Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010?
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Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010?

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These slides are from a webcast presented by David Krebs, Practice Director, VDC Research on 03/17/10. A full audio recording is available for download at: http://www.vdcresearch.com. During this ...

These slides are from a webcast presented by David Krebs, Practice Director, VDC Research on 03/17/10. A full audio recording is available for download at: http://www.vdcresearch.com. During this webcast, we discuss the latest data from our Managed Services – Enterprise Mobility Solutions, 2009 Market Requirements and Opportunity report and discuss how the market requirements for mobile managed services could provide the enterprise mobility solution operator a path to new levels of operational productivity, higher levels of services for their customers, and another way to reach new markets.

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Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010? Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010? Presentation Transcript

  • Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010? David Krebs Practice Director, Mobile & Wireless Solutions Practice
  • Recording Available These slides are from a webcast presented on 03/17/10 A full audio recording is available for download at: http://www.vdcresearch.com/market_research/mobile_wireless/freeresearch.aspx 1– 2010 VDC Research Group, Inc.
  • VDC Research Complimentary insights & marketing data on the enterprise & government mobility markets is available at: www.vdcresearch.com 2– 2010 VDC Research Group, Inc.
  • 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– 2010 VDC Research Group, Inc.
  • Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010? David Krebs Practice Director, Mobile & Wireless Solutions Practice
  • VDC Research Profile We have been serving tech executives since 1971 Core Practice Nearly 1,000 Core Areas clients annually Offerings • Mobile and Wireless • 90% technology • Syndicated multi-client Solutions suppliers market intelligence • Automatic • Institutional investors, studies and services Identification Tier 1 users, Tier 1 • Proprietary market • Embedded Hardware integrators intelligence and and Systems strategy development • Embedded Software support and Tools • Strategic and • Industrial Automation commercial due and Control diligence support 5– 2010 VDC Research Group, Inc. Mobile & Wireless Solutions
  • Embracing Open Platforms and Consumer Influence, Enterprise Mobility Evolves Considerably 1990+ 2000+ 2010+ Custom designed Pre-packaged mobile Application applications on applications and generators and device purpose built devices wireless e-mail proliferation Traditional Enterprise Mobility New Enterprise Mobility Technology Drivers • Limited mobile HW • Device convergence • Diversity in device choices • Ease of use choices • Siloed approach to • Wireless ubiquity • Enterprise-wide mobile solution development strategies Business Drivers • Uneven wireless coverage • Increasingly mobile • Mobile capabilities of • Limited mobile processing workforce enterprise SW platforms capabilities • Real time business • Impact of consumer • Immature I/O solutions processes driving products on business operational change user expectations 6– 2010 VDC Research Group, Inc. Mobile & Wireless Solutions
  • Mobile and Wireless Solution Requirements will Differ by Worker Type Mobile US Worker Preferred Technical Target Worker Population Device Requirements Applications • Mobile browser • Wireless Email  Road Warriors • 3G+ GPS • Dashboards and Executives 11.5M • Push email • BI/CI (Knowledge Smartphone • Image capture • Mobile CRM Workers) • Device management • Approvals • 3rd party apps • Expense Reporting • Security support • Workflow Management • Push email • Wireless email  Mobile office Personal • Active sync • Time & attendance professional 12.6M Smartphone • Application partitioning • Approvals (Corridor warrior) • WiFi • Workflow management Wireless Handset • DECT functionality • Wireless email  Campus mobile • WiFi • Time & attendance worker 16.8M • 3rd party apps • Approvals Vertical Device • Image capture • Workflow management • Vertical applications • Mobile browser • Time & attendance  Field mobile Smartphone • 3G+ GPS • Dispatching worker (Task/Line • Image capture • Workflow management 14.3M • Device management • Vertical applications Worker) • 3rd Party Apps Vertical Device • Durability 7– 2010 VDC Research Group, Inc. Mobile & Wireless Solutions
  • Effective Management of Mobile Solutions an Increasing Concern 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 4.8 Ensuring user friendliness of mobility solutions 4.8 Preventing data breaches 4.7 Reducing support costs 4.4 Security policies for handling lost/stolen devices/data 4.4 Remote helpdesk 4.2 Remote provisioning of devices 4.1 Clear mobile asset and software inventory management 4.0 Provide real time remote training to field users 3.9 Supporting dual mode devices (work and personal use) 3.8 0 1 2 3 4 5 Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations deploying mobile solutions. 8– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Demand for Managed Mobility Services Continue to Evolve… • Enterprise mobility end users are expressing strong interest in an appetite for new delivery, deployment and management models for their mobile solutions. Primary issues among organizations is maintaining control and visibility of their mobile ecosystem.  As a result of decentralized management of mobile devices, limited visibility into mobile inventory, total spend and mobile usage, organizations are shifting their approach to managing mobile solutions.  Frequently, this means looking for third party support through a managed service model of their solutions. • Mobile managed services portfolio evolving in phases. Initial phase focusing on more traditional maintenance and monitoring services. Core services to include:  Inventory creation and tracking;  Break / fix and outsourced helpdesk (T1/T2) for user support;  Environment and networking monitoring and management services;  Enhanced security services; and  Mobile edge device support and technical services. 9– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • …and Will Include More Sophisticated Application Deployment and Management Services • The second phase of managed mobility services will center more around application deployment and support – including hosting. Key capabilities include:  Application deployment and provisioning  Online ordering portal for policy enforcement • Although many end users postponed their mobile and wireless investments in response to the recession, many are citing the recession as a catalyst for next generation managed service business models.  54.7% of enterprises responding to a Q4 2009 survey are investing in an investigation of a broader managed service delivery platform for their mobility solutions.  Today, more than 1 in 3 enterprise mobility solutions operators are receiving some or part of their mobile and wireless solutions through a managed service. 10 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Simplifying Solutions – Both for Users and Support – are Key Factors Driving Demand for Mobile Services Which of the following are the most important factors • With limited internal resources to support mobile driving the shift towards a service-based solutions, organizations are increasingly looking mobility deployment model? to third party services to manage their mobility services. Simplifying end user mobility 20.2% • For some organizations, management of security policies is actually a driver for managed mobility services. Integrating the full set of technologies required for 15.5% • Even though many of the vendors identified the enterprise mobility IT departments within organizations to be their inside competitors, a lot of the end users have Simplifying day to day IT & recognized the importance of managed services compliance operations 15.5% in the simplification of IT operations. Ensure endpoint & data security 14.0% Ensuring universal connectivity & access control 10.1% Eliminating need to invest capital to continually grow a mobility 8.5% management platform 0% 10% 20% 30% 11 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Alignment of business, social and technological imperatives is driving accelerated take up of mobile data services in the enterprise 100.0% Bubble size 90.0% correlates to 2009 installed base Email 80.0% CRM: Customer Relationship Management SCM: Supply Chain Management 70.0% ERP: Enterprise Resource Planning RMS: Records Management Systems CI/BI: Customer 60.0% Penetration Intelligence/Business Intelligence 50.0% CRM 40.0% Expense Reporting 30.0% Collaboration RMS 20.0% ERP CI/BI SCM HR 10.0% 0.0% 0% 5% 10% 15% 20% 25% 30% 35% Compound Annual Growth Rate % (2009-2013) 12 – 2010 VDC Research Group, Inc. Mobile & Wireless Solutions
  • A Key Demand Driver is the Structural & Organizational Change Among Users • A key issue for organizations today is the lack of internal resources to support mobile solutions.  End users are demanding increased access to a more comprehensive suite of enterprise applications on a broader collection of mobile devices.  However, IT organizations do not have the resources capable of supporting these requirements. As a result demand for third party managed mobile services is expected to ramp. • Many operators and evaluators of enterprise mobility solutions have significantly downsized their IT departments over the past 18 months. As a result, the demand for outsourced services and hosted application business models is heightened.  Moreover, organizations are increasingly consolidating their mobile and wireless investment decisions within a broader IT function and are moving away from dedicated mobile and wireless teams. This transition is only elevating the need for outsourced services as organizations frequently lack the dedicated expertise they used to have in this function. • As organizations consolidate their approach to mobile and wireless services, they are consolidating their service contracts as part of their broader IT managed service contracts.  In these instances mobile and wireless may represent as little as 2-5% of the total value of the contract for large scale operations.  Given this low level of investment for mobile solutions relative to other IT services, end users are increasingly deferring to their service providers to make their mobile technology selection decisions. Technology vendors will need to more closely align themselves with service providers to ensure equal representation. 13 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • User’s Requirements are Becoming Clearer – if not Less Challenging • Enterprise mobility solution operators cite a clear preferred path for migration to hosted deployments, or adoption of managed services deployment models. • The following solution elements are most often cited as preferred hosted deployment migration:  Device management;  Security management;  Expense management; and  Core provisioning capabilities. • An additional major issue for many companies – and opportunity for service providers – will be compliance management and inventory management of their mobile devices.  Especially for multi-national organizations that are exposed to unique regional or country market nuances – for example Massachusetts 201 CMR 17), this will represent an increasingly challenging issue.  In addition, with the influx of individual liable devices in corporate environments – and their use to access corporate networks – organizations are looking for some control over these devices. This is especially acute as organizations are now shifting from a homogenous mobile environment (one mobile OS/platform) to one that supports multiple models. • However, these capabilities are only beginning to be delivered through a structured approach and there remains confusion surrounding which parties in the commercial supply-chain are best positioned to deliver these capabilities. 14 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • SaaS Deployments Driving Mobile Opportunities… or Mobile Requirements Driving SaaS Adoption? SaaS-based Enterprise • Adoption of enterprise applications in a Application Adoption SaaS model is reaching critical mass  Leading SaaS-based enterprise applications CRM (Customer include CRM, E-mail and messaging, HR and Relationship 37.5% Recruiting and Collaboration Services to name a Management) few.  Organizations are citing ‘speed of deployment’ and ‘capital’ and ‘operation expense savings’ as ERP (Enterprise the driving forces behind their adoption decisions. Resource Planning) 31.3% • The pressures on IT from an increasingly mobile workforce and the need for remote HR (Human access to enterprise applications across a 29.7% Resources/Payroll) broader spectrum of devices – from notebooks to Smartphones – is expected to be another major catalyst to organizations SCM (Supply Chain deploying SaaS-based applications Management) 12.5%  IT organizations are struggling to keep up with demand to access key data securely in increasingly remote settings. Other 12.5%  Moreover, the challenge to support a broader range of device types and OSes is driving organizations to evaluate alternatives. 0% 10% 20% 30% 40% 15 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Requirements for Backend Integration Will be Key Hurdle for SaaS-based Mobile Applications When evaluating mobile applications, • Some of the key mobile application selection what are the most important selection criteria are in conflict with traditional SaaS criteria? capabilities. • Specifically, many SaaS solutions today are Enterprise app integration 22.0% effectively standalone systems that are not deeply integrated with other back end enterprise applications (Salesforce.com, for example). Ability to customize 18.5% • Moreover, the demand to customize the mobile solution will be a challenge for mobile SaaS User friendliness 15.5% vendors to support. • Conversely, mobile SaaS solutions are capable of Support 10.7% effectively handling requirements concerning scalability and user friendliness. Scaling users 10.7% Scaling functionality 7.7% Hosted options 7.7% 0% 10% 20% 30% 16 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Ease of Deployment and Lower Upfront Investment are Key Mobile SaaS Drivers Rank the following criteria in terms of their priority • The suppliers’ efforts to decrease the regarding the advantages of using a SaaS rather implementation and customization time have than an on-premise software solution for certainly been recognized by the end users. enterprise mobility applications (1=Very Low; 5= Very High) • The manageability aspect of a SaaS solution is not underestimated by the end users even with the older / technology resisting users. Ease of implementation 3.9 • Vendor communities’ worries for the increasing Lower upfront investment 3.9 compliance requirements are surprisingly not recognized by the end users. Ease of management 3.8 • VDC predicts that emphasizing the cost savings associated with SaaS solutions could be more Shift to variable IT cost 3.7 attractive since the consumers have become highly cost-sensitive due to the economic difficulties. Faster deployment 3.6 Scalability 3.6 Ease of upgrading 3.6 Reduce staffing costs 3.5 1 2 3 4 5 17 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • …While Data Privacy and Back-End Integration Represent Key Concerns Rank the following criteria in terms of their priority regarding the concerns of using a SaaS • Some of the end users’ main concerns with SaaS rather than an on-premise software solution solutions can be overcome by educating them for enterprise mobility applications regarding the subject matter. (1=Very Low; 5= Very High) • Many of the vendors declared that they are Data privacy focusing on offering highly customizable 3.9 solutions even though it is not one of the top issues highlighted by the consumers. Integration issues with other 3.8 applications • Most of the vendors are not expecting the network to be consistently connected and Vendor lock-in 3.8 therefore are equipping their devices with offline functionalities. Connectivity issues 3.7 Customization capabilities 3.7 Loss of IT control 3.6 Higher long term costs 3.3 Software features change with 3.3 little notice 0 1 2 3 4 5 18 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Systematic Approach to Development of Next Generation Delivery Models Required • Which mobile services map best to next generation deployment and delivery models?  As a result of limited internal support capacity, end users are expressing strong demand for third party managed services for their enterprise mobility investments.  Most organizations are basing initial investments and evaluation decisions around outsourcing device management and security management.  While appetite for mobile SaaS solutions is increasing, overall demand is expected to be uneven as end users struggle to address backend integration and customization requirements and ability to operate in an off-line or disconnected state. • Where the opportunity exists, what are the leading mobile SaaS requirements?  Demand for SaaS-based mobile applications will be strongest in some of the more established or mature applications such DSD or workforce management.  One of the benefits end users are looking for is ease and time of upfront deployment. End users ideally looking for deployment timeframes of less than 8 weeks.  End users are looking for monthly or quarterly billing for these solutions. Per user or flat fee enterprise licenses are the most desired licensing options.  Uptime availability – another key issue – should be at least 96%. 19 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  • Q&A Session For more information about VDC Research coverage of the global markets for enterprise & government mobility – including the Enterprise Mobility Managed Services: Next Generation Deployment Models Report – 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 – 2010 VDC Research Group, Inc. Mobile & Wireless Solutions