Mobile Presentation by Steve Drake IDC. I co-presented with Steve during the IBM IMPACT conference as part of the business partner event.

1. Mobile Enterprise
Market Trends
Stephen Drake, Program VP, Mobility &
Telecom
sdrake@idc.com
April 29, 2012
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

2. Agenda
Mobile Enterprise Market Trends
Mobile Enterprise Software
Overview
Mobile Device Management
Mobile Application Management
& Enterprise App Stores
Mobile Cloud
Q&A
© IDC May-12 2

3. Key Mobile Enterprise Trends
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4. Key Factors That will Determine the
Future of Mobile Enterprise
• End-user usage and company support of
employee-liable devices will have the largest
impact on the mobile enterprise
• The explosion of consumer applications will
drive demand for enterprise mobile
applications
• Cloud computing is a game changer for the
mobile enterprise
• Tablets significance in the enterprise will
peak across key verticals and in certain
scenarios replace laptops
• Mobile’s influence in developing nations over
the next 5 years, represent meaningful mobile
business opportunities
© IDC May-12 4

5. Mobile Enterprise Deployments
Current Stage of Mobility by Mobile Applications Deployed
Source: IDC's Mobile Enterprise Software Survey, 2011
© IDC May-12 5

6. Worldwide Mobile Phone Forecast (M)
5.7%
6.4%
6.9%
7.2%
8.2%
11.7%
18.7%
-1.5%
GROWTH
Source: IDC, March 2012
© IDC May-12 6

7. Worldwide Smartphone Forecast (M)
11.0%
13.4%
15.2%
21.4%
33.5%
62.2%
75.7% GROWTH
15.0%
Source: IDC March 2012
© IDC May-12 7

8. Worldwide Smartphone Forecast by OS
600 Android
500
BlackBerry OS
400
iOS
300
Linux
200
Symbian
100
Windows
Mobile/Windows
0
Phone
2011 2012 2013 2014 2015 2016
Source: IDC March 2012
© IDC Source:/Notes: May-12 8

9. Worldwide Business Use Smartphone
Forecast by OS (M) – Employee Liable
120
Android
100
BlackBerry OS
80
iOS
60
Windows
Mobile/Windows
40 Phone
Others
20
0
2011 2012 2013 2014 2015 2016
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
© IDC May-12 9

10. Worldwide Business Use Smartphone
Forecast by OS (M) – Corporate Liable
60
Android
50
BlackBerry OS
40
iOS
30
Windows
Mobile/Windows
20 Phone
Others
10
0
2011 2012 2013 2014 2015 2016
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
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11. Nearly 91% of all Developers Writing to
Only 3 or Fewer Operating Systems
Number of OSs Developers Plan to Write To 1Q12
Less than 2
Operating 4 or more
Systems 9.3%
10.1%
2
2 3
Operating Less than 2
3 Operating
Systems
Systems 4 or More
56.4%
24.2%
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
© IDC May-12 11

12. HTML5 Interest Soars
Interest in Application Development by Device
iPhone (iOS) (n =1844)
iPad Tablets (iOS) (n =1820)
Android Phone (n =1850)
HTML5 Mobile Web Apps (n=1766)
Android Tablets (not including Nook & Kindle Fire) (n = 1801)
Ice Cream sandwich tablets (n = 1694)
Windows 8 Tablets (n 1700)
Windows Phone 7 Phones (n = 1713)
Nook or Kindle Fire (n =1664)
Nokia Lumia (n = 1627)
Ultrabooks (n = 1621)
BlackBerry Phones (n=1694)
non-tablet smartphone, or pc type devices (n = 1632) HTML 5 Right
Behind iOS and
BlackBerry PlayBook (tablet) (n = 1636)
Android Phone –
webOS Tablets (n =1631) Ahead of Android
webOS Phones (i.e. Palm Pre/Pixi) (n = 1626) Tablets
Symbian Phones (n= 1638)
Very interested Somewhat interested Not at all interested
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
© IDC May-12 12

13. Rise in Developers Building Business Apps
Number of Developers currently developing/plan to
% develop Business Apps over the next three months
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
© IDC May-12 13

14. Continued Rise in Business Apps
Consumer versus Business Business Applications continue to
Applications gain traction!
Types of Applications Being Developed in the Next Three Months
• Nearly 81% plan to write to 2 or 3
OS’s, for business apps
29.3%
43.1% • Next 3 months, developers plan to
develop:
• Field Service, Data Collection, & Forms
Apps (46.8%)
• Productivity Apps (43.9%)
• Business Intelligence Apps (34.9%)
• Nearly 39% plan to write apps for
a private enterprise app store
4Q10 1Q12
Consumer Apps Business Apps
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 1Q12
© IDC May-12 14

15. Consumer Devices Are Already Majority in the
Enterprise
Employee-Owned Devices
(vs. Company-Owned Devices)
Used to Access Business Applications
2012
55%
Source: IDC April 2012
© IDC May-12 15

16. Employee-liable Devices Even Larger Influence through
Forecast Period
2016
Corporate-liable
44%
Employee-liable devices
Corporate-liable devices
Employee-liable
56%
Source: IDC April 2012
© IDC May-12 16

17. Mobile Enterprise Solutions
Partner EcoSystem
Software growth stems Mobile Operators
from large ISVs and mobile Focused on MEAP &
pure-plays Managed Mobility
Pushing Mobile Prof. Services key in
Enterprise Solutions - enterprise for planning
not just HW and implementation
© IDC May-12 17

18. Tablet Trends in the Enterprise
• Tablets initially thought to be
consumer-focused, are
transforming the enterprise
• Specific applications emerge for
Tablets
• Key verticals taking on Tablets
including Financial Services,
Healthcare, Manufacturing, Retail,
Government, Education, etc.
• Across targeted use cases, Tablet
lands as key replacement for laptop
© IDC Source:/Notes: May-12 18

19. Tablet Adoption
Where is your organization with respect to tablet deployment?
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Have deployed tablets to employees Are considering deploying tablets to Have no plans to deploy tablets to
employees employees
Source: IDC Survey Administered to GDS CIO US Summit Attendees. March, 2011
n= 40
© IDC May-12 19

20. Challenges with Tablets in the Enterprise
• Must be ready to adopt as an employee-liable device
• Need to have MDM and mobile security solutions in place
• Smaller storage and limited file support creates some
access challenges
• Decisions to be made on replacement cycles based on
hw and sw updates
• Buy First Frenzy can put pressure on LOB and IT
organization
• New data plans are likely required
• Need to balance a third device and roaming requiring
additional policies and new solutions (ex. MiFi)
© IDC Source:/Notes: May-12 20

21. Mobile Enterprise Software
© IDC May-12 21

22. Key Worldwide Mobile Enterprise Software Markets
$M 3,000
2,500 2010
2015
2,000
1,500
1,000
500
250
0
MDM Mobile Security MEAP
© IDC May-12 22

23. WW Mobile Enterprise Application Platform Market
(MEAP) Trends & Analysis
• Much improved growth in
2010 & 2011
• Pent-up demand for MEAP
players
• Cloud-based and HTML5
Transforming MEAP
• SAP & Sybase Good M&A
Example
• IBM Acquisition of Worklight
• Mobile Operators Stepping Up
Participation
© IDC Source:/Notes: May-12 23

24. Worldwide Mobile Enterprise Application
Platform Revenue by Region
$M
2000
26.0% CAGR – WW Growth
1500
Americas
1000 EMEA
Asia/Pacific
500
0
2010 2011 2012 2013 2014 2015
© IDC May-12 24

25. Mobile Security CAGR by Category 2010-
2015 (%)
Total Mobile Security CAGR for 2010-2015 is 35.4%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Mobile VPN Mobile Security & Mobile Threat Mobile Identity & Mobile Information
Vulnerability Management Access Management Protection & Control
Management
Source: Worldwide Mobile Security 2011–2015 Forecast and Analysis, IDC # 227360, March 2011
© IDC May-12 25

26. Worldwide Mobile Device Management Enterprise
Revenue by Region
$M
900
32.0% CAGR – WW Growth
800
700
600
500 Americas
EMEA
400 Asia/Pacific
300
200
100
0
2010 2011 2012 2013 2014 2015
© IDC May-12 26

27. MDM Represents Core:
However New Functions Emerging
• Application management
• Advanced security functionality (authentication and
authorization management, device posture)
• Real-time cost control – tying closer to managed
mobility
• Enterprise App Stores
© IDC Source:/Notes: May-12 27

28. Customer Segmentation for MDM and
Mobile Security
GOOD ENOUGH
• Typically Exchange Active Sync is adequate security and MDM
• In the past, company likely was doing nothing
• Not initially interested in spending on MDM
SENSITIVE DATA
• These companies are concerned that their data is sensitive enough to explore MDM
and Mobile Security
• Driven by self-imposed regulations rather than by government or industry regulations
REGULATED INDUSTRIES
• Demand MDM and Mobile Security at the point of deployment
• Government regulations require a heightened level of policy, compliance and
security/management
© IDC Source:/Notes: May-12 28

29. Key Components of Mobile Application
Management (MAM)
• Granular management, security and corporate policy control of
applications and content
• Enforce or restrict user authentication and encryption per application
• Enable data storage, offline access, document sharing, copy/paste
• Application deployment & provisioning
• Revoke, force update, DLP on specific content
• Remote data/application wipe
• App Risk Management*
• Block Malicious Apps through VPN*
© IDC Source:/Notes: May-12 29

30. Why is MAM Important?
• Large numbers of employee-liable devices entering into the
enterprise
• App Explosion – consumer now, enterprise coming
• Safeguard your organization from litigation
• Keep employees happy
• New Security Risks Begin at the App Level
• DLP – iCloud, Sky Drive, Box, etc.
• Risky Apps – “Android Market is a Cesspool of Malicious Code”
• VPN Intrusion
• MAM enhances the value of MDM
© IDC Source:/Notes: May-12 30

31. Mobile Enterprise App Stores
• Allows IT better control and management of application
distribution and employee use
• Enterprises today deploying 10’s of apps – this number is expected
to grow
• Consumer app store not appropriate for business use
• Customized application delivery and management based on end-
user segmentation
• Enhanced, single purpose user experience for employee on
cluttered phone
• Simplified start-ups and updates as well as notifications of new
apps and content, etc.
• Company-branded app store
© IDC Source:/Notes: May-12 31

32. Mobile Cloud
© IDC May-12 32

33. The Distributed Worker is Mission Critical
 1.3 Billion Mobile Workers
Worldwide by the End of 2015
 SaaS-based Approach
gains traction
 The Consumerization of IT
Employee-liable users infiltrate enterprise
33
© IDC May-12

34. Extending Enterprise Cloud Apps to
Mobile Devices
 N=600 Nearly two-thirds of organizations plan to or
already have deployed a mobile cloud offering
5.8% 6.7%
28.8% 8.3%
16.7%
37.7%
Don't know
Done Pilot, but, No Plans for additional rollout
Started Large Deployment
No plans for any deployment
Plan to Deploy Apps
Done Pilot, and will roll out large scale
deployment
© IDC May-12 34

35. Developers interested in connecting apps
to cloud/web services
Public versus Private Cloud
Q. Do you plan to connect any of your mobile apps this year to a public or private
cloud/web service?
No
14% Yes - Private
cloud/web service
(eg: CMS, CRM,
Storage, DB)
25%
Both Private
and Public
cloud/web Yes - Public
services cloud/web
46% service (eg:
OAuth,
Facebook,
Yahoo YQL)
15%
N = 1,836
Source: Appcelerator and IDC's Mobile Enterprise Developer Survey, 3Q11
© IDC May-12 35

36. Distributed Workforce and Cloud Enhance
Opportunity with Some Challenges
• Cloud-based business apps serve
customers' needs to get key data access to
the distributed workforce
• Extends the distributed worker platform as
a driver for enhanced partner growth
• Provides new revenue streams, and more
service time
• Drives an overall better experience for
customers
• Enterprise Challenges include
• Security/data sensitivity concerns
• In some instances, organizations prefer
certain applications to be on premise
• Software ownership and customization
© IDC May-12 36

37. The IT Challenge in Managing Mobility
• Growing mobile working patterns
become the norm
• Consumerization of IT is exploding
• Remote Endpoint Management and
Security comes to the forefront
•Distributed Worker now strategic
across organizations
• IT increasingly seeks progressive offerings
in the delivery of distributed worker
solutions
•Mobility in the Cloud grows in
prominence creates new challenges
as well as opportunities
© IDC May-12 37

38. Contact
Stephen Drake
IDC
Program VP
Mobility & Telecom
sdrake@idc.com
© IDC May-12 38