Filing Information: November 2011, IDC #231095

Private Vendor Watch Service: Vendor Profile

V E N D O R P R O F I L E

M o b i l e I r o n P r i v a t e V e n d o r W a t c h l i s t P r o f i l e 2 0 1 1 U p d a t e : A N e w P a r a d i g m f o r M o b i l e D e v i c e M a n a g e m e n t

Stacy K. Crook

I D C O P I N I O N

MobileIron brings compelling offerings to market that address the dynamics of today's

market for enterprise mobility, which have shifted tremendously and have made it

challenging for older mobile device management (MDM) vendors to adapt quickly.

MDM is offered in two models: MobileIron's Virtual Smartphone Platform for on-

premise or hosted deployments and Connected Cloud for SaaS deployments.

Specifically, these products address OS platform support and granular management

capabilities for both corporate-liable and individual-liable business users. They also

offer features that can be used for enforcing policies to control costs. Another key

feature is the mobile enterprise app storefront that is tied to the solution. We believe

MobileIron is a company to watch because:

MobileIron developed a solution with unique attributes such as granular

management of files and apps that lends itself to supporting both corporate-liable

and individual-liable devices. It does this across all of the leading mobile OS

platforms (Android, BlackBerry, iOS, Symbian, webOS, Windows Mobile,

Windows Phone). It provides cost control measures that can be enforced to, for

instance, track and take action on international roaming. It also has an enter- prise application storefront. It has a robust set of features pertaining to manage- ment, security, and cost control at a very competitive price either as a cloud-

based delivery model or on-premise. Last, it has a unique architecture that

simplifies management and relies on servers rather than the device for

the heavy lifting during the update/change process.

MobileIron has venture backing from well-respected VC firms, with $57 million

invested to date. It is growing rapidly and is recognized as one of the fastest-

growing companies in the IT sector today. It is building a strong customer base of

recognized brands and is increasing the size of its deployments.

The MDM market is now experiencing impressive growth due to the expansion of

smartphone shipments to businesses and consumers along with growth in mobile

applications. The recent trend of individuals bringing a variety of converged

mobile devices (smartphones) into the enterprise is contributing toward the

enterprise need to control access while still allowing employees to be productive

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2 #231095 ©2011 IDC

I N T H I S V E N D O R P R O F I L E

This IDC Vendor Profile analyzes MobileIron, a company playing in the mobile device

management market, and reviews key success factors: market potential,

technology/solution, corporate strategy, force multipliers, and customers. Leveraging

IDC's expert understanding of the competitive landscape and future outlook, this

document highlights company and market information tailored to the investment

professional's needs.

Since its product launch in late 2009, MobileIron has been quite successful in gaining

recognition in the MDM market. It is a VC-backed start-up seeking to solve the

increasingly important problem of expansion of mobile device usage in the enterprise.

MDM consists of provisioning, configuring, managing, updating, enforcing policy, and

securing access to/from the mobile device (typically smartphones). The MDM market

consists of mobility companies (RIM, Sybase, etc.), large IT systems management

vendors and security vendors (Microsoft, HP, Symantec, McAfee, Trend Micro, etc.),

and pure-play MDM vendors, which is where MobileIron fits in.

S I T U A T I O N O V E R V I E W

C o m p a n y O v e r v i e w

MobileIron, based in Mountain View, California, plays in the mobile device

management market. Company details are provided in Table 1.

©2011 IDC #231095 3

T A B L E 1

M o b i l e I r o n C o m p a n y S n a p s h o t

Category Details

Functional and secondary markets Mobile device management, mobile application management

Founding year 2007

Number of employees 200

Number of customers 1,000+

Company location Mountain View, California

Web site www.mobileiron.com

Funding initiatives Received Series D funding in May 2011

Investors Foundation Captial, Norwest, Sequoia Capital, Storm Ventures,

Venture Partners

Sales channels 100% through channel

2011 revenue estimate $20 million–30 million

Supplier info — Is this a minority-owned business? No

Supplier info — Is this a woman-owned business? No

Note: The terms minority-owned business and woman-owned business are defined in the Definitions section of the Learn

More section.

Source: IDC, 2011

I D C W a t c h F a c t o r S c o r e s

IDC Watch Factor scores measure private companies based on a set of five defined

success factors. Each of the five key success factors is made up of detailed sub

questions, which are assigned a value from 1 (weak) to 4 (strong). The average of the

subcategories is then applied as the overall score for each category:

Market potential: Market growth potential, strength of competition, and current

stage of market (early adopters versus late majority)

Technology/solution: Level of differentiation, disruptive capability, and

scalability

4 #231095 ©2011 IDC

Corporate strategy: Go-to-market strategy, management pedigree, and

financial status (running on venture capital with insignificant revenue versus self-

sustaining and not seeking additional rounds of funding)

Force multipliers: Current partnerships/certifications, additional partnerships

likely within the next two years, and channel/sales strategy

Customers: Number of existing customers, quality of existing customer base,

geographic reach, and size of addressable market in the coming years given the

vendor's current capabilities

Figure 1 shows the Watch Factor scores for MobileIron versus the Watch Factor

average scores for all companies ranked by the Private Vendor Watch Service in the

applicable market at the time of publication. The sections that follow detail the

reasons for those scores.

F I G U R E 1

M o b i l e I r o n W a t c h F a c t o r S c o r e V e r s u s W a t c h F a c t o r A v e r a g e S c o r e

Notes:

The Watch Factor average score reflects the average score for all private companies scored by

the Private Vendor Watch Service at the time of publication.

Scores are based on a scale of 1–4, where 1 = weak and 4 = strong.

Source: IDC, 2011

©2011 IDC #231095 5

M a r k e t P o t e n t i a l

Market

The market for enterprise mobile device management accounted for roughly $302

million in revenue in 2010 and will grow to $1.2 billion in 2015, with a five-year CAGR

of 32%. The long-term reality of multiple OS platforms and multiple mobile

applications is a significant driver in the need for MDM. Combine this with the

enterprise need to control access, enforce policy, ensure security, and remain in

compliance with regulations, and the value of having a robust MDM solution is clear.

The growing complexity of mobile enterprise software is also an opportunity for MDM

vendors.

MobileIron entered the market later than some of the other MDM vendors that have

been around for years. This is a disadvantage in that several of these companies had

large, established customer bases to sell into. However, MobileIron entered the

market just as consumerization was starting to take hold, introducing a whole new set

of challenges and complexities for the enterprise to deal with. It has developed its

solution, from its inception, with these market dynamics in mind, while established

players have had to try to retrofit their solutions.

IDC estimates that MobileIron's revenue for 2011 will fall between $20 million and $30

million and that the company is growing sales at a healthy rate, with the size of

deployments increasing.

MobileIron has some unique attributes to its MDM solution — robust capabilities

across the leading enterprise OS platforms and a compelling price point — and has

quickly established market credibility. We expect MobileIron to grow significantly

faster than the overall market.

Market Disruption

The market for mobile device management has had to evolve with a quickly changing

landscape, meaning the vendors that had first-mover advantage have had to evolve

to support new OS platforms and the shifting needs of enterprises in how they secure

and manage mobile devices. However, new disrupters have entered the MDM space

as well, primarily from adjacent markets such as mobile services management

(MSM), mobile security, and telecom expense management (TEM).

Competitive Landscape

In terms of revenue, Sybase is the market leader for MDM, followed by Microsoft and

then HP. From a revenue perspective, however, smaller companies are starting to

make an impact in the market as well. The market can be segmented into three types

of players: large systems management and security vendors (i.e., BMC, HP, IBM,

Microsoft, Novell, Symantec, Trend Micro, and McAfee), mobility companies (i.e.,

Excitor; Motorola Solutions; Good Technology; Sybase, an SAP company; and

Wavelink), and mobile device management pure-plays (i.e., B2M, Mformation,

Odyssey, SOTI, Fromdistance, AirWatch, BoxTone, and Zenprise). MobileIron falls in

this final category.

6 #231095 ©2011 IDC

M&A

This market has a history of M&A. Symantec acquired Altiris, BMC acquired Marimba,

and Nokia acquired Intellisync (and has since exited the market). TEM provider

Tangoe purchased InterNoded, a pure-play MDM vendor, and McAfee acquired Trust

Digital in 2010. IDC expects more acquisitions to take place in late 2011 and in 2012.

In more detail:

Large IT systems management vendors and device OEMs have purchased and

spun off MDM players over the years. Vendors like Nokia are likely to avoid this

route again, while others like Samsung that are making a new push into the

enterprise may consider moving beyond their current alliances toward

acquisition. Adjacent market players in mobile middleware, TEM, MSM, remote

access, and mobile security are all ripe for M&A activity with MDM vendors.

Pure-play cross-platform MDM providers such as MobileIron, AirWatch, Odyssey

Software, and SOTI, as well as some of the smaller mobility companies such as

Excitor, are potential candidates for acquisition.

Table 2 displays recent M&A deals in the mobile device management market.

T A B L E 2

M o b i l e D e v i c e M a n a g e m e n t M & A D e a l s

Date Acquirer Target Company Deal Value Specific Market/Solution Type

January 2010 Good Technology CloudSync Not disclosed Cloud-based MDM

February 2009 Visto Good Technology Not disclosed Enterprise mobility platform

January 2009 Tangoe InterNoded Not disclosed MDM

February 2007 HP Bitfone Not disclosed MDM

November 2005 Nokia Intellisync $430 million MDM

April 2007 Symantec Altiris $830 million MDM

May 2010 McAfee Trust Digital Not disclosed MDM/mobile security

May 2010 SAP Sybase $5.8 billion Mobile platform/MDM

Source: IDC, 2011

©2011 IDC #231095 7

T e c h n o l o g y / S o l u t i o n

MobileIron Virtual Smartphone Platform

The MobileIron Virtual Smartphone platform provides data protection across multiple

mobile OS platforms, including Android, BlackBerry, iOS (adherent to Apple SDK),

Symbian, webOS (asset management and ActiveSync-enabled security), Windows

Mobile, and Windows Phone. In more detail:

MobileIron Virtual Smartphone provides IT departments with the ability to enforce

policy across a variety of mobile OS platforms and mobile worker types in order

to remain in compliance, safeguard corporate data and networks, and ensure

mobile worker productivity.

IT is increasingly facing a growing number and variety of mobile devices

accessing corporate networks and storing corporate data. To gain back control,

keep costs down, and meet employees half way by allowing workers to use such

devices, IT must have tools to enforce policy and secure corporate data.

MobileIron has developed a solution with unique attributes such as federation

between management of corporate-liable and individual-liable devices across all

of the leading mobile OS platforms, as well as an enterprise application

storefront. It has a robust set of features pertaining to management, security, and

cost control at a very competitive price and a cloud-based delivery model.

MobileIron offers an enterprise app storefront that has three primary capabilities:

an application distribution library, application security and access control, and

application inventory. The company looks to provide a user-friendly experience

that also meets strict enterprise security requirements.

MobileIron recently launched its hosted offering, MobileIron Connected Cloud.

MobileIron Connected Cloud features the ability to integrate with a company's

existing security and management infrastructure.

C o r p o r a t e S t r a t e g y

Bob Tinker is MobileIron's President and CEO. Before MobileIron, Tinker led the

Business Development team for Cisco’s wireless business units, a combined $1

billion business. As a member of the executive staff, he was responsible for driving

long-term revenue growth and expanding Cisco’s wireless initiatives to laptops and

smartphones. Before Cisco, Tinker was the first business executive at enterprise

wireless pioneer Airespace, where he was Vice President of Business Development.

Cisco acquired Airespace in 2005. Tinker’s previous roles include Director of

Marketing at Vertical Networks and Vice President at NationsBank, with oversight of

IT, sales, product management, and operations.

Suresh Batchu is MobileIron's cofounder and CTO. Before MobileIron, Batchu

was Engineering Portfolio Leader for application switching and security at

Nortel Enterprise Data Networks. During that time, his team shipped more than

60,000 application switches and accelerators and thousands of firewalls. He built

8 #231095 ©2011 IDC

three offshore engineering teams from scratch and established expertise in virtuali- zation and highly scalable systems. Prior to Nortel, Batchu was Engineering Manager

at Alteon Websystems, an innovator in Internet infrastructure that was acquired by

Nortel in 2000. His first start-up was HolonTech Corp.

The management team has start-up experience with Airespace as well as a few other

companies. While the company does not boast serial entrepreneurs, its management

team is made up of seasoned industry veterans (including one cofounder) that were

closely involved in the start-up and subsequent sale of Airespace to Cisco.

Go-to-Market Strategy

MobileIron has shifted its delivery model toward a greater reliance on channels for

driving sales. This is a good move that will help it to more quickly expand its reach. It

must do an effective job of educating channel partners and building incentives for

them to sell MobileIron's solution. It will also have to manage channel conflict and

select the right partners as it moves to support the shift in its sales model. MobileIron

offers both subscription and perpetual licensing. The company also now hosts the

platform as a cloud-based service.

Exit Strategy

MobileIron's strategy is to build a strong standalone company. It aims to become the

dominant player in this space.

Key Acquisitions

MobileIron has not made any acquisitions and is not likely to in the near term.

Current Investors

MobileIron received about $11 million in Series B funding in August 2009, in addition

to the nearly $9 million it had received the previous year. It received its Series C

funding in August 2010 in the amount of $17 million. Series D funding took place in

May 2011 and was in the amount of $20 million.

Table 3 displays a detailed funding history for MobileIron.

©2011 IDC #231095 9

T A B L E 3

M o b i l e I r o n D e t a i l e d F u n d i n g H i s t o r y

Round Date

Amount

($M) Investors

A March 2008 8.8 Northwest Venture Partners (NVP), Sequoia Capital, and Storm Ventures

B August 17, 2009 11 Northwest Venture Partners, Sequoia Capital, and Storm Ventures

C August 3, 2010 17 Foundation Capital joined existing investors Norwest Venture Partners,

Sequoia Capital, and Storm Ventures

D May 2011 20 Foundation Capital, Norwest Venture Partners, Sequoia Capital, and

Storm Ventures

Source: IDC, 2011

F o r c e M u l t i p l i e r s

Partners

More than 100 resellers globally, including Accuvant, AT&T, Computacenter

(Germany/United Kingdom), Enterprise Mobile, FishNet, ITSE (United Kingdom),

Korea Telecom, ManageNET (Australia), Mission Critical Wireless, Mobilise IT

(Australia), Nomasis (Switzerland), SingTel (Singapore), SoftBank (Japan),

Swisscom (Switzerland), SYSteam (Sweden), Verizon, Vodafone, and Vox

Mobile

Partnership Opportunities

Mobile operators, large systems management vendors, Cisco, mobile enterprise

application platform companies, and mobile security companies

Channel/Sales Strategy

MobileIron's revenue is achieved solely through the channel. This includes a mix of

VARs, mobile operators, and systems integrators.

C u s t o m e r s

Key Customers

Amilyn Pharmaceuticals, City of Redlands, KLA-Tencor, Hospital for Sick

Children, Land Securities, National Gypsum, Needham Bank, NETGEAR, Norton

Rose, The Ottawa Hospital, Proskauer, RehabCare/Kindred, Thames River

Capital, University of Connecticut, Windsor Foods, and Wyndham

10 #231095 ©2011 IDC

Key Audiences

MobileIron's customer base is horizontal in nature but follows industries with larger

mobile deployments. As such, MobileIron has customers in healthcare, financial

services, manufacturing, retail, pharmaceuticals, high tech, and consumer goods. The

company has been seeing increased interest from healthcare and pharmaceuticals

but is not targeting any specific industries in its marketing efforts.

Geographic Reach

Currently, MobileIron has offices in the United States, Europe, Australia, Japan,

Korea, India, and Singapore; 40% of customers are in international markets.

F U T U R E O U T L O O K

C h a l l e n g e s a n d O p p o r t u n i t i e s

Challenges

As a young company, MobileIron still has some work to do to get to the size and scale

of some of its other competitors. Sybase has dominant market share and has forged

distribution partnerships with Verizon, Orange, and other leading mobile operators.

Other players like BoxTone, Zenprise, and Tangoe pose a real threat as they

encroach on the traditional boundaries of the MDM market to expand the discussion

and the broader product portfolio that they can offer to customers.

Companies may use platform-specific MDM solutions, such as the BlackBerry

Exchange Server, or Apple's Configuration Utility, or Exchange ActiveSync, and

simply find a way to aggregate all into a single-view console as part of their systems

management tools. These are more limited options in terms of either platform support

or functionality but are potential low-cost alternatives.

Opportunities

MDM solutions have been on the market for some time now, yet enterprises are just

starting to adopt the technology in a measure to keep up with deployments of mobile

devices and applications. The proliferation of devices with multiple mobile OS

platforms, combined with the growth of both corporate-liable and individual-liable

users, has brought the need for MDM solutions to the forefront of the discussions

taking place around enterprise mobility within organizations today. The introduction of

the tablet in 2010 has also helped to expedite the activity in this market.

In addition, opportunities for replacement exist in situations where vendors, such as

Nokia and HP, have exited the market or where the existing MDM tool being used is

not sufficient.

©2011 IDC #231095 11

E S S E N T I A L G U I D A N C E

R e a s o n t o W a t c h

MobileIron has a very compelling product offering, with key features such as

"selective wipe" and an enterprise app store as part of the offering. It also has a

unique architecture that provides greater efficiency for syncing policy, configuration,

and data stored on the device. Mobile Virtual Smartphone was built from the ground

up with the dynamics of today's mobility market in mind and therefore does not have

legacy issues that others face in terms of re-architecting their solutions. Furthermore,

the MDM market is poised for growth because of the same dynamics of multiple OS

platforms and the need to support both corporate-liable and individual-liable devices.

MobileIron's focus on integrating cost control into its solution will help IT justify the

investment for MDM. Last, it has opened up APIs and allows SIs and other tech

partners to build on top of the MobileIron Virtual Smartphone Platform.

D i f f e r e n t i a t o r s

MobileIron has developed a solution with unique attributes such as federation

between management of corporate-liable and individual-liable devices across all of

the leading mobile OS platforms, as well as an enterprise application storefront. It has

a robust set of features pertaining to policy management, certificate management,

security, and cost control (at a very competitive price) and a cloud-based delivery

model. MobileIron just launched its cloud offering, MobileIron Connected Cloud,

which features the ability to integrate with a company's existing security and

management infrastructure.

MobileIron has venture backing from well-respected VC firms, with $57 million

invested to date. It is growing rapidly and is recognized as one of the fastest-growing

companies in the IT sector today. It is building a strong customer base of recognized

brands and is increasing the size of its deployments.

A d v i c e f o r I T M a n a g e r s a n d E n d U s e r s

Device management and security are core pillars of developing an enterprise mobility

strategy. Any company deploying mobile applications out to employees need to

ensure that there is a way to secure sensitive data on the device as well as protect

the corporate network. Some of the key challenges organizations are dealing with

today are a result of the ongoing consumerization of enterprise IT, and MDM

solutions can help companies to embrace this trend. Because the employee-liable

model implies device choice, IDC suggests that organizations seek out MDM

offerings that provide cross-platform support. They should also look for solutions that

offer some kind of separation between corporate and personal data to assist with the

issue of employee privacy versus corporate responsibility that comes along with the

BYOD model. Organizations should seek a solution that offers both security for the

data on the device (remote wipe/lock, encryption) and a way to protect the network

from rouge devices (device posture, identity/access management). MDM solutions

that provide some level of application management will also prove useful in ensuring

employees only download those applications that have been vetted by IT. Finally, IDC

recommends that companies choose an MDM provider whose deployment optionsalign with their broader IT strategy.

L E A R N M O R E

R e l a t e d R e s e a r c h

� Worldwide Business Mobile Email 2011–2015 Forecast and 2010 Vendor Shares (forthcoming)

� Worldwide Mobile Enterprise Application Platform (MEAP) 2011–2015 Forecast and 2010 Vendor Shares (IDC #230175, September 2011)

� Worldwide Mobile Device Management Enterprise 2011–2015 Forecast and 2010 Vendor Shares (IDC #229759, August 2011)

� Mobile Enterprise Developer Survey, 2Q11 (IDC #228912, June 2011)

� SAP to Launch 50 Mobile Applications by Year-End Running on Sybase's Unwired Platform (SUP) (IDC #lcUS22830311, May 2011)

� Mobile Virtualization Technology Assessment (IDC #228088, May 2011)

� Market Analysis Perspective: Worldwide Mobile Enterprise Software, 2010 — The Rising Tide of Mobility (IDC #227706, March 2011)

� Worldwide Mobile Security 2011–2015 Forecast and Analysis (IDC #227360, March 2011)

� Mobile Enterprise Developer Survey, 1Q11 (IDC #227221, March 2011)

� OK Labs Introduces a Mobile Device Virtualization Solution Aimed at Individual- Liable Devices (IDC #lcUS22699211, February 2011)

� VMware and LG to Bring Virtualization to Mobile (IDC #lcUS22609610, December 2010)

� Worldwide Mobile OS 2010–2014 Forecast and Analysis (IDC #226273, December 2010)

D e f i n i t i o n s

� A minority-owned business is a proprietorship, partnership, corporation, or joint venture that is 51% owned, operated, and controlled by U.S. citizens who are members of the following racial groups: African American, Asian American, Hispanic American, and Native American.

� A woman-owned business is a proprietorship, partnership, corporation, or joint venture that is 51% owned, operated, and controlled by U.S. citizens who are female.

C o p y r i g h t N o t i c e

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