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Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences


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VDC Research has been monitoring enterprise and government mobility user requirements through a series of targeted surveys. During this webcast, David Krebs, presented key findings from these 2010 end-user surveys. Some of the topics David addressed include: leading mobility applications enterprise and government organizations are investing in; adoption of/interest in next-generation form factors, such as slate tablets; leading mobile device functionality and form factor requirements; and mobile application development and distribution trends.

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Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences

  1. 1. VDC Research Webcast Driving Enterprise Mobility Demand: Understanding End User Requirements & Preferences Mobile & Wireless Practice David Krebs, Director
  2. 2. Frequently Asked Questions These slides are from a webcast presented on 9/30/2010. A full audio recording is available at: 1– 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: 2– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  4. 4. Today’s Speaker David Krebs, Practice 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 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 & Wireless Practice
  5. 5. Today’s Agenda Market Definition & Segmentation Enterprise Mobility Market Development & Application Opportunity Market Drivers – Key Device Requirements Market Drivers – Key Application Requirements Mobile Application Development & Distribution Trends Question & Answers 4– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  6. 6. The Evolution of Socialization & Impact on Enterprise Mobility 1990 2000 2010+ Personal Collective Productivity Knowledge Distribution Intelligence • Custom designed applications • Email attachments, documents • Mobile deployment of enterprise on purpose-built devices and personal repositories and social software • Silo approach to solution • One-way knowledge distribution • Distributed learning and development • Team-based computing collaboration • Personal computing 5– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  7. 7. Generational Shift may Drive Change to Commercial Sector Computing and Communication Requirements Population by Age Segment • Gen Y/Millennial generation has yet to 240 (in millions) make their full impact on the commercial sector workforce and is just beginning to enter this workforce 200 • However, by 2020, the majority of the 100 commercial sector workforce is expected to 160 be made up by Gen Y/Millennial Generation workers • The current situation is more reflective of an 120 aging workforce as the Gen X workers begin to replace the Baby Boomer 44 generation – the issue being the smaller 80 size of the Gen X population • A corollary to the aging/shrinking workforce and early retirement options is leadership 40 78 crisis • One key difference is that Gen X typically utilizes technology/Internet as a means of 0 escape whereby Gen Y uses technology as United States a social tool BABY BOOMERS GENERATION X GENERATION Y (born 1946–64) (born 1965–77) (born 1978–2004) 6– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  8. 8. Mobile & 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 and • 3G+ GPS • Dashboards Executives 11.5M • Push email • BI/CI (Knowledge • Image capture • Mobile CRM • Device management • Approvals Workers) • 3rd party apps • Expense Reporting • Security support • Workflow Management • Push email • Wireless email  Mobile Office • Active sync • Time & attendance Professional 12.6M • Application partitioning • Approvals (Corridor warrior) • WiFi • Workflow management • DECT functionality • Wireless email  Campus Mobile • WiFi • Time & attendance Worker 16.8M • 3rd party apps • Approvals • Image capture • Workflow management • Mobile browser • Time & attendance  Field Mobile • 3G+ GPS • Dispatching Worker • Image capture • Workflow management 14.3M • Device management • Vertical applications (Task/Line • 3rd Party Apps Worker) • Durability 7– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  9. 9. Enterprises are Extending Anytime, Anywhere Access to Horizontal Apps & Vertical Solutions Horizontal Enterprise Solutions Healthcare Consumer Transpo Public Oil & Gas Insurance & Industrial Sector Mobile HR Services Mobile Workforce Management Mobile Enterprise Asset Management Mobile Fieldforce Management Mobile Salesforce Management Warehouse Distribution and Logistics Vertical Market Applications Consumer & Healthcare Transportation Insurance Public Sector Oil & Gas Industrial • Electronic health • Direct store delivery • Pick-up/Delivery • Claims management • Homeland security • Dispatching records • Asset management • Telematics • Evidence • Emergency services • Maintenance/repair • Patient care • Inventory • Dispatching management • Evidence • Asset management • Service management management • Loss adjusters Management 8– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  10. 10. Enterprise Oriented Development Activities Data capture applications aimed at asset tracking and the broad ERP category lead Enterprise Oriented Development Activities • Data capture applications aimed at asset tracking (Overall) and the increasingly broad ERP category are the top enterprise applications areas being Business Intelligence/Analytics 28% 34% 38% developed.  