A Forrester Consulting

Thought Leadership Paper

Commissioned By Dropbox

March 2014

File Sync And Share AndThe Future Of Work

Table Of Contents

Executive Summary ...........................................................................................1

Workers Are Embracing Sync And Share As Part Of A Mobile Work Style2

The Momentum Is Driven By Real Business Value .......................................4

A Strategy Is Crucial To Making Sync And Share Successful.....................5

Key Recommendations .....................................................................................7

Appendix A: Methodology ................................................................................8

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1

Executive Summary

File sync and share has become an important force inbusiness that no company can ignore. As employees oftenbring consumer applications and devices into the office todo work, they have clearly led the way in identifying avaluable opportunity to implement tools that extend thevalue of organizational content and deliver valuableimprovements to the business.

To better understand the drivers for success in thisemerging area, Dropbox commissioned ForresterConsulting to survey the market to identify the potential forfile sync and share to greatly increase business productivityand employee effectiveness. In conducting in-depth surveyswith 451 IT decision-makers, business decision-makers,and end users, Forrester found that that these companiesachieved wide-reaching benefits using file sync and sharetools, particularly in support of their mobility strategies.

KEY FINDINGS

Forrester’s study yielded three key findings:

› The reason to implement sync and share is to bringpure business value. Employees use sync and share todrive productivity efficiency in critical business processessuch as sales and customer service. Executivemanagement and IT need to support this trend.

› User experience matters a lot. High-performingconsumer products that are already in the hands of manyemployees have set the bar higher for great userexperiences. An enterprise solution must meet thischallenge in terms of user experience and performance todrive widespread adoption.

› IT requirements are critical and numerous. Security,compliance, privacy, integration, and other traditional ITconcerns are still very much requirements today. Asolution that meets the requirements of your business iscrucial.

2

Workers Are Embracing Sync AndShare As Part Of A Mobile WorkStyle

Gone are the days when a single desktop or maybe laptopwas the only device an employee needed to get real workdone. Today, people are just as likely to work on three orfour different devices, sometimes simultaneously (seeFigure 1). Three areas to note:

› Tablets have burst on the scene like gangbusters.Just a few years ago, this flat slab of memory andtouchscreen productivity sat dormant on a designer’seasel. Today, every company has a tablet strategy andmore employees every month are firing up a tablet topitch customers, analyze financial data, or completefacilities inspections. Tablets have entered the workmainstream.

› The number of four-device users is rapidly rising. Itused to be that a computer and smartphone were enoughfor even the most advanced employee. But today,employees get work done efficiently and effectively onany device at hand, including work computers, homecomputers, tablets, smartphones, or all of them in atypical week.

› Bring-your-own-device (BYOD) drives this deviceusage proliferation. The biggest group of multi-deviceusers are employees using personal devices for work.Employees are not waiting for IT to provide mobile worktools; they are using their personal smartphones andtablets to do work wherever it needs to be done.

SYNC AND SHARE HAS BECOME A KEY MOBILE APPFOR WORK

A mobile device is only as good as the apps that run on it.Email was the first important mobile app. Today, 75% ofinformation workers with smartphones use email regularly,but employees quickly figured out that they needed morethan email — they needed “all their stuff” on theirsmartphones and tablets, which file sync and share enabled(see Figure 2 and see Figure 3).

› File sync and share has become a killer app. Getting“all your stuff” on a smartphone or tablet requires newfunctionality. File sync and share has now surpassedeven team sites in popularity on computers.

› File sync and share is on the rise on mobile devices.File sync and share on tablets also beats out team sitesaccessed on tablets. Even on smartphones, those mostportable of content capture and consumption devices, filesync and share is important to one in six users.

› Hourly use data shows how important file sync andshare has become. Looking deeper at Figure 3, it’s quiteclear that respondents that use file sync and share use itas a critical capability daily. An astounding 70% ofemployees using file sync and share use it every singleday.

› Employees have experience with high-qualitypersonal solutions. One key thing the survey revealedwas the level of adoption of personal file sync and sharesolutions: 62% of the respondents use a personal solutionat work. This experience sets the bar high for a businesstool that’s as easy to use as a personal tool.

FIGURE 1Workers Still Use Computers — Along With ABroad Array Of Devices

Base: 9,235 North American and European information workers usingthese tools (multiple responses accepted)

Source: Forrsights Global Workforce Survey, Q4 2013, ForresterResearch, Inc.

19%

41%

56%

75%

Tablet

Smartphone

Laptop/notebook computer

Desktop computer

“Which of the following devices do you useat least weekly for work?”

3

SYNC AND SHARE SUPPORTS MOBILE WORKERS INA VARIETY OF WAYS

The data shows just how common and frequent file syncand share has become for the most mobile of employees,but what do they use it for at work? As we see in Figure 4,the list of work activities in which file sync and share isconsidered the right tool for the job is long and extremelybroad:

› Sharing files with employees leads the value list. Two-thirds of file sync and share users share documents withcolleagues, making it the most common usage scenario.Document collaboration increases when it’s easy to shareand work on files large and small together. Our surveyshowed that 49% of employees share files with businesspartners and 41% share with customers.

› Syncing files with computers and mobile devices is akiller app. One of the killer app features for file sync andshare is the ability to load files onto every work device.The majority of respondents (55%) use the app to get filesto and from computers, while 44% use it to sync withtablets. In this way, workers can get everything they needwithout having to manually copy it.

› Workflow is very important. The list of activities enabledby file sync and share is very structured and businesscritical: 52% of workers rely on file sync and share as partof a regular activity or workflow indicating that this type ofcontent sharing and access is critical to regular businessactivities.

› Storage and backup are important scenarios, too.Backup and storage is about having confidence that thefiles will be there when an employee needs them. Filesync and share provides these services, too. For some,sync and share offers a “good enough” alternative totraditional endpoint backup.

FIGURE 2File Sync And Share Has Risen Beyond Team Sites

Base: information workers using each device (multiple responsesaccepted)Source: Forrsights Applications And Collaboration Workforce Survey, Q42013, Forrester Research, Inc.

FIGURE 3More Than Half Use Sync And Share On A DailyBasis And Nearly 1 In 5 Uses It Hourly

Base: 451 IT managers, business decision-makers, and end users at USenterprises using file-sharing solutionsSource: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“Which applications do you use on thesedevices for work?”

28%

35%

82%

43%

52%

85%

35%

35%

94%

Team documentsharing sites

File sync andsharing tools

Email

Computer (N = 4,791)Tablet (N = 899)Smartphone (N = 3,058)

“On average, how often do you use the file syncand share solution your company supports?”

59% of IT decision-makers and57% of business decision-

makers use file sync and shareat least daily for work.

19%

51%

20%

4%

4%

3%

Hourly

Daily

Weekly

Monthly

Less than monthly

Never

4

The Momentum Is Driven By RealBusiness Value

Managing content is nothing new, and it certainly is notgroundbreaking. Content management has been a relativelymature market for more than a decade with a small numberof vendors dominating the markets for file servers,document collaboration, and higher end documentmanagement. Why then does the introduction of newfunctionality like sync and share drive such widespreaddemand and adoption? The reason is simple andstraightforward. Sync and share makes content, once adifficult business asset to access, available at the momentemployees need it most and puts it in a more consumableformat than ever before.

EFFICIENCY, PRODUCTIVITY, AND EFFECTIVENESSMAKE FILE SYNC AND SHARE COMPELLING FOREMPLOYEES

When we asked respondents about the benefits sync andshare solutions bring to their company, they identified abroad array of drivers (see Figure 5). Of particular note:

› “It makes me more efficient in all aspects of my day-to-day work.” A full 60% of respondents cited generalefficiency as a sync and share benefit. As organizationsstruggle with scarce resources in a lingering difficult

economy, widespread efficiency can affect revenuegeneration activities as well as overall expenses andultimately the bottom line.

› “It keeps me productive when away from the office.”Over half (56%) of respondents said that sync and sharepositively affects their productivity when away from theoffice. With mobile device support at the core of sync andshare and an increasingly mobile workforce, this benefit’svalue is only more likely to increase over time.

› “It helps me to work more effectively with externalpartners, contractors, etc.” In a business environmentin which business partners are an increasingly importantpart of product and service success, easy externalsharing of content is critical. More than half ofrespondents cited it as a business benefit.

› It supports critical customer-centric businessfunctions. Beyond functionality, our survey research alsopointed to specific business function benefits. Ofparticular note, sync and share demonstrates value withregard to customer service (47%), supporting access tocontent critical to sales activities (46%), and allowingricher exchange of content with customers and prospects(44%).

FIGURE 4Sync And Shares Handles A Wide Array Of Tasks

Base: 150 IT decision-makers at US enterprises using file-sharingsolutions (multiple responses accepted)Source: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“In what ways do you (or your employees)use file sync and share solutions?”

1%

39%

41%

44%

47%

49%

49%

52%

55%

66%

None of the above

To copy files to or froma smartphone

To share files with customers

To copy files to or from a tablet

To store files so I canalways find them

To share files with partners

To back up files so Idon’t lose them

As part of a regular businessactivity or workflow

To copy filesbetween computers

To share files with employees

FIGURE 5Identified Business Value Drives Usage

Base: 299 IT and business decision-makers at US enterprises using file-sharing solutions (multiple responses accepted)Source: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“What benefits does your file sync and sharesolution bring to your company?”

It makes me more efficient in allaspects of my day-to-day work

It keeps me productive whenaway from the office

It helps me to work moreeffectively with external partners,

contractors, etc.

It helps to provide bettercustomer service

It supports sales activities byproviding content in a more

timely manner in a sales settingIt supports sales by allowing me

to exchange content externallywith customers/prospects

It takes time out of businessprocesses that require rapid and

pervasive access to content

Other 1%

41%

44%

46%

47%

55%

56%

60%

5

ADOPTION IS BROAD AND SPANS ORGANIZATIONALBOUNDARIES

Another key finding is that the benefits of sync and shareapply across an organization. Unlike technologyinvestments that largely benefit a specific department,content is used by a broad array of users in a variety ofways. And while IT is the biggest user of sync and share at95%, general management, operations, finance/accounting,customer service, HR, and sales all reported usage in the35% to 50% range (see Figure 6).

A Strategy Is Crucial To MakingSync And Share Successful

It is not surprising that sync and share has generated broadinterest and demand as it enables deep business valueacross many organizations. For many, the business valueand opportunity is simply too compelling to ignore.

The move to a more strategic file share and sync approachoften follows employee usage. Workers bring in a consumerversion of sync and share, and IT is charged withestablishing an enterprise approach and strategy. IT thentakes responsibility for finding a solution that meets critical

requirements, particularly in the areas of security, privacy,compliance, and integration within an overall content anddocument strategy. In some cases, IT will implement anenterprise version of a consumer product already inwidespread use; in other instances, it will attempt to moveusers to a new solution that better meets enterprisestandards and requirements.

USER EXPERIENCE IS KEY TO SUCCESS

In establishing a standard, IT must consider key end userrequirements. Bear in mind that many workers are alreadyvery familiar with file sync and share because they use it intheir personal and professional lives. When asked whatproblems they have encountered with file sync and sharesolutions, users most often cited performance issues,difficulties with sharing externally, mobile devicecompatibility, and missing files (see Figure 7). Given thatthese issues directly affect the benefits cited in the previoussection, minimizing them becomes a critical success factor.

FIGURE 6Usage Patterns Indicate Broad Business ValueAcross Organizational Boundaries

Base: 150 IT decision-makers at US enterprises using file-sharingsolutions (multiple responses accepted)Source: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“What departments use the file sync andshare solution the most?”

1%

27%

35%

37%

40%

43%

43%

50%

95%

Other

Advertising or marketing

Sales

Human resources/training

Customer service

Finance/accounting

Operations

General management (e.g.,executive branch manager,

president)

IT

FIGURE 7Users Want Simple, Reliable, And Fast

Base: 451 IT managers, business decision-makers, and end users at USenterprises using file-sharing solutions (multiple responses accepted)Source: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“What problems have you had with yourfile sync and share solution?”

Other

My computer slows downwhile syncing

The process for others toretrieve files that I share with

them is difficult and/ortime-consuming

It is not compatible withmy mobile devices

Sometimes the files Ithought should be there

are missing on my deviceI have a hard time finding the

files that I am looking foreven if I know they are there

It is not secure enough forsensitive files

It does not offer sufficientstorage for my needs

12%

14%

16%

18%

18%

20%

20%

31%

6

BUSINESS AND IT DECISION-MAKERS FIND COMMONGROUND IN FILE SYNC AND SHARE REQUIREMENTS

The data shows that all of the usual items that have alwaysbeen important to IT remain so with file sync and share,reinforcing the need for a solution that is designed for theneeds of a business. In this case, business decision-makersshare IT’s concerns and requirements with regard to abusiness-ready file sync and share solution for itemsincluding (see Figure 8):

› Security, compliance, privacy, and integration.Security is a top concern for both business and IT people.This is surprising and reassuring, signaling that bothparties care about protecting the company’s intellectualproperty. The overwhelming majority (94%) ofrespondents from both groups agree that security tops thelist of needs.

› Speed, confidence, and access. When it comes tofeatures that make employees productive, these three —knowing a file is there when you need it, no waiting for aslow device to synchronize, and universal access to filesfrom any device in any location — are important to bothbusiness and IT leaders.

› Sharing. As expected, it’s not just synchronization thatthese leaders care about, as 92% of IT decision-makers(ITDMs) and 89% of business decision-makers (BDMs)see sharing as a critical requirement for these solutions.

› Intuitiveness. It’s only here where we find divergenceamong these different leadership groups. Perhapssurprisingly, IT cares more about a highly usable andintuitive tool than business leaders. This finding canperhaps be explained by the fact that it’s often IT groupsthat have been most pummeled by solutions that are notusable, so their sensitivity to delivering a great userexperience is heightened.

FIGURE 8Requirements Are Across The Board

Base: 451 IT managers, business decision-makers, and end users at USenterprises using file-sharing solutionsSource: A commissioned study conducted by Forrester Consulting onbehalf of Dropbox, December 2013

“How important are the following features of afile sync and share solution?”(“Important” or “very important”)

Appintegration

Intuitive

Administrativecontrols

Compliance

Access

Large file size

Confidence

Speed

Sharing

Security

80%

82%

84%

88%

88%

88%

90%

90%

92%

94%

94% of ITDMs and94% of BDMs say

security is important.

92% of ITDMs and89% of BDMs say

speed is important.

92% of ITDMs and94% of BDMs say

sharing is important.

90% of ITDMs and44% of BDMs say

intuitive use is important.

7

Key Recommendations

Mobility now shapes the world of work. Against this new landscape, users demand file sync and share because itdrives business value in critical areas such as sales and customer service. Because the technology also createsopportunities to drive higher revenue and happier customers in the age of the customer, these are benefits that mustbe supported and nurtured. Furthermore, the business value of these solutions is widespread and far-reaching,extending well beyond sales and customer service to all knowledge workers and all business aspects. Both IT andbusiness leaders care about making the solution work for everybody.

There’s still work to do. Not every company has adopted file sync and share capability, and not every employee isusing it. Take three steps to make file sync and share work for your company:

› Determine the current usage of sync and share and use it as a starting point to drive value. Approach theuse of consumer sync and share solutions in your organization as an opportunity, not a problem. If your peoplehave found a way to magnify the value of your enterprise content, find out what they’re doing and how it couldbenefit everyone in the organization. Interview current users and determine patterns of business value for abroad, strategic rollout.

› Put people and usability high on your evaluation criteria list. The bar for user experience and performancehas been set by consumer offerings, and it is high. If you try to compel employees to use a substandard app, theywill revert to their preferred consumer solution. If you block access, you forgo the business value. Look for asolution that will meet enterprise needs and also satisfy users. Keep in mind that some consumer offerings alsooffer business solutions, so make that part of your evaluation criteria.

› Ensure that the solution meets your full enterprise requirements. Align your organizational requirements forsecurity, privacy, compliance, and integration with the market landscape. There are a lot of solutions out there,and finding the one that meets your requirements will go a long way toward driving success.

8

Appendix A: Methodology

In this study, Forrester conducted an online survey of 451 US organizations to evaluate their use of file sync and sharesoftware. Survey participants included business decision-makers, IT managers, and end users at 1,000+ employeeorganizations that are using file-sharing solutions. Questions provided to the participants asked about benefits, problems,and use cases for both company-provided and personal file sync and share solutions. Respondents were offered a smallincentive as a thank you for time spent on the survey. The study began and was completed in December 2013.