The document provides an overview and outlook of the enterprise mobility solutions market for 2010. It discusses:
- The market is expected to improve in 2010 after a challenging 2009, though the first half will likely remain difficult.
- Aging device installed bases are driving up failure rates and costs.
- Demand is increasing for next-generation devices that meet new user and application requirements.
- Managing mobile solutions remains a top priority for organizations.
- VDC Research will track the enterprise mobility market across hardware, software, services and vertical markets to help clients stay informed in 2010.
2. Recording Available
These slides are from a webcast presented on 01/06/10
01/06/10.
A full audio recording is available for download at:
http://www.vdcresearch.com/market_research/mobile_wirele
ss/freeresearch.aspx
3. VDC Research
Complimentary insights & marketing data on the
enterprise mobility market available at:
www.vdcresearch.com
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– 2009 VDC Research Group, Inc.
6. Enterprise Mobility Market Overview
Improvement in market conditions
• Market conditions to improve in 2010:
Following a immensely challenging 2009 campaign the market for enterprise mobility solutions is poised for
growth in 2010
However, the first half of 2010 will likely remain challenging and performance will sputter in some sectors
• Aging installed base driving failure and TCO concerns
Postponement of planned upgrades over past 18 months resulted in spike in average age of installed base
Drove increase in average failures rates of mobile devices which increased TCO
• Increasing complexity of mobile applications and changes to end user demographics driving
next generation mobile device requirements
Intense price pressures in market – best evidenced by increased adoption of smartphones for a broader
spectrum of enterprise mobility applications
Next generation of mobile users driving ‘consumerization’ of enterprise class devices and acceptance of new
form factors, I/O functionality
• Management of mobile solutions a top of mind concern…still
With an expanding installed base of mobile devices by device type, user type and application end users hungry
for more seamless approach to device and application management
Managed service and hosted business models will be increasingly relevant – questions remain around who is
best positioned to deliver
5– 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
7. Global Rugged Mobile Market
Substantial contraction in H1 2009 across all form factors, regional markets
Large Form Factor Shipments Small Form Factor Shipments
$1,500 600 $1,400 1421.3 1600
1482.0
$1,400 1500
Hardware Shipments (USD Millions)
Hardware Shipments (USD Millions)
$1,300
494.6
$1,300 500 1400
$1,359
$1,200
Unit Shipments ('000)
Unit Shipments ('000)
$1,385
412.4
$1,300
$1,200 423.8 1300
$1,100
$1,100 400 1200
1,088.8
$1,175
$1,000
$1,000 1100
$1,016
$900
$947
$900 300 1000
$800 $800 900
$700 200 $700 800
1H 2007 1H 2008 1H 2009 1H 2007 1H 2008 1H 2009
The global rugged mobile computer market – comprising both large and small form factor mobile computers was down substantially
during H1 2008. Large form factor shipments declined by 22% while small form factor shipments declined by just over 30%.
6– 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
9. Global Rugged Mobile Market Forecast
Growth to resume in 2010 following substantial contraction in 2009
Global Rugged Hardware Forecasts
Hardware Revenues (USD millions)
3,500.0 • Tier one account contribution
• Renewed retail investments
3,000.0 • Field mobility solutions
2,500.0
2,000.0
1,500.0
1,000.0
500.0
-
2008 2009E 2010E 2011E 2012E 2013E
Large Form Factor
Small Form Factor
8– 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
10. Growth Expectation by Industry Varies Considerably
According to channel organizations most sectors poised to rebound substantially in 2010
Annual Revenue Growth Expectation by Sector 2010
12% 2009
-11% Wholesale
4%
6% Utilities/ Telco
10%
-17% Transportation
10%
-21% Retail
13%
4% Prof. Service
13%
-13% Manufacturing
11%
-15% Industrial/ WH
21%
9% Health Care
11% State/ Local
-6%
13%
-6% Public Safety
7%
8% Military
17% Federal Non-Military
6%
-25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25%
9– 2009 VDC Research Group, Inc.
Mobile and Wireless Practice
11. Margin Pressures Across All Offerings Continue
Hardware margins worsened considerably over second half of 2009 for channel organizations
Minimum and Target Margins by Core Hardware Offerings
4.9%
11.0%
Rugged Handheld/ PDAs
6.5%
19.8%
4.8%
7.5%
Smartphones/ Handheld Computers
5.6%
14.6%
4.7%
8.8%
Rugged Notebooks
6.3%
14.6%
4.1%
Minimum 2H
7.1%
Minimum 1H
Notebooks
Target 2H
5.3% Target 1H
13.3%
0% 5% 10% 15% 20% 25%
10 – 2009 VDC Research Group, Inc.
Mobile and Wireless Practice
12. Mobile Investment Barriers
Prioritization of mobile and wireless solutions over other investments remains a challenge
Leading Mobile Solution Investment Barriers
(% of Respondents)
Other capital projects with higher priority 46%
Unclear return on investment 29%
Desire to wait for proven applications & technology in
17%
this industry
Security issues 4%
Lack of people with appropriate skills 4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Mix of IT and operational issues represent primary investment barriers
Source: Enterprise Mobility End-User Survey; Conducted June, 2009 (n=687)
11 – 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
13. Tangible Mobile Investment Benefits Realized
Mobile solution ROI and technology investment drivers are consistently strong
Considering your organization's most recent mobile deployment, what level of
benefits has your organization achieved?
Improved real time decision making
Increased mobile worker productivity
Improved customer loyalty and repeat business
Increased first time fix
Reduced asset failures
Increased SLA compliance
Reduced operating costs
Increased sales/revenues
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
End users reporting substantial improvements in a variety of workflows, processes, customer service and
revenues as a result of mobile solution investments.
12 – 2009 VDC Research Group, Inc.
Mobile and Wireless Practice
14. Mobile Device Requirements
TCO emerging as a key requirement
Mobile Device Selection Criteria
(% of Respondents)
Broadband wireless functionality 51%
Battery life 49%
Total cost of ownership 45%
Device weight and ergonomics 29%
Operating system 29%
Level of ruggedisation 25%
Integrated bar code scanner 21%
Integrated voice AND data capability 20%
Ability to print in the field 17%
Touchscreen display 16%
Integrated GPS/ Location awareness 15%
0% 10% 20% 30% 40% 50% 60%
Although organizations are increasingly deploying non-rugged devices to support traditional rugged applications, total
cost of ownership remains a critical device evaluation criteria.
13 – 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
15. 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)
0.0 1.0 2.0 3.0 4.0 5.0 6.0
Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations
deploying mobile solutions.
14 – 2009 VDC Research Group, Inc.
Mobile and Wireless Practice
16. Average Mobile Device Failure Rates
After trending down, failure rates are again increasing
For your most recent mobile device deployment, what
percent of your installed base failed at least once?
• Average Productivity Lost per Failure
• Large Form Factor: 85-90 minutes
18.0% • Small Form Factor: 50-75 minutes
16.0%
• Average Internal Support per Failure
• Large Form Factor: 95-110 minutes
14.0% • Small Form Factor: 65-70 minutes
12.0% • Over the course of the past
2-3 years average failure rates –
10.0%
especially for non-rugged devices –
8.0% 16.6% have trended down.
13.7% • This was largely in response to the in-
6.0% creased focus on designing more durable
devices (integration of flash memory was
4.0% 7.9% a key contributor).
4.6% • However, in response to the recent
2.0%
economic pressures, end-users have
extended the life cycle of mobile devices
0.0%
and adopted less expensive solutions
Large Form Factor - Large Form Factor - Small Form Factor - Small Form Factor -
Commercial Grade Rugged Commercial Grade Rugged (such as netbooks) resulting in an
increase in failure rates.
15– 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
17. TCO Cost Breakdown
Productivity loss represents a significant proportion of TCO – especially for non-rugged units
Five Year TCO by Form Factor and Key Contributor
Productivity Loss as a
Small Form Factor - Rugged
27.3% Percent of TCO
Small Form Factor - Commercial Grade 40.8%
Hard Costs
IT Support
Large Form Factor - Rugged 29.2%
Productivity
Loss
Large Form Factor - Commercial
Grade 49.8%
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Total Cost of Ownership (Five Years)
16– 2009 VDC Research Group, Inc.
Mobile & Wireless Practice
18. Factors Driving Shift Towards Managed Services
Seamless mobile support and simplification of mobile solutions key drivers
Which of the following are the most important factors driving the shift
towards a service-based mobility deployment model?
Simplifying end user mobility
Integrating the full set of technologies required for enterprise…
Simplifying day to day IT and compliance operations
Ensure endpoint and data security
Ensuring universal connectivity and access control
Eliminating need to invest capital to continually grow a mobility…
Providing support for any mobile application
Multi-device support
Consolidated operations and reporting
0% 5% 10% 15% 20% 25%
Managed services opportunity driven by demand for an easier and more convenient approach to mobile
solutions
17 – 2009 VDC Research Group, Inc.
Mobile and Wireless Practice
19. Benefits and Challenges of Mobility Solutions
Many mobility investment challenges can by addressed by managed service model
OUT OF BOX EXPERIENCE EFFICIENT APP DEPLOYMENT
• OTA device • OTA push of applications
provisioning Deployment Application and updates
• Software configuration Complexity Management • Seamless version control
Customer
Issues
• Security
• Device diagnostics Remote Security • Remote lock and wipe
• OTA fixes Management Management
• Validate settings
LOWER TCO DATA SECURITY
18 – VDC Research Group, Inc.
20. How VDC coverage will help clients stay on top of
the market in 2010?
The 2010 Enterprise Mobility Solutions Intelligence Service
• Track 1: Enterprise Mobility Hardware
• Track 2: Enterprise Mobility Software
• Track 3: Enterprise Mobility Professional Services
• Track 4: Vertical Market Reports with Demand Curves
• Track 5: Enterprise Mobility Solutions Channel Tracker
STUDY PUBLICATION DATE ACTUAL MARKET SIZE/SUPPLIER SHARE FORECAST MARKET SIZE
Service Year 2010 2009 2010-2013
19 – 2009 VDC Research Group, Inc.
21. Q&A Session
Thank You for Attending this VDC Webinar
For more information about VDC Research coverage of the global markets
for embedded software and tools – including the Enterprise Mobility
Solutions: 2010 Market Intelligence Service – 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 – 2009 VDC Research Group, Inc.