This document summarizes a webcast from VDC Research on enterprise application mobilization. The webcast featured two speakers, Eric Klein and David Krebs from VDC Research, and covered topics including the proliferation of mobile devices and opportunities for apps and developers, forces driving enterprise mobility, and conclusions about the future of the market. It provided an overview of VDC Research's methodology, discussed challenges for mobile software developers, and noted that Microsoft's Windows OS remains dominant in the rugged handheld space.

1. VDC Research Webcast
Proliferation of Mobile Devices =
Opportunity for Apps & Developers
pp y pp p
Mobile and Wireless Practice
Eric Klein – Senior Analyst
David Krebs – Director

2. Recording Available
These slides are from a webcast presented on 08/04/10.
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A full audio recording is available for download at:
www.vdcresearch.com/market_research/mobile_wireless/freeresearch.aspx#
1 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

3. VDC Research Group
Additional complimentary insights and marketing data
on the mobile and wireless market available at:
www.vdcresearch.com
2 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

4. Today’s Mobile and Wireless Practice Speakers:
Eric Klein – Senior Analyst
Eric is a market research and consulting professional specializing in the design, analysis, and delivery of project-based
research. Over the past 15 years, Eric has worked with a wide array of firms across a number of industries, leading
quantitative and qualitative research in areas such as innovation in enterprise software, supply chain risk management,
manufacturing operations/automation, and IT spending research. Eric has worked in a variety of market research and
management roles, providing market data and competitive intelligence to Fortune 500 firms. His previous employers
include: AMR Research, The Yankee Group, and Affiliated Computer Services (ACS). Eric holds a Bachelor of Science in
Finance from Boston University.
David Krebs – Director
David has more than ten years experience covering the markets for enterprise and government mobility solutions, wireless
data communication technologies and automatic data-capture research and consulting. David focuses on identifying the
key drivers and enablers in the adoption of mobile and wireless solutions among mobile workers in the extended
enterprise. David’s consulting and strategic advisory experience is far reaching and includes technology and market
opportunity assessments, technology penetration and adoption enablers, partner profiling and development, new product
t it t t h l t ti d d ti bl t fili dd l t d t
development and M&A due diligence support. David has 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. David is a graduate of Boston University
(BSBA).
3 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

5. Today’s Agenda
Market overview: the state of enterprise application mobilization
“Playing in traffic” – How device expansion increases complexity
Forces Driving Enterprise Mobility
The rugged market segment is different
Conclusions: What lies ahead
4 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

6. Research Methodology
• The following programs constituted the core of
Target Communities Sample Size our primary data collection efforts.
i d t ll ti ff t
• Structured interviews were conducted with
Presidents, VPs of Marketing,
Mobile Solution Providers and Software Vendors >30
Business Development Managers and Senior
Product Managers at the following organizations:
 Mobile Computer Hardware Suppliers
Mobile Software Developers 175  Mobile Software Vendors
 Enterprise Software Vendors
 Mobile System Integrators
Enterprise Mobility End Users and Evaluators >550
• Web survey fielded among mobile software
developers.
• Web survey fielded among enterprise mobility
end users and evaluators across a variety of
sectors.
5 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

7. Research Methodology
Mobile ft
M bil software research scope
h
Vertical Markets
ions
ps
usiness App
Enterprise Extensi
Mobile
ecurity
Software
Handheld/ PDA
DM)
Solutions
Management (MD
Line of Bu
Mobile Se
Mob Device
Smartphone
Notebook / Convertible
Mobile Computer
bile
Form Factors
F F t Slate T bl t
Sl t Tablet
Vehicle Mounted
UMPC
6 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

