Top Enterprise Mobility Predictions for 2014 Chris Marsh, Principal Analyst, Yankee Group 18th February 2014 Page 1 © Copyright 2014 Agenda     Page 2 Reviewing our 2013 predictions What lies behind 2014’s predictions 2014 predictions Q&A © Copyright 2014 Reviewing Our 2013 Predictions 1. Tablet penetration in the enterprise flattens out 2. Execs & IT drive mobile strategizing despite LOB hype 3. A big IT shop acquires an EMM vendor 4. Over 50% of companies deliver mobile apps in the cloud 5. MBaaS vendors shift to focus on the enterprise market 6. Solution marketing will be simplified 7. Small integrator boutiques proliferate 8. Design-thinking hailed in product management 9. 80% of companies take the BYOx plunge ? ? ? 10. FreeMove Alliance harmonizes EMM procurement Page 3 © Copyright 2014 What Lies Behind Our 2014 Predictions What is stalling enterprises’ mobile maturity:  Complexity, cost and new technology disruptions make for tentative enterprises fearful of a weak ROI Market synthesis will drive deployment innovation:  From point services to solutions and platforms  Open standards moving from niche to core  Solutions’ value passes from feature to operations  M&A grows significantly Page 4 © Copyright 2014 1 Enterprise IT Will Remain Largely Unchanged by Mobility Upshot: While some things have shifted over the past few years, most of the fundamentals of enterprise IT and the majority of workflows have gone untouched by mobility. The proportion of employees using a smartphone for work has doubled over the past four years to 60%, but most employees are no more mobile day-to-day; companies’ mobilization priorities are only very slowly moving beyond field/sales-force and customer-facing use cases; core enterprise IT suppliers continue; and key challenges and key enterprise concerns remain the same. Companies with a comprehensive mobile strategy rethinking their application architectures, legacy non-mobile IT suppliers (for now), innovative mobile-focused solution providers ready for enterprise change Companies without a comprehensive mobile strategy, the broad non-mobile workforce Page 5 © Copyright 2014 2 Page 6 Enterprise ‘Mobile Strategy’ Will Continue To Just Mean Basic Policy © Copyright 2014 2 Page 7 Enterprise ‘Mobile Strategy’ Will Continue To Just Mean Basic Policy © Copyright 2014 2 Enterprise ‘Mobile Strategy’ Will Continue To Just Mean Basic Policy Upshot: The proportion of companies with any kind of strategy has grown steadily; however, a third of all companies are still without any strategy. Cross-disciplinary coordination is weak: 54% of IT departments believe they are key in the strategy compared to only 25% of lines of business believing them to be so. Most “strategy” is device provisioning, basic policy enforcement, and the black- and white-listing of applications. Companies with a comprehensive mobile strategy, integrators and consultancies like Mobiquity and Mubaloo offering affordable strategy advisory Companies that think usage policy is strategy Page 8 © Copyright 2014 3 Microsoft’s Windows Phone Will Close the Gap With the Android-Apple Duopoly Upshot: Windows Phone still badly lags Apple and Android when it comes to consumer and IT support. Only 3% of IT decision-makers said it was their preferred platform at the end of 2013, compared to 11% favoring BlackBerry, 40% iOS and 46% Android. However, this will begin to change in 2014. Microsoft will introduce new enterprise features and is gathering interest from potential solution partners like Tier 1 EMM vendors and developers. By year end it will be pushing BlackBerry for third place. Microsoft, Apple, Google, employee smartphone users, enterprise IT Blackberry Page 9 © Copyright 2014 4 Big IT Will Drive Consolidation of EMM, API Management, MADTs and ALM Upshot: The enterprise technology battleground is mobility with applications and data, not devices, as the focal point. Mobile application development tools (MADTs), API management platforms and application lifecycle management (ALM) services will be key enablers, and enterprise mobility management (EMM) will be needed to manage policy, security and compliance. With AirWatch’s acquisition by VMware starting this year with a bang, the next waves of industry consolidation will be driven by “Big IT” around these key capabilities. Leading vendors including AnyPresence, FeedHenry, KidoZen, Apigee, Perfecto, SmartBear and MobileIron and the IT vendors that might acquire them; developers looking for more integrated workflows Weak pure-play vendors in hot market segments facing commoditization or those without an exit strategy, large IT vendors without a mobile solution acquisition strategy Page 10 © Copyright 2014 5 Solution Providers Prioritizing Integrated DevOps Will Become Market Leaders Upshot: 56% of enterprises will be increasing their in-house and 29% their outsourced development over the next year. However, there is still a lot of hesitancy to invest in mobile applications projects for fear of a poor return from ineffective tools and siloed implementations that are difficult to maintain. Whether mobile application development tools or platforms, quality assurance and testing services or other developer offerings, solution providers will build in DevOps much more deeply to provide more collaborative and integrated workflows. Developer-focused solutions offering collaborative life cycle workflows, companies focusing on “shallow IT” and those looking to scale development projects Companies without any kind of mobile strategy and budgets for applications projects, developer solutions providing a poor user experience Page 11 © Copyright 2014 6 The Leading Mobile Application Platforms Will Extensively Support Open Standards Upshot: The traditional model of very proprietary technology platforms known by the ‘MEAP’ moniker is dying a swift death. Mobile application platforms are increasingly prioritizing open and extensible architectures. Support for standards like OData, RESTful interactions, OAuth as an open standard gaining support around authentication, and HTML5 and for opensource third party front-end development tools will become commonplace. Platforms such as FeedHenry, AnyPresence, SAP, Appcelerator and IBM Traditional MEAPs offering exclusively proprietary and locked-in environments Page 12 © Copyright 2014 7 Page 13 Poor User Experience Will Pop Mobile CRM’s Bubble © Copyright 2014 7 Poor User Experience Will Pop Mobile CRM’s Bubble Upshot: Mobile enterprise apps are not a new thing -- Yankee Group has been writing about mobile CRM for over a decade. However, there is still plenty of room for improvement. Mobile sales and service applications will continue to fail to deliver on expected business benefits if they remain siloed, application-centric experiences and not process-oriented integrating across frequently used apps such as calendar and e-mail access, customer contact info, case history, pricing, current opportunities, etc. SAP, Pegasystems and mobile sales enablement companies such as Mobile Mutual, SAVO and Via Deliver Oracle and Microsoft, while by no means true losers, are not delivering on the ability to truly help their customers’ mobile experience by staying very application-centric Page 14 © Copyright 2014 8 The Market for Beacon Solutions Will Boom as Enterprises Search for Hyper-Local Context Upshot: Beacons are low-energy Bluetooth-based transmitters (BLE) whose signals can be picked up by mobile devices. Apple and PayPal have already showcased very scalable concepts. The potential use cases for both B2C and B2B solutions are exploding. Beacons have the potential to deliver on the long-held promise in enterprise mobility of more accurate enterprise data logging and location-based targeting. Although it’s a nascent market, this year will see a boom in interest in beacon deployments. Mobile application developers like Mubaloo seeing the opportunity early, beacon manufacturers like Estimote, large IT vendors expanding existing mobile solutions NFC solutions and device OEMs not supporting BLE Page 15 © Copyright 2014 9 Enterprise Software Giants Will Spur M2M M&A Upshot: The market for machine-to-machine (M2M) data capture solutions begins to cross the chasm from proprietary solution stacks to extending horizontal IT enterprise architecture. The PTC acquisition of ThingWorx was the first of several to come, with specialists such as Axeda, ILS and Jasper Wireless logical targets given their expertise and market traction. IT decision-makers new to M2M will place a premium on platforms that extend existing IT architecture with an appropriate amount of emphasis on security and a management interface. M2M app platform targets such as ILS, Cumulocity or Axeda and enterprise software giants such as HP, SAP, Oracle or IBM required to pay steep premiums M2M app platform vendors that miss out on the consolidation phase during next 18 months Page 16 © Copyright 2014 10 Systems Integrators Target the Enterprise Wearable Technology Market Upshot: Today’s consumer-centric wearable tech devices epitomize a pitfall of mobile R&D, creating solutions that are in search of a problem to solve. The enterprise profile is quite the opposite, with multinational companies really needing wearable applications but just not knowing it yet. It will be up to systems integrators (SIs) and others of similar stature to execute on the promise of wearables for the enterprise. In the coming year, we expect a number will rise to the occasion. SIs such as Accenture and SAP that get in on the opportunity; large MNOs like Verizon, AT&T, Vodafone and France Telecom will also capture connectivity revenues Non-adopters in sectors with clear use cases, e.g., logistics, manufacturing, health care and technical support; also, device OEMs not embedding connectivity Page 17 © Copyright 2014 Q&A Read our insights and sign up for our newsletter at maps.yankeegroup.com Fan us at facebook.com/yankeegroup Follow us on Twitter @YankeeGroup @ChrisMarshUK Chris Marsh Principal Analyst [email protected] Page 18 Read our blogs at blogs.yankeegroup.com © Copyright 2014