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

Mobile & Wireless PracticeDavid Krebs, Director

VDC Research Webcast

Driving Enterprise Mobility Demand: Understanding End User Requirements & Preferences

Frequently Asked Questions

These slides are from a webcast presented on 9/30/2010.

A full audio recording is available at:

http://vdcresearch.com/Landing/webcast93010.aspx

1 – 2010 VDC Research Group, Inc.

Mobile & Wireless Practice



VDC Research

Complimentary insights and marketing data on the

Enterprise & Government mobility Markets

available at:

www.vdcresearch.com



http://www.vdcresearch.com/

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).





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

The Evolution of Socialization & Impact

on Enterprise Mobility

1990 2000 2010+

Personal

Productivity Knowledge DistributionCollective

Intelligence

• Custom designed applications

on purpose-built devices

• Silo approach to solution

development

• Personal computing

• Email attachments, documents

and personal repositories

• One-way knowledge distribution

• Team-based computing

• Mobile deployment of enterprise

and social software

• Distributed learning and

collaboration



Generational Shift may Drive Change to Commercial

Sector Computing and Communication Requirements

78

44

100

0

40

80

120

160

200

240

United StatesBABY BOOMERS

(born 1946–64)

GENERATION X

(born 1965–77)

GENERATION Y

(born 1978–2004)

Population by Age Segment (in millions)

• Gen Y/Millennial generation has yet to

make their full impact on the commercial

sector workforce and is just beginning to

enter this workforce

• However, by 2020, the majority of the

commercial sector workforce is expected to

be made up by Gen Y/Millennial Generation

workers

• The current situation is more reflective of an

aging workforce as the Gen X workers

begin to replace the Baby Boomer

generation – the issue being the smaller

size of the Gen X population

• A corollary to the aging/shrinking workforce

and early retirement options is leadership

crisis

• One key difference is that Gen X typically

utilizes technology/Internet as a means of

escape whereby Gen Y uses technology as

a social tool



Mobile & Wireless Solution Requirements Will

Differ by Worker Type

Road Warriors and Executives (Knowledge Workers)

Mobile Office Professional (Corridor warrior)

Campus Mobile Worker

• Wireless Email

• Dashboards

• BI/CI

• Mobile CRM

• Approvals

• Expense Reporting

• Workflow Management

Mobile

Worker

Target

Applications

Preferred

Device

Technical

Requirements

Field Mobile Worker (Task/Line Worker)

• Wireless email

• Time & attendance

• Approvals

• Workflow management

• Mobile browser

• 3G+ GPS

• Push email

• Image capture

• Device management

• 3rd party apps

• Security support

• Push email

• Active sync

• Application partitioning

• WiFi

• Mobile browser

• 3G+ GPS

• Image capture

• Device management

• 3rd Party Apps

• Durability

• DECT functionality

• WiFi

• 3rd party apps

• Image capture

• Wireless email


• Approvals



• Dispatching


• Vertical applications

US Worker

Population

11.5M

12.6M

16.8M

14.3M



http://images.google.com/imgres?imgurl=http://www.mobiletopsoft.com/images/news/htc_touch_Elf_front-celsius.jpg&imgrefurl=http://www.mobiletopsoft.com/board/tag/windows_mobile_6_professional/2/date&usg=__oiZxGLQz8OLQgyjqPDQaG0-rSJM=&h=2516&w=1539&sz=595&hl=en&start=2&tbnid=iy5DoCoyNefWWM:&tbnh=150&tbnw=92&prev=/images?q=HTC+Touch&gbv=2&hl=en

Enterprises are Extending Anytime, Anywhere

Access to Horizontal Apps & Vertical Solutions

Healthcare

• Electronic health records

• Patient care

• Service management

Consumer & Industrial

• Direct store delivery

• Asset management

• Inventory management

Transportation

• Pick-up/Delivery

• Telematics

• Dispatching

Insurance

• Claims management

• Evidence management

• Loss adjusters

Public Sector

• Homeland security

• Emergency services

• Evidence Management

Oil & Gas

• Dispatching

• Maintenance/repair

• Asset management

Vertical Market Applications

Warehouse Distribution and Logistics

Mobile Workforce Management

Mobile Salesforce Management

Mobile Fieldforce Management

Mobile Enterprise Asset Management

Healthcare Consumer

& Industrial

Transpo Public

Sector

Oil & Gas Insurance

Horizontal Enterprise Solutions

Mobile HR Services



Enterprise Oriented Development Activities



Data capture applications aimed at asset tracking and the broad ERP category lead

• Data capture applications aimed at asset tracking

and the increasingly broad ERP category are the

top enterprise applications areas being

developed.

Enterprise Asset Management (EAM) mobile applications

are vital for large enterprises in heavy-asset industries

where operations and maintenance personnel are

dispersed.

