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Mobile Devices in the Enterprise: MDM Usage and Adoption Trends


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Mobile devices are becoming an increasingly important component of the typical organization’s IT infrastructure. For example, Osterman Research has found that 32% of the corporate workforce in mid-sized and large North American organizations employed a smartphone in late 2011; these figures will grow to 41% in 2012 and 50% by 2013. This white paper discusses the results of an in-depth survey it conducted on MDM issues. The goal of this research was to understand the problems, concerns and other issues that organizations face when attempting to manage mobile devices and integrate them with email systems, databases and various applications.

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Mobile Devices in the Enterprise: MDM Usage and Adoption Trends

  1. 1. WHITE PAPER Mobile Devices in the Enterprise: MDM Usage and Adoption TrendsON An Osterman Research White Paper Published July 2012 SPONSORED BY sponsored by SPON sponsored by Osterman Research, Inc. P.O. Box 1058 • Black Diamond, Washington • 98010-1058 • USA Tel: +1 253 630 5839 • Fax: +1 253 458 0934 • •
  2. 2. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsEXECUTIVE SUMMARYMobile devices are becoming an increasingly important component of the typicalorganization’s IT infrastructure. For example, Osterman Research has found that32% of the corporate workforce in mid-sized and large North American organizationsemployed a smartphone in late 2011; these figures will grow to 41% in 2012 and50% by 2013.Moreover, the diversity of mobile platforms is increasing in three important ways: thenumber of different hardware platforms that are used in the typical workplace, thenumber of mobile operating systems in use, and the different versions of eachoperating system (particularly in the Android market) that must be supported. Add tothis the fact that a growing proportion of these devices and operating systems arebeing supplied by individual users who retain ownership of these devices, but accesscorporate resources using them – the so-called “Bring Your Own Device” (BYOD)phenomenon.KEY TAKEAWAYS IN THIS WHITE PAPER The combined• More smartphones, tablets and BYOD = a rapidly growing need for growth of mobile Mobile Device Management (MDM) hardware The combined growth of mobile hardware platforms, operating systems, operating system versions and the increase in corporate/personal mix of devices platforms, is creating a need for MDM platforms that offer more features, more scalability operating and better performance than what many organizations are using today – if they are using MDM at all. systems, operating system• The MDM market space is small and fragmented The market for MDM is on the verge of gaining even greater attention from versions and the corporate decision makers, which will result in rapid market growth and increase in consolidation in the market. corporate/person• MDM requirements are driven by security, scalability and the need to al mix of devices move beyond ActiveSync Organizations that do not address MDM properly face a growing set of risks, is creating a need including greater downtime, higher IT costs, violation of legal and regulatory for MDM requirements to protect data on mobile devices, an inability to adequately retain data on mobile devices, and reduced employee productivity. platforms that offer more• More MDM = more IT complexity, more strain on resources and a growing emphasis on cloud-based MDM solutions features, more The growing resource drain that mobile management is imposing on IT scalability and departments is driving many organizations to consider either a managed service provider (MSP) or cloud-based approach for their MDM solutions. better performance.MOBILE DEVICES MAKING SIGNIFICANT GAINSPENETRATION OF MOBILE DEVICESOur research has found that smartphone penetration is reasonably high in theworkplace, with 36% of email users employing a smartphone in a corporate contextas of early 2012 (from 32% in late 2011), although the combination of smartphonesand traditional cell phones is nearly 100% in most organizations. The researchconducted for this white paper is consistent with the research conducted for anOsterman Research industry analysis studyi that was published in February 2012showing that smartphone penetration among mid-sized and large organizations inNorth America will reach 50% by YE2013.©2012 Osterman Research, Inc. 1
  3. 3. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsProportion of Workforce that Uses Smartphones2011-2013 Recent attempts by RIM to stem the tide with new BlackBerry smartphones and the introduction of the RIM PlayBook haveNot surprisingly, and despite RIM’s struggles of late, BlackBerry leads the penetrationof smartphone devices in the workplace with 42% of users. BlackBerry is followed by not succeeded iniOS, Android and Windows Phone, as shown in the following figure. Recent attempts helping theby RIM to stem the tide with new BlackBerry smartphones and the introduction of theRIM PlayBook have not succeeded in helping the company to retain its once dominant company toposition relative to alternative platforms in use in the workplace. retain its once dominantDistribution of Smartphones by Vendor position relative to alternative platforms in use in the workplace.©2012 Osterman Research, Inc. 2
  4. 4. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsTHE GROWTH OF TABLETSFor a product category that was basically non-existent two years ago, the current andforecasted penetration of tablets at work, with the iPad in leading position, is nothingshort of remarkable. Microsoft experienced limited success with the tabletcapabilities in Windows XP and Vista, but the resulting devices were expensive andusually required pen input within standard Windows applications. Tablets runningWindows have become few and far between – at least in terms of actual usage if notmodels available. With Apple’s introduction of the iPad, support for multi-touchgestures, and lightweight applications, the dynamics changed significantly.On average, the use of iPads and other tablets at small organizations is 50% higherthan at large organizations. It is usual for larger organizations to have more matureIT processes for approving more devices, but with process maturity usually comeslonger timeframes. Thus, Osterman Research believes that the higher penetration atsmaller organizations comes at the cost of less stringent security precautions.Proportion of Workforce that Uses Apple iPads and Other Tablets2011-2013 BYOD…will cut corporate costs in the short run, but will add to them significantly if organizations do not deploy robust MDM capab- ilities.THE IMPACT OF BYODOsterman Research found in a study published in 2012ii that the budget for mobilemessaging initiatives and management in 2012 is expected to increase by just under10% from 2011. However, these figures are significantly lower than what wasforecasted based on a similar survey published the year before. The smaller budgetin this year’s survey may be a direct result of the BYOD trend. Becauseorganizational decision makers are increasingly amenable to employees’ desire tosupply their own smartphones and tablets, they may now be budgeting less to theacquisition of the devices themselves and may have more funds available for theMDM systems required to support them. This will cut corporate costs in the shortrun, but will add to them significantly if organizations do not deploy robust MDMcapabilities.THE GROWING DIVERSITY IN THE MOBILE WORLDEven though RIM continues to lead in the market for mobile devices used in theworkplace, it is losing ground on two critical fronts. RIM’s market share in the©2012 Osterman Research, Inc. 3
  5. 5. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption Trendscorporate smartphone market is dwindling from the much greater market share itheld just a few years ago – as shown in the following figure – as corporate users anddecision makers migrate toward iOS and Android-based devices.Demand Among Mobile Users for Various Devices, 2008-2011% Responding That Users are Strongly Requesting or Clamoring for Devices RIM’s market share in the corporate smartphone market is dwindling from the much greater market share it held just a few years ago as corporate usersSecond, and perhaps more significantly, RIM is losing the hearts and minds of and decisionconsumers – including corporate employees – who are the driving force behind theBYOD trend. While BlackBerrys are still in demand, iPhones and Android-based makers migratedevices are in much greater demand. toward iOS and Android-basedDemand Among Mobile Users for Various Devices devices.% Responding That Users are Strongly Requesting or Clamoring for Devices©2012 Osterman Research, Inc. 4
  6. 6. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsTHE NEED TO IMPROVE MOBILE DEVICEMANAGEMENTA SNAPSHOT OF THE MOBILE DEVICE MANAGEMENT SPACEMobile device management solutions are a critical component of any infrastructurethat supports more than a handful of mobile devices. MDM solutions manage mobiledevice policies, configurations, permissions, security and other aspects of mobiledevice use, ensuring that mobile devices are used in accordance with corporatepolicies, regulatory requirements and legal obligations. The absence of MDM in anorganization that relies on the use of company-supplied and/or personally ownedmobile devices is akin to the corporate email “system” being a hodge-podge ofHotmail, Gmail, Yahoo! and other email systems that are not managed by ITaccording to corporate or other policies.MDM solutions are offered by a number of large and small vendors – more than 80vendors currently serve this