Enterprise Asset Management (EAM) mobile applications Asset Management 48% 13% 39% are vital for large enterprises in heavy-asset industries where operations and maintenance personnel are dispersed. Enterprise Resource Planning 38% 22% 40%  ERP is an extremely broad application category, and Quality Control & Quality Assurance 24% 31% 44% has expanded from the coordination of manufacturing processes to the integration of enterprise-wide backend processes – mobilizing these elements is occurring rapidly Dispatch Management/Scheduling 20% 34% 46% and will be hastened by the marriage of Sybase on SAP. Workforce Management  Mobile BI/Analytics applications have be percolating as 32% 19% 49% of late with several new notable mobile entrants (most notably Transpara, Mellmo (Roambi), and QlikView – Surveillance/Inspection 24% 10% 67% established players such as IBM/Cognos, SAP/BusinessObjects, and Oracle have had BI Security Management 12% 16% 71% applications available on Smartphone platforms for some time now. Ticketing/Citations 6% 22% 71% Command & Control/Comm./Mission 13% 15% 72% Planning (Gov't) Crime Scene Imaging/Investigation 6% 14% 80% Have already/currently dev. Planning No Plans 9– 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  11. 11. Organizations Are Moving Beyond Email to Enterprise Applications on Smartphones Wireless email Personalized contacts Content/employee portal SMS alerts IM Inventory management Field service managament Sales force management Customer interation management Logistics management 0% 20% 40% 60% 80% 100% Fully deployed Rolling out or partial deployment Evaluating or piloting No plans Don't know 10 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  12. 12. Mobile Device Adoption Requirements Common themes in battery life and cost of ownership…new/renewed focus on processing capability Mobile Device Selection Criteria – Key Requirements Battery life 42.8% Broadband wireless functionality 37.2% Price 32.4% Total cost of ownership 29.7% Device weight and ergonomics 22.8% Processor speed 21.1% Operating system 20.0% Level of ruggedisation 18.6% Integrated GPS/ Location awareness 12.4% Integrated voice AND data capability 11.0% Ability to print in the field 11.0% High local data storage capacity 9.7% Display daylight visability 9.0% Touchscreen display 6.2% Source: VDC Research End User Survey n: 487 (Fielded June/July, 2010) Integrated RFID interrogator 6.2% 11 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  13. 13. Mobile Device Requirements More sophisticated I/O requirements emerging Primary I/O with Most Recent Device • Higher degree of multi-mode data capture Deployment requirements permeating enterprises • Imaging is rapidly becoming a critical agility- Touchscreen/Multi-touch enabling tool in a number of horizontal 26.8% applications and vertical markets Bar Code Scanner/Imager 20.5% Smartcard Reader/NFC 10.2% Pen/Stylus 9.4% VoIP 6.3% RFID Interrogator 5.5% Mag Stripe Reader 5.5% Speech Recognition 4.7% Other 6.3% 12 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  14. 14. Mobile Form Factor Requirements Next generation form factors in greater demand Leading Mobile Form Factors in Use/Under Evaluation 25.1% Standard Notebooks 15.7% 23.4% Smartphones 25.5% Organizations increasingly evaluating 22.8% emerging form factors Handheld / PDAs 21.0% to support their mobility requirements 11.5% Vehicle-Mounted Devices 7.4% 7.4% Slate Tablet 15.4% 3.1% Current Convertible Notebook 6.1% Planned Source: VDC Research End User Survey n: 487 (Fielded June/July, 2010) 13 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  15. 15. Next Generation Form Factor Adoption Substantial interest in iPad and other slate tablet solutions Adoption/Evaluation of iPad for Enterprise • Much of the groundwork developing Mobility Applications support frameworks for the iPad enterprise have been done with the iPhone over past two years Yes, have evaluated iPad and decided to deploy 13.6% • Approximately 500 of the 11,000 plus apps built specifically for the iPad (to- date) are for business purposes • Adoption occurring across a variety Yes, plan to evaluate iPad 30.0% of sectors and application environments, including:  Hospitality (Check-in/out)  Field Sales (Mercedes Benz Financial; Bausch & Lomb) Yes, have evaluated iPad and 8.6%  Healthcare (X-ray/CT Scan reviews) decided NOT to deploy  Financial/ Legal Services • However, some critical issues remain:  Application distribution through iTunes/AppStore No plans to evaluate or deploy 47.9%  Lack of ability to image an iPad iPad  Carrier billing for the 3G version 14 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  16. 16. Individual Liable Support Models Some embracing of individual liable support models in core enterprise mobility markets Enterprise Mobility Application • Level of support for employee liable devices will vary: Design/Deployment Approach  Full support (technical support; break-fix; unlimited network access; etc.): 35.5% Company purchased only  Limited support (email integration; calendar synch; etc.): Both company and employee purchased: Approved list 24.2% Both company and employee purchased: Any device  No support: 40.3% • Although overall Smartphone purchase decisions Employee purchased only: any device remain a centralized function or decision within corporations, the degree to which personal 1.4% devices enter the enterprise – and are supported by the enterprise – is driving change to this 12.1% process. • This shift from corporate to individual liable solutions continues, however, potential risks surrounding security could reverse or slow this 17.1% trend  New hybrid model emerging whereby all devices are CL, however, individuals will have to what portion of expense 69.4% is personal and what portion is for business use 15 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  17. 17. Important Selection Criteria When Evaluating Mobile Applications No surprise that cost leads in an uncertain economic environment … Important Selection Criteria • Cost will always be a primary factor in the decision When Evaluating Mobile Applications: making process around any large technology investment – (Overall) while mobile solutions aimed at enterprise environments Overall cost (license; maintenance; are increasing, vendors will still need to demonstrate deployment) 66% important integration, security, and manageability features to continue to gain ground. User friendliness 45%  Companies are continuing to run lean and IT budgets have not opened up. Integration with existing enterprise applications 45%  Mobility has become more strategic, and is increasingly on the radar of C-suite executives as a transformative technology. Ability to customize 40%  SaaS based solutions will help the mobile applications market thrive regardless of the tough economic environment due to lower up front costs and rapid ROI potential. Ability to scale functionality 29% Level of pre/post implementation support 24% Ability to scale users 21% Trusted partner recommendation 15% Hosted options 13% Vertical market design 2% 0% 25% 50% 75% Multiple response question 16 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  18. 18. End Users Generally Satisfied with Mobile Application Pricing…However, Pricing Benchmarks Have Yet to Be Established Evaluation of Enterprise Mobile • Perceived value of existing mobile workforce Application Value applications varies greatly. • Lack of established or consistent pricing policies for mobile applications remains a Their value exceeds their price key issue. • Price points of more sophisticated mobile workflow applications reach $10-$15 per user They are priced just right per month or more. However, price remains a critical concern for broader adoption of mobile solutions. They are priced too high by 10% • Pricing for more complex workflow applications that require more backend integration add an additional professional They are priced too high by 25% service burden. These take on a more typical enterprise SW pricing model including license and maintenance costs. They are priced too high by over 25% Not sure 0% 10% 20% 30% 40% 17 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  19. 19. Native vs. Cross Platform Development Each approaches has unique advantages and disadvantages… By using cross platform development tools, developers can effectively build a single mobile application to work across multiple OSes. Currently many vendors are coming to market with solutions – most of these solutions do not support all of the primary OS / platforms and only a subset. In addition, there are constraints to be considered in selecting a native platform compared to the cross platform. The table below shows the advantages and disadvantages of using native platform versus cross platform environments: Native Cross Platform • Library update • Direct technical support • Open Source solution • Code size • One programming language family for all Advantages • Stable • Common UI design can be implemented for multiple OSes • App store and device portal solution • Rapid development • Existing UI standard for mobile users • Better UI design result, can take full advantage of display • Library update • Technical support somewhat limited (must rely on dev. community) • Not all have Open Source solution • Library is limited • Different programming languages Disadvantages • Code size • Different UI design patterns • Potentially unstable • Lengthy development time • Not suitable to adopt one UI guideline for all • UI design depends on the platform and is somewhat limited Source: VDC Research 18 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  20. 20. Next Generation Application Deployment Level of investment in SaaS-based enterprise mobility solutions reaching scale • A key issue for organizations today is the lack of internal Enterprise Mobility Application resources to support mobile solutions. Design/Deployment Approach  End users are demanding increased access to a more comprehensive suite of enterprise applications on a broader collection of mobile devices. SaaS/Hosted solution  However, IT organizations do not have the resources capable of supporting these requirements. As a result Application resides behind corporate firewall demand for third party managed mobile services is expected to ramp. Other • Many operators and evaluators of enterprise mobility 5.7% 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 40.6% 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 53.7% 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. 19 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  21. 21. Mobile Software Developers & The Channel • The app store model is in turmoil and evolving – but thriving.  There exists a plethora of application store participants from a broad range of vendors including hardware OEMs, carriers, and mobile specialists.  Apple remains the pace setter, and continues reap solid revenues quarter after quarter from its App Store.  Entities such as the Wholesale Applications Community (or WAC) an open global alliance formed from the world’s leading telecoms operators will help with the necessary evolution  Emerging new business model from vendors such as GetJar, Apprupt, and Ondeego present important signals and point to the future direction of the evolution of the increasing complex app store space – while the proliferation of app stores seems to be reaching its climax, the likely next phase will be rapid consolidation – however, there is also opportunities for verticalization at the same time.  Carriers are cultivating developer communities and provide app stores to support of one or more mobile platforms used on the handsets they sell – examples included V Cast (Verizon), AT&T MEdia Mall, and Vodafone’s 360.  Enterprise mobility vendors are incorporating app store functionality into their offerings giving their customers the ability to maintain their own internal self-service app provisioning capability. • The key issues with most App Store current enterprise portal distribution platform that vendors will need to address include:  Lack of any means to enforce/guarantee employees install the application (push-based distribution of the application).  Lack of control over where the application goes. Once the application and provisioning profile are out, they can be installed on any device.  The ability to push custom mobile applications through an enterprise portal is expected to represent a viable distribution strategy for large and mid-sized organizations. 20 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  22. 22. Mobile App Distribution: Balancing Scale / Reach & Target Audiences • More market-oriented carriers and vendors understand that successfully selling premium mobile solutions into the workplace will have several attractive benefits.  Compared to the consumer segment, the enterprise segment offers less price elasticity, which eases the pressures on vendors to discount prices.  Mobile billing and near field communications will be a signification driver for new mobile applications for carries. • Premium mobile enterprise applications can present a win-win scenario, enabling vendors and channels to create more mobile connections and drive up data ARPU.  Business customers leverage and optimize their previous investment in critical back office systems by extending this functionality into the field and onto the mobile worker's handset. However, few best practices surrounding pricing and distribution for enterprise mobile software exist today with significant variance occurring on most mobile development projects being commissioned. • Apple’s App Store is currently supporting more mobile applications (225K+) than any other in the market today.  However, the majority of these applications target consumers - enterprises making mobile solutions available through the App Store have had difficulty gaining traction.  Historically, the challenge with the app stores has been the reaching the enterprise market with a viable interface for enterprise applications (not only is navigating for the appropriate applications a challenge, but the interface provides a company with little control) – this is changing rapidly with the incorporation of many of these elements within MDM vendors application stacks, and recently released offerings from mobile specialists such as Ondeego – RhoMobile is moving in this direction as well. • Different application store models may be circumvented by cloud based solutions and hosted applications, where applications will be available directly through mobile websites, and not necessarily through proprietary company owned application stores.  Today, these models are beginning to gain acceptance, whereby mobile devices with access to the internet can easily either download their mobile apps with access to proprietary content or use the mobile Internet itself. 21 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  23. 23. Mobile Channels Offer Varied Opportunities & Challenges Various distribution channels are emerging for mobile applications, each with their own benefits and challenges. Key capabilities, issues and consideration for each channel are summarized below: Device Vendor Category Carrier Distribution Mobile Web ISV / Systems Integrator Mobile App Stores • Permission required by • Open to any who sign Openness • Completely open • Partner development carrier agreement • Substantial (including • Limited cost (~$100-$200) to Entry cost and resources to manage introduce applications • None • NA Revenue Split relationship) • 70/30 revenue split • 60/40 revenue split • No consistent options • Strong micropayment options • Lack of strong or consistent • Professional service contracts Payment Options • Carriers beginning to • Limited options for enterprise solution with partners integrate with billing wide deployments Enterprise • Improving capabilities • Poor • Improving • Strong Integration • Improving - however, need • Limited to uneven. Large volume • Uneven – support by Discoverability separation between consumer • Uneven of small specialized solution different business units and enterprise providers. Value Chain • Low, but moving up • High / Broad • Low / Variable • Moderate Impact • Improving strength of • Strong for less sophisticated • Long term viability. However, • Primary model for more Considerations carrier professional service point solutions with limited serious limitations for current sophisticated native applications teams integration requirements enterprise requirements. Source: VDC Research 22 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  24. 24. VDC Research, Mobile & Wireless Practice • VDC Research was founded in 1971.  Continuous, profitable operation since.  Staff of about 30 located in Boston, Chicago, Los Angeles.  Focus on a number of different technology areas including: Mobile & Wireless, Embedded Hardware & Systems, Embedded Software & Tools, Industrial Automation & Control, AutoID & Transaction Automation, Power Management and a number of niche IT markets. • Over 14 years covering the Mobile & Wireless Market. • Syndicated & Custom engagements with clients in the Embedded Software & Tools Market. • Practice Team Members  David Krebs, Director  Eric Klein, Senior Analyst  Balca Korkut, Analyst 23 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice
  25. 25. Q&A Session Thank You for Attending this VDC Webcast. For more information about VDC Research coverage of the global markets for the enterprise & government mobility markets – please contact: David Krebs – Director | 508.653.9000 x136 Gerrald Smith – Senior Account Executive | 508.653.9000 x113 24 – 2010 VDC Research Group, Inc. Mobile & Wireless Practice