ERP is an extremely broad application category, and

has expanded from the coordination of manufacturing

processes to the integration of enterprise-wide backend

processes – mobilizing these elements is occurring rapidly

and will be hastened by the marriage of Sybase on SAP.

Mobile BI/Analytics applications have be percolating as

of late with several new notable mobile entrants (most

notably Transpara, Mellmo (Roambi), and QlikView –

established players such as IBM/Cognos,

SAP/BusinessObjects, and Oracle have had BI

applications available on Smartphone platforms for

some time now.

28%

48%

38%

24%

20%

32%

24%

12%

6%

13%

6%

34%

13%

22%

31%

34%

19%

10%

16%

22%

15%

14%

38%

39%

40%

44%

46%

49%

67%

71%

71%

72%

80%

Business Intelligence/Analytics

Asset Management

Enterprise Resource Planning

Quality Control & Quality Assurance

Dispatch Management/Scheduling

Workforce Management

Surveillance/Inspection

Security Management

Ticketing/Citations

Command & Control/Comm./Mission Planning (Gov't)

Crime Scene Imaging/Investigation

Enterprise Oriented Development Activities (Overall)

Have already/currently dev. Planning No Plans

Organizations Are Moving Beyond Email

to Enterprise Applications on Smartphones

0% 20% 40% 60% 80% 100%

Wireless email

Personalized contacts

Content/employee portal

SMS alerts

IM

Inventory management

Field service managament

Sales force management

Customer interation management

Logistics management

Fully deployed Rolling out or partial deployment Evaluating or piloting No plans Don't know



Mobile Device Adoption Requirements



Common themes in battery life and cost of ownership…new/renewed focus on processing capability

6.2%

6.2%

9.0%

9.7%

11.0%

11.0%

12.4%

18.6%

20.0%

21.1%

22.8%

29.7%

32.4%

37.2%

42.8%

Integrated RFID interrogator

Touchscreen display

Display daylight visability

High local data storage capacity

Ability to print in the field

Integrated voice AND data capability

Integrated GPS/ Location awareness

Level of ruggedisation

Operating system

Processor speed

Device weight and ergonomics

Total cost of ownership

Price

Broadband wireless functionality

Battery life

Mobile Device Selection Criteria – Key Requirements

Source: VDC Research End User Survey

n: 487 (Fielded June/July, 2010)

Mobile Device Requirements



More sophisticated I/O requirements emerging

• Higher degree of multi-mode data capture

requirements permeating enterprises

• Imaging is rapidly becoming a critical agility-

enabling tool in a number of horizontal

applications and vertical markets

6.3%

4.7%

5.5%

5.5%

6.3%

9.4%

10.2%

20.5%

26.8%

Other

Speech Recognition

Mag Stripe Reader

RFID Interrogator

VoIP

Pen/Stylus

Smartcard Reader/NFC

Bar Code Scanner/Imager

Touchscreen/Multi-touch

Primary I/O with Most Recent Device Deployment

Mobile Form Factor RequirementsNext generation form factors in greater demand

Leading Mobile Form Factors in Use/Under Evaluation

25.1%

23.4%

22.8%

11.5%

7.4%

3.1%

15.7%

25.5%

21.0%

7.4%

15.4%

6.1%

Standard Notebooks

Smartphones

Handheld / PDAs

Vehicle-Mounted Devices

Slate Tablet

Convertible Notebook Current

Planned

Organizations

increasingly evaluating

emerging form factors

to support their mobility

requirements

Source: VDC Research End User Survey

n: 487 (Fielded June/July, 2010)



Next Generation Form Factor Adoption



Substantial interest in iPad and other slate tablet solutions

• Much of the groundwork developing

support frameworks for the iPad

enterprise have been done with the

iPhone over past two years

• Approximately 500 of the 11,000 plus

apps built specifically for the iPad (to-

date) are for business purposes

• Adoption occurring across a variety

of sectors and application

environments, including:

Hospitality (Check-in/out)

Field Sales (Mercedes Benz Financial; Bausch

& Lomb)

Healthcare (X-ray/CT Scan reviews)

Financial/ Legal Services

• However, some critical issues remain:

Application distribution through

iTunes/AppStore

Lack of ability to image an iPad

Carrier billing for the 3G version

13.6%

30.0%

8.6%

47.9%

Yes, have evaluated iPad and decided to deploy

Yes, plan to evaluate iPad

Yes, have evaluated iPad and decided NOT to deploy

No plans to evaluate or deploy iPad

Adoption/Evaluation of iPad for Enterprise Mobility Applications

Individual Liable Support Models



Some embracing of individual liable support models in core enterprise mobility markets

• Level of support for employee liable devices will

vary:

Full support (technical support; break-fix; unlimited

network access; etc.): 35.5%

Limited support (email integration; calendar synch; etc.):

24.2%

No support: 40.3%

• Although overall Smartphone purchase decisions

remain a centralized function or decision within

corporations, the degree to which personal

devices enter the enterprise – and are supported

by the enterprise – is driving change to this

process.

• This shift from corporate to individual liable

solutions continues, however, potential risks

surrounding security could reverse or slow this

trend

New hybrid model emerging whereby all devices are CL,

however, individuals will have to what portion of expense

is personal and what portion is for business use69.4%

17.1%

12.1%

1.4%

Enterprise Mobility Application Design/Deployment Approach

Company purchased only

Both company and employee purchased: Approved list

Both company and employee purchased: Any device

Employee purchased only: any device

Important Selection Criteria When Evaluating Mobile Applications

2%

13%

15%

21%

24%

29%

40%

45%

45%

66%

0% 25% 50% 75%

Vertical market design

Hosted options

Trusted partner recommendation

Ability to scale users

Level of pre/post implementation support

Ability to scale functionality

Ability to customize

Integration with existing enterprise applications

User friendliness

Overall cost (license; maintenance; deployment)

Important Selection CriteriaWhen Evaluating Mobile Applications:

(Overall)

• Cost will always be a primary factor in the decision

making process around any large technology investment –

while mobile solutions aimed at enterprise environments

are increasing, vendors will still need to demonstrate

important integration, security, and manageability

features to continue to gain ground.

Companies are continuing to run lean and IT budgets have

not opened up.

Mobility has become more strategic, and is increasingly on the

radar of C-suite executives as a transformative technology.

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.



No surprise that cost leads in an uncertain economic environment …

Multiple response question

End Users Generally Satisfied with Mobile Application Pricing…However, Pricing Benchmarks Have Yet to Be Established

0% 10% 20% 30% 40%

Their value exceeds their price

They are priced just right

They are priced too high by 10%

They are priced too high by 25%

They are priced too high by over 25%

Not sure

• Perceived value of existing mobile workforce

applications varies greatly.

• Lack of established or consistent pricing

policies for mobile applications remains a

key issue.

• Price points of more sophisticated mobile

workflow applications reach $10-$15 per user

per month or more. However, price remains a

critical concern for broader adoption of

mobile solutions.

• Pricing for more complex workflow

applications that require more backend

integration add an additional professional

service burden. These take on a more typical

enterprise SW pricing model including

license and maintenance costs.

Evaluation of Enterprise Mobile

Application Value



Native vs. Cross Platform Development

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:



Each approaches has unique advantages and disadvantages…

Native Cross Platform

Advantages

• Library update

• Direct technical support

• Code size

• Stable

• App store and device portal solution

• Existing UI standard for mobile users

• Better UI design result, can take full advantage of display

• Open Source solution

• One programming language family for all

• Common UI design can be implemented for multiple OSes

• Rapid development

Disadvantages

• Not all have Open Source solution

• Different programming languages

• Different UI design patterns

• Lengthy development time

• Library update

• Technical support somewhat limited (must rely on dev. community)

• Library is limited

• Code size

• Potentially unstable

• Not suitable to adopt one UI guideline for all

• UI design depends on the platform and is somewhat limited

Source: VDC Research

Mobile_Developer_Report_final (version 1).xlsx

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

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.

40.6%

53.7%

5.7%

Enterprise Mobility Application Design/Deployment Approach

SaaS/Hosted solution

Application resides behind corporate firewall

Other

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.



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.



Mobile Channels Offer Varied Opportunities & Challenges



Source: VDC Research

Category Carrier DistributionDevice Vendor

Mobile App StoresMobile Web ISV / Systems Integrator

Openness• Permission required by

carrier

• Open to any who sign

agreement• Completely open • Partner development

Entry cost and

Revenue Split

• Substantial (including

resources to manage

relationship)

• 60/40 revenue split

• Limited cost (~$100-$200) to

introduce applications

• 70/30 revenue split

• None • NA

Payment Options• No consistent options

• Carriers beginning to

integrate with billing

• Strong micropayment options

• Limited options for enterprise

wide deployments

• Lack of strong or consistent

solution

• Professional service contracts

with partners

Enterprise

Integration• Improving capabilities • Poor • Improving • Strong

Discoverability• Uneven – support by

different business units

• Improving - however, need

separation between consumer

and enterprise

• Uneven

• Limited to uneven. Large volume

of small specialized solution

providers.

Value Chain

Impact• Low, but moving up • High / Broad • Low / Variable • Moderate

Considerations• Improving strength of

carrier professional service

teams

• Strong for less sophisticated

point solutions with limited

integration requirements

• Long term viability. However,

serious limitations for current

enterprise requirements.

• Primary model for more

sophisticated native applications

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:

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



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

[email protected] | 508.653.9000 x136

Gerrald Smith – Senior Account Executive

[email protected] | 508.653.9000 x113



mailto:[email protected]

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