Why Now is the Time for Managed Enterprise Mobile Services

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Slides from the September 10, 2009 VDC Research Webcast presented by David Krebs, Practice Director, Mobile & Wireless Practice.

Managed services for enterprise mobility solutions are receiving heightened consideration as organizations - from SMEs to FORTUNE 1000 - evaluate approaches to more effectively and efficiently support enterprise mobility applications while minimizing their financial risk exposure. What is less clear, however, is which mobile applications are candidates for early adoption, what the preferred business models will be and which end user segments - target industry sectors and organization size - represent early adopters.

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Why Now is the Time for Managed Enterprise Mobile Services

  1. 1. Why Now is the Time for Managed E M d Enterprise M bil i Mobile Services Webcast Presentation - September 9, 2009 David Krebs – Director, Mobile & Wireless Practice
  2. 2. Webcast Goals, Objectives, Introduction • Goals and objectives include: j  Offering a market-driven definition for Managed Services in Enterprise Mobility  Providing context to the current state of the market and its influence on Managed Services  Highlighting enterprise mobility user and evaluator demand for Managed Services  Sharing key considerations for Enterprise Mobility solution providers  Inviting attendees to work with VDC Research to track and define this opportunity • Sources of information for this webcast include:  VDC’s annual Enterprise Mobility Research Service VDC s  End user survey on Managed Services conducted H1 2009 1 – VDC Research Group, Inc.
  3. 3. Mobility Remains Critical, but Spending is Slow Most traditional markets to decline materially in 2009 M t t diti l k t t d li t i ll i 2009 Revenue Growth Expectation (over p ( • Substantial contraction anticipated 2008) for 2009 over 2008 performance -11% Wholesale • Growth/ contraction expectations Utilities/ Telco 6% for 2009 by sector map to initial -17% Transportation VDC forecasts -21%  Hardest hit segments are ‘within four Retail walls’ environments such as retail shop Prof. Service 4% floor, manufacturing and warehousing -13% 13% Manufacturing  Some opportunity for field mobility solutions – especially around field -15% Industrial/ WH service, professional service and select Health Care 9% government/ military segments -6% State/ Local • Market is expected to rebound -6% Public Safety slightly in second half of 2009. Military 8% However, impact on overall 2009 Federal Non-Military 6% performance is expected to be minimal -30% % -20% % -10% % 0% % 10% % 2 – VDC Research Group, Inc.
  4. 4. Channels Are Pulling Price and Margin Levers Delta b t D lt between target and minimum margins greatest f h d t t d i i i t t for hardware offerings ff i Minimum and Target Margins by Core Offerings g g y g SERVICES S Hosted Applications 15% 19% Professional Services 18% 22% Training Services 16% 23% S Maintenance Services 16% 22% System Design and Integration 17% 23% Custom Developed Mobile SW 20% 25% SW Packaged Mobile SW 18% S 24% Wireless NW Infrastructure 12% 18% Rugged PDAs 11% 20% HW PDAs 10% 15% H Smartphones 8% Minimum 15% Rugged Notebooks 9% Target 15% Notebooks 7% 13% 0% 5% 10% 15% 20% 25% 3 – VDC Research Group, Inc. .
  5. 5. Mobility Remains Critical, But, How to Afford It? Q: Mobility investments becoming more strategic to our organization 50% 40% 44% 30% 26% 20% 16% 10% 10% 4% 0% Strongly Agree Neutral Disagree Strongly agree disagree 4 – VDC Research Group, Inc.
  6. 6. Benefits and Challenges of Mobility Solutions Many mobility investment challenges can by addressed by managed service model OUT OF BOX EXPERIENCE EFFICIENT APP DEPLOYMENT • OTA device • OTA push of applications provisioning Deployment A li ti D l t Application and updates • Software configuration Complexity Management • Seamless version control Customer Issues I • Security • Device diagnostics Remote Security • Remote lock and wipe • OTA fixes Management Management • Validate settings LOWER TCO DATA SECURITY 5 – VDC Research Group, Inc.
  7. 7. Managed Mobility Service Drivers There are a number of drivers shaping demand ... Most accounts cite more than one … • Cost Management g  Shift to variable IT cost  Lack of capital investment  Lower up front costs  Lower staffing costs • Data Protection  Compliance management (SEC; HIPAA; SOX; etc.)  Compliance with SW licensing agreements  Security compliance • Managing Distributed Enterprises  Greater than 120,000 distributed enterprises and 4 million b i d illi branch offices h ffi worldwide  As much as 60% of a corporation’s data resides outside of managed servers 6 – VDC Research Group, Inc.
  8. 8. Managed Mobility Service Adoption Concerns All issues – except wireless connectivity – are ‘the common ones’ cited across the IT market • Loss of IT control and vendor ‘lock- in’ are cited as the leading concerns – not uncommon with other managed service initiatives • Unique to mobility are issues surrounding wireless connectivity and operating in a disconnected state 7 – VDC Research Group, Inc.
  9. 9. Managed Mobility Service Adoption Sequence Device and security management to precede LOB applications? • Initial opportunity for managed pp y g services expected in broader device and security management solutions • Hosted applications to center initially around most established or robust solutions • Longer term opportunities addressing connectivity management 8 – VDC Research Group, Inc.
  10. 10. Key Messages and Success Requirements Confronting data control concerns: •Providers must be prepared to address these fears, typically through discussion on disaster management protocol and recovery systems. The security expertise of a hosted provider can far surpasses what the customer could perform internally. Instead of a drawback, security concerns can be turned into a key selling point for the hosted solutions Wireless connectivity challenges: •Hosted software solutions leverage the Internet as the primary access platform. As many mobile applications require operation in environments lacking network access, it is imperative that solutions are architected to enable offline utilization. Vendors typically address the problems by including an integrated platform on the device. Hybrid solutions: •Perhaps the most important requirement is that vendors not look at hosted mobile solutions as an either‐or option. Rather, they represent an opportunity for a select group of users supporting a specific set of applications. Consequently, a third model is emerging – hybrid SaaS – that enables the customer to deploy the software as a SaaS service or as an on‐premise solutions with the flexibility of switching on an as‐need p y g basis. Customization vs. Scalability: •One of the most critical debates for a vendor in the creation of a hosted solution is the degree of allowed customization. While the more standardized the application the more scalable the solution, client requirements do not fit into neatly defined feature sets. 9 – VDC Research Group, Inc.
  11. 11. Managed Services Deployment ‘Rules and Roles’ • Managed services offers an alternative approach for clients to acquire g pp q mobility solutions.  Designed and delivered according to a predefined statement of deliverables  Generally includes end to end service, service level agreements and assets/hardware.  Includes a recurring service-based pricing offering a more predictable cost c udes ecu g se ce based p c g o e g o e p ed ctab e cost. • Ongoing visibility of operational performance is provided and managed through pre-agreed performance parameters/SLAs.  Clients may include unique performance requirements such as degree of control and visibility, security availability, capacity, visibility security, availability capacity service continuity among others others. • The service provider is able to optimize the best balance of facilities, processes, resources, tools and metrics, resulting in the best overall value for the client.  Cost effectiveness achieved through instituting process standards and establishing and supporting a standard operating environment consisting of COTS services and solutions. “The enterprise sees a tremendous value in mobile solutions, but many organizations don’t have the resources to support it. That includes all companies, to the size of Home Depot.” VP, Business Development at Tier I Logistics Solution Provider. 10 – VDC Research Group, Inc.
  12. 12. Research Objectives • Global geographic coverage • Enterprise user analysis • Enterprise mobility supplier, managed services partner, channel analysis • Enterprise mobility solution provider capabilities and position analysis • Key issues, forces and trends driving market demand issues 11 – VDC Research Group, Inc.
  13. 13. Founding Sponsorship – A Range of Significant Benefits for Early Subscribers • Discounted pricing  10–15% below the post-publication price • Influence the scope, direction and content of the research  Additions or modifications to our survey instruments  Changes to definitions of markets and market segments  Adding certain analyses to our final deliverables • One on one One-on-one relationship with key contributing analysts • Monthly updates and real-time exceptional findings • Prospective on-site presentation and discussion of findings Study Publication Date Founding Sponsorship Period Nov/Dec 2009 Through September 30, 2009 30 12 – VDC Research Group, Inc.
  14. 14. Q&A Session Thank You for Attending this VDC Webinar For more information about VDC Research’s coverage of the global markets for Mobile and Wireless technologies – including the Managed Services – Enterprise Mobility Solutions 2009 Market Requirements and Solutions, Opportunity Analysis – please contact: David Krebs Director, Mobile & Wireless Practice davidk@vdcresearch.com | 508-653-9000 ext.136 Gerrald Smith Account Executive gsmith@vdcresearch.com | 508-653-9000 ext.113 13 – VDC Research Group, Inc.

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