market, including RIM, Microsoft, HP, Good, Notify,Sybase, Visage, Zenprise, MobileIron, BoxTone, Airwatch, Fiberlink and many others.The market for MDM is relatively fragmented owing to its relative newness comparedto other markets for messaging system management solutions and tools. We anticipateGiven the dominance of the BlackBerry – and its long tenure as the leading mobile that the need fordevice in use in the workplace – BlackBerry Enterprise Server (BES) leads thedeployment of MDM solutions. As shown in the following figure, our research found MDM solutionsthat BES is deployed in more than one-half of the organizations surveyed. to replace BES – coupled withDistribution of MDM Solutions by Vendor growth fueled by organizations that have not yet deployed MDM solutions – will create significant change and consolidation in the market.However, the decline of the BlackBerry relative to iPhone and Android devices hascreated flux in the market. We anticipate that the need for MDM solutions to replaceBES – coupled with growth fueled by organizations that have not yet deployed MDMsolutions – will create significant change and consolidation in the market over thenext 12 to 18 months. RIM has recently introduced the new BlackBerry Mobile Fusionserver to extend BES to manage Android and iOS devices. While Fusion may saveBES as an MDM platform, it may also accelerate migration off of BlackBerry mobiledevices.©2012 Osterman Research, Inc. 5
  7. 7. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsRAPID MDM GROWTH IN RECENT YEARSThe penetration of MDM systems has grown significantly in recent years, with morethan one-half of organizations deploying an MDM solution in 2008 or later, althoughthe most significant uptick in demand for MDM began in 2009.Deployment of MDM Systems by Date As the market for mobile devices shifts from BlackBerry to iOS devices and Android devices,THE MDM-MOBILE DEVICE MISMATCH an expanded setEven though RIM’s share of the corporate mobile device space is declining, RIM of MDMcontinues to hold a commanding lead in the MDM market. This is due to a couple offactors. As the leading corporate mobile platform for many years, organizations solutions willinitially deployed BES to manage BlackBerry devices that were proliferating at a much need to befaster pace than any other mobile platform. The current dominant share held by RIMis testament to the legacy impact of MDM systems, led by BES, which were deployed deployed in orderin mid- to late 2000s. to manage theHowever, as the market for mobile devices shifts from BlackBerry to iOS devices and mainstreamAndroid devices, an expanded set of MDM solutions will need to be deployed in order manage the mainstream devices. Interestingly, however, as shown earlier in thiswhite paper, Microsoft’s Systems Center Mobile Device Manager occupies the secondslot in the MDM rankings ahead of any of MDM solutions from Airwatch or Goodwhich are usually thought of as the more full-featured and market-leading MDMofferings. There are at least four possibilities for this Microsoft-centric focus:• Many enterprise decision makers have still not completely grasped the significance and importance of having highly robust MDM solutions in place.• Some mainstream MDM vendors still have not engineered platforms that work well enough with iOS and Android devices to motivate decision makers to implement them.• The MDM space is very fragmented and many of the key MDM vendors, such as Good, MobileIron, and Airwatch, are not spending enough vs. Microsoft to break through with name recognition and differentiation for their offerings.• There is a lack of education and awareness by IT about what is required in the MDM space.©2012 Osterman Research, Inc. 6
  8. 8. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsWhile some combination of these factors may be in play in many organizations,Osterman Research believes that the dominant reason is the first one: decisionmakers – perhaps motivated by IT budgets that are still strained because of theongoing soft economy – have not fully grasped the critical importance of robust MDMsolutions to manage their mobile users and devices. As evidence of this are thefollowing data points from the survey conducted for this white paper:• Among those organizations that have not yet deployed an MDM solution, 36% indicated that they simply have not yet had a need for such as solution, despite the fact that the penetration of smartphones in non-MDM-enabled organizations is reasonably high today and has been growing at a rapid pace over the past few years.• 29% of respondents that have not deployed an MDM solution indicated that the Native Exchange capability for managing mobile devices – ActiveSync – is “good enough” to satisfy their MDM requirements. A separate study by Osterman Researchiii found that 90% of Exchange-enabled organizations view the native The rapid growth mobile policy management tools in Exchange as “somewhat” to “very” sufficient. in the deploy-• One-quarter of organizations noted that they have not had a sufficient number of ment of sophist- smartphones deployed in their organization to justify the effort involved in icated MDM deploying an MDM solution. solutions will be• 21% indicated that MDM solutions have been too expensive to deploy, and an driven by a equal number indicated that there is simply not enough value in MDM platforms to justify the cost of deploying them. number of issues with which ITTHE NEED INCREASED AWARENESS IN THE MDM SPACEIt is also important to note that MDM is still a relatively nascent market compared to departments aremore established ones like email and collaboration. Having said, that, of the IT only justexecutives who are “aware” of the importance of MDM, these MDM solutions will takebudgetary priority over many other developing platforms like unified communications beginning toor social media management solutions. Because of the immaturity of the market wrestle in thespace, though, some decision makers not sufficiently familiar with all of the availablesolutions will thus consider only those MDM solutions that have the highest name context ofrecognition. For example, the survey conducted for this white paper (which surveyed managing mobileonly those knowledgeable about mobile issues in their organizations) asked, “If you devices: security,were going to switch to a new MDM system (or deploy one initially), which of thefollowing your organization would most likely select?” The most common response the need to movewas BES, following by Microsoft Systems Center Mobile Device Manager, which beyondtogether accounted for 83% of the responses. That is not to say that there isn’tsome merit in selecting either of these systems, but the plethora of viable alternatives ActiveSync andwas not cited in large numbers in our research. scalability.RESOLVING MOBILE MANAGEMENT ISSUESOver the course of the next two years, there will be a significant surge in thedeployment of sophisticated MDM systems. For example, our research found thatamong those organizations that have not yet deployed an MDM platform, 32% will doso by early 2013 and another 24% will do so by early 2014.WHAT IS DRIVING THE NEED FOR IMPROVED MDM?The rapid growth in the deployment of sophisticated MDM solutions will be driven bya number of issues with which IT departments are only just beginning to wrestle inthe context of managing mobile devices: security, the need to move beyondActiveSync and scalability, each of which is discussed below:1. SECURITY Growing potential for the loss of intellectual property The growing penetration of mobile devices used for critical business applications©2012 Osterman Research, Inc. 7
  9. 9. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption Trends will increase the level of risk that organizations face. For example, as more data is sent and stored on mobile devices, the level of compliance risk grows because the physical loss of devices increases the likelihood of a data breach, loss of intellectual property and related problems. Moreover, increasing use of mobile devices in general increases the likelihood that intellectual property will be lost in the course of users sending content from their devices. Our research found that among those that would switch to a new MDM platform or adopt one for the first time, 34% cited the potential for loss of intellectual property as a key factor in their decision. The need for IT to regain control over mobile assets Mobile devices that are owned and controlled by individuals may be more difficult to remotely wipe when they are lost or misplaced since they are not under IT’s direct control. This can expose corporate intellectual property to loss and may result in the breach of sensitive data, potentially triggering state, provincial or national data breach notification requirements; not to mention compliance problems under PCI DSS, Gramm-Leach-Bliley, etc. Retention of mobile data will become more important Our research Content repositories – including mobile email and other repositories – contain a found that growing proportion of business records that must be preserved for long periods of time. Moreover, this content is increasingly requested during discovery among those proceedings and it must be produced when required. As a result, it is critical organizations that all relevant electronic content be made available for e-discovery purposes. that would switch BEYOND ACTIVESYNC to a new MDM The need to move beyond native Exchange management There is a growing need for more features and capabilities than are available in platform or adopt native Exchange tools as the proportion of employees with smartphones one for the first increases. For organizations that have only a small number of smartphones in time, 36% use, native Exchange management tools will often suffice; however, as smartphone penetration increases in an organization, coupled with more indicated that education about what higher end MDM platforms can do, native Exchange tools native Exchange will be replaced. Our research found that among those organizations that would switch to a new MDM platform or adopt one for the first time, 36% indicated that policies are too native Exchange policies are too few and insufficient to meet their requirements. few and2. SCALABILITY insufficient to A need for improved performance and scalability meet their Our research found that if organizations were to switch MDM platforms or adopt a new one, 54% would do so to improve the performance relative to their requirements. current system, while 43% would do so to improve the scalability of the solution. Managing mobile devices will consume more of IT’s time As a result of the growing diversity in mobile platforms and operating systems, IT will be increasingly focused on managing mobile devices, largely because many lack robust solutions that can efficiently manage cross-platform environments. The absence of these tools will force IT to spend an increasing proportion of their time on mobile management activities, resulting in less time available for other initiatives. This will drive many organizations to deploy robust MDM solutions that can improve the efficiency of managing mobile devices. Mobile users are often more sensitive to downtime Increasing the difficulty associated with managing mobile devices is the fact that these devices tend to be used by higher profile employees like senior executives and salespeople who are typically less tolerant of downtime when trying to access mobile email or other corporate resources. The research conducted for this white paper found that only 9% of respondents are “very confident” that their mobile infrastructure is protected against downtime. BYOD will necessitate better MDM solutions Increasing the complexity in the management of mobile devices in the workplace©2012 Osterman Research, Inc. 8
  10. 10. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption Trends is the growing number of personally owned devices that are being used by employees alongside company-supplied devices. This is making mobile device management, in many ways, a shared responsibility between formal IT staff and the employees they serve – and creating risks and other problems as a result. Related to this is the fact that different mobile devices may need to be managed in different ways. For example, a company-provided smartphone may be subject to a different set of regulatory, legal and best practice considerations than a personally owned iPad. However, even personal devices can be subject to strict supervisory and retention rules. For example, the FINRA Regulatory Notice noted above states that “FINRA expects members to prohibit, through policies and procedures, communications with the public for business purposes from employees’ own electronic devices unless the member is capable of supervising, Increasing the receiving and retaining such communications.” These types of requirements will complexity in the further drive the need for deploying sophisticated MDM solutions that manage these types of granular requirements. management of mobile devices inENTER THE CLOUD AND MANAGED SERVICES the workplace isOur research found that there is significant interest in the use of cloud-based MDMsolutions. For example, in response to a question about which MDM system would the growingmost likely be selected by those switching to a new MDM platform, 31% of thosesurveyed indicated that they would likely select a cloud-based solution, such as those number ofoffered by Zenprise, MobileIron, Airwatch, etc. In fact the cloud focus is even more personally ownedpointed towards a private cloud option as 55% consider it important or extremely devices that areimportant that customer data hosted in a cloud offering cannot use a database that isshared with other customers. All of the reasons cited by respondents for an interest being used byin cloud solutions are also directly applicable to managed services solutions. The employeesreasons cited are simplified administration and maintenance (cited by 69% of thoseresponding), reduced and predictable costs (39%), improved security (39%) and a alongsidedesire not to use internal IT staff to service MDM (21%). company-In addition to the above data, there are two additional trends emerging, which are supplied devices.helping to create the perfect storm of MDM management issues: This is making• First, as higher-end MDM products creep into the marketplace, with them comes mobile device increased complexity to learn and use, putting further pressure on IT. management, in• Second, as the percentage of smartphones in the enterprise continues to many ways, a increase there are more devices to actively manage overall. sharedWith regard to the second point, the IT staff requirements focused on managing responsibilitymobile users – and the costs associated with doing so – continue to increase. For between formalexample, the research conducted for this white paper found that FTE staffrequirements to manage smartphone users are increasing, from a median of 2.9 FTE IT staff and thestaff member per 1,000 smartphone users in 2011 to 3.6 today and 4.0 in 2013. If employees theywe assume that the average, fully-burdened salary for an IT staff member was$80,000 in 2011 (and assuming 3% annual wage growth), just the labor cost for serve.managing smartphone users is growing at a rapid pace, as shown in the figure below.©2012 Osterman Research, Inc. 9
  11. 11. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsAnnual IT Labor Cost per Smartphone User FTE staff requirements to manage smartphone usersSURVEY BACKGROUNDOsterman Research conducted an in-depth survey during February 2012 among are increasing,individuals who are knowledgeable about mobile device-related issues in their from a median oforganizations. The goal of this research was to understand the problems, concernsand other issues that organizations face when attempting to manage mobile devices 2.9 FTE staffand integrate them with email systems, databases and various applications. There member perare a mean of 7,720 employees at each of the 117 organizations surveyed (median is1,500) and 7,670 email users (median is 7,670). 1,000 smart- phone users inThe survey base was dominated by organizations that have deployed MicrosoftExchange: 78% of the users in the organizations surveyed are using on-premise 2011 to 3.6 todayExchange and 1% are using Office 365 or BPOS. and 4.0 in 2013.©2012 Osterman Research, Inc. 10
  12. 12. Mobile Devices in the Enterprise: Mobile Device Management (MDM) Usage and Adoption TrendsABOUT AZALEOSAzaleos Corporation provides managed email, collaboration and unifiedcommunications services available in private cloud, on-premise or mixed deploymentarchitectures. Azaleos’ 24x7 managed services for Microsoft Exchange, SharePoint,Active Directory, Lync, and both BlackBerry Enterprise Server and AirWatch improveavailability, security and performance, while reducing maintenance time and costs.The patented AzaleosX technology platform enables customers to maintain controlover servers and data including their location, while uptime, maintenance, andsupport is proactively handled by certified experts in its network operations centers.Hundreds of companies from Fortune 500 to mid-market enterprises rely on Azaleosto manage their collaboration infrastructures and address issues before users everknow they exist.Azaleos is the largest provider of private cloud, on-premise and hybrid managedservices in the communications and collaboration space and the go-to option fororganizations who can’t find a fit with Microsoft or Google public cloud solutions. Amember of the National Systems Integrator program (NSI), Azaleos is one of Azaleos is theMicrosoft’s top 34 partners in the United States and a member of both the MicrosoftExchange and SharePoint Technology Adoption Programs For more information visit largest of private cloud, on-premise and hybrid managed services in the communications and collaboration space and the go- to option for organizations who can’t find a fit with Microsoft© 2012 Osterman Research, Inc. All rights reserved. or Google public cloud solutions.No part of this document may be reproduced in any form by any means, nor may it bedistributed without the permission of Osterman Research, Inc., nor may it be resold ordistributed by any entity other than Osterman Research, Inc., without prior written authorizationof Osterman Research, Inc.Osterman Research, Inc. does not provide legal advice. Nothing in this document constituteslegal advice, nor shall this document or any software product or other offering referenced hereinserve as a substitute for the reader’s compliance with any laws (including but not limited to anyact, statue, regulation, rule, directive, administrative order, executive order, etc. (collectively,“Laws”)) referenced in this document. If necessary, the reader should consult with competentlegal counsel regarding any Laws referenced herein. Osterman Research, Inc. makes norepresentation or warranty regarding the completeness or accuracy of the information containedin this document.THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. ALL EXPRESS ORIMPLIED REPRESENTATIONS, CONDITIONS AND WARRANTIES, INCLUDING ANY IMPLIEDWARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AREDISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH DISCLAIMERS ARE DETERMINED TO BEILLEGAL.i Mobile Messaging Market Trends, 2011-2014; Osterman Research, Inc.ii Mobile Messaging Market Trends, 2011-2014; Osterman Research, Inc.iii Mobile Messaging Market Trends, 2011-2014; Osterman Research, Inc.©2012 Osterman Research, Inc. 11