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These slides are from a webcast presented by David Krebs, Practice Director, VDC Research on 03/17/10. A full audio recording is available for download at: http://www.vdcresearch.com. During this webcast, we discuss the latest data from our Managed Services – Enterprise Mobility Solutions, 2009 Market Requirements and Opportunity report and discuss how the market requirements for mobile managed services could provide the enterprise mobility solution operator a path to new levels of operational productivity, higher levels of services for their customers, and another way to reach new markets.
Citation preview
Will Market Interest in Mobile Managed Services
Convert to Customer Contracts for Mobile Managed
Services in 2010?
David KrebsPractice Director, Mobile & Wireless Solutions Practice
Recording Available
These slides are from a webcast presented on 03/17/10
A full audio recording is available for download at:
http://www.vdcresearch.com/market_research/mobile_wireless/freeresearch.aspx
1 – 2010 VDC Research Group, Inc.
2 – 2010 VDC Research Group, Inc.
VDC Research
Complimentary insights & marketing data on the
enterprise & government mobility markets is available at:
www.vdcresearch.com
3 – 2010 VDC Research Group, Inc.
Today’s Speaker
• David Krebs, Director – Mobile & Wireless Solutions Practice
10 + years covering the markets for enterprise and government mobility solutions,
wireless data communication technologies and automatic data-capture research
and consulting.
Focus on identifying the key drivers and enablers in the adoption of mobile and
wireless solutions among mobile workers in the extended enterprise.
Consulting and advisory experience including: technology and market opportunity
assessments, technology penetration and adoption enablers, partner profiling and
development, new product development and M&A due diligence support.
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.
Boston University (BSBA).
Will Market Interest in Mobile Managed Services
Convert to Customer Contracts for Mobile Managed
Services in 2010?
David KrebsPractice Director, Mobile & Wireless Solutions Practice
VDC Research Profile
Core Practice Areas
• Mobile and Wireless Solutions
• Automatic Identification
• Embedded Hardware and Systems
• Embedded Software and Tools
• Industrial Automation and Control
Nearly 1,000 clients annually
• 90% technology suppliers
• Institutional investors, Tier 1 users, Tier 1 integrators
Core Offerings
• Syndicated multi-client market intelligence studies and services
• Proprietary market intelligence and strategy development support
• Strategic and commercial due diligence support
5 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
We have been serving tech executives since 1971
Embracing Open Platforms and Consumer
Influence, Enterprise Mobility Evolves Considerably
1990+ 2000+ 2010+
Custom designed
applications on
purpose built devices
Pre-packaged mobile
applications and
wireless e-mail
Application
generators and device
proliferation
Traditional Enterprise Mobility
• Limited mobile HW
choices
• Siloed approach to
solution development
• Uneven wireless coverage
• Limited mobile processing
capabilities
• Immature I/O solutions
Technology Drivers
• Device convergence
• Ease of use
• Wireless ubiquity
Business Drivers
• Increasingly mobile
workforce
• Real time business
processes driving
operational change
New Enterprise Mobility
• Diversity in device
choices
• Enterprise-wide mobile
strategies
• Mobile capabilities of
enterprise SW platforms
• Impact of consumer
products on business
user expectations
6 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
Mobile and 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
Smartphone
Wireless Handset
Personal
Smartphone
Technical
Requirements
Field mobile worker (Task/Line Worker)
Smartphone
Vertical Device
• 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 captureVertical Device
• Wireless email
• Time & attendance
• Approvals
• Workflow management
• Vertical applications
• Time & attendance
• Dispatching
• Workflow management
• Vertical applications
US Worker
Population
11.5M
12.6M
16.8M
14.3M
7 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
Rate the following mobility issues or concerns in terms of their level of importance
to your firm (1=Extremely unimportant; 6=Extremely important)
3.8
3.9
4.0
4.1
4.2
4.4
4.4
4.7
4.8
4.8
0 1 2 3 4 5
Supporting dual mode devices (work and personal use)
Provide real time remote training to field users
Clear mobile asset and software inventory management
Remote provisioning of devices
Remote helpdesk
Security policies for handling lost/stolen devices/data
Reducing support costs
Preventing data breaches
Ensuring user friendliness of mobility solutions
Minimizing device downtime user productivity loss
Effective Management of Mobile Solutions an
Increasing Concern
Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations
deploying mobile solutions.
8 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Demand for Managed Mobility Services Continue
to Evolve…
• Enterprise mobility end users are expressing strong interest in an appetite for new delivery,
deployment and management models for their mobile solutions. Primary issues among
organizations is maintaining control and visibility of their mobile ecosystem.
As a result of decentralized management of mobile devices, limited visibility into mobile inventory, total spend
and mobile usage, organizations are shifting their approach to managing mobile solutions.
Frequently, this means looking for third party support through a managed service model of their solutions.
• Mobile managed services portfolio evolving in phases. Initial phase focusing on more
traditional maintenance and monitoring services. Core services to include:
Inventory creation and tracking;
Break / fix and outsourced helpdesk (T1/T2) for user support;
Environment and networking monitoring and management services;
Enhanced security services; and
Mobile edge device support and technical services.
9 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
…and Will Include More Sophisticated Application Deployment and Management Services
• The second phase of managed mobility services will center more around application
deployment and support – including hosting. Key capabilities include:
Application deployment and provisioning
Online ordering portal for policy enforcement
• Although many end users postponed their mobile and wireless investments in response to
the recession, many are citing the recession as a catalyst for next generation managed
service business models.
54.7% of enterprises responding to a Q4 2009 survey are investing in an investigation of a broader managed
service delivery platform for their mobility solutions.
Today, more than 1 in 3 enterprise mobility solutions operators are receiving some or part of their mobile and
wireless solutions through a managed service.
10 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Which of the following are the most important factors
driving the shift towards a service-based
mobility deployment model?
20.2%
15.5%
15.5%
14.0%
10.1%
8.5%
0% 10% 20% 30%
Simplifying end user mobility
Integrating the full set of technologies required for
enterprise mobility
Simplifying day to day IT & compliance operations
Ensure endpoint & data security
Ensuring universal connectivity & access control
Eliminating need to invest capital to continually grow a mobility
management platform
• With limited internal resources to support mobile
solutions, organizations are increasingly looking
to third party services to manage their mobility
services.
• For some organizations, management of security
policies is actually a driver for managed mobility
services.
• Even though many of the vendors identified the
IT departments within organizations to be their
inside competitors, a lot of the end users have
recognized the importance of managed services
in the simplification of IT operations.
Simplifying Solutions – Both for Users and Support –
are Key Factors Driving Demand for Mobile Services
11 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Alignment of business, social and technological
imperatives is driving accelerated take up of mobile
data services in the enterprise
ERP
CRM
SCM
RMS
Expense Reporting
Collaboration
HR
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0% 5% 10% 15% 20% 25% 30% 35%
CI/BI
Pe
ne
tra
tio
n
Compound Annual Growth Rate % (2009-2013)
Bubble size correlates to 2009 installed base
CRM: Customer Relationship
Management
SCM: Supply Chain Management
ERP: Enterprise Resource Planning
RMS: Records Management Systems
CI/BI: Customer
Intelligence/Business Intelligence
12 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
A Key Demand Driver is the Structural &
Organizational Change Among Users
• 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.
In these instances mobile and wireless may represent as little as 2-5% of the total value of the contract for
large scale operations.
Given this low level of investment for mobile solutions relative to other IT services, end users are increasingly
deferring to their service providers to make their mobile technology selection decisions. Technology vendors
will need to more closely align themselves with service providers to ensure equal representation.
13 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
User’s Requirements are Becoming Clearer – if
not Less Challenging
• Enterprise mobility solution operators cite a clear preferred path for migration to hosted
deployments, or adoption of managed services deployment models.
• The following solution elements are most often cited as preferred hosted deployment
migration:
Device management;
Security management;
Expense management; and
Core provisioning capabilities.
• An additional major issue for many companies – and opportunity for service providers –
will be compliance management and inventory management of their mobile devices.
Especially for multi-national organizations that are exposed to unique regional or country market nuances –
for example Massachusetts 201 CMR 17), this will represent an increasingly challenging issue.
In addition, with the influx of individual liable devices in corporate environments – and their use to access
corporate networks – organizations are looking for some control over these devices. This is especially acute as
organizations are now shifting from a homogenous mobile environment (one mobile OS/platform) to one that
supports multiple models.
• However, these capabilities are only beginning to be delivered through a structured
approach and there remains confusion surrounding which parties in the commercial
supply-chain are best positioned to deliver these capabilities.
14 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
SaaS Deployments Driving Mobile Opportunities…
or Mobile Requirements Driving SaaS Adoption?
• Adoption of enterprise applications in a
SaaS model is reaching critical mass
Leading SaaS-based enterprise applications
include CRM, E-mail and messaging, HR and
Recruiting and Collaboration Services to name a
few.
Organizations are citing ‘speed of deployment’
and ‘capital’ and ‘operation expense savings’ as
the driving forces behind their adoption decisions.
• The pressures on IT from an increasingly
mobile workforce and the need for remote
access to enterprise applications across a
broader spectrum of devices – from
notebooks to Smartphones – is expected to
be another major catalyst to organizations
deploying SaaS-based applications
IT organizations are struggling to keep up with
demand to access key data securely in
increasingly remote settings.
Moreover, the challenge to support a broader
range of device types and OSes is driving
organizations to evaluate alternatives.
15 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
37.5%
31.3%
29.7%
12.5%
12.5%
0% 10% 20% 30% 40%
CRM (Customer Relationship
Management)
ERP (Enterprise Resource Planning)
HR (Human Resources/Payroll)
SCM (Supply Chain Management)
Other
SaaS-based Enterprise Application Adoption
22.0%
18.5%
15.5%
10.7%
10.7%
7.7%
7.7%
0% 10% 20% 30%
Enterprise app integration
Ability to customize
User friendliness
Support
Scaling users
Scaling functionality
Hosted options
When evaluating mobile applications, what are the most important selection
criteria?
• Some of the key mobile application selection
criteria are in conflict with traditional SaaS
capabilities.
• Specifically, many SaaS solutions today are
effectively standalone systems that are not
deeply integrated with other back end enterprise
applications (Salesforce.com, for example).
• Moreover, the demand to customize the mobile
solution will be a challenge for mobile SaaS
vendors to support.
• Conversely, mobile SaaS solutions are capable of
effectively handling requirements concerning
scalability and user friendliness.
Requirements for Backend Integration Will be Key
Hurdle for SaaS-based Mobile Applications
16 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Rank the following criteria in terms of their priority
regarding the advantages of using a SaaS rather
than an on-premise software solution for
enterprise mobility applications(1=Very Low; 5= Very High)
3.9
3.9
3.8
3.7
3.6
3.6
3.6
3.5
1 2 3 4 5
Ease of implementation
Lower upfront investment
Ease of management
Shift to variable IT cost
Faster deployment
Scalability
Ease of upgrading
Reduce staffing costs
• The suppliers’ efforts to decrease the
implementation and customization time have
certainly been recognized by the end users.
• The manageability aspect of a SaaS solution is
not underestimated by the end users even with
the older / technology resisting users.
• Vendor communities’ worries for the increasing
compliance requirements are surprisingly not
recognized by the end users.
• VDC predicts that emphasizing the cost savings
associated with SaaS solutions could be more
attractive since the consumers have become
highly cost-sensitive due to the economic
difficulties.
Ease of Deployment and Lower Upfront
Investment are Key Mobile SaaS Drivers
17 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Rank the following criteria in terms of their
priority regarding the concerns of using a SaaS
rather than an on-premise software solution
for enterprise mobility applications(1=Very Low; 5= Very High)
3.9
3.8
3.8
3.7
3.7
3.6
3.3
3.3
0 1 2 3 4 5
Data privacy
Integration issues with other applications
Vendor lock-in
Connectivity issues
Customization capabilities
Loss of IT control
Higher long term costs
Software features change with little notice
• Some of the end users’ main concerns with SaaS
solutions can be overcome by educating them
regarding the subject matter.
• Many of the vendors declared that they are
focusing on offering highly customizable
solutions even though it is not one of the top
issues highlighted by the consumers.
• Most of the vendors are not expecting the
network to be consistently connected and
therefore are equipping their devices with offline
functionalities.
…While Data Privacy and Back-End Integration
Represent Key Concerns
18 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Systematic Approach to Development of Next
Generation Delivery Models Required
• Which mobile services map best to next generation deployment and delivery models?
As a result of limited internal support capacity, end users are expressing strong demand for third party
managed services for their enterprise mobility investments.
Most organizations are basing initial investments and evaluation decisions around outsourcing device
management and security management.
While appetite for mobile SaaS solutions is increasing, overall demand is expected to be uneven as end users
struggle to address backend integration and customization requirements and ability to operate in an off-line
or disconnected state.
• Where the opportunity exists, what are the leading mobile SaaS requirements?
Demand for SaaS-based mobile applications will be strongest in some of the more established or mature
applications such DSD or workforce management.
One of the benefits end users are looking for is ease and time of upfront deployment. End users ideally
looking for deployment timeframes of less than 8 weeks.
End users are looking for monthly or quarterly billing for these solutions. Per user or flat fee enterprise licenses
are the most desired licensing options.
Uptime availability – another key issue – should be at least 96%.
19 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
Q&A Session
For more information about VDC Research coverage of the global markets
for enterprise & government mobility – including the Enterprise Mobility
Managed Services: Next Generation Deployment Models Report – please
contact:
David Krebs
Director, Mobile & Wireless Solutions Practice
[email protected] | 508-653-9000 ext.136
Gerrald Smith
Account Executive
[email protected] | 508-653-9000 ext.113
20 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions