EIKENZANDE BV

Mobile Enterprise“The coming explosion”

Paul van DoornFounder Eikenzande BV

Caesar v9.0.pptx

Licensed under Creative Commons Attribution 3.0 Unported License (http://www.creativecommons.org/licenses/by/3.0) You are free to Share or Remix any part of this work as long as you attribute this work to Paul van Doorn / Eikenzande BV (http://nl.linkedin.com/in/paulvandoorn)

Serves clients who want to accelerate their business with advanced Mobile Data solutions and Social Media process integration. Over 25 years IT & Mobile Industry experience

Contact for more information: paul@eikenzande.comLinkedin: http://nl.linkedin.com/in/paulvandoorn

2

Smartphone explosion has created a new paradigm: “Information for Everyone, Anytime, Anywhere” Mobile data traffic overtakes voice in volume and completely floods the mobile network. Voice and SMS are

Apps. Traditional voice and SMS are dead as a source of revenue The introduction of LTE, the extremely fast mobile network technology purely aimed at data devices, will

only reinforce and accelerate the trends Mobile and fixed telcos have completely lost control over Value Added Services to over the top content

providers, such as Apple, Google and Facebook. Mobile companies have no way to go, other than to cut costs and transform into efficient utilities

The Cloud, specifically Platforms as a Service that are driving fundamental changes, such as the rise of social media. But next Big Thing will be in B2B: “Mobilisation of the Enterprise”. Or the “appification” of everything

It is still early days for Mobile Enterprise Platform companies, although consolidation and acquisitions by established players seem logical

Key Messages

The mobile ecosystem is undergoing seismic shifts which are affecting network providers and over the top content providers. New companies emerge……

Mobilisation of the Enterprise: Extraordinary opportunities for new or innovative players

3

Exponential Growth of Smart Phones (90% YoY) The introduction of cheap smart and function phones will only fuel further growth

Smartphone explosion created a new paradigm: Information “Everyone, Anytime, Anywhere,”

According to IDC, in the US last month, Android phones represented 35.6% of all non-computer traffic, followed by Apple's iPhone with a 23.5% share

4

Explosive Growth in Time Spent Using Connected Devices and Number of Devices – App Use is the Driving Force

The average user spends c. 81 minutes a day using mobile apps, compared with 74 minutes spent surfing the Web both on PCs and mobile devices

• The amount of time spent using mobile apps has jumped 91 percent over the past year

• Attributed to more sessions per person per day rather than an increase in the average amount of time spent per session

• In contrast, the amount of time spent on the Internet has grown only 16 percent over the past year

Ref: Flurry Research

Ex

Ref: ITU, Morgan Stanley Research, 2009; Scott A. Snyder 2011

1950 1960 1970 1980 1990 2000 2010 20201

10

100

1,000

10,000

Mainframe

Minicomputer

PC

Desktop/Internet

Mobile Internet

De

vice

s/U

sers

(m

illio

ns)

More than just phones:- Smartphone- Kindle- Tablet- MP3- Cellphone/PDA- Car Electronics- GPS/Nav- Mobile Video- Home

Entertainment- Games- Home Appliances

Computing Cycles: 10X Device Growth

• Each cycle adds 10x the number of devices

• Ericisson expects 50 billion connected devices by 2020 for M2M application

• M2M will add significantly (10x!) to the current 5.3 billion subscriptions in the world

• Dubbed “the biggest machine on earth ever built”

5

Mobile Data 300x (!) Growth Hits Telco Operator Model(UMTS Forum report, January 2011)

• Mobile data traffic has already overtaken voice in volume, and by growing 300-fold, has flood mobile networks• Voice and SMS quickly becoming Apps. Traditional Voice and SMS are dead as source of revenue to cover costs

• LTE availability will reinforce and further accelerate the data explosion. Move to LTE ASAP is the only way to stay ahead of the (cost) wave for mobile operators

• If LTE-capable devices are not adopted rapidly and traffic remains 3G-bound, mobile carriers will face significant additional investment in their 3G data networks

Mobile Operators need to quickly add REAL revenue earning services or default into a connection utility

Source: ITU and ALU

6

The Business Model Change Forces Operators Towards New Business and Service Focus, or Become Irrelevant

New Business Model

Established Business Model

Connection Focussed

ServiceFocussed

Telecomminication:• Highly structured mode of operations• Standardised and tested• Direct revenues from subscribers

xSP’s / Web players:• Community Type Structure• Fast & Fun• Indirect revenues stream

xSPs

Fixed Operators

Mobile Operators

MVNOs?

?

• Communication mash-ups open up the opportunity to combine the strength of both industries, but history dictates that it is unlikely that most operators will succeed

Telecom Pipes

Internet & AppsOver the Top SPs

Applications Are The Driving Force……..

7

Likely That a Larger Number of Mobile Carriers Will Default into Connection Utility Model or “Dumb Pipe”

Broadband Bit Pipes

Over the Top Service Providers

• Operators traditionally use connection centric mobile services Service Delivery platform (SDP) − Includes an application platform optimised for mobile, multimedia content purchasing and delivery − Using Web Services technologies and protocols, relying on 2G/3G communication control functions, and HLR/VLR for user

data

• But (One API from GSMA) open application interfaces such as Identity, Location and Payments further enable independent enterprise or consumer centric Mobile Application Platform Providers:− Mobile Enterprise Application Platforms (MEAPs) serve application developer organisations and independent software

vendors that are writing applications targeting employees or associates on a scale from a few dozen to thousand users− Mobile Consumer Application Platforms (MCAPs) serve application developers that service several thousand to millions of

users

This Situation also gives rise the a new business: Mobile Enterprise providers

8

Mobile Enterprise Platforms Extend the Reach of Existing IP Applications to Mobile Devices from Multiple Vendors

Mobile middleware software platform (middleware server)

Definit

ion

Enterprise portal

Enterprise portal

• Custom access to a company’s intranet

• Custom access to company’s legacy apps

• Custom access to the internet

Business process “mobilisation”

Point-of-activity solutionsPoint-of-activity solutions

Improve personnel efficiency and productivity by streamlining operations at the point of activity

Mobile marketing and commerceEnhance customer loyalty and enable brand extension and new customer acquisition by delivering rich, personalized content anywhere and enabling e-commerce

Productivity applications

• Mobile access to PIM applications− For example calendar,

contact lists, task lists,..

• Mobile access to corporate email

• Mobile notification

Loyalty Marketing / CRM

• Mobile CRM

• Loyalty marketing channel

Mobile transaction

• Solutions that enable customers to carry out financial transactions using their handheld device

Mobile business

• Extension of core business to the mobile environment

• Example corporates:− Travel− Financial

services− Retail− Healthcare

Content mobile delivery

• Media content delivery to mobile consumers

• Mobile integration with SFA applications

• Field force autom.− Field inspection− Maintenance / repair − Safety / environment

audit activities Asset tracking

• Supply chain / ERP− Delivery, workflow,

warehouse mngt− M2M Applications

B2B

B2E

B2C

Handheld devices (mobile phones, tablets and smartphones)

Wireless connection (firewall, wireless data network / WiFi) Synchronisation

Corporate Resources

Enterprise mobility platforms focus on bridging between mobile and corporate network protocolsEnterprise mobility platforms focus on bridging between mobile and corporate network protocols

9

Enterprise Adoption of Internet versus Mobile Technology are Very Different

Dimension Internet Wave Mobile Wave

Enterprise IT Model From Server Out From User In

Cycle Times 6-12 months 3-6 months

Delivery Model On-Demand On-Device

IT Decision-Maker CIO Consumer/Employee

Business Model B2B, B2C B2B2C, B2B2E

Key Differentiators Cost, Convenience User Experience, Enablement

Business Process Redesign Compress/Collapse Redefine

Application Development Centralised, Large TeamsDistributed, Small TeamsConsumption Model Browsing, Viewing Information Snacking

Service Expectation 24x7 Anywhere, Anytime

End User Devices Primarily PCs Any User Device

Geographic Growth Developed Markets Emerging Markets

Mobile is user centric: defined from the user in, decided by the user and on any user device

Employees Drive the Consumerisation of the EnterpriseThe trend is that Employees bring their Device and demand to be hooked up

10

“The extension of mobile apps to every aspect of our personal and business lives will be one of the hallmarks of the new decade with enormous opportunities for virtually every business sector.”

-- IDC VP Scott Ellison

The “Appification” of Everything…

BUT Regulation Requires Professional Enterprise Mobility Management

• Mobile inventory / asset management• Wireless expense management • Mobile operations management• Mobile application management• Mobile security• Mobile help desk

Enterprise Mobility Software must provide: integrated view, audit trails and management

Companies (US) need to ensure compliance with HIPAA, PCI, GLBA, SOX, DoD 8100.2 and enterprise policy

Without a Mobile Enterprise Software Platform, companies are extremely exposed

11

Device, Network, Software Integrator and Application Players Compete to Sell Mobile Platforms to Enterprises

Hosting Provisioning Application DeviceMobileNetwork

Sales Channel

Mobile EnterpriseSoftware

Network operators (ASP & MVNOs)

SIs and mobile equipment & services vendors

Mobile device & OS companies

Software developers(pure play mobile enterprise SW)

Enterprise Mobility Value Chain

• Operators fear that putting vendor-owned device platform will commoditise the role of the network

• They are looking to put more value on top of their network through implementing mobile SDPs from SIs and mobile equipment and services vendors

• Mobile devices with enhanced functions are a key driver for mobile enablement

• Manufacturers currently absorb most of operators’ spending

• Apple, Google, Microsoft and RIM want to become the focal point for software developers

• In a saturated IT market, mainstream vendors such as Ericsson, ALU, IBM, Huawei, Oracle and HP covet a share of operator spending

• They also have the skills that operators lack to provide integrated mobile solutions to (large) verticals

Compete for platform ownership and developers’ focus

• New players have the relationship with the enterprises with mobile distribution needs but lack the software architecture integration expertise of SIs

• Traditional mobile data & messaging services have the relationship with operators but lack corporate distribution channel

Compete and/or partner to provide operators and corporates with enterprise mobility software

Expect consolidation between these two groups

12

Device, Network, Software Integrator and Application Players Compete to Sell Mobile Platforms to Enterprises

Mobile EnterpriseSoftware

Network operators (ASP & MVNOs)

SIs and mobile equipment & services vendors

Mobile device & OS companies

Software developers(pure play mobile Enterprise SW)

• Operators − Telefonica’s Blue Via Initiative with

Microsoft Azure− Telefonica Huawei venture in Lat. Am.− Verizon with ALU (in partnership)

• Apple, Google, Microsoft , HP, Nokia and RIM want to become the focal point for software developers, but focussed on Consumers mainly (so far….)

• In a saturated IT market, mainstream vendors such as Ericsson, ALU, IBM, Huawei, Oracle, HP and SAP covet a share of operator spending.

• SAP acquired Sybase uniquely focussed on Mobile

Compete for platform ownership and developers’ focus

• New players: see also MEAP and MDM next slide from Magic Quadrant of Gartner

• Specific Platforms: Service2Media, Antenna, Kony, Cyclo, SpringWireless, Netbiscuits, Apperion, MobileIron, ClickSoftware, Pyxis Mobile, Collis etc.

• Traditional mobile data & messaging services have the relationship with operators but lack corporate distribution channel: Wireless Knowledge, Infowave, Acision, SEVEN, FusionOne, ViAir Air2Web, Aepona

Compete and/or partner to provide operators and corporates with enterprise mobility software

Expect consolidation between these two groups

13

Strategic Directions Various Players

TraditionalTelco Equipment

Vendors

MEAPMDMXaaS

TraditionalHW, SW & SI

Vendors

Over The Top Service Providers

(Apple, Google, Amazon)

Consumer Enterprise

User Service and Process

Infrastructure

Consumer

User Serviceand Process

Enterprise

Infrastructure

Microsoft

Windows360

Azure

Nokia

Consumer

User Serviceand Process

Enterprise

Infrastructure

Consumer

User Serviceand Process

Enterprise

Infrastructure

Consumer

User Serviceand Process

Enterprise

Infrastructure

Consumer

User Serviceand Process

Enterprise

Infrastructure

SAP

Sybase &SAP On-Demand

ALU

(Antenna)(Syclo)

TekelecHuawei

NSNEricsson

M2M

Hosted BES& ExchangeCo-Branded

App Store

HandSetBack-Up

Ringtones

Application Enablement

App Store Solutions (M2M Platform)

Traditional CarriersVodafone, Orange, Verizon, T-Mobile

Payments

M-CentrexMass SMS

Tetra

Global SIM

?

14

Where are the Opportunities -Strategic Direction

Consumer

User Serviceand Process

Enterprise

Infrastructure

15

Appendix : Gartner Magic Quadrant for Device Management and MEAP

Source: Gartner (April 2011)Magic Quadrant for Mobile Device

Management Software MDM

Although some of the vendors and products have been around for a long time, mobile device management (MDM) is a nascent market, and the vendors' offerings have little consistency. Many come from mobile messaging and security to support MDM, and, worldwide, there are more than 60 companies in this space. Of these, 42 were deemed potential candidates for this Magic Quadrant (see Figure) and were sent questionnaires; 23 met Gartner's inclusion criteria.

During the past 18 months, this market has dramatically accelerated, both in terms of user requirements and theprominence of these mobile application projects among IT staff and the business units they service. This increasedattention (and dependence) on the platforms, coupled with many of the consumer like requirements for sophisticated UIs and a wide array of device capabilities, has meant that many new entrants are pursuing this opportunity, and that incumbent vendors are faced with the challenge of reinventing their technology offerings and go-to-market strategies to keep up.

Magic Quadrant for Mobile Eneterprise Application Platforms MEAP