mobile enterprise trends 2015 - emergence capital
TRANSCRIPT
MOBILE ENTERPRISE TRENDS 2015 Kevin Spain � September 8, 2015
§ Mobile represents the next major technology platform shift for businesses. Like the SaaS platform shift, mobile will create tremendous opportunities for enterprise-focused entrepreneurs.
§ We estimate that mobile enterprise will ultimately represent an annual revenue opportunity for entrepreneurs of at least $100 billion.
§ This report will review the current state of the enterprise mobile market and will share our predictions as to where this market is headed.
OVERVIEW
WHY MOBILE MATTERS TO ENTERPRISES
WHAT IS DRIVING GROWTH IN MOBILE ENTERPRISE?
3 MORE MONEY FOR MOBILE Enterprise spending on mobility-related technologies is expected to more than double over the next five years.
1 WORKERS LOVE IT Nearly half of workers state that their mobile device is very or somewhat important for their work.
2 BYOD TAKES HOLD Businesses are increasingly allowing workers to use their own mobile devices for work. 74% of organizations have or plan to have bring-your-own-device (BYOD) policies in place.
4 THERE’S AN APP FOR THAT As mobile budgets grow, entrepreneurs are focusing more on building mobile applications for business. As a result, there are more apps available to solve a wide range of business challenges.
4
DYNAMICS DRIVING MOBILE
ENTERPRISE GROWTH
SOURCE: Tech Pro Research, Pew Research Center, IDC
WHERE ARE WE TODAY?
Native or web-based mobile applications that
are: (a) used by businesses and (b)
valuable to users in large part because of their mobile functionality.
These applications may also have a desktop
interface.
MOBILE ECOSYSTEM: APPLICATIONS & ENABLERS
APPLICATIONS ENABLERS
Technology solutions that help mobile
application developers do their jobs more
effectively.
&
§ Emergence publishes a landscape of mobile enterprise application companies annually
• Our 2015 mobile enterprise landscape includes 313 companies, up from 258 companies in 2014 and 95 companies in 2013.
• The landscape is segmented by key application categories, both functional and industry-related.
§ The landscape is segmented by key application categories, both functional and industry-related.
MOBILE ENTERPRISE APPLICATIONS
H O R I Z O N T A L
V E R T I C A L BANKING GOVERNMENT
OTHER VERTICALS EDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT.
RESTAURANTS
ACCOUNTING, FINANCE, IT SALES, MARKETING & SERVICE
PAYMENTS
HOSPITALITY
CONTENT COMMUNICATION TASK MANAGEMENT & CALENDAR
MOBILE FORMS
EVENTS & CONTACTS
OrderAhead
HR & RECRUITNG BI & ANALYTICS
ACQUIRED
RETAIL
TRANSPORTATION
MANUFACTURING
MOBILE ENTERPRISE APPLICATIONS LANDSCAPE 2015
KURADO
PRODUCTIVITY
§ The number of mobile enterprise application companies has grown by 20% in the last year § While this isn’t a high growth rate, it is similar to the early days
of SaaS when entrepreneurs were learning to capitalize on a new platform and the pace of company creation was modest.
§ Industry-focused apps are playing a prominent role § Approximately 1/3 of the companies on the landscape focus on
specific industries. This is different from the early days of SaaS when nearly all companies were cross-industry.
§ Early M&A has centered around productivity apps • Microsoft has played a prominent role having acquired three
productivity-focused mobile enterprise companies to date (6Wunderkinder, Sunrise, and Acompli).
MOBILE ENTERPRISE APPS: LANDSCAPE TRENDS
WHERE ARE WE TODAY?
EARLY STAGE MOBILE APP FUNDING HAS BEEN INCREASING EVERY YEAR SINCE 2010, GIVING RISE TO A HANDFUL OF LATER STAGE APPS WITH MASSIVE GROWTH ROUNDS
SOURCE: Emergence analysis based on Crunchbase data*”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have raised more than $50M.
Dropbox $600,000,000
Box $544,000,000
Square $480,500,000
Slack $338,450,000
Evernote $181,250,000
ServiceMax $120,000,000
Doximity $81,800,000
Airstrip Technologies $65,000,000
LATE STAGE MOBILE APPS FUNDING* TO-DATE
20
34
55
97 99
0
20
40
60
80
100
120
$-‐
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
2010 2011 2012 2013 2014
# o
f deals
Tota
l A
mount
Rais
ed (
USD
)
EARLY STAGE MOBILE APP FUNDING* (2010-2014)
WHERE ARE WE TODAY?
MOBILE ENTERPRISE APPS – TOTAL FUNDING BY CATEGORY
H O R I Z O N T A L
V E R T I C A L
OrderAhead
18 companies $108M
38 companies $216M
23 companies $94M
10 companies $54M
15 companies $656M
19 companies $1,407M
35 companies $300M
32 companies $90M
MANUFACTURING
4 companies $30M
10 companies $51M
7 companies $49M
10 companies $140M
10 companies $92M
TRANSPORTATION
6 companies $20M
HOSPITALITY
1 company $9M
BANKING
3 companies $8M
GOVERNMENT
CONTENT
43 companies $622M
COMMUNICATION TASK MANAGEMENT & CALENDAR
15 companies $98M
MOBILE FORMS
7 companies $25M
EVENTS & CONTACTS
12 companies $75M
PRODUCTIVITY
ACCOUNTING, FINANCE, IT SALES, MARKETING & SERVICE
PAYMENTS HR & RECRUITING BI & ANALYTICS
OTHER VERTICALS EDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT.
RESTAURANTS
RETAIL
§ Early stage funding is taking off § Annual dollars invested in early stage mobile enterprise app
companies has grown at a CAGR of 38% over the last 5 years.
§ Several late stage breakout companies are emerging § Beyond well-known names such as Box, Square, and Slack,
other companies such as Doximity and ServiceMax are approaching “unicorn” status.
§ Several landscape categories have been particularly appealing to investors
• Productivity app companies have been the largest recipients of capital. Payments, healthcare, and sales/marketing have also seen meaningful investor interest.
MOBILE ENTERPRISE APPS: FUNDING TRENDS
§ Emergence publishes a landscape of mobile enterprise enabler companies annually
• Our first landscape was published this year and includes 220 companies.
§ The landscape is segmented by problems that application developers are aiming to solve § Sometimes an enabler might help its customers solve
multiple problems. In this case, we show the enabler in what we feel is its “primary” problem solving area.
MOBILE ENTERPRISE ENABLERS
WHERE ARE WE TODAY?
APPURL Turnpike
Tapku
Babble-on
WireKit
API LAYER
DEVELOPMENT
USER ACQUISITION ENGAGEMENT MONETIZATION
MOBILE ENABLER LANDSCAPE 2015
APP DISCOVERY
APP LANDING PAGES
APP STORE OPTIMIZATION
APP STORE DATA & RESEARCH
A/B TESTING
ANALYTICS
NOTIFICATIONS
MOBILE MARKETING AUTOMATION
MARKETING ATTRIBUTION
MONETIZATION
DEEP LINKING
DEMO TOOLS
PAYMENT EMAIL
LOCALIZATION MOCKUP/PROTOTYPING
TELEPHONY
APP TESTING
FEEDBACK & SUPPORT
APP BUILDER
DEV PLATFORM
ACQUIRED
§ Judging by the number of companies in each landscape category, user engagement and development efficiency are key pain points in mobile § Over half of the companies on the landscape are focused in these
two areas.
§ Acquisition activity has been heaviest in analytics § Many mobile analytics companies continue to emerge, which may
suggest app developers’ analytics needs are still evolving.
§ The user acquisition and monetization categories are surprisingly uncrowded
• These are clearly areas of interest for app developers. Big problem plus minimal competition could be opportunity for entrepreneurs.
MOBILE ENTERPRISE ENABLERS: LANDSCAPE TRENDS
EARLY STAGE MOBILE ENABLERS SAW A STEP FUNCTION INCREASE IN FUNDING FROM 2013 TO 2014, JUST ONE YEAR BEHIND MOBILE APPS
13
31
36 38
48
0
10
20
30
40
50
60
$-‐
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
2010 2011 2012 2013 2014
# o
f deals
Tota
l A
mount
Rais
ed (
USD
)
EARLY STAGE MOBILE ENABLER FUNDING* (2010-2014)
SOURCE: Emergence analysis based on Crunchbase data*”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have raised more than $50M.
Stripe $190,000,000
Twilio $99,000,000
Optimizely $87,000,000
Xamarin $82,000,000
Applause $80,800,000
Zendesk $79,000,000
Appcelerator $78,100,000
Mixpanel $76,500,000
Quixey $74,200,000
Tapjoy $51,000,000
LATE STAGE MOBILE ENABLER FUNDING TO-DATE*
PAYMENT
APP DISCOVERY
APP LANDING PAGES ANALYTICS
APP STORE OPTIMIZATION
NOTIFICATIONS
MOBILE MARKETING AUTOMATION
MARKETING ATTRIBUTION
MONETIZATION
DEEP LINKING
DEMO TOOLS
USER ACQUISITION ENGAGEMENT
FEEDBACK & SUPPORT
MONETIZATION
APP STORE DATA & RESEARCH
API LAYER EMAIL TELEPHONY
DEVELOPMENT
DEV PLATFORM
LOCALIZATION MOCKUP/PROTOTYPING
APP BUILDER
APP TESTING
32 companies $395M
2 companies $190M
5 companies $237M
6 companies $73M
8 companies $192M
10 companies $82M
16 companies $152M
10 companies $94M
10 companies $96M
A/B TESTING
8 companies $101M
11 companies $100M
4 companies $72M
11 companies $111M
5 companies $82M
11 companies $80M
18 companies $121M
17 companies $91M
12 companies $29M
4 companies $1M
8 companies $1M
13 companies $107M
MOBILE ENABLERS 2015 – TOTAL FUNDING BY CATEGORY
§ Early stage funding of mobile enterprise enablers is accelerating § Dollars raised by enablers in 2014 nearly doubled from 2013.
§ Many of the later-stage enablers service both mobile and web developers § This is unsurprising as many app companies have both mobile and
web-based interfaces to their applications. Additionally, many leading enablers that started as web-only have added good mobile capabilities to their offerings.
§ Analytics, deep linking, and telephony categories have received the most funding
• Payments and development platforms have also seen heavy investment.
MOBILE ENTERPRISE ENABLERS: FUNDING TRENDS
WHAT’S NEXT?
PREDICTIONS & OPPORTUNITIES
Continued growth of “horizontal” mobile apps, many focused on productivity improvements.
WE PREDICT THREE AREAS OF GROWTH FOR MOBILE ENTERPRISE
Expanding use of mobile apps for non-desk workers, with a focus on key verticals such as healthcare, construction, and field service.
1
2
DESK EXTENSION
DESKLESS ENTERPRISE 3 GLOBAL
MOBILE
Adoption of mobile enterprise applications in emerging markets that are inherently mobile-first. These applications will be some of the first business apps used in these markets.
PREDICTION: GROWTH OF DESK EXTENSION APPS 1
KEYS TO SUCCESS
EXAMPLE COMPANIES
§ Leveraging and blending mobile and web, as the workers that use these apps are deskbound at times and mobile at others.
§ Utilizing mobile native access to email, calendar, and contacts to make integration with key data sources easier, while enhancing virality.
Continued adoption of “horizontal” mobile apps, many focused on
productivity improvements. Nearly all of the top 20 most
downloaded apps on our landscape are
productivity-oriented.
* TOTAL RAISED:
$3.7 BILLION
SOURCE: AppAnnie, Emergence analysis
PREDICTION: GROWTH OF DESKLESS ENTERPRISE APPS 2
KEYS TO SUCCESS
EXAMPLE COMPANIES
§ Deep domain expertise in an industry that is dominated by deskless workers.
§ Extraordinary focus on simple user experience; Apps for deskless workers must be easy to use in the field.
§ Robust offline functionality so that the app is functional when online access isn’t possible.
Expanding use of mobile apps for non-desk workers, with a focus on key verticals such as healthcare,
construction, and field service. Non-desk
workers represent 80% of the global workforce.
* TOTAL RAISED:
$855 MILLION
PREDICTION: GROWTH OF ENTERPRISE APP USAGE IN EMERGING ECONOMIES
3
Adoption of mobile enterprise applications in emerging markets that are inherently mobile-
first. These applications will be some of the first business apps used in
these markets.
50% ASIA PACIFIC
10% LATIN AMERICA
10% MIDDLE EAST + AFRICA
% OF MOBILE ENABLED WORKERS IN 2020
SOURCE: Citrix, IDC, Emergence analysis
MOBILE ENTERPRISE OPPORTUNITY: $100+ BILLION
X 3.0 BILLION
GLOBAL WORKERS
$40+ PER WORKER
PER YEAR
* CLOUD REVENUE IN 2005:
<$500 MILLION * MOBILE
ENTERPRISE REVENUE TODAY: <$500 MILLION
$100+ BILLION ANNUAL REVENUE OPPORTUNITY
SOURCE: Emergence analysis
§ Enterprises are shifting more IT budget to mobile initiatives
§ In response, a growing number of entrepreneurs are developing mobile enterprise applications that help both desk workers and non-desk workers become more productive
§ Growth in funding for mobile enterprise applications and mobile enablers is growing rapidly
§ We are in the early innings of the mobile platform shift in enterprise. Ultimately, the opportunity in mobile enterprise applications is over $100 billion annually.
SUMMARY
ABOUT EMERGENCE CAPITAL
@emergencecap Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital firm focused on early and growth-stage enterprise cloud companies. Its mission is to invest in the cloud visionaries who are building the most important business applications. The firm's investments include companies such as Salesforce.com (CRM), SuccessFactors (acquired by SAP), Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box. Emergence Capital has $910 million under management. More information on Emergence Capital can be found at http://www.emcap.com.
Published by Kevin Spain, General Partner, Emergence Capital, @kevinspain
ABOUT EMERGENCE CAPITAL