DECEMBER Market Report

Looking Forward and Back:

Where Is Enterprise Mobility Headed In 2018?

Sponsors:

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 2

FOREWORD

Table of Contents:

VDC Research, a leading independent enterprise mobility research authority, again collaborated with Enterprise Mobility Exchange to measure investment priorities leading into the next year; in this case 2018. Conducted among senior decision makers during October and November 2017, the research was designed to compare results with a similar study conducted in 2016, measuring topics such as investment drivers and barriers, mobile application development strategies, budget trends and the strategic value of enterprise mobility relative to other IT investment priorities. .

About the AuthorDavid KrebsDavid 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).

Cloud, AI Become Top Priorities

3Investments Catching Up with Demands

4Same Challenges, Enhanced Tools

5

More Apps? Yes, Please

6Shifting to UEM

8Sponsor Spotlight

9About Enterprise Mobility Exchange

10

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 3

Cloud, AI Become Top Priorities

Technologies That Will Have Greatest Impact in Driving Business Transformation Over the Next Three Years

31%28%

18% 16%

11% 10% 8%4%

1%

23%

4%

19%

4%

16%

2%4%

While the term digital transformation is overused, digitization trends are forcing businesses to invest in new technologies. The cloud is just one of several inter-related trends that have forever changed the IT landscape – mobile applications and social networks are contributing to the explosive growth of data, and big data trends are contributing to and exacerbating the move into the cloud as companies seek more agile ways to scale up quickly and to experiment with new apps and analytical approaches.

Mobility is transformational in how organizations are operating and represents a crucial channel for interfacing and interacting with customers and employees. However, mobility has also represented a game of compromises, especially with respect to both the performance of the network, the application and the mobile device. Considering the criticality of the workflows supported by mobile devices – from field service operations to first responder situational awareness – mobile solutions need to operate flawlessly to avoid costly disruptions to operations. Moreover, customers need the right tools to provide necessary visibility and reporting on any connected device to proactively manage mobile assets and

address potential points of conflict or disruption. It is through this ability to actively measure and refine organizations are able to optimize their business critical mobile workflows.

According to our survey the top two technologies which are expected to have the greatest impact on business transformation remain cloud computing and mobile solutions when comparing the 2017 with the 2016 survey results. (Figure 1) However, closer evaluation of the data yields some striking changes, including:

yArtificial Intelligence and Machine Learning have shown significant gains in their potential impact with AI supplanted Big Data/Analytics as a top three candidate for business transformation.

ySome of the early buzz surrounding IoT appears to be waning, supplanted by more realistic expectations. While IoT solutions are having a very real impact on businesses today – among others around asset intelligence and predictive maintenance – businesses today also have a greater grasp on what applications deliver real value.

Cloud Computing

Mobile

Artificial

Intelligence

Data/Analytics

Machine

Learning

y2017 y2016

IoT (Internet

of Things)

Social Media/

Collaboration

Wearable

Computing

Figure 1

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 4

Enterprise Mobility Investments Catching Up with Demands Access to increasingly powerful mobile devices, intuitive and immersive applications and robust networks has significantly changed the way we work. In fact, VDC estimates that mobile workers represented 59% of the total workforce – or 1.7 billion workers – in 2016. This is up substantially from just over 1 billion mobile workers in 2010. Field workers – workers who spend the majority of their workday in the field or outside the four walls of a physical location – represent a significant proportion of these workers supporting occupations as diverse as EMTs, wind turbine service technicians and visiting nurses. (Figure 2)

Organizations in 2017 appear to be better addressing their workforce’s requirements, in particular when it comes to mobile solutions. Although the “app gap” within organizations remains a very real issue, overall adoption of mobile apps, the pace of an organization’s mobile initiatives and their ability to provide their workers with the right tools are all trending in the right

direction according to research results. More specifically:

y In comparison to 2016, organizations in 2017 are more likely to provide mobile access to enterprise applications (69% vs. 52%)

y Organizations in 2017 expressed a significant increase in adoption of

specialized vertical or line of business oriented applications over 2016 (34% vs. 20%)

y Overall budgets for enterprise mobility initiatives continue to grow. In 2017, budgets grew by 7% over 2016 according to survey respondents. In 2018 they are expected to jump by an even greater 10% over 2017

Your organization’s ability to provide you with the right/best tools required to do your job

Your organization’s adoption of mobile apps

The pace of your organization’s mobile initiatives

72%

66%

54%

52%

52%

45%

y2017 y2016

Respondents ‘Somewhat’ to ‘Completely SatisfIEd’ with the Following: Figure 2

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 5

Same Challenges, Enhanced ToolsMobile solutions still represent a major challenge for organizations. In fact, according to a recent survey, 63% revealed their organization struggles engaging with their customers through mobile devices. The challenges are manifold and span technical, operational, financial and often legal domains. Coordination among individuals with network, security, device, application and budgetary responsibilities represents a critical first step any successful mobility initiative must undertake. (Figure 2)

Included among the most significant mobile investment barriers cited by decision makers are: ySecurity concerns. A critical building block

requirement for any field mobility solution. However, with the growing number of connected end points managed by enterprises, the points of vulnerability are only increasing. Almost one in two respondents to our survey admitting being the victim of a recent cyber-attack or data breach. According to respondents, the greatest point of vulnerability are communication protocols, remote access and mobile devices and connected devices. However, organizations struggle staying current with new threats and developing/maintaining appropriate cybersecurity personnel to effectively address these issues.

yWireless coverage issues. Network coverage is not a given for many field workers who operate in remote locations. Designing solutions with this reality is a critical yet often overlooked requirement. Ensuring that applications perform in an offline state in addition to addressing performance and session persistence in areas with limited coverage all need to be taken into consideration to minimize downtime or disruption events.

yApplication performance. Many applications are not well designed and are very chatty often making the same service calls over and over again. While chattiness of applications is not always avoidable, it can be optimized and leveraging the necessary tools to at first diagnose application performance issues and then address then to minimize network congestion is crucial for field mobile solutions. According to VDC’s research, application and network performance issues are the top two contributors driving helpdesk calls and creating trouble tickets by field workforces.

yProject complexity and support infrastructure. Knitting together the key team members to effectively address an organization’s mobility requirements is challenging in that it spans multiple functional departments and points of influence, including, for example: network, application, security and finance. In addition, making the business case around the benefits of mobile investments can be less tangible, especially when measuring outcomes such as the quality of an end user experience or the impact on customer experience and service.

Budget

Time, resources or skills

Lack of clear ROI

Developing comprehensive strategy

Managing expectations

Security

Keeping up with pace of change

Mobile device management

Executive / business leader support

Backend integration

Ongoing support

Choosing platform / technologies

User adoption

Implementation/change management

16%22%

16%12%

7%11%

4%11%

1%10%

13%8%

5%7%

2%5%

6%4%

7%4%

2%4%

2%1%

7%1%

2%0%

Single Greatest Challenge Keeping Organization from Realizing Enterprise Mobility Strategy

y2017 y2016Figure 2

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 6

More Mobile Apps? Yes, Please. Satisfying corporate demand for mobile apps has become a challenge for many organizations—experienced mobile developers are not only hard to find, but are also costly. In addition, outsourcing the development of mobile apps to digital agencies and/or to offshore providers makes delivering quality software at scale a challenge. It is well established that mobile enabling a workforce with the right apps can bring productivity gains, but augmenting and modernizing long-relied upon workflows with mobile applications remains a complex and challenging endeavor. The stakes are high, as the costs associated with developing and deploying mobile applications are significant.Even though only one in three organizations claim to have sufficient funding for all of their mobility initiatives, our research shows that organizations are making meaningful investments in mobile applications to enhance their relationship with customers and to increase employee productivity. The appetite for mobile applications is fueling high growth for mobile application development platforms and tool vendors and is largely being driven by the expansion of mobile applications across business units. While mobile applications become impossible to ignore and require new investments in application development platforms and tools, most organizations are challenged to improve the speed and agility of their application development processes. While companies recognize

the potential value mobile applications can bring, choosing a development approach entails many parameters: budget, project timeframe, target audience, and application functionality. Finding the approach that best addresses the unique needs of each project is becoming increasingly challenging. Mobilizing and integrating manual business processes and workflows with modern mobile platforms is complex and can also be costly,

as many legacy applications are not being abandoned and new mobile applications require a high degree of specialized skills. Aging applications have not only become costly to maintain, they are also becoming barriers to innovation, data sharing, and agility – many legacy platforms are also being “sunsetted”, which will force customers to modernize their applications. (Figure 4)

Total Mobile Apps Deployed

2016

8.6

13.6

2017

Figure 4

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 7Key findings according to our research yielded the following:yThe total number of mobile

enterprise applications deployed increased substantially – from 8.6 in 2016 to 13.1 in 2017; an increase of over 50%.

yDevelopers in organizations with >1,000 employees spend 40% of their time developing for mobile platforms. 43% develop platform agnostic apps.

y56% of organizations in our end-user survey indicated that they were not satisfied with the pace in which their organization was adopting mobile applications. 60% of

organizations in our end-user survey indicated they had an “app gap”.

y38% of organizations with >1,000 employees have teams with 10 or more developers that focus exclusively on developing mobile applications.

yVDC’s data shows that on average, organizations require more than six months to develop and deploy a single mobile application; 48% spend more than $100K on each mobile application they develop.

yThe development of mobile applications is no longer IT-led; VDC data showed that

more organizations have business units taking the lead role in furthering their mobile application initiatives. 71% of organizations with >1,000 employees are aware of mobile applications that have been developed that are not part of the “developer team”.

y53% of large organizations (organizations with >1,000 employees) stated that the most common development projects they worked on involved building net-new applications from the ground up; however, 43% stated they were modernizing existing legacy applications.

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 8

The Shift To Unified Endpoint ManagementChances are that the number of and diversity in the endpoints your organization manages is expanding. Chances are that your organization is seeing visible changes across your workforce in the way that users are interacting with technology; and your users want access to their go-to applications on their preferred platform. With the number of endpoints that will need to be managed – both traditional and non-traditional – continuing to grow, implementing an endpoint management solution that can automate, regulate and simplify the management of your devices is the direction the market is beginning to take. With the number of “non-Windows” endpoints organizations support continuing to expand, the opportunity for EMM (Enterprise Mobility Management) vendors to reinvent their businesses around the possibilities these new platforms offer will be significant—however, executing on this pivot will be a defining event for the market. EMM vendors are wise in developing strong platform support capabilities for modern PC OSes such as Microsoft’s Windows 10 and Apple’s OS X; however, we expect to see enterprises continue to hold on to their legacy Windows OS PCs for years to come. Even though Microsoft officially ended support for Windows XP two years ago, a

significant number of these PCs remain in service. While support for Windows 7 is scheduled to end in 2020, it is likely that these devices will also remain in service for at least three to five years beyond that date. This means that the opportunity to offer expansive unified endpoint management (UEM) solutions won’t fully be realized for at least another six to eight years. While EMM vendors will be able to cater to certain UEM use cases, they should not expect to see significant uplift from these

solutions in the near term. Until the inefficiencies of maintaining separate endpoint management solutions for mobile and PC platforms become painfully apparent, most organizations will hold off on making meaningful investments in UEM. 87% of our survey respondents indicated that they expected efficiency gains from the ability to manage both fixed (i.e., PC, servers, etc.) computer platforms and mobile deployments from a single endpoint management platform.

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 9

SponsorS Spotlight AT&T makes managing mobility simple. Our Unified Endpoint Management solutions help you harness the full power of mobile technology to transform every aspect of your business—giving you a real competitive edge. AT&T helps global organizations innovate faster, make their data work harder, and help their people work smarter.We strip out all the complexity of managing mobile devices, applications and content, making it easy for you to connect people to each other and to the information they need—anytime, anywhere and on virtually any device.All this experience has helped us build a comprehensive Unified Endpoint Management portfolio. It includes solutions for creating successful mobility strategies; managing and helping to secure mobile devices, applications and content; developing groundbreaking mobile apps; controlling mobility costs; and helping your people work together in innovative ways. Give your people what they need, when they need it—without driving up costs or adding more IT complexity. This is enterprise mobility, only simpler. att.com/business

The MobileIron platform was built to secure and manage corporate data in a world where devices are used for both personal and professional activities. MobileIron incorporates identity, context, and privacy enforcement to set the appropriate level of access to enterprise data and services. With MobileIron, companies can protect corporate data, securely deliver apps and content, and let employees choose the devices they want to use. MobileIron has been named a category leader by top industry analysts and has been granted 43 patents for its modern enterprise security innovation. More than 14,500 companies worldwide have chosen MobileIron for mobile security.www.mobileiron.com

Mobile Labs provides enterprise-grade mobile device clouds that improve efficiency and raise quality for agile, cross-platform mobile app and mobile web deployments. The company’s patented device cloud, deviceConnect™ is available in both public and on-premises configurations. deviceConnect provides affordable, secure access to a large inventory of mobile devices across major mobile platforms to developers, test engineers, and customer support representatives, among others. At the heart of enterprise mobile app deployment, deviceConnect enables automated continuous quality integration, DevOps processes, as well as automated and manual app/web/device testing on real managed devices. For more information please visit www.mobilelabsinc.com.

Mobile Solutions is a SaaS company that provides full life-cycle Managed Mobility Services including procurement, staging and kitting, real-time expense management, business analytics and reporting, managed Enterprise Mobility Management (EMM), repair and disposal. As mobility experts, our 24/7, always-on, US-based service desk and real-time account management team provides value to 400+ clients. That makes us more than an industry leader in mobility management - it makes us your partner.We offer a free 45-day trial where you get to utilize our solutions as if you were a full client. During this period we provide a comprehensive SMART report that reviews your trial objectives, provides an overview of your mobile environment and presents an analysis of opportunities for cost and time savings. Schedule a demo today at http://mobilesolutions.net/demonstration.

December 2017

LOOKING FORWARD AND BACK: WHERE IS ENTERPRISE MOBILITY HEADED IN 2018? 10About Enterprise Mobility ExchangeEnterprise Mobility Exchange is an online community for global mobility professionals and business leaders who are leveraging mobile technology and services to improve operational efficiency, increase customer acquisition and loyalty, and drive increased profits across the entire enterprise. At Enterprise Mobility Exchange we’re dedicated to providing members with an exclusive learning environment where you can share ideas, best practices and solutions for your greatest mobility challenges.You will receive expert commentary, tools and resources developed by experienced mobility professionals and industry insiders. With a growing membership and global portfolio of invitation-only meetings, Enterprise Mobility Exchange ensures you keep your finger on the pulse by delivering practical and strategic advice to help you achieve your business goals.

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Market Report Offerings For 2018Each month our editorial team produces an exclusive Market Report, which receives extensive exposure and promotion through a multi-channel marketing campaign. These reports each focus on a different topic within enterprise mobility. They are vendor-neutral and turn-key; we write the content, we deliver you the leads. You build your sales pipeline.

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