Bridging the Gaps in Mobility Decision Making
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1 Bridging the Gaps in Mobility Decision Making Why gaining visibility is the first step to fixing the lack of control that exists in today s mobile enterprise
2 Wandera WHITE PAPER Page 2 Table of Contents Introduction... 3 Who is Responsible for Mobility Spend... 4 Mobility Spend vs. Visibility... 4 SMS... 4 Mobile Voice... 5 Mobile Data... 5 Enterprise Application ROI... 6 The High Cost of Mobility... 7 Mobile Broadband Data... 7 Enterprise Apps... 7 Mobile Visibility is a Strategic Imperative... 8 Mobile Data Optimization... 8
3 Wandera WHITE PAPER Page 3 Introduction There s no denying it, mobility has moved faster than organizations have been able to react. With the consumerization of IT, responsibility for enterprise mobility decision-making is ambiguous, with multiple roles and in some cases departments providing input. Finance has little insight into how devices are used, but is increasingly responsible for making the budgeting decisions for mobility. Yet, the day-to-day management of mobility falls squarely on IT, leaving the department to provision, support, secure, and maintain devices often without direct involvement in budget and decision-making. This has led to an often frustrating, disjointed, and more expensive state of mobility for organizations. At the same time, the cost centers of mobility have fundamentally changed from the simplicity of SMS and voice to the far more expensive and ambiguous costs of mobile broadband and enterprise application development. Organizations today have little or no visibility into these two new mobility cost centers. The insight required to make decisions about mobility strategy and budgeting is simply unavailable. Two primary factors have contributed to this state: 1. Costs, complexity, and the importance of enterprise mobility are on the rise, as a result of the shift from voice costs to data costs 2. Visibility and control over mobility are decreasing and becoming more disparate This white paper explores the factors that led to the current state of enterprise mobility and examine Mobile Data Optimization (MDO) as a solution for organizations, IT managers, and finance departments to regain control of enterprise mobility.
4 Wandera WHITE PAPER Page 4 Who is Responsible for Mobility Spend A major factor leading to disjointed mobility strategies is the disconnect between those responsible for mobility strategy, budgeting, deployment and maintenance. Figure 1 shows the current state of mobility budget management, with just under half of organizations using IT to manage the mobility budget. Developing an effective and consistent mobility strategy is increasingly difficult when the decision-making is spread across multiple departments. An understanding of where mobility spend is going along with the value that spend creates is essential. Mobile Data Optimization tools can provide the fundamental information for making informed decisions across multiple departments in the organization. Employees 7% Other 5% Finance 18% Business Unit 48% IT 48% Mobility Spend vs. Visibility Figure 1 - Who Manages the Mobility Budget? MobileIron Mobile Enterprise Report - February 2013 The lack of visibility that exists in today s mobile enterprise makes informed decision making a great challenge. Figure 2 shows just how disconnected enterprise mobility imperatives are from the vital information required to make decisions. Mobile data and enterprise apps are shown in black illustrating the lack of visibility that organizations have into costs and return on investment. These two areas are the most costly, yet organizations have the least visibility. Mobile Data Optimization tools enable organizations to bring these important cost centers into the light. Cost to the Organization Finance 18% Business Unit Voice 48% Mobile Data Enterprise Apps IT 48% SMS Strategic Importance to the Organization SMS Figure 2 - What Components of Mobility are Most Important to the Organization? Wandera Calendar Q With messaging products available on smartphones (BBM, imessage, Skype, etc.) and the use of , there is little productivity that organizations experience from the use of SMS. Yet, most organizations are paying for their employees SMS plans. Strategic Importance of SMS: Low Mobile bills provide an itemized view of all relevant information with regards to SMS; Date, Time, To, From, etc. Complete information exists on the current use of SMS, despite SMS being of minimal value to most organizations. Visibility of SMS Usage & Costs: Extremely High
5 Wandera WHITE PAPER Page 5 Mobile Voice The significance of mobile voice calling is fundamentally changing as it moves away from traditional mobile infrastructure and twoards mobile data. Juniper Research estimates that there will be over one billion mobile VOIP users worldwide by , with many users making calls over 4G data networks. Twilio for example, delivers an enterprise grade mobile VOIP and messaging platform that brings Skype-like versatility to enterprise mobility. Mobile Network Operators (MNOs) have already adjusted for this trend, making voice a fixed cost and increasing the price of variable data cost. Strategic Importance of Mobile Voice: High Like SMS billing, Voice delivers itemized insight into voice minutes, however with the commoditization of voice through the growing number of unlimited domestic voice plans, this billing insight is less relevant. Visibility of Mobile Voice Usage & Costs: Extremely High Mobile Data Mobile data is now hugely strategic for to the enterprise. Frequent , messaging, and enterprise application use is essential to employees and the migration from legacy voice and messaging to mobile broadband networks will further increase the importance of mobile data usage within the enterprise. When employees are separated from mobile data, their devices remain unproductive. Strategic Importance of Mobile Data: Extremely High Organizations are faced with a black box when it comes to data consumption. Where SMS and Voice are both itemized by specific usage, this is not the case for mobile data. Mobile data is itemized as an aggregate number per user (i.e. 1.35GB), giving IT, Finance, or any other stakeholder group little or no visibility into which apps, how, where, and when are used. Over half of mobile data usage is consumed by the use of Audio and Video Streaming as well as Social Networking. These functions aren t likely to increase productivity, but in many cases do exactly the opposite. Most employees do not waste mobile data deliberately, they are simply not aware of how much data their mobile broadband activities cost their company. The organization, is unable to properly educate their employees without the granular visibility into data usage MAJORITY OF DATA IS NOT BUSINESS RELATED Video Social Networks Apps/Sites App Downloads News/Info Figure 3 - Wandera Customer Data Usage Averages Wandera Calendar Q Furthermore, in a roaming scenario data costs are significantly more expensive (e.g. $1-10 per MB) and organizations today have no effective tool in detecting, measuring and controlling roaming usage. Mobile data usage is a large and growing portion of mobility expense, accounting for 43% 2 of mobile bills in Q4, 2012, doubling in size from This number is only expected to rise, with the possibility of mobile bills becoming comprised almost entirely of mobile data expense. Despite this, mobile operators are currently unable to give customers itemized billing information for mobile data usage. Visibility of Mobile Data Usage and Costs: Extremely Low
6 Wandera WHITE PAPER Page 6 Enterprise Application ROI The use of enterprise apps exploded; with 61% of IT managers planning to expand their enterprise application capability during the next three years 3. This strategy is of no surprise when 48% of the very same IT managers believe that enterprise apps will help them become leaders in their industry. There are many practical applications for enterprise apps, but the constant touch point that they provide employees and customers are universal, and deliver significant value to the enterprise. Strategic Importance of Enterprise Apps: Extremely High Many organizations have virtually no visibility into which apps are used and if and how enterprise-owned apps are leveraged by their mobile workforce. Without performing an arduous manual process, IT managers simply have to hope the enterprise apps they have invested in are utilized to the degree that will help them achieve the productivity they set out to create in the first place. With the right visibility tools in place, businesses will start to understand which apps IT should provide. For instance, if a high volume of employees use public storage apps, IT may need to consider rolling one out. Greater visibility would also help highlight areas of vulnerability and security. Visibility of Enterprise App Usage and Costs: Low The High Cost of Mobility As the importance of SMS and Voice have greatly diminished to the enterprise and its mobile workers, so too have their costs. This doesn t mean that the cost of enterprise mobility has fallen. In fact the primary cost centers have shifted to mobile data and enterprise apps, which are substantially more expensive to the organization than their mobility predecessors. Mobile Broadband Data Mobile network operators have adjusted for falling revenues in SMS and Voice by raising the price of data, which is an area of dramatic growth. The move away from legacy mobile platforms (i.e. BlackBerry) which consumed less data, coupled with the emergence of high bandwidth applications (i.e. streaming video) and with faster connection speeds (4G/LTE) are the key drivers of the mobile data explosion. The average mobile data cost in the enterprise in North America is $95.97/month 4. While this cost is already significant, it is set to rise even more, as 56.5% of IT managers believe that mobile data costs will increase in the next year 5. Mobile data is largely a variable cost for organizations and even the small number of companies on unlimited plans pay based on previous usage. In addition, roaming usage is always a variable expense. By employing tools to gain greater visibility into data usage, there is an opportunity to reduce data waste, lower costs, reduce roaming costs, educate employees on acceptable usage, and better optimize mobile data spend. Enterprise Apps The lack of visibility into enterprise app usage is even more disconcerting when considering the cost of mobile application development. In 2012, organizations around the world spent over $9 billion on application development 6. Enterprise apps empower organizations to increase sales productivity, improve customer service, train new employees, and other value-add activities. Many organizations today have deployed a host of enterprise apps to fulfill various needs across multiple divisions within the organization. The cost of enterprise app development can vary greatly, but is always a considerable investment for organizations.
7 Wandera WHITE PAPER Page 7 Simple Enterprise App: $50,000 (+/-20%) Single platform (ios or Android) Limited footprint Little if any personalization Medium Enterprise App: $100,000 (+/-20%) One or two platforms Department/division footprint Highly-tuned user experience Complex Enterprise App: $150,000 (+/-20%) Multiple platforms Enterprise-wide footprint Fully-customized development Tuned for internal customer-facing usage Figure 4 - Enterprise App Development Costs Wandera Calendar Q Investment in mobile apps is largely a fixed cost, so ensuring that the organization is getting its return on investment for development means understanding if the organization is extracting as much value as possible from the app. Unfortunately, most organizations have limited tools available to track the return on their enterprise app development. Visibility into enterprise app usage delivers insight into an app s footprint, impact and ROI. Mobile Visibility is a Strategic Imperative The emphasis on mobility that exists today in the enterprise is due to the gains in productivity that mobile devices give an organization and its employees. In a report by Accenture, 79% of CIO s surveyed cited mobility as a revenue generator for their business, with 83% saying it would significantly affect the business 7. When one considers both the strategic importance as well as the significant investment that mobility represents, isn t understanding the ROI imperative for any organization? Mobile Data Optimization is the only tool that exists today designed to give organizations greater insight into mobility spend and enable organizations to actually control these costs. Mobile Data Optimization Mobile Data Optimization (MDO) enables organizations to better take control of their mobile data consumption and costs. The three key elements of MDO are visibility, savings and control. The visibility component of MDO is crucial for organizations to regain control of mobile data by opening up the black box of data consumption that exists today. MDO is the first enterprise offering that indicates granular data consumption by application and/or website, the first step towards aligning mobile strategy with the realities of usage. This white paper has discussed two key elements of enterprise mobility that are likely to benefit from Mobile Data Optimization; mobile data usage and enterprise app utilization. MDO is a solution to visibility issues. This visibility delivers productivity gains while reducing costs by identifying behaviors that are time-wasters and costly in terms of data consumption such as in the roaming scenario. Secondly, understanding enterprise app utilization through MDO is the only way to ensure that investments in app development are being realized within the organization. It is highly recommended that organizations evaluate Mobile Data Optimization as a solution to better inform their overall mobility strategy.
8 Wandera WHITEPAPER Page 8 Sources 1 Juniper Research - Mobile & Tablet Voice & Video Calling 2 Wandera Calendar Q Gartner CIO Survey 4 MobileIron Mobile Enterprise Report February MobileIron Mobile Enterprise Report February Gartner Says Cloud, Mobility and Open Source Will Drive Application Development Market to Exceed $9 Billion in The Accenture CIO Mobility Survey 2013 About Wandera Wandera is the pioneer and leading provider of Mobile Data Optimization (MDO), providing businesses with significant savings, as well as control and visibility of their mobile data usage. Powered by its proprietary cloud data compression and processing engine, Wandera works transparently for mobile devices wherever they are in the world, without changing the user experience. Deployment is simple and the service is scalable and resilient, optimized to process billions of daily mobile data requests. Founded in 2012 Wandera is headquartered in San Francisco and London, and backed by Bessemer Venture Partners. For more information, visit US Headquarters UK Headquarters 181 Fremont St. San Francisco, CA T +1 (415) E info@wandera.com 55 Bryanston St. London, W1H 7AA T +44 (0) E info@wandera.com
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