W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y F o r e c a s t : U n i t e d S t a t e s L e a d s i n A d o p t i o n

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1 Global Headquarters: 5 Speen Street Framingham, MA USA P F M A R K E T A N A L Y S I S W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y F o r e c a s t : U n i t e d S t a t e s L e a d s i n A d o p t i o n Carrie MacGillivray I N T H I S E X C E R P T The content for this paper is excerpted from the IDC Market Analysis, "Worldwide and U.S. Managed Mobility Forecast: United States Leads in Adoption", by Carrie MacGillivray, (Doc # ). All or parts of the following sections are included in this Excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, and Essential Guidance. Tables 1, 2 and 3 and Figure 1 are also included. I D C O P I N I O N The managed mobility services market continues to gain momentum as enterprises look to third parties to help manage their wireless initiatives. In 2012, the total worldwide managed mobility services market reached almost $487 million. IDC expects the market to grow by a compound annual growth rate (CAGR) of 19.7% from 2012 to 2017 to reach $1.2 billion. IDC examines these factors and presents the following highlights from its analysis: Worldwide devices managed by third parties are expected to grow from 5.4 million in 2012 to 25.3 million by 2017, representing a CAGR of 36%. The managed mobility services market is dominated by the United States, accounting for 78.2% of the worldwide market in Contribution from the other regions will increase over the forecast period, but the United States will continue to lead as the growth mechanism. Large enterprises and multinational corporations (MNCs) lead in the adoption of management mobility solutions. These customers are confronting heterogeneous device environments and require assistance in managing and securing devices. The managed mobility market is crowded with a variety of vendors, including mobile operators, systems integrators (SIs), and pure-play providers. Each vendor offers a unique set of solutions, portraying its own unique core competency. Over the past few years, there have been significant mergers and acquisitions as well as strategic partnerships announced within the market, a trend expected to continue. Service models range from full self-service to fully managed services while also including partially managed hybrid solutions. Many businesses are reluctant to choose a fully managed service since some services can be easily supported inhouse. Partial managed solutions are driving the adoption of managed mobility among enterprises globally. Filing Information: May 2013, IDC #241148, Volume: 1 United States Mobile Enterprise Services: Market Analysis

2 I N T H I S S T U D Y This IDC study analyzes the managed mobility services market from 2013 to 2017 worldwide and in the United States. Market sizing is provided for 2012, and a fiveyear revenue growth forecast for this market is shown for Included is an examination of trends that will drive adoption as well as an outline of key market challenges and competitive dynamics to watch in 2013 and beyond. IDC also provides key recommendations for vendors to succeed in this space. M e t h o d o l o g y The forecast contained in this study is based on both primary and secondary research sources. The market forecast and analysis incorporates information from the following sources: Discussions with key players in the value chain mobile operators, systems integrators, pure-play vendors, and end users are included. Product briefings, press releases, and other publicly available information are used to derive the direction and current conditions of managed mobility solutions offered by vendors. Vendor financial statements and filings are used to understand current market conditions of enterprises adopting services as well as the financial state of managed mobility providers. IDC demand-side research is leveraged to determine enterprise initiatives and interest in adopting managed mobility services. Regional guidance and insight into the worldwide forecast are supplied by IDC analysts around the globe. Note: All numbers in this document may not be exact due to rounding. # IDC

3 M a n a g e d M o b i l i t y D e f i n i t i o n Managed mobility is a solution, offered by a third party, to manage an enterprise's corporate mobile deployment. Customers can select discrete components of the solution or choose to outsource the entire end-to-end wireless management. IDC outlines managed mobility as a solution that encompasses telecom expense management (TEM) and mobile device management (MDM) services. Vendors typically offer custom consulting and/or professional services for all components of the engagement, depending on a customer's requirements. These professional services provide clients with strategic guidance related to wireless usage. Services are typically sold on three-year contracts, and enterprises pay per device. For this study, the managed mobility services market includes the solutions defined in the sections that follow. Telecom Expense Management Mobile telecom expense management helps enterprises manage the complexity and cost concerns related to growing wireless usage among employees. The services range from very specific product offerings such as billing analysis and enhanced customer service to complete life-cycle management that includes device procurement and fulfillment as well as management of the software installed on the devices. However, the management on the software resides more formally in the MDM component (see the Mobile Device Management section). The purpose of TEM is to reduce costs and optimize investments within the enterprise. Key components of TEM include: Billing analysis Contract negotiation Device provisioning (procurement/fulfillment) Enhanced customer service Inventory and asset management (audit function) Mobile policy management Rate plan optimization/plan management Reporting and analytics Mobi le Device Management Mobile device management is defined as software used to manage the components and requirements of mobile devices (including smartphones and tablets) within an enterprise. In this study, the market only includes MDM solutions that are managed as a service by a third party. The various components of MDM within a managed mobility offer include: Device provisioning (procurement and fulfilling) 2013 IDC #

4 Inventory and asset management Location information Managing configuration settings Mobile policy management Real-time device monitoring Remote control for systems diagnostics Reporting and analytics Security management (remote wipe/lock) Software and service provisioning IDC publishes an annual study that looks at the entire MDM market as a subset of the mobile enterprise management (MEM) market. More information is available in Worldwide Mobile Enterprise Management Software Forecast and Analysis and 2011 Vendor Shares (IDC #236835, September 2012). S I T U A T I O N O V E R V I E W Enterprises across the globe are facing similar challenges in the deployment of mobility across their organizations. The rapid ascent of mobile devices into the hands of employees and the demand for applications create a perfect storm of complexity, which many IT departments struggle to contain. To manage mobility deployments, many enterprises attempt to keep solutions in-house, while others are investigating and employing the help of third parties managed mobility providers. Managed mobility solutions help reduce the complexity for IT departments, increase worker productivity, reduce costs, and arm business managers with information on how to best deploy mobile solutions. These managed solutions are gaining relevance across industries and medium-sized to large businesses. Slowly, enterprise decision makers are starting to understand the value of choosing a managed mobility service over internally managing a solution. G l o b a l N e e d R e g i o n a l D i f f e r e n c e s There is a global need to adopt TEM and MDM solutions. However, each region is adopting these solutions as a managed service differently. In the United States, managed mobility had its roots in telecom expense management. Recently, mobile device management has emerged as the driver in the market. Most TEM providers are now also offering MDM solutions via partnerships or internally built solutions. Meanwhile, in Europe and Asia, mobile device management has been the leading driver in managed mobility solutions for quite some time and is only now beginning to leverage the capabilities of TEM solutions. 2 # IDC

5 The shift in demand from one capability to both can be attributed to the influx of mobile devices as well as the shift in businesses operating globally. Enterprises, not only multinational corporations, increasingly operate and compete internationally. These companies not only manage individual, domestic workforces but also have extensive international networks. This shift causes the need for a global mobile capability in both TEM and MDM solutions as essential. K e y D e v e l o p m e n t s i n a n d I m p a c t i n g t h e M a n a g e d M o b i l i t y M a r k e t Global partnerships materializing. As offering a global capability rises in importance among enterprises, vendors are strategizing about how to deliver. In January 2013, Dimension Data and AirWatch announced a global partnership. Diverse devices in the enterprise. Enterprises are expanding the types of devices and operating systems they support. Enterprises are supporting multiple operating systems, including BlackBerry, ios, and Android. Consolidation continues. Historically, the managed mobility market has been crowded with a variety of vendors while also facing significant mergers and acquisitions. This trend is likely to continue. For example, in 2012, Tangoe acquired Symphony Teleca's TEM solution. Partnerships established across the value chain. As the need for additional capabilities continues, vendors are looking to partner instead of internally building solutions. In May 2012, Sprint announced partnerships with MDM providers AirWatch and Zenprise. BYOD solutions, a separate component. Vendors recognize that as enterprises accept and adopt BYOD, there is a need for strategic guidance. According to research done in 2012, approximately 68% of smartphones used for business are owned by employees rather than the company. Many vendors are launching separate BYOD Management solutions to help enterprises adjust to this shift. For example, in August 2012, Sprint teamed up with Vision Wireless to launch BYOD Management, a service that addresses this new need. New holistic services. Enterprises are choosing to launch point solutions, but vendors recognize that there is a need for a holistic mobile strategy. Verizon launched Enterprise Mobility as a Service (EMaaS) in October This is a solution based on Verizon and partner products to deliver a comprehensive mobile solution IDC #

6 F U T U R E O U T L O O K F o r e c a s t a n d A s s u m p t i o n s Worldwide and U.S. Managed Mobility Forecast, IDC expects the worldwide market for managed mobility services to grow from $486.6 billion in 2012 to $1.2 billion in 2017, representing a CAGR of 19.7% (see Table 1). Devices under management will grow from almost 5.4 million in 2012 to 25.3 million in 2017 (see Table 2). The worldwide forecast is the aggregation of regional data. The United States leads in managed mobility adoption worldwide, accounting for almost 78% of the worldwide market share. A significant driver is device management. IDC expects the U.S. market for managed mobility services will grow from $380.4 million in 2012 to $825.4 million in 2017, representing a CAGR of 16.8% (see Table 1). Devices under management will grow from 3.9 million in 2012 to almost 9 million in 2017 (see Table 2). In the United States, managed mobility services was founded on TEM solutions and recently has expanded to include MDM. MDM services will be a driving factor in adoption rates, but TEM solutions will continue to produce the lion's share of revenue during the forecast period (see Figure 1). T A B L E 1 W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y S e r v i c e s R e v e n u e, ( $ M ) CAGR (%) Worldwide , , Growth (%) NA United States Growth (%) NA Note: See Table 3 for top 3 assumptions and Table 4 for key forecast assumptions. Source: IDC, 2013 T A B L E 2 W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y S e r v i c e D e v i c e s U n d e r M a n a g e m e n t, ( M ) CAGR (%) 4 # IDC

7 T A B L E 2 W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y S e r v i c e D e v i c e s U n d e r M a n a g e m e n t, ( M ) CAGR (%) Worldwide Growth (%) NA United States Growth (%) NA Note: See Table 3 for top 3 assumptions and Table 4 for key forecast assumptions. Source: IDC, IDC #

8 F I G U R E 1 W o r l d w i d e a n d U. S. M a n a g e d M o b i l i t y S e r v i c e s R e v e n u e S h a r e, a n d Source: IDC, 2013 Assumptions IDC has developed a number of key assumptions related to economic conditions, technology trends, mobile subscriber behavior, and regulatory policy. These assumptions are central to the qualitative and quantitative sections of this forecast. Although this list is not exhaustive, it includes many of the key factors IDC believes will be core to market evolution over the forecast period. Table 3 provides the top 3 assumptions and Table 4 provides a more exhaustive list of key forecast assumptions for the worldwide managed mobility services market for the forecast period. 6 # IDC

9 T A B L E 3 T o p 3 A s s u m p t i o n s f o r t h e W o r l d w i d e a n d U. S. M a n a g ed M o b i l i t y M a r k e t, Market Force IDC Assumption Significance Changes to This Assumption That Could Affect Current Forecast Comments Services Services markets returned to positive growth in 2010 but are still weak by historical standards. The tepid economic outlook is keeping some businesses cautious about initiating new projects. IT services spending can affect the rate of overall managed mobility adoption. IT services account for about 40% of IT spending, but a proportion of this spending needs to be attributed to wireless. After the economic crisis, businesses are starting to loosen their wallets. Spending may not be directed toward wireless communications budgets first. At this time, businesses are willing to increase their wireless budgets. Mobility strategies are moving up the CIO's agenda. Device development Consumerization of IT continues to accelerate, and with BYOD programs, a variety of devices (OS and form factor differences) are being supported within businesses. The diverse types of device OSs and form factors complicate IT management. Managing different devices can be complicated and time consuming, driving the need for assistance. As more devices access business applications, IT departments will look to outsource solutions to reduce complexity. Managed mobility providers can offer this help. Businesses reverting back to support of corporate devices alone may stem some growth in the market. BYOD programs are increasing in adoption across U.S. businesses. Business decision making for outsourcing Many business decision makers are skittish about outsourcing solutions. Convincing these decision makers to support the decision as well as understand the benefits will be critical. IT managers are looking for hard cost savings when it comes to outsourcing wireless management. Managed mobility providers need to match their offerings to the needs of the business. Aligning their products and services to existing internal solutions will drive adoption. Further, businesses will want mobility management services to reduce total wireless costs and are reluctant to pay fees above and beyond current usage costs. Changes in wireless pricing structures from mobile operators will complicate existing managed mobility models. Unknowns include the extent to which organizations will be willing to seek outsourced services for their mobility needs. Source: IDC, IDC #

10 E S S E N T I A L G U I D A N C E Based on the analysis discussed throughout this document, IDC offers the following suggestions for long-term success related to managed mobility providers: Enterprises are competing and operating internationally. A driver for managed mobility solutions is helping enterprises operate globally. Vendors should investigate partnering with internationally based mobile operators and providers. To successfully implement managed mobility solutions, consider if an experience will remain consistent for your clients across geographies. Managed mobility providers need to differentiate themselves from competitors and offer advanced services and components. Enterprises are demanding realtime analysis to track device usage accurately. Further, as businesses implement BYOD programs, dual-persona solutions will help accommodate employee and business needs. Managed mobility is popular among early adopters, but as corporate mobility initiatives are pushed up on the CIO's agenda, the service will become more relevant to the mass market. L E A R N M O R E R e l a t e d R e s e a r c h Mobility Management: Enterprises Weigh In (IDC #240599, April 2013) Enterprises Mobilizing Their Workforces: Key Findings from the 2013 U.S. Mobile Enterprise Services Survey (IDC #240623, April 2013) Mobile Operators Address BYOD with Targeted Strategies (IDC #240272, March 2013) Mobile Operator Enterprise Strategies: Road Map for Success (IDC #239863, March 2013) Multinational Corporations: Growth Strategy for Mobile Operators (IDC #239355, March 2013) U.S. Managed Mobility Forecast Update (IDC #238201, December 2012) U.S. Mobile Enterprise Services Forecast (IDC #234679, June 2012) U.S. Managed Mobility Forecast: Managed Solutions Gaining Steam as the Complexity of Mobile Strategies Increases (IDC #235161, June 2012) 8 # IDC

11 S y n o p s i s This IDC study examines the forecast for the worldwide and U.S. managed mobility services market. It delivers an aggregated worldwide view and breaks out the United States. The study examines the current market and industry trends that will shape the market over the forecast period. "Momentum in the managed mobility market continued to grow in 2012," says Carrie MacGillivray, program vice president of Mobile Services at IDC. "A driