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.
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
Will Market Interest in Mobile Managed Services Convert to Customer Contracts for Mobile Managed Services in 2010?
1. Will Market Interest in Mobile Managed Services
Convert to Customer Contracts for Mobile Managed
Services in 2010?
David Krebs
Practice Director, Mobile & Wireless Solutions Practice
2. 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.
3. VDC Research
Complimentary insights & marketing data on the
enterprise & government mobility markets is available at:
www.vdcresearch.com
2– 2010 VDC Research Group, Inc.
4. 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).
3– 2010 VDC Research Group, Inc.
5. Will Market Interest in Mobile Managed Services
Convert to Customer Contracts for Mobile Managed
Services in 2010?
David Krebs
Practice Director, Mobile & Wireless Solutions Practice
6. VDC Research Profile
We have been serving tech executives since 1971
Core Practice Nearly 1,000 Core
Areas clients annually Offerings
• Mobile and Wireless • 90% technology • Syndicated multi-client
Solutions suppliers market intelligence
• Automatic • Institutional investors, studies and services
Identification Tier 1 users, Tier 1 • Proprietary market
• Embedded Hardware integrators intelligence and
and Systems strategy development
• Embedded Software support
and Tools • Strategic and
• Industrial Automation commercial due
and Control diligence support
5– 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
7. Embracing Open Platforms and Consumer
Influence, Enterprise Mobility Evolves Considerably
1990+ 2000+ 2010+
Custom designed Pre-packaged mobile Application
applications on applications and generators and device
purpose built devices wireless e-mail proliferation
Traditional Enterprise Mobility New Enterprise Mobility
Technology Drivers
• Limited mobile HW • Device convergence • Diversity in device
choices • Ease of use choices
• Siloed approach to • Wireless ubiquity • Enterprise-wide mobile
solution development strategies
Business Drivers
• Uneven wireless coverage • Increasingly mobile • Mobile capabilities of
• Limited mobile processing workforce enterprise SW platforms
capabilities • Real time business • Impact of consumer
• Immature I/O solutions processes driving products on business
operational change user expectations
6– 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
8. Mobile and Wireless Solution Requirements will
Differ by Worker Type
Mobile US Worker Preferred Technical Target
Worker Population Device Requirements Applications
• Mobile browser • Wireless Email
Road Warriors • 3G+ GPS • Dashboards
and Executives 11.5M • Push email • BI/CI
(Knowledge Smartphone • Image capture • Mobile CRM
Workers) • Device management • Approvals
• 3rd party apps • Expense Reporting
• Security support • Workflow Management
• Push email • Wireless email
Mobile office Personal • Active sync • Time & attendance
professional 12.6M Smartphone • Application partitioning • Approvals
(Corridor warrior) • WiFi • Workflow management
Wireless Handset • DECT functionality • Wireless email
Campus mobile • WiFi • Time & attendance
worker 16.8M • 3rd party apps • Approvals
Vertical Device • Image capture • Workflow management
• Vertical applications
• Mobile browser • Time & attendance
Field mobile Smartphone
• 3G+ GPS • Dispatching
worker (Task/Line • Image capture • Workflow management
14.3M • Device management • Vertical applications
Worker) • 3rd Party Apps
Vertical Device • Durability
7– 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
9. Effective Management of Mobile Solutions an
Increasing Concern
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 4.8
Ensuring user friendliness of mobility solutions 4.8
Preventing data breaches 4.7
Reducing support costs 4.4
Security policies for handling lost/stolen devices/data 4.4
Remote helpdesk 4.2
Remote provisioning of devices 4.1
Clear mobile asset and software inventory management 4.0
Provide real time remote training to field users 3.9
Supporting dual mode devices (work and personal use) 3.8
0 1 2 3 4 5
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
10. 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
11. …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
12. Simplifying Solutions – Both for Users and Support –
are Key Factors Driving Demand for Mobile Services
Which of the following are the most important factors
• With limited internal resources to support mobile
driving the shift towards a service-based
solutions, organizations are increasingly looking
mobility deployment model?
to third party services to manage their mobility
services.
Simplifying end user mobility 20.2% • For some organizations, management of security
policies is actually a driver for managed mobility
services.
Integrating the full set of
technologies required for 15.5% • Even though many of the vendors identified the
enterprise mobility
IT departments within organizations to be their
inside competitors, a lot of the end users have
Simplifying day to day IT & recognized the importance of managed services
compliance operations
15.5%
in the simplification of IT operations.
Ensure endpoint & data security 14.0%
Ensuring universal connectivity &
access control
10.1%
Eliminating need to invest capital
to continually grow a mobility 8.5%
management platform
0% 10% 20% 30%
11 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
13. Alignment of business, social and technological
imperatives is driving accelerated take up of mobile
data services in the enterprise
100.0%
Bubble size
90.0% correlates to 2009
installed base
Email
80.0% CRM: Customer Relationship
Management
SCM: Supply Chain Management
70.0% ERP: Enterprise Resource Planning
RMS: Records Management Systems
CI/BI: Customer
60.0%
Penetration
Intelligence/Business Intelligence
50.0%
CRM
40.0% Expense Reporting
30.0%
Collaboration
RMS
20.0% ERP CI/BI
SCM HR
10.0%
0.0%
0% 5% 10% 15% 20% 25% 30% 35%
Compound Annual Growth Rate % (2009-2013)
12 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions
14. 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
15. 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
16. SaaS Deployments Driving Mobile Opportunities…
or Mobile Requirements Driving SaaS Adoption?
SaaS-based Enterprise
• Adoption of enterprise applications in a
Application Adoption SaaS model is reaching critical mass
Leading SaaS-based enterprise applications
CRM (Customer include CRM, E-mail and messaging, HR and
Relationship 37.5% Recruiting and Collaboration Services to name a
Management) few.
Organizations are citing ‘speed of deployment’
and ‘capital’ and ‘operation expense savings’ as
ERP (Enterprise the driving forces behind their adoption decisions.
Resource Planning) 31.3%
• The pressures on IT from an increasingly
mobile workforce and the need for remote
HR (Human access to enterprise applications across a
29.7%
Resources/Payroll) broader spectrum of devices – from
notebooks to Smartphones – is expected to
be another major catalyst to organizations
SCM (Supply Chain deploying SaaS-based applications
Management) 12.5%
IT organizations are struggling to keep up with
demand to access key data securely in
increasingly remote settings.
Other 12.5% Moreover, the challenge to support a broader
range of device types and OSes is driving
organizations to evaluate alternatives.
0% 10% 20% 30% 40%
15 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
17. Requirements for Backend Integration Will be Key
Hurdle for SaaS-based Mobile Applications
When evaluating mobile applications, • Some of the key mobile application selection
what are the most important selection criteria are in conflict with traditional SaaS
criteria? capabilities.
• Specifically, many SaaS solutions today are
Enterprise app integration 22.0% effectively standalone systems that are not
deeply integrated with other back end enterprise
applications (Salesforce.com, for example).
Ability to customize 18.5%
• Moreover, the demand to customize the mobile
solution will be a challenge for mobile SaaS
User friendliness 15.5% vendors to support.
• Conversely, mobile SaaS solutions are capable of
Support 10.7% effectively handling requirements concerning
scalability and user friendliness.
Scaling users 10.7%
Scaling functionality 7.7%
Hosted options 7.7%
0% 10% 20% 30%
16 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
18. Ease of Deployment and Lower Upfront
Investment are Key Mobile SaaS Drivers
Rank the following criteria in terms of their priority • The suppliers’ efforts to decrease the
regarding the advantages of using a SaaS rather implementation and customization time have
than an on-premise software solution for certainly been recognized by the end users.
enterprise mobility applications
(1=Very Low; 5= Very High) • The manageability aspect of a SaaS solution is
not underestimated by the end users even with
the older / technology resisting users.
Ease of implementation 3.9
• Vendor communities’ worries for the increasing
Lower upfront investment 3.9
compliance requirements are surprisingly not
recognized by the end users.
Ease of management 3.8 • VDC predicts that emphasizing the cost savings
associated with SaaS solutions could be more
Shift to variable IT cost 3.7
attractive since the consumers have become
highly cost-sensitive due to the economic
difficulties.
Faster deployment 3.6
Scalability 3.6
Ease of upgrading 3.6
Reduce staffing costs 3.5
1 2 3 4 5
17 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
19. …While Data Privacy and Back-End Integration
Represent Key Concerns
Rank the following criteria in terms of their
priority regarding the concerns of using a SaaS • Some of the end users’ main concerns with SaaS
rather than an on-premise software solution solutions can be overcome by educating them
for enterprise mobility applications regarding the subject matter.
(1=Very Low; 5= Very High)
• Many of the vendors declared that they are
Data privacy
focusing on offering highly customizable
3.9
solutions even though it is not one of the top
issues highlighted by the consumers.
Integration issues with other
3.8
applications • Most of the vendors are not expecting the
network to be consistently connected and
Vendor lock-in 3.8 therefore are equipping their devices with offline
functionalities.
Connectivity issues 3.7
Customization capabilities 3.7
Loss of IT control 3.6
Higher long term costs 3.3
Software features change with
3.3
little notice
0 1 2 3 4 5
18 – 2010 VDC Research Group, Inc.
Mobile & Wireless Practice
20. 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
21. 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
davidk@vdcresearch.com | 508-653-9000 ext.136
Gerrald Smith
Account Executive
gsmith@vdcresearch.com | 508-653-9000 ext.113
20 – 2010 VDC Research Group, Inc.
Mobile & Wireless Solutions