I SIGNAL. Key Benefits of Mobile Device Usage. U.S. SMBs Focus on Mobile Security
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1 I SIGNAL 3rd Quarter 2015 Welcome to I-Signal, a publication through which AMI-Partners provides a periodic, graphic review of the strategic issues, trends and directions impacting information technology (IT), communications and related industries. Signal: \sig-n l\ n (Webster s) -- 1: something that excites to action; 2: something that conveys notice or warning; 3: an object used to transmit or convey information Key Benefits of Mobile Device Usage Mobility is becoming much more strategically important to small and medium sized businesses and the rush to adopt solutions is leading to rapid growth. Mobile devices are impacting business by improving employee productivity, communications and collaboration. Total mobility spending among U.S. SMBs will reach $77 billion by However, mobile security is becoming a major issue. While security concerns represent a potential stumbling block for the industry they will also drive innovation and adoption of more complex solutions. U.S. SMBs Focus on Mobile Security In this issue, we will examine the the effects of mobile security on small and medium businesses in the U.S. Stay tuned for more signals in the future and send us back a few. Best regards, Andy Bose Fifth Avenue, New York, NY Tel: Fax: URL:
2 AMI-Partners R&D Investments: AMI-Partners: Extensive Global Footprint Global Primary Research (Surveys) Coverage Map Touches All Major Countries Actionable Global SMB Market Intelligence, GTM Strategy & Implementation Models 20 Year History WW Deep End User Tracking WW Channel Partner Tracking Mindset, Buying Behavior, Decision Criteria, RTM, ICT Adoption/Usage/Plans, Cloud Migration, Bundles, Brands Solutions, Skill Sets, Customer Base, Business Models, Vendor Programs, Capacity Planning, Benchmarking Tools, KPIs, ROI Engines, Cloud Transformation Global IT/Telecom Market Sizing Model 110+ ICT Categories 50+ countries;/sub-regional/city level 19 Verticals, 8 employee segments RTM Overlay Actionable Market Segmentation Model & Predictive Database Analytics GTM - Campaigns/Lead Gen/Partner Recruitment; Competitive Benchmarking; Best of Breed; KPI Strong Global Presence Across Americas, Europe, APAC AMI Tracking Surveys Cover Countries Driving over 90% of WW SMB IT/Telecom Spending (SB = 1-99 Employees, MB = Employees, LB = 1,000+ Employees) AMI-Partners AMI-Partners ( I-Signal Feedback I-Signal is an interactive publication. We invite you to help us focus our future coverage of global technology markets. Tell us what issues are important to you. We welcome your comments by at: Ask_AMI@ami-partners.com. I-Signal Contents Welcome to I-Signal...1 SMBs Concerns About Mobile Device Security...3 A Rapidly Growing but Increasingly Complex Market...4 Effects of Mobile Devices and Segmentation...5 I-Signal Staff Andy Bose Marketing Americas/ EMEA Staff Editors Americas/EMEA Production John Rezac Mark Smolenski Jason Atkins Joseph Bertran Rohan Bose Mansi Bhatnagar Andrew Kirk Publisher Eileen Zimbler Marketing APAC Contributing Editors Deepinder Sahni Yuki Uehara Jyoti Singh Neha Goenka Jackilyn Almazan Staff Editors APAC Devapriyo Chakravarty Raman Chauhan Somnath Das Rati Ghose Abhilash Pillai Subrata Sarkar Partha Sengupta Copyright 2015 by Access Markets International (AMI) Partners, Inc. All rights reserved. No part of this newsletter may be reproduced without permission from the Publisher. I-Signal is published by Access Markets International (AMI) Partners, Inc., 546 Fifth Avenue, New York, NY 10036, Tel: , Fax: , URL: Fifth Avenue, New York, NY Tel: Fax: URL:
3 SMBs Concerns About Mobile Device Security Security Concerns Are Driving SMBs to Provide Employees with CompanyOwned Mobile Devices Migrating Apps to Mobile Devices According to AMI s most recent information and communication tracking study, a third of SBs and half of MBs consider migrating business applications to mobile devices strategically important to the success of their business. This shift to greater reliance on mobile solutions for functions central to the business has profound implications for data security. In the past the risk of lost and hacked devices was limited largely to loss of communications such as s and text messages. The stakes are now much higher because of the increasing adoption of mobile line of business applications. Mobile Device Security Threats Currently about 27% of small businesses and 46% of medium businesses directly provide employees with company-owned phones or tablets. This leaves a majority of connected devices without any security measures in place beyond basic passwords implemented by the user. However, driven by security concerns, a shift is likely to occur as 35% of small businesses and 56% of medium businesses now consider equipping employees with company-owned devices important. This presents an opportunity for mobile providers to offer devices bundled with management and security solutions. Equipping employees with companyprovided mobile devices is critically important to my company s continued success Fifth Avenue, New York, NY Tel: Fax: URL:
4 A Rapidly Growing but Increasingly Complex Market U.S. SMB Spending Will Double by 2019 SMB mobile market will grow from $44 billion in 2014 to $77 billion by The lion s share of this spend will be on data plans driven by increased adoption of mobile apps. According to AMI s Mobility Tracking Study 78% of SMBs were already using at least one mobile business process app and this number is set to grow significantly as SMB spending on mobile app development will grow by 22% by Furthermore spending on mobile application management is set to grow by 27% and remotely managed mobile devices by 32% during this same time frame. These shifts reflect the growing complexity in the market and solution providers must be prepared to meet SMB needs. U.S. SMB Mobility Spending Breakout by Category Security Is a Top Concern As businesses allow employees to access more business critical data through mobile applications they expose themselves to increasing threats to security breaches. Drivers of Growth Strategic Importance of Mobility In the past 12 months 12% of SBs and 22% of MBs reported theft of laptops/tablets while 10% of SBs and 21% of MBs experienced loss of company owned mobile phones. This is in addition to the data loss and security breaches SMBs experience daily through hacked employee owned devices. SMBs have become acutely aware of this and when thinking about their mobile strategy data security is the top concern. According to AMI s most recent survey 43% of SMBs feel implementing data security for their company s mobile device is strategically important to the success of their business. To meet the needs of SMBs mobile providers must prioritize security solutions in their mobile offerings Fifth Avenue, New York, NY Tel: Fax: URL:
5 Effects of Mobile Devices and Segmentation The Migration to More Secure Mobile Devices Has Already Begun Effects of Mobile Device Usage on U.S. SMBs The priority SMBs place on mobile security is already having a large effect on their spending. The growth of mobile device usage among SMBs is leading to adoption of a range of other related technologies both mobile and on-premise. Many SMBs are upgrading their network infrastructure and operating systems to support mobile device usage and implementing security solutions to remotely manage, locate and/or lock/wipe lost or stolen devices. As SMBs grow more sophisticated in their use of mobile devices they will adopt more of these security focused solutions creating opportunity for those providers who can create bundled devices and services that address SMB mobile security concerns. Answering The Marketing Challenge U.S. SB Mobility Spending by Segment Targeting the SMB market is a huge challenge for solution providers. Small businesses account for more than four times the mobility spending of medium businesses and represent a vast range of business types with many different strategies when it comes to investment in mobile technology. This makes finding those companies that will purchase a given mobile solution a bit like looking for a needle is a haystack. Mobile solution providers must adopt segmentation methodologies that effectively target small businesses that are most likely to invest in their solutions. AMI s segmentation research shows that only 10% of the small business market accounts for 50% of mobility spending. By focusing marketing efforts on these Tier 1 businesses providers can effectively target the most profitable customers leading to significantly increased sales Fifth Avenue, New York, NY Tel: Fax: URL:
6 I SIGNAL A publication of AMI-Partners AMI-Partners Services Portfolio & Expertise AMI-Partners provides actionable market intelligence and GTM consulting to IT, communications and business services companies, with a strong focus on global small, medium and enterprise business market sectors. We develop analytics-driven GTM strategies including channel partner/rtm programs to help our clients succeed throughout the world. For more information about AMI-Partners and our global services, call , ask_ami@ami-partners.com, or visit New York, London, Singapore, Tokyo, Bangalore, Kolkata, Mumbai Fifth Avenue, New York, NY Tel: Fax: URL:
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