proliferation of mobile devices = opportunity for apps & developers

VDC Research Webcast

Proliferation of Mobile Devices = Opportunity for Apps & Developerspp y pp pMobile and Wireless PracticeEric Klein – Senior AnalystDavid Krebs – Director

Recording Available

These slides are from a webcast presented on 08/04/10. p

A full audio recording is available for download at:

www.vdcresearch.com/market_research/mobile_wireless/freeresearch.aspx#

1 – 2010 VDC Research Group, Inc.Mobile and Wireless Practice

VDC Research Group

Additional complimentary insights and marketing data on the mobile and wireless market available at:

www.vdcresearch.com


Today’s Mobile and Wireless Practice Speakers:

Eric Klein – Senior AnalystEric Klein Senior AnalystEric is a market research and consulting professional specializing in the design, analysis, and delivery of project-based research. Over the past 15 years, Eric has worked with a wide array of firms across a number of industries, leading quantitative and qualitative research in areas such as innovation in enterprise software, supply chain risk management, manufacturing operations/automation, and IT spending research. Eric has worked in a variety of market research and management roles, providing market data and competitive intelligence to Fortune 500 firms. His previous employers

David Krebs Director

management roles, providing market data and competitive intelligence to Fortune 500 firms. His previous employers include: AMR Research, The Yankee Group, and Affiliated Computer Services (ACS). Eric holds a Bachelor of Science in Finance from Boston University.

David Krebs – DirectorDavid has more than ten years experience covering the markets for enterprise and government mobility solutions, wireless data communication technologies and automatic data-capture research and consulting. David focuses on identifying the key drivers and enablers in the adoption of mobile and wireless solutions among mobile workers in the extended enterprise. David’s consulting and strategic advisory experience is far reaching and includes technology and market

t it t t h l t ti d d ti bl t fili d d l t d topportunity assessments, technology penetration and adoption enablers, partner profiling and development, new product development and M&A due diligence support. David has 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. David is a graduate of Boston University (BSBA).


Today’s Agenda

Market overview: the state of enterprise application mobilizationMarket overview: the state of enterprise application mobilization

“Playing in traffic” – How device expansion increases complexity

Forces Driving Enterprise Mobility

The rugged market segment is different

Conclusions: What lies ahead


Research Methodology

Target Communities Sample Size• The following programs constituted the core of

i d t ll ti ff tTarget Communities Sample Size

Mobile Solution Providers and Software Vendors >30

our primary data collection efforts. • Structured interviews were conducted with

Presidents, VPs of Marketing, Business Development Managers and Senior Product Managers at the following organizations:

Mobile Software Developers 175

Enterprise Mobility End Users and Evaluators >550

Mobile Computer Hardware Suppliers Mobile Software Vendors Enterprise Software Vendors Mobile System Integrators

• Web survey fielded among mobile software developers.

• Web survey fielded among enterprise mobility end users and evaluators across a variety of sectors.


Research MethodologyM bil ft h

Vertical Markets

Mobile software research scope

ps ions

Handheld/ PDA

DM

)ec

urity

Mobile Software Solutionsus

ines

s A

ppris

e Ex

tens

i

Smartphone

Notebook / Convertible

Sl t T bl t bile

Dev

ice

emen

t (M

DM

obile

Se

Mobile Computer F F t

Line

of B

uEn

terp

Slate Tablet

Vehicle Mounted

UMPC

Mob

Man

agForm Factors


Global Mobile Device Forecast - 57M units by 2014N t b k R d d UMPC th ti S t h h t t t kNotebook, Rugged, and UMPC growth continue – Smartphones show strongest uptake

Device Allocation:• We project that the rugged device segment

(including both small & large FF’s) will

100%

Device Allocation:Global Mobile Device Unit Shipments

(including both small & large FF s) will decline in terms of allocation, but remains as a growth market with a 13.8% CAGR over the next 5 years

• Smartphone adoption in the enterprise

48%58%

60%

80%

Smartphone

p p pcontinues to climb, and will reach nearly 33M units by 2014

• However, the fastest growing segment of Smartphones used in the enterprise are i di id l li bl (IL) d i

35%27%

20%

40%Notebook

Rugged

Slate / Tablet

individual liable (IL) devices

Note: This data strictly represents mobile devices that are deployed by enterprise organizations to support enterprise mobility applications VDC

14% 11%

0%

20%

2010 2014

Slate / Tablet

Netbook

*UMPC market < 1%

support enterprise mobility applications. VDC defines enterprise mobility applications as solutions that support real time distributed transaction processing.


Units: 27.7M 56.9M

What’s Driving the Mobilization of Enterprise Apps?

• Companies have made sizeable investments in their IT infrastructure and enterprise papplications – the desire to extract value from these investments is occurring and will continue to

• Decreasing prices points, advances in mobile technologies and delivery platforms opens thetechnologies, and delivery platforms opens the door for many more enterprises to adopt or expand their usage of mobile enterprise applications

• Maturation in the mobility segment is giving i li t t d t hispecialists tremendous partnership

opportunities with ISVs and SIs – effective partnering can become a major differentiator

• Developer communities are flourishing – the job market is flush with mobile development positions

• Mobility platform vendors are offering powerful tools for rapid application development – across all most major mobile OS platforms

• Every worker IT supports is becoming more


• Every worker IT supports is becoming more mobile

Important Criteria When Evaluating Mobile AppsI t ti d C t i ti biliti t f i d h l ti bilIntegration and Customization capabilities are top of mind when evaluating mobile apps

Most important selection criteria

• Companies evaluating mobile technologies and applications are most concern with cost – this is no at all a surprise considering the

d49%

62%

User friendly

Overall cost

pwhen evaluating mobile applications*:

current economic climate. Cost ranked 3rd

in our end-user study from 2009• Running lean is a given for many companies

in this economy – to succeed, vendors must be able to demonstrate how their mobile

28%

38%

43%

Ability to scale functionality

Ability to customize

Integration w/ existing enterprise apps

be able to demonstrate how their mobile solutions will lead to rapid ROI

• These evaluation criteria vary widely by industry and company size – larger companies are more concerned with hosting

21%

21%

25%

Ability to scale users

Hosted options

Pre/Post implementation support

companies are more concerned with hosting options and the ability to scale users

3%

4%

7%

Vertical market design

Other

Partner recommendation


*Multiple response question

Tangible Benefits From Mobile Deployments:

Considering your organizations most recent mobile deployment, what level of benefit has your organization

achieved against the following areas?

Increased mobile worker productivity +31%

Improve real-time decision making +27%

Improved inventory accuracy +27%

Improved customer loyalty and repeat business +25%

Reduced asset failures +23%

One chemical manufacturer we interviewed implemented a $200K mobile solution that included rugged handhelds supporting mobile applications to streamline operations management and improve decision

End-user interview: large global chemical manufacturer:

handhelds supporting mobile applications to streamline operations management and improve decision support capabilities and enhance the workflow associated with their operator rounds. Over a short time frame they have expanded from a pilot at 1 facility to rolling out this solution to all 20 of their plants. The company achieved hard dollar savings of $1.2M in the first year the solution was implemented.


Today’s Agenda







Fragmentation, and “Learning to Play in Traffic”P f i ti d d i lif ti t h ll d t itiPace of innovation, and device proliferation creates challenges and opportunities


Challenges Facing Mobile SW DevelopersS ifi ti h d “ ” i ifi t h ll f bil SW d lSpecification changes and “scope creep” are a significant challenge for mobile SW developers

Most challenging issues addressed

• Software developers have to deal with a variety of challenges during the development lifecycle issues with

50%Changes in specifications/Scope creep

g gduring the development lifecycle*:

development lifecycle – issues with specifications seems to rise to the top

• Specifications changes almost also result in delays and missed deadlinesM f l d i d f f t

38%

39%

Application complexity

Incomplete specifications

• More powerful devices and form factors, along with OS and API enhancements are also adding to the challenges mobile developers face as they are increasingly being asked to development more complex

11%

28%

Lack of skilled testing personnel

Lack of qualified developers

g p papplications

5%

11%

Lack of vendor support

Poor development tools


4%Other


Challenges Facing Mobile SW Developers – Cont.D l h ll d ith d ti t f t d OS l dDevelopers challenged with updating apps to fragmented OS landscape

Challenges with primary application

• Mobile device / OS fragmentation makes it challenging for developers to seamlessly update their applications

39%Application updates are difficult to push

g p y ppchannel*:

update their applications• Issues associated with pricing options and

delays in the application acceptance / submission process remain as challenges, but are secondary21%

21%

Submission process is too long

Pricing options are inflexible

but are secondary

18%

C tifi ti i i

Review process seems unfair/biased

long

7%

14%

Revenue sharing

Certification is expensive or lengthy



Developers Not Just Reliant on App Store ModelD l t lti h l h t i i th i fitDevelopers must use a multi-channel approach to maximize their profits

Main channels for SW developers

50%App store

pto sell their applications*:

• Developers are best served by adopting a multi-channel approached to market and sell their applications

37%

41%

Via customer who is commissioning the application

Direct download via our own site

pp• Developers are using their own web site

to drive downloads and to market their applications

• Enterprises adopting mobile applications

24%

26%

3rd party aggregator or portal

Operator/Carrier portal

Enterprises adopting mobile applications will ultimately begin controlling application updates – this functionality will begin to be incorporated into mobility platforms as well as MDM vendors products

4%

17%

On-device pre-loading via operator

On-device pre-loading via handset manufacturer



Today’s Agenda







Smartphone Application Support:Moving Beyond Wireless Email & PIMSMoving Beyond Wireless Email & PIMS

71% 13% 10% 6%Wireless Email

64%

34%

9%

10%

10%

25%

16%

29%

1%

2%

Personalized contacts

Content / employee portal

33%

29%

28%

6%

8%

5%

16%

19%

16%

42%

44%

48%

2%

3%

SMS alerts

IM

Inventory mgmt 28%

24%

22%

5%

6%

4%

16%

20%

21%

48%

44%

47%

3%

5%

6%

Inventory mgmt

Field service mgmt

Sales force mgmt

21%

18%

8%

5%

19%

20%

50%

53%

2%

4%

Customer interation mgmt

Logistics mgmt

Fully deployed Rolling out or partial deployment Evaluating or piloting No plans Don't knowFully deployed Rolling out or partial deployment Evaluating or piloting No plans Don t know

18 – 2010 VDC Research Group, Inc.Mobile & Wireless Practice

“Easy as Facebook” “Sesame Street Simple”KISS i l t h it t bil li tiKISS is a very relevant acronym when it come to mobile applications ...

FunctionalityFunctionalityFunctional RoleFunctional Role

• Must be intuitive and stress ease of use• Must improve/streamline workflow • Backend/ integration/ customization

bilit

Functionality

• Must be intuitive and stress ease of use• Must improve/streamline workflow • Backend/ integration/ customization

bilit

Functionality

• Function role expansion – apps for roles• Increasingly distributed, decentralized, and

mobile staffs

Functional Role

• Function role expansion – apps for roles• Increasingly distributed, decentralized, and

mobile staffs

Functional Role

capabilitycapability

Security + ManageabilitySecurity + Manageability• Must demonstrate ability to reduce corporate liability and risk• Provide strong MDM capabilities – best accomplished by partnering • Must have robust mgmt capability, offer both BTF and web based solutions moving forward

• Must demonstrate ability to reduce corporate liability and risk• Provide strong MDM capabilities – best accomplished by partnering • Must have robust mgmt capability, offer both BTF and web based solutions moving forward

• Must be designed for varying conditions• Must be able to accommodate fragmented devices / OS minefield

Usability• Must be designed for varying conditions• Must be able to accommodate fragmented devices / OS minefield

Usability


Today’s Agenda







Why the Windows is Still Very Relevant ...

• Microsoft’s OS is dominant in the rugged handheld space, with a sizeable gg pinstalled base on several platforms such as embedded CE, and various Window Mobile software releases (80%+ market share). Microsoft recent Windows Embedded Handheld release, and its continued support and cooperation with

dominant OEMs in the rugged space such as Motorola, Intermec, and Honeywell shows that the company acknowledges that the rugged space is evolving and that it has no intentions of exiting

An updated Windows Embedded Handheld platform will be released in the second half of calendar year 2011.

This expanded platform will build on Windows Mobile 6.5’s manageability and security features by incorporating additional technologies from Windows Embedded Compact 7, including updated kernel and memory models browser and input methods such as multitouchmemory models, browser, and input methods, such as multitouch.

Additionally, the platform will feature the Silverlight for Windows Embedded user interface framework to help OEMs, developers and designers implement immersive user interfaces on enterprise handheld devices.

Microsoft will also include a migration path for existing applications to a new application platform based on Microsoft Silverlight and Microsoft XNA with Visual Studio 2010.

The majority of rugged mobile applications have been developed with Microsoft tools – the challenge for Microsoft now will be to keep developers interested in continuing to develop applications suitable for the rugged mobile market.

The challenge for OEMs will be bringing solutions to the market that leverage the latest OS innovations while maintaining consistency with its (conservative) clients


maintaining consistency with its (conservative) clients.

Mobile Applications Deployment Trends:E t i i l E M il i th t id l d l d i lif l t i iEnterprise wireless E-Mail remains the most widely deployed – service lifecycle management apps gaining

Currently deployed mobile applications (rank order):

Currently Deployed Mobile Applications (rank order)

Manufacturing Government Life Sciences/Health Care

Wireless Email Wireless Email Wireless Email

Inventory/Warehouse Management Command & Control / Communications Charts

Field Sales (Sales Force Automation) Workforce Management E-prescribing

Shipping & Receiving Maintenance / Repair / Diagnostics Remote Physician Information Access

Asset Management Asset Management Charge Capture


Today’s Agenda







Conclusions

A recent Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA) showed that the software industry had theVenture Capital Association (NVCA) showed that the software industry had the most venture funding deals completed in Q2 with 229 rounds (amounting to $1B), representing a jump of 43% from Q1.In terms of dollars invested, the software sector was in third place, trailing only bi t h l d k t tbiotechnology and energy market segments.


Conclusions – Where do we go from here?

Today:• Every worker supported by IT is becoming more mobiley pp y g• Securing employee-owned devices is imperative for mobile application expansion in the enterprise• The rugged market is evolving with new devices continue to emerge• Everyone is “wooing” mobile application developers

Next 12-18 Months:Next 12-18 Months:• Portions of traditional enterprise applications will continue to be mobilized• MicroApplications will makes gains in the enterprise• Tablet segment gains traction in the enterprise with screen real-estate advantage

Pl tf i d d t li ti d l t t l ti b i bl d i i t l• Platform-independent application development tools continue become more viable and give internal in-house development more flexibility while “platform battles” continue

• B2C enablers will flourish as the mobile web continues to gain in importance as a channel

Long Term View:• Device proliferation creates need for better synch. capability for multiple mobile devices• More M&A activity from enterprise ISVs• Channel conflict increases challenging OEMs , ISV, and carriers• HTML 5?!


Q&A Session

Thank You for Attending this VDC Webcast.gFor more information about the Mobile and Wireless Practice, Please Contact:

Gerrald Smith– Senior Account [email protected] | 508.653.9000 x113

David Krebs–Practice [email protected] | 508.653.9000 x136

Eric Klein –Senior [email protected] | 508.653.9000 x141