8. Global Mobile Device Forecast - 57M units by 2014
Notebook, Rugged, and UMPC growth continue – S
N t b k R d d th ti Smartphones show strongest uptake
t h h t t t k
• We project that the rugged device segment
Device Allocation: (including both small & large FF s) will
FF’s)
Global Mobile Device Unit Shipments decline in terms of allocation, but remains as
a growth market with a 13.8% CAGR over the
100% next 5 years
• Smartphone adoption in the enterprise
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80% continues to climb, and will reach nearly 33M
48% units by 2014
58%
• However, the fastest growing segment of
60% Smartphone Smartphones used in the enterprise are
individual li bl
i di id l liable (IL) devices
d i
Notebook
40%
35% Rugged Note: This data strictly represents mobile devices
27% that are deployed by enterprise organizations to
20%
Slate / Tablet support enterprise mobility applications VDC
applications.
defines enterprise mobility applications as solutions
14% 11% Netbook that support real time distributed transaction
processing.
0% *UMPC market < 1%
2010 2014
Units: 27.7M 56.9M
7 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

9. What’s Driving the Mobilization of Enterprise Apps?
• Companies have made sizeable investments in
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their IT infrastructure and enterprise
applications – the desire to extract value from
these investments is occurring and will continue
to
• Decreasing prices points, advances in mobile
technologies,
technologies and delivery platforms opens the
door for many more enterprises to adopt or
expand their usage of mobile enterprise
applications
• Maturation in the mobility segment is giving
specialists tremendous partnership
i li t t d t hi
opportunities with ISVs and SIs – effective
partnering can become a major differentiator
• Developer communities are flourishing – the job
market is flush with mobile development
positions
• Mobility platform vendors are offering powerful
tools for rapid application development – across
all most major mobile OS platforms
• Every worker IT supports is becoming more
mobile
8 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

10. Important Criteria When Evaluating Mobile Apps
Integration and Customization capabilities are t of mind when evaluating mobile apps
I t ti d C t i ti biliti top f i d h l ti bil
Most important selection criteria
p
when evaluating mobile applications*:
• Companies evaluating mobile technologies
Overall cost 62%
and applications are most concern with cost
User friendly 49% – this is no at all a surprise considering the
current economic climate. Cost ranked 3rd d
Integration w/ existing enterprise apps 43%
in our end-user study from 2009
Ability to customize 38% • Running lean is a given for many companies
Ability to scale functionality 28% in this economy – to succeed, vendors must
be able to demonstrate how their mobile
Pre/Post implementation support 25%
solutions will lead to rapid ROI
Hosted options 21% • These evaluation criteria vary widely by
Ability to scale users 21% industry and company size – larger
companies are more concerned with hosting
Partner recommendation 7%
options and the ability to scale users
Other 4%
Vertical market design 3%
*Multiple response question
9 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

11. Tangible Benefits From Mobile Deployments:
Considering your organizations most recent mobile
deployment, what level of benefit has your organization
achieved against the following areas?
Increased mobile worker productivity +31%
Improve real-time decision making +27%
Improved inventory accuracy +27%
Improved customer loyalty and repeat business +25%
Reduced asset failures +23%
End-user interview: large global chemical manufacturer:
One chemical manufacturer we interviewed implemented a $200K mobile solution that included rugged
handhelds supporting mobile applications to streamline operations management and improve decision
support capabilities and enhance the workflow associated with their operator rounds. Over a short time
frame they have expanded from a pilot at 1 facility to rolling out this solution to all 20 of their plants. The
company achieved hard dollar savings of $1.2M in the first year the solution was implemented.
10 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

12. Today’s Agenda
Market overview: the state of enterprise application mobilization
“Playing in traffic” – How device expansion increases complexity
Forces Driving Enterprise Mobility
The rugged market segment is different
Conclusions: What lies ahead
11 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

13. Fragmentation, and “Learning to Play in Traffic”
Pace of innovation, and d i proliferation creates challenges and opportunities
P fi ti d device lif ti t h ll d t iti
12 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

14. Challenges Facing Mobile SW Developers
Specification changes and “
S ifi ti h d “scope creep” are a significant challenge f mobile SW developers
” i ifi t h ll for bil d l
Most challenging issues addressed
g g
during the development lifecycle*:
Changes in specifications/Scope creep 50% • Software developers have to deal with a
variety of challenges during the
development lifecycle – issues with
Incomplete specifications 39%
specifications seems to rise to the top
Application complexity 38%
• Specifications changes almost also result in
delays and missed deadlines
Lack of qualified developers 28% • M
More powerful devices and form factors,
f ld i df f t
along with OS and API enhancements are
also adding to the challenges mobile
Lack of skilled testing personnel 11%
developers face as they are increasingly
being asked to development more complex
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Poor development tools 11% applications
Lack of vendor support 5%
Other 4%
*Multiple response question
13 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

15. Challenges Facing Mobile SW Developers – Cont.
Developers challenged with updating apps t f
D l h ll d ith d ti to fragmented OS l d
t d landscape
Challenges with primary application
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channel*:
Application updates are
39%
• Mobile device / OS fragmentation makes it
difficult to push challenging for developers to seamlessly
update their applications
Pricing options are inflexible 21% • Issues associated with pricing options and
delays in the application acceptance /
Submission process is too submission process remain as challenges,
21%
long but are secondary
Review process seems
18%
unfair/biased
Certification is
C tifi ti i expensive or
i
14%
lengthy
Revenue sharing 7%
*Multiple response question
14 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

16. Developers Not Just Reliant on App Store Model
Developers must use a multi-channel approach t maximize th i profits
D l t lti h l h to i i their fit
Main channels for SW developers
p
to sell their applications*:
• Developers are best served by adopting a
App store 50%
multi-channel approached to market and
sell their applications
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Direct download via our own site 41%
• Developers are using their own web site
to drive downloads and to market their
Via customer who is commissioning applications
37%
the application
• Enterprises adopting mobile applications
Operator/Carrier portal 26% will ultimately begin controlling application
updates – this functionality will begin to be
incorporated into mobility platforms as well
3rd party aggregator or portal 24%
as MDM vendors products
On-device pre-loading via handset
17%
manufacturer
On-device pre-loading via operator 4%
*Multiple response question
15 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

17. Today’s Agenda
Market overview: the state of enterprise application mobilization
“Playing in traffic” – How device expansion increases complexity
Forces Driving Enterprise Mobility
The rugged market segment is different
Conclusions: What lies ahead
16 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

18. Forces Driving Enterprise Mobility
17 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

19. Smartphone Application Support:
Moving Beyond Wireless Email & PIMS
Wireless Email 71% 13% 10% 6%
Personalized contacts 64% 9% 10% 16% 1%
Content / employee portal 34% 10% 25% 29% 2%
SMS alerts 33% 6% 16% 42% 2%
IM 29% 8% 19% 44%
Inventory mgmt 28% 5% 16% 48% 3%
Field service mgmt 24% 6% 20% 44% 5%
Sales force mgmt 22% 4% 21% 47% 6%
Customer interation mgmt 21% 8% 19% 50% 2%
Logistics mgmt 18% 5% 20% 53% 4%
Fully deployed Rolling out or partial deployment Evaluating or piloting No plans Don t
Don't know
18 –  2010 VDC Research Group, Inc.
Mobile & Wireless Practice

20. “Easy as Facebook” “Sesame Street Simple”
KISS is a very relevant acronym when it come to mobile applications ...
i l t h t bil li ti
Functional Role Functionality
• Must be intuitive and stress ease of use
• Function role expansion – apps for roles
• Must improve/streamline workflow
• Increasingly distributed, decentralized, and
mobile staffs • Backend/ integration/ customization
capability
bilit
Security + Manageability
• Must demonstrate ability to reduce corporate liability and risk
• Provide strong MDM capabilities – best accomplished by partnering
• Must have robust mgmt capability, offer both BTF and web based solutions moving forward
Usability
• Must be designed for varying conditions
• Must be able to accommodate fragmented devices / OS minefield
19 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

21. Today’s Agenda
Market overview: the state of enterprise application mobilization
“Playing in traffic” – How device expansion increases complexity
Forces Driving Enterprise Mobility
The rugged market segment is different
Conclusions: What lies ahead
20 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

22. Why the Windows is Still Very Relevant ...
• Microsoft’s OS is dominant in the rugged handheld space, with a sizeable
gg p
installed base on several platforms such as embedded CE, and various Window
Mobile software releases (80%+ market share).
 Microsoft recent Windows Embedded Handheld release, and its continued support and cooperation with
dominant OEMs in the rugged space such as Motorola, Intermec, and Honeywell shows that the company
acknowledges that the rugged space is evolving and that it has no intentions of exiting
 An updated Windows Embedded Handheld platform will be released in the second half of calendar year 2011.
 This expanded platform will build on Windows Mobile 6.5’s manageability and security features by
incorporating additional technologies from Windows Embedded Compact 7, including updated kernel and
memory models browser and input methods such as multitouch
models, browser, methods, multitouch.
 Additionally, the platform will feature the Silverlight for Windows Embedded user interface framework to help
OEMs, developers and designers implement immersive user interfaces on enterprise handheld devices.
 Microsoft will also include a migration path for existing applications to a new application platform based on
Microsoft Silverlight and Microsoft XNA with Visual Studio 2010.
 The majority of rugged mobile applications have been developed with Microsoft tools – the challenge for
Microsoft now will be to keep developers interested in continuing to develop applications suitable for the
rugged mobile market.
 The challenge for OEMs will be bringing solutions to the market that leverage the latest OS innovations while
maintaining consistency with its (conservative) clients
clients.
21 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

23. Mobile Applications Deployment Trends:
Enterprise wireless E M il remains the most widely d l
E t i i l E-Mail i th t id l deployed – service lif
d i lifecycle management apps gaining
l t i i
Currently deployed mobile applications (rank order):
Currently Deployed Mobile Applications (rank order)
Manufacturing Government Life Sciences /Health Care
Wireless Email Wireless Email Wireless Email
Inventory/Warehouse Management Command & Control / Communications Charts
Field Sales (Sales Force Automation) Workforce Management E-prescribing
Shipping & Receiving Maintenance / Repair / Diagnostics Remote Physician Information Access
Asset Management Asset Management Charge Capture
22 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

24. Today’s Agenda
Market overview: the state of enterprise application mobilization
“Playing in traffic” – How device expansion increases complexity
Forces Driving Enterprise Mobility
The rugged market segment is different
Conclusions: What lies ahead
23 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

25. Conclusions
A recent Report from PricewaterhouseCoopers LLP (PwC) and the National
Venture Capital Association (NVCA) showed that the software industry had the
most venture funding deals completed in Q2 with 229 rounds (amounting to $1B),
representing a jump of 43% from Q1.
In terms of dollars invested, the software sector was in third place, trailing only
biotechnology and energy market segments.
bi t h l d k t t
24 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

26. Conclusions – Where do we go from here?
Today:
• Every worker supported by IT is becoming more mobile
y pp y g
• Securing employee-owned devices is imperative for mobile application expansion in the enterprise
• The rugged market is evolving with new devices continue to emerge
• Everyone is “wooing” mobile application developers
Next 12-18 Months:
• Portions of traditional enterprise applications will continue to be mobilized
• MicroApplications will makes gains in the enterprise
• Tablet segment gains traction in the enterprise with screen real-estate advantage
• Platform-independent application development tools continue become more viable and give i t
Pl tf i d d t li ti d l tt l ti b i bl d i internal
l
in-house development more flexibility while “platform battles” continue
• B2C enablers will flourish as the mobile web continues to gain in importance as a channel
Long Term View:
• Device proliferation creates need for better synch. capability for multiple mobile devices
• More M&A activity from enterprise ISVs
• Channel conflict increases challenging OEMs , ISV, and carriers
• HTML 5?!
25 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice

27. Q&A Session
Thank You for Attending this VDC Webcast.
g
For more information about the
Mobile and Wireless Practice,
Please Contact:
Gerrald Smith – Senior Account Executive
gsmith@vdcresearch.com | 508.653.9000 x113
David Krebs – Practice Director
davidk@vdcresearch.com | 508.653.9000 x136
Eric Klein – Senior Analyst
eklein@vdcresearch.com | 508.653.9000 x141
26 –  2010 VDC Research Group, Inc.
Mobile and Wireless Practice