HMD Global Business Smartphone Purchase Survey 2018 Global B2B... · In July 2018, HMD Global – the home of Nokia smartphones – commissioned a survey on smartphone purchase criteria

HMD Global

Business Smartphone Purchase Survey 2018 Findings related to Western European business users

2

Contents Introduction ............................................................................................................................................. 3

At a glance: .......................................................................................................................................... 3

Methodology ........................................................................................................................................... 3

Main findings ........................................................................................................................................... 4

Purchase criteria for businesses .......................................................................................................... 4

Businesses value a broad range of smartphones ............................................................................ 4

Affordable costs are important – especially for smaller enterprises .............................................. 5

Security patches, OS upgrades and bloatware ................................................................................ 6

Enterprise Mobility Management Solutions and deployment tools ............................................. 10

Age of smartphone fleet ................................................................................................................ 13

Smartphone brand as a purchase criterion ................................................................................... 14

Ranking of purchase criteria .......................................................................................................... 15

Importance of security features ........................................................................................................ 16

Antivirus software on smartphones .............................................................................................. 16

Mobile threat detection ................................................................................................................ 17

Regular and rapid security patches for smartphones ................................................................... 18

Enterprise Mobility Management (EMM) ..................................................................................... 19

Fingerprint sensor ......................................................................................................................... 20

Overview: rating of security features ............................................................................................ 22

Appendix: Android Enterprise Recommended programme .................................................................. 23

Awareness of Android Enterprise Recommended programme in Western

European businesses ......................................................................................................................... 23

Impact of Android Enterprise Recommendation .............................................................................. 24

3

Introduction In July 2018, HMD Global – the home of Nokia smartphones – commissioned a survey on

smartphone purchase criteria and security features in Western European businesses with

50+ employees.

At a glance:

• The supply of regular and fast security updates is the most important decision

criterion when purchasing new business smartphones, followed by guaranteed

OS upgrades and the supplier’s ability to provide a broad range of business

smartphones.

• Companies in Western Europe prefer more affordable mobile devices to high-

priced models.

• When comparing smartphone security features, regular and fast security patches

are the most trusted, followed by built-in mobile threat detection, antivirus

software and fingerprint sensors.

• Support of deployment tools and compatibility with Enterprise Mobility

Management solutions is still underestimated.

Methodology The study was conducted by Lightspeed on behalf of HMD Global – the home of Nokia

smartphones – in July 2018. Purchase decision makers from companies in France (100),

Germany (100), Italy (100), UK (100) and Spain (100) were surveyed via phone. All of them

are either entirely responsible for smartphone purchases (66.4%) or are responsible

along with some other people in the organization (33.6%). Those surveyed represented

smaller companies with 51 – 250 employees (229), middle-sized organizations with 251

– 500 people (118) and large corporates with 500+ employees (153).

4

Main findings

Purchase criteria for businesses

With the increasing digitalization of business processes and the mobilisation of

employees, smartphones have become indispensable tools. This is why "mobile" is

one of the big drivers for IT spending. We wanted to identify the most important

criteria for business decision-makers when purchasing smartphones.

Businesses value a broad range of smartphones

Choice matters: 68% of purchasers want a large range of devices. It’s important to

equip employees with smartphones that meet their individual needs.

Only 7% of respondents felt that a broad range was unimportant.

The survey results by company size show that the larger the company the more

important a broad range of products becomes. Only 64% of the smaller companies

(51-200 employees) say that a wide portfolio is important or very important, whilst

72% of large businesses (500+ employees) emphasise that choice is essential.

This reflects the fact that large organizations tend to cover more functions. With a

wider choice, those responsible can tailor their purchasing to find the perfect solution

for every member of staff. They can choose a simple phone for workers who only

need to make calls now and then or support heavy users effectively by specifying

powerful smartphones with a large screens and a powerful processors.

27%

41%

25%

6%

1%

0% 10% 20% 30% 40% 50%

very important

important

reasonably important

less important

not at all important

Purchase criterion: supplier offers a broad range of business smartphones

5

Affordable costs are important – especially for smaller enterprises

When it comes to purchase costs, Western European companies tend toward more

affordable devices. 81% consider affordable smartphone purchase prices to be

important to some degree. 66% of businesses put affordable purchase costs high on

their list of decision criteria.

24%

40%

28%

7%

1%

28%

42%

23%

7%

1%

29%

43%

22%

5%

1%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: supplier offers a broad range of business smartphones

>500 employees 251-500 employees 51-250 employees

“The Nokia smartphone range is one of the most complete offerings of Android

Enterprise recommended smartphones on the market today. It includes the high-

end smartphone Nokia 8 Sirocco; the upper midrange models Nokia 7 Plus and

Nokia 6.1; the recently launched Nokia 5.1 (32GB) and the value-for-money device

Nokia 3.1 (32GB).

In addition to the Android Enterprise Recommended smartphone fleet, we offer the

budget smartphones Nokia 2.1 and Nokia 1 or our large selection of feature phones

including the Nokia 3110 and the Nokia 8110 for more basic needs. Feature phones

are also increasingly in demand from managers looking for secondary devices

featuring a very long battery life to handle long voice calls.”

Jon French, Vice President Western Europe at HMD Global

6

In terms of company size, we see a slight tendency for large enterprises with 500+

people to pay less attention to cost than smaller companies, but, in general, cost

saving is also quite important to them.

Security patches, OS upgrades and bloatware

25%

44%

21%

7%

2%

21%

43%

28%

6%

2%

26%

35%

29%

7%

3%

25%

41%

25%

7%

2%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: affordable price

total >500 employees 251-500 employees 51-250 employees

“Due to digitalization and related high investment costs, ICT budgets are

under pressure at most companies. Therefore, cost-efficient purchasing is

important for all of them. This is evident from the widespread adoption of

BYOD concepts: 85 percent of those surveyed say that their company

allows the use of private smartphones for work. On the one hand, they

want to give employees the opportunity to use their preferred

smartphones, but on the other hand they also want to save on their own

procurement costs.

Cost-efficient procurement has several aspects: affordable purchase costs,

great durability for a long device lifetime and the option to choose from a

broad range of smartphones. The latter is important to ensure that

everyone gets exactly the model that fits their needs - low requirements

can be met with a cheaper device.”


7

The research company Ponemon Institute reports that in 2017 the global average

cost of a single data breach reached $3.62 million. That finding reveals that

organizations should take IT security in general – and mobile security in particular –

very seriously. An important element in a enterprise security strategy is the rapid

availability and immediate deployment of security patches to keep vulnerability low

and to prevent cyber criminals exploiting security gaps.

We therefore wanted to know the importance of security patches as a purchasing

criterion. The results found are encouraging: 95% of Western European enterprises

are aware of the high relevance of rapid availability and deployment of security

patches. 39% say it's very important.

However, broken down by company size, the survey results show a more diverse

picture. It is evident that large enterprises with 500+ employees have recognised the

importance of regular and rapid security patches. 46% respond that they consider the

patch issue to be a very important purchase criterion. For smaller companies with

less than 250 employees, the level of those who see it of highest importance goes

down to just 33%. Overall, there seems to be a need to stress the relationship

between the regular and rapid availability of security patches for smartphones and IT

security in general.

39%

41%

15%

4%

1%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: regular, fast security updates

8

33%

43%

17%

5%

2%

40%

42%

14%

5%

0%

46%

38%

14%

1%

1%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: regular, fast security updates


33%

42%

17%

6%

2%

36%

39%

21%

3%

1%

33%

44%

19%

3%

1%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: guaranteed OS upgrades


9

When it comes to OS upgrades, e.g. from Android Oreo™ to Android 9 Pie, the

breakdown across company sizes is more consistent. This may be related to the fact

that OS upgrades are strongly linked in our minds to the availability of the latest user

interface and offer ‘the appeal of the new’. However, that is just one side of the coin:

OS upgrades are also a matter of security. With the latest operating system,

smartphones get the latest security features onboard and become more resilient

against cyber attacks.

Bloatware is also relevant to security. For IT managers these unnecessary apps can

prove difficult to control as they may unnoticeably share data with servers and they

are often difficult or impossible to delete. To avoid unnecessary risk, you should

therefore make sure that devices are equipped with as few apps as possible on

purchase.

Many of our respondents were unaware of this issue. Just over half of the

respondents say that bloatware plays an important or very important role in the

purchase decision. Once again, smaller companies are less worried than large

organizations. It is noticeable that the awareness of the problem is most apparent in

medium-sized companies with 200 to 500 employees.

17%

30%

31%

14%

8%

20%

38%

31%

7%

4%

25%

31%

27%

12%

5%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: absence of bloatware


10

Enterprise Mobility Management Solutions and deployment tools

Based on corporate policies, Enterprise Mobility Management (EMM) solutions act

as a central management platform for mobile devices. They enable IT administrators

to manage and monitor mobile devices, installed apps and mobile access to corporate

resources such as email servers or cloud services. In addition, EMM suites are able to

separate private from corporate data to allow both private and business usage of

smartphones without compromising security.

EMM is considered an essential building block for comprehensive IT security

strategies in companies. Therefore, when purchasing a business smartphone, it

makes sense to check whether EMM compatibility exists.

“IT security is becoming increasingly important. Cyber defense on

smartphones begins when you make your purchase decision. Regular and

fast security patches, OS upgrades, and the absence of unnecessary

bloatware make mobile devices more resilient against hacker attacks. The

Nokia smartphone portfolio embraces many Android One certified models

in all product categories. This guarantees that the smartphones concerned

are running the pure, unmodified Android™ operating system developped

by Google. All our Android One smartphones receive monthly security

patches for three years and OS upgrades for two years as of the date of

market launch. In addition, they come with only a small, curated set of

apps.”


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We wanted to know whether the decision makers recognise this. In general, they do

know that compatibility to EMM could be of importance, although they don’t give it

the highest priority when making a purchase decision. 43% say it is an important

criterion, but only 23% - less than a quarter of respondents - think that EMM

compatibility is very important when purchasing a smartphone.

When analysing the answers with regard to the size of the company, it is noticeable

that the situation is not uniform. Of smaller companies with fewer than 200

employees, 48% consider EMM compatibility an important or very important feature,

which is around the same level as the large corporates with 500+ people. Medium-

sized businesses came out as EMM forerunners with 64% deployed.

The relevance attached to smartphone compatibility with EMM solutions correlates

fairly well with the installed base. A higher percentage of medium-sized companies

stated that they want to cover EMM compatibility for future purchases.

24%

41%

17%

15%

3%

19%

53%

26%

3%

0%

26%

39%

27%

6%

3%

23%

43%

22%

9%

2%

0% 10% 20% 30% 40% 50% 60%

very important

important


less important


Purchase criterion: compatibility to the Enterprise Mobility Managment (EMM)

total >500 employees 251-500 employees 51-250 employees

12

48%

32%

20%

64%

19%

18%

49%

33%

18%

0% 10% 20% 30% 40% 50% 60% 70%

EMM deployed

EMM not deployed

not yet, but weare looking into this

Usage of Enterprise Mobility Management solution (EMM)


“At the end of 2017, Google announced that they will deprecate Device

Administrator APIs with the launch of Android Q. All Nokia Android One devices

featuring Android Oreo - and being ready for Android 9 Pie - support native

Android enterprise management APIs. This makes them out-of-box compatible

with a broad variety of Android enterprise ready EMM solutions from companies

who partner with Google on platform level validation.

The depreciation of the legacy management APIs from Android platform means

that companies need to take Android enterprise capabilities of the EMM solution

to use with new device enrolments. Several EMM providers are actively

communicating to their customer base how to make this happen smoothly and

efficiently. The migration to state-of-the-art-solutions and devices allows

companies and users to take full advantage of the new Android OS capabilities.”

Andrej Sonkin, General Manger Enterprise Business at HMD Global

13

The rather hesitant attitude towards deployment tools that we see in the chart below

is quite striking. Zero-touch enrolment, for example, could help IT teams roll out a

large number of new devices quickly and automatically. This would relieve them of a

lot of routine work and allow them to use their time for other more demanding tasks.

Age of smartphone fleet

The vast majority of devices in the corporate smartphone fleets are two years old or

even more. If the phones don’t receive the latest OS upgrade or patches to close

identified security gaps, they could be a serious risk for data privacy. This is quite a

big risk given the high penalties for violations of the rules of the General Data

Protection Regulation (GDPR), which came into force as of May 2018, and also the

high costs of successful intrusions into the corporate network.

18%

34%

28%

15%

5%

14%

41%

32%

8%

4%

18%

39%

29%

11%

4%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: support of deployment tools


14

Smartphone brand as a purchase criterion

For corporate procurement, brand is a relevant purchase decision criterion. All in all,

63% of respondents say that they rate brand as important or very important. An

additional 24% think that the brand name is somehow relevant.

34%

48%

15%

3%

36%

41%

18%

5%

42%

38%

14%

6%

0% 10% 20% 30% 40% 50% 60%

less than two years

approx. 2 years

2 - 3 years

more than 3 years

Age of devices in the smartphone fleet


“Analysing the figures from Android Developers is revealing: at the middle of

August 2018 only 12 percent of all Android™ smartphones used Oreo, which has

security-related improvements, compared to previous Android versions.

Considering that on a global level close to 80% of all smartphones in companies

are Android devices, and more than the half of them still run on Android 6 or

even older versions, some companies have a lot of catching up to do.”

Andrej Sonkin, General Manger Enterprise Business at HMD Global

https://developer.android.com/about/dashboards/

15

Ranking of purchase criteria

The supply of regular and fast security updates is the most important decision

criterion when purchasing new business smartphones. With 3.13 on average,

respondents rank the role of security patches between important and very

important. The number two purchase criterion is the guarantee for OS upgrades

(3.02) followed by the supplier’s ability to provide a broad range of business

smartphones (2.87).

Compatibility with deployment tools and the absence of bloatware have the smallest

impact on the purchase decision.

21%

42%

24%

11%

2%

0% 10% 20% 30% 40% 50%

very important

important


less important


Purchase criterion: smartphone brand

2.49

2.51

2.70

2.76

2.79

2.87

3.02

3.13

2.00 2.20 2.40 2.60 2.80 3.00 3.20 3.40

absence of bloatware

support of deployment tools

brand

compatibility to EMM

affordable price

broad smartphone range

guaranteed OS upgrades

regular and fast security updates

Average rating of purchase criteria

0: not at all important 1: less important 2: reasonably important 3: important 4: very important

16

Importance of security features

Mobile security is a must for all businesses regardless of their size. According to the

2018 Verizon Mobile Security Index report, 93% of respondents agreed that

organizations should take mobile security more seriously. The Verizon analysts found

that companies are sacrificing mobile security for expediency and business

performance. Those that said they knew their organization did this were more than

twice as likely to have experienced data loss or downtime.

IT security and mobile security need to be taken seriously to avoid data breaches and

downtimes. IT security can easily be improved, but unfortunately how to do it - - such

as obtaining regular security patches for smartphones - is often neglected. In the

following analysis, we sum up the approach of those responsible for these vital

business decisions.

Antivirus software on smartphones

Would you run a desktop computer or a notebook on your network without

deploying antivirus software? You certainly would not. Most of our respondents are

aware that smartphones need to be treated in the same way – in fact, it’s arguably

even more important as they will largely be used outside the company building/s and

off its network.

Our finding shows that most of the companies – whatever their size - find antivirus

software indispensable. Less than 2% refuse to accept the need for mobile malware

defense.

34%

37%

22%

6%

1%

36%

42%

18%

3%

1%

34%

38%

22%

5%

2%

0% 10% 20% 30% 40% 50%

very important

important


less important


Importance of security features: antivirus software


17

Mobile threat detection

Mobile threat detection protects smartphones from advanced security threats. It

actively scans and monitors mobile devices and applications to detect any hidden

anomalies indicating a possible attack on the device that could compromise data

security.

93% of Western European companies acknowledge the need for built-in mobile

threat detection such as Google Play Protect - Google's built-in malware protection

for Android. The findings in the Google report “Android Security 2017; Year in

Review” testify to the effectiveness of such a solution. According to Google, offline

scanning of apps has blocked more than 10 million harmful app installations since

October 2017.

32%

42%

17%

7%

1%

34%

42%

18%

6%

1%

32%

39%

23%

5%

1%

0% 10% 20% 30% 40% 50%

very important

important


less important


Importance of security features: built-in mobilethreat detection


18

Regular and rapid security patches for smartphones

Rachad Alao, Engineering Manager, Android Media Framework at Google, briefly

summarizes the advantage of a fast deployment of security patches. He said,

“Regularly scheduled updates deliver more than just updates and fixes. They deliver

a strengthened sense of security to our customers.”

The findings in our survey suggest that Richard Alao is right. 95% agree with the

importance of regular and fast security patches on smartphones.

32%

43%

19%

6%

0%

36%

42%

20%

3%

0%

35%

47%

12%

4%

2%

0% 10% 20% 30% 40% 50%

very important

important


less important


Importance of security features: regular and fast security patches


https://www.android.com/intl/en_uk/security-center/monthly-security-updates/

https://www.android.com/intl/en_uk/security-center/monthly-security-updates/

19

Enterprise Mobility Management (EMM)

It has not yet penetrated everywhere that EMM is a very powerful and effective tool

for enforcing corporate security policies while facilitating device administration. The

assessment of the importance of EMM suites for mobile security corresponds with

this. Only a quarter of respondants acknowledge that EMM is a very important

security tool. This figure is significantly lower than those for security patches (34%),

mobile threat detection (33%) and antivirus software (34%).

23%

36%

28%

9%

4%

33%

38%

24%

4%

1%

25%

40%

25%

8%

3%

0% 10% 20% 30% 40% 50%

very important

important


less important


Importance of security features: Enterprise Mobility Management


20

Fingerprint sensor

Fingerprint sensors let users unlock their device and securely sign in to apps and log

into the company network - all with the tap of a finger. When asked about their rating

for secure access via fingerprint sensors, the respondents are rather hesitant: 59%

find it important or very important. The smaller the company, the lower the

confidence in fingerprint sensors as an important security tool.

However, the Google security study suggests that the ease of use of fingerprint

sensors motivates people to use the screen lock on their smartphones. As of 2017,

85% of devices with a fingerprint sensor running Android Oreo had a secure lock

screen in comparison to only 33% of non-fingerprint devices. Clearly, companies need

to make security as easy as possible for busy employees.

22%

39%

22%

11%

6%

25%

39%

30%

6%

1%

25%

31%

30%

9%

5%

0% 10% 20% 30% 40% 50%

very important

important


less important


Importance of security features: secure access via fingerprint sensor


21

22

Overview: rating of security features

A comparison of the rating of all security features shows that regular and fast security

patches are most trusted with an average rating of 3.06, followed by built-in mobile

threat detection and antivirus software, averaging at 2.99 and 2.98 respectively. On

average, fingerprint sensors only reach 2.64 and thus contribute the least to mobile

security from the interviewees' point of view.

2.64

2.76

2.98

2.99

3.06

Fingerprint sensor

EMM solution

built-in mobile threatdetection

antivirus software

regular, fast securitypatches

Average rating of security features

0: not at all important 1: less important 2: reasonably important 3: important 4: very important

23

Appendix: Android Enterprise Recommended programme

Awareness of Android Enterprise Recommended programme in

Western European businesses

The Android Enterprise Recommended programme includes a selection of smartphones that

have been validated by Google and meet a set of requirements targeted at business use. The

programme makes it simple for businesses to confidently select, deploy and manage Android

devices and services.

The Android Enterprise Recommended programme was only set up in February 2018, but,

despite that fact, 56% of respondents say that they’ve heard about it.

The survey reveals great interest in the programme. In fact, the vast majority of those who

aren’t already familiar with Google’s enterprise recommendation would like to know more

about it.

yes 56%

no44%

Do you know the Android Enterprise Recommended Programme?

yes 63%

no37%

In case you don't know Android Enterprise recommend programme, would you like to

find out more?

24

Impact of Android Enterprise Recommendation

Those who are already aware of the programme really value its advantages. 56% say that

they exclusively choose smartphones from the Android Enterprise Recommended

programme, while another 42% of Western European businesses consider Android

Enterprise Recommended devices, but also purchase smartphones outside the programme.

Only 2% say that an Android Enterprise recommendation does not impact their choice.

55.60%

42.80%

1.60%

0% 10% 20% 30% 40% 50% 60%

We only choose AndroidEnterprise recommended

devices

We consider AndroidEnterprise Recommended

devices, but may also chooseother smartphones

Android EnterpriseRecommended does not

impact our choice

Impact of Android Enterprise Recommendation

25

About HMD Global

Headquartered in Espoo, Finland, HMD Global Oy is the home of Nokia phones. HMD designs and markets a range of

smartphones and feature phones targeted at a range of consumers and price points. With a commitment to innovation and

quality, HMD is the proud exclusive licensee of the Nokia brand for phones and tablets.

For further information, see www.hmdglobal.com.

Nokia is a registered trademark of Nokia Corporation. Android, Google and other marks are trademarks of Google LLC. Oreo

is a trademark of Mondelez International, Inc. group.

Documents

HMD Global Business Smartphone Purchase Survey 2018 Global B2B... · In July 2018, HMD Global – the home of Nokia smartphones – commissioned a survey on smartphone purchase criteria