During this webcast, David Krebs, Director of VDC Research’s Mobile & Wireless Solutions Practice discussed the opportunities – and challenges – facing enterprise and government mobility solution providers in 2011, including: the expected investment climate in 2011; the markets segments that provide the strongest near term growth opportunities and those that are emerging, eroding or presenting opportunities for expansion; how enterprises and government organizations will leverage next generation tablet and media pad devices; the impact of social media and collaboration on core enterprise and government mobility solutions; when to emphasize new features or cost reduction in next generation designs; suppliers' ability to continue to grow in this market through the channel and make margin; and how consumer/individual liable technologies and the “consumerization of IT” will continue to impact enterprise and government mobility solutions.
Enterprise & Government Mobility Solutions in 2011 and Beyond
1. VDC Research Webcast:
Enterprise & Government Mobility
Solutions in 2011 & Beyond
Mobile & Wireless Practice
David Krebs, Director
2. Frequently Asked Questions
These slides are from a webcast presented on 12/15/10.
A full audio recording is available at:
http://vdcresearch.com/Landing/webcast121510.aspx
1 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
3. VDC Research
Complimentary insights and marketing data on the
enterprise & government mobility markets available at:
www.vdcresearch.com
2 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
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. Today’s Speaker
2010 Market Trends & 2011 Growth Expectations
Leading 2011 Enterprise & Government Mobility Investment Themes
VDC’s 2011 Enterprise & Government Mobility Research Service
Question & Answers
4 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
6. Enterprise Mobility: Mobile Device Outlook
Mobile Device Shipments Supporting Enterprise Mobility Applications
(only includes devices deployed to support enterprise mobility applications)
Slowdown in
$12,000 notebook market
Faster than in part b/c of slate
expected tablets
$10,000
rebound
Continued
$8,000 smartphone
(USD Millions)
strength
$6,000 Strong rebound in
rugged market in
2010 – return to
$4,000 more consistent
growth
$2,000 Dynamic Interest
in Slate Tablets/
Media Tablets
$0
2007 2008 2009 2010 2011 2012 2013 2014
Rugged Large FF Rugged Small FF Smartphones Notebooks Slate Tablets/ Media Tablets
5 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
7. Emergence of Cloud-optimized Mobile Solutions
Level of investment in SaaS-based enterprise mobility solutions reaching scale
Enterprise Mobility Application Design / • The emerging class of tablets / media-pads –
Deployment Approach with their more smartphone-like OS profiles,
processing capabilities and interface options –
are leading a trend towards ‘cloud-optimized’
Other solutions.
5.7%
• Cloud computing will in part be enabled by
virtualization, including: hardware virtualization,
platform virtualization, and application
virtualization.
SaaS/Hosted
solution
40.6%
Application
resides
behind
corporate
firewall
53.7%
6 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
8. Tick-tock, Tick-tock: The Individual Liable Device
as a Security Time Bomb
Smartphone Deployment Approach by Industry Growing proportion of
100%
IL devices within
enterprise
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Company purchased only Both company and employee purchased: Approved list
Both company and employee purchased: Any phone Employee purchased only: Approved list
Employee purchased only: Any phone
7 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
9. Security Management Requirements
Improved mobile security discipline required within enterprises
Rate the following security management functions in
terms of their level of importance to your firm
(1=Extremely unimportant; 6=Extremely important)
Lockdown device interface to reduce end-user tampering 4.9
Remotely deliver security patch updates 4.7
Enforce device hardware feature contol policies (e.g. block camera) 4.4
Enforce security policies even when the device is in an offline state 4.4
Remotely enable device kill and data deletion for lost or stolen devices 4.4
Enforce password policies 4.3
Enforce on device applications whitelist/blacklist 4.2
Enforce on device data encryption 4.1
Encrypt over the air (OTA)/ Internet communications 4.1
Distribute security/policy changes even without a data connection 4.0
Integrate on device login with active directory 3.9
0 1 2 3 4 5 6
Security policy development – and enforcement – especially for individual liable devices will be a KEY requirement again in 2011.
8 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
10. Enterprises Embrace Application Development
Liberties of Next Generation Mobile Platforms
• The democratization of mobile application development – enabled by emerging mobile
platforms, such as Android, and today’s micro-app mentality – is taking the enterprise by
storm. Organizations have become enamored by the low-cost / low-risk approach of
internally developing mobile applications to support specific workflows or use cases.
• This has been especially apparent in the military where Android and iOS development is
actively encouraged and invested in. Dozens of vendors focused on mobility have emerged
with robust tools and platforms that enable “click and build” capability for creating mobile
applications.
• Considering the level of customization required for currently deployed “traditional”
enterprise applications (i.e. desktop applications), we see a significant opportunity for
businesses to take advantage of these tools and build their own customized applications
that will extend their often significant enterprise application investments.
• While this trend is unlikely to significantly impact development of more mission critical
applications – and nor are we suggesting that enterprises are taking control of all mobile
development – the expectation is these developments will result in the enablement of
entirely new mobile workflows and evolve into incremental opportunities for mobile solution
providers.
9 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
11. Mobile Ecosystem Shakeup Impacting Points of
Decision Making Influence
Primary / Initial External Enterprise • A broader sphere of influence on enterprise
Mobility Resources mobility key decision makers.
• One of the more interesting developments to
Mobile HardwareVvendors/Solution
22.1% follow will be the activity among wireless carriers.
Provider
Carriers are acquiring professional service organizations
which will potentially put them in direct competition with
System Integrator (SI)/ Value Added some of their partners.
21.7%
Reseller (VAR) Carriers are eager to control a larger share of the
enterprise mobility market and are furiously trying to shed
their image of “dumb pipe” vendors.
Independent Software Vendor (ISV) 18.6%
• A greater proportion of ‘green field’ accounts turn
initially to ISVs to determine key requirements.
Consultant/Professional Service
15.8%
Provider
Wireless carrier 12.0%
Distributor/VAD 7.1%
Others 2.7%
10 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
12. 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 Mobile App
Category Carrier Distribution Mobile Web ISV/ Systems Integrator
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
Payment • Lack of strong or consistent • Professional service contracts
• Carriers beginning to • Limited options for enterprise
Options solution with partners
integrate with billing wide deployments
Enterprise
• Improving capabilities • Poor • Improving • Strong
Integration
• Improving - however, need • Limited to uneven. Large
• Uneven – support by
Discoverability separation between • Uneven volume of small specialized
different business units
consumer and enterprise solution providers.
Value Chain
• Low, but moving up • High / Broad • Low / Variable • Moderate
Impact
• Long term viability.
• Improving strength of • Strong for less sophisticated • Primary model for more
However, serious limitations
Considerations carrier professional point solutions with limited sophisticated native
for current enterprise
service teams integration requirements applications
requirements.
Source: VDC Research
11 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
13. Rugged Becomes Relevant…Again
Average Annual Failure Rates by • After trending down for the last several years,
Device Type failure rates of mobile devices have again
increased.
18%
• This is largely in response to the recent
16%
economic pressures, end users have extended
14% the life cycle of mobile devices and adopted less
expensive solutions (such as netbooks) resulting
12% in an increase in failure rates.
10%
16.8%
16.6%
8%
13.3%
12.1%
6% 7.9%
4%
5.9%
4.6%
4.4%
2%
0%
Large Form Large Form Small Form Small Form
Factor - Factor - Rugged Factor - Factor - Rugged
Commercial Commercial
Grade Grade
2007/2008 2009/2010
12 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
14. Leading Mobility Investment Concerns
Minimizing device downtime is a top of mind issue for organizations
Rate the following mobility issues or concerns in terms
of their level of importance to your firm
(1=Extremely unimportant; 6=Extremely important)
Minimizing device downtime user productivity loss
Ensuring user friendliness of mobility solutions
Preventing data breaches
Reducing support costs
Security policies for handling lost/stolen devices/data
Remote helpdesk
Remote provisioning of devices
Clear mobile asset and software inventory management
Provide real time remote training to field users
Managing SW license conformance
Locate/track devices
Supporting dual mode devices (work and personal use)
0 1 2 3 4 5 6
Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations deploying mobile solutions.
13 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
15. Enterprise Applications Optimized For Touch Interface
Primary (non Keyboard) Mobile Input • More and more mobile devices are shipping
Functionality Requirements with touch as the primary interface technology.
• Consumer influenced UI and interfaces – such
Touchscreen/Multi-touch 26.8% as touch and multi-touch – are becoming more
the norm for mobile military applications.
Bar Code Scanner/Imager 20.5% Moreover, demand for open / standards-based
platforms that enable seamless integration with
new I / O solutions increasingly critical.
Smartcard Reader/NFC 10.2%
• However, while most are great for content
Pen/Stylus 9.4% consumption, few can be used to support
more data-intensive input applications.
VoIP 6.3% • Finally, another major hurdle – which will
increasingly be addressed – is enterprise
RFID Interrogator 5.5% software platforms leveraging touch as an
interface option.
Mag Stripe Reader 5.5%
Speech Recognition 4.7%
Other 6.3%
14 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
16. VDC Research Profile: 2011 Service
Key offerings: technical tracks
TRACK 1: Enterprise and Government Mobility Hardware
This track spans four volumes that provide detailed market sizing (including quarterly size and share
tracking), forecasting and competitive analysis of mobile devices deployed for enterprise and
government mobility applications across a variety of form factors.
TRACK 2: Enterprise Mobility Software
This track spans three volumes that provide detailed market definitions and segmentations, estimates,
forecasts, competitive share, and mobile developer analyses across several mobile software
segments. This track addresses the enterprises approach to mobile application development, key
technical requirements, enterprise application extension and integration and other leading mobile
software trends.
TRACK 3: Enterprise Mobility Professional Services
This track spans two volumes that provide market estimates, forecasts, competitive share, end user
requirements, and channel trends for enterprise mobility professional services including traditional
break-fix, integration and deployment services to more advanced managed services.
15 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
17. VDC Research Profile: 2011 Service
Key offerings: market and channel tracks
TRACK 4: Enterprise Mobility Vertical and Application Markets
This track provides detailed market definition and segmentation, estimates and forecasts, and end
user requirements for enterprise mobility platforms, software, and professional services across six
vertical and application markets.
TRACK 5: Government Vertical and Application Markets
This track provides detailed market definition and segmentation, estimates and forecasts, and end
user requirements for government mobility platforms, software, and professional services across four
vertical and application markets.
TRACK 6: Enterprise Mobility Channel Tracker
This track spans two volumes and provides a tracking service that measures vendor partner program
quality and effectiveness, channel organization growth expectations by vertical market, application and
key technology and identifies and profiles key channel organizations. Each regional volume provides
a full-year report and a half-year update.
16 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
18. 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
davidk@vdcresearch.com | 508.653.9000 x136
Gerrald Smith
Senior Account Executive
gsmith@vdcresearch.com | 508.653.9000 x113
17 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice