2010 Market Trends & 2011 Growth ExpectationsLeading 2011 Enterprise & Government Mobility Investment ThemesVDC’s 2011 Enterprise & Government Mobility Research ServiceQuestion & Answers4 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  6. 6. Enterprise Mobility: Mobile Device Outlook Mobile Device Shipments Supporting Enterprise Mobility Applications (only includes devices deployed to support enterprise mobility applications) Slowdown in $12,000 notebook market Faster than in part b/c of slate expected tablets $10,000 rebound Continued $8,000 smartphone(USD Millions) strength $6,000 Strong rebound in rugged market in 2010 – return to $4,000 more consistent growth $2,000 Dynamic Interest in Slate Tablets/ Media Tablets $0 2007 2008 2009 2010 2011 2012 2013 2014 Rugged Large FF Rugged Small FF Smartphones Notebooks Slate Tablets/ Media Tablets 5 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  7. 7. Emergence of Cloud-optimized Mobile SolutionsLevel of investment in SaaS-based enterprise mobility solutions reaching scale Enterprise Mobility Application Design / • The emerging class of tablets / media-pads – Deployment Approach with their more smartphone-like OS profiles, processing capabilities and interface options – are leading a trend towards ‘cloud-optimized’ Other solutions. 5.7% • Cloud computing will in part be enabled by virtualization, including: hardware virtualization, platform virtualization, and application virtualization. SaaS/Hosted solution 40.6% Application resides behind corporate firewall 53.7%6 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  8. 8. Tick-tock, Tick-tock: The Individual Liable Deviceas a Security Time Bomb Smartphone Deployment Approach by Industry Growing proportion of 100% IL devices within enterprise 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Company purchased only Both company and employee purchased: Approved list Both company and employee purchased: Any phone Employee purchased only: Approved list Employee purchased only: Any phone7 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  9. 9. Security Management RequirementsImproved mobile security discipline required within enterprises Rate the following security management functions in terms of their level of importance to your firm (1=Extremely unimportant; 6=Extremely important) Lockdown device interface to reduce end-user tampering 4.9 Remotely deliver security patch updates 4.7 Enforce device hardware feature contol policies (e.g. block camera) 4.4 Enforce security policies even when the device is in an offline state 4.4 Remotely enable device kill and data deletion for lost or stolen devices 4.4 Enforce password policies 4.3 Enforce on device applications whitelist/blacklist 4.2 Enforce on device data encryption 4.1 Encrypt over the air (OTA)/ Internet communications 4.1 Distribute security/policy changes even without a data connection 4.0 Integrate on device login with active directory 3.9 0 1 2 3 4 5 6 Security policy development – and enforcement – especially for individual liable devices will be a KEY requirement again in 2011. 8 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  10. 10. Enterprises Embrace Application DevelopmentLiberties of Next Generation Mobile Platforms• The democratization of mobile application development – enabled by emerging mobile platforms, such as Android, and today’s micro-app mentality – is taking the enterprise by storm. Organizations have become enamored by the low-cost / low-risk approach of internally developing mobile applications to support specific workflows or use cases.• This has been especially apparent in the military where Android and iOS development is actively encouraged and invested in. Dozens of vendors focused on mobility have emerged with robust tools and platforms that enable “click and build” capability for creating mobile applications.• Considering the level of customization required for currently deployed “traditional” enterprise applications (i.e. desktop applications), we see a significant opportunity for businesses to take advantage of these tools and build their own customized applications that will extend their often significant enterprise application investments.• While this trend is unlikely to significantly impact development of more mission critical applications – and nor are we suggesting that enterprises are taking control of all mobile development – the expectation is these developments will result in the enablement of entirely new mobile workflows and evolve into incremental opportunities for mobile solution providers.9 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  11. 11. Mobile Ecosystem Shakeup Impacting Points ofDecision Making Influence Primary / Initial External Enterprise • A broader sphere of influence on enterprise Mobility Resources mobility key decision makers. • One of the more interesting developments toMobile HardwareVvendors/Solution 22.1% follow will be the activity among wireless carriers. Provider  Carriers are acquiring professional service organizations which will potentially put them in direct competition withSystem Integrator (SI)/ Value Added some of their partners. 21.7% Reseller (VAR)  Carriers are eager to control a larger share of the enterprise mobility market and are furiously trying to shed their image of “dumb pipe” vendors.Independent Software Vendor (ISV) 18.6% • A greater proportion of ‘green field’ accounts turn initially to ISVs to determine key requirements. Consultant/Professional Service 15.8% Provider Wireless carrier 12.0% Distributor/VAD 7.1% Others 2.7%10 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  12. 12. Mobile Channels Offer Varied Opportunities& ChallengesVarious distribution channels are emerging for mobile applications, each with their own benefitsand challenges. Key capabilities, issues and consideration for each channel are summarized below: Device Vendor Mobile AppCategory Carrier Distribution Mobile Web ISV/ Systems Integrator Stores • Permission required by • Open to any who signOpenness • Completely open • Partner development carrier agreement • Substantial (including • Limited cost (~$100-$200) toEntry cost and resources to manage introduce applications • None • NARevenue Split relationship) • 70/30 revenue split • 60/40 revenue split • No consistent options • Strong micropayment optionsPayment • Lack of strong or consistent • Professional service contracts • Carriers beginning to • Limited options for enterpriseOptions solution with partners integrate with billing wide deploymentsEnterprise • Improving capabilities • Poor • Improving • StrongIntegration • Improving - however, need • Limited to uneven. Large • Uneven – support byDiscoverability separation between • Uneven volume of small specialized different business units consumer and enterprise solution providers.Value Chain • Low, but moving up • High / Broad • Low / Variable • ModerateImpact • Long term viability. • Improving strength of • Strong for less sophisticated • Primary model for more However, serious limitationsConsiderations carrier professional point solutions with limited sophisticated native for current enterprise service teams integration requirements applications requirements.Source: VDC Research 11 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  13. 13. Rugged Becomes Relevant…Again Average Annual Failure Rates by • After trending down for the last several years, Device Type failure rates of mobile devices have again increased.18% • This is largely in response to the recent16% economic pressures, end users have extended14% the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting12% in an increase in failure rates.10% 16.8% 16.6%8% 13.3% 12.1%6% 7.9%4% 5.9% 4.6% 4.4%2%0% Large Form Large Form Small Form Small Form Factor - Factor - Rugged Factor - Factor - Rugged Commercial Commercial Grade Grade 2007/2008 2009/201012 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  14. 14. Leading Mobility Investment ConcernsMinimizing 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 1 2 3 4 5 6 Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations deploying mobile solutions.13 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  15. 15. Enterprise Applications Optimized For Touch Interface Primary (non Keyboard) Mobile Input • More and more mobile devices are shipping Functionality Requirements with touch as the primary interface technology. • Consumer influenced UI and interfaces – such Touchscreen/Multi-touch 26.8% as touch and multi-touch – are becoming more the norm for mobile military applications.Bar Code Scanner/Imager 20.5% Moreover, demand for open / standards-based platforms that enable seamless integration with new I / O solutions increasingly critical. Smartcard Reader/NFC 10.2% • However, while most are great for content Pen/Stylus 9.4% consumption, few can be used to support more data-intensive input applications. VoIP 6.3% • Finally, another major hurdle – which will increasingly be addressed – is enterprise RFID Interrogator 5.5% software platforms leveraging touch as an interface option. Mag Stripe Reader 5.5% Speech Recognition 4.7% Other 6.3%14 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  16. 16. VDC Research Profile: 2011 ServiceKey offerings: technical tracksTRACK 1: Enterprise and Government Mobility HardwareThis track spans four volumes that provide detailed market sizing (including quarterly size and sharetracking), forecasting and competitive analysis of mobile devices deployed for enterprise andgovernment mobility applications across a variety of form factors.TRACK 2: Enterprise Mobility SoftwareThis track spans three volumes that provide detailed market definitions and segmentations, estimates,forecasts, competitive share, and mobile developer analyses across several mobile softwaresegments. This track addresses the enterprises approach to mobile application development, keytechnical requirements, enterprise application extension and integration and other leading mobilesoftware trends.TRACK 3: Enterprise Mobility Professional ServicesThis track spans two volumes that provide market estimates, forecasts, competitive share, end userrequirements, and channel trends for enterprise mobility professional services including traditionalbreak-fix, integration and deployment services to more advanced managed services. 15 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  17. 17. VDC Research Profile: 2011 ServiceKey offerings: market and channel tracksTRACK 4: Enterprise Mobility Vertical and Application MarketsThis track provides detailed market definition and segmentation, estimates and forecasts, and enduser requirements for enterprise mobility platforms, software, and professional services across sixvertical and application markets.TRACK 5: Government Vertical and Application MarketsThis track provides detailed market definition and segmentation, estimates and forecasts, and enduser requirements for government mobility platforms, software, and professional services across fourvertical and application markets.TRACK 6: Enterprise Mobility Channel TrackerThis track spans two volumes and provides a tracking service that measures vendor partner programquality and effectiveness, channel organization growth expectations by vertical market, application andkey technology and identifies and profiles key channel organizations. Each regional volume providesa full-year report and a half-year update.16 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice
  18. 18. Q&A SessionThank You for Attending this VDC Webcast.For more information about VDC Research coverage of the global markets for theenterprise & government mobility markets – please contact:David KrebsDirectordavidk@vdcresearch.com | 508.653.9000 x136Gerrald SmithSenior Account Executivegsmith@vdcresearch.com | 508.653.9000 x11317 –  2010 VDC Research Group, Inc. Mobile & Wireless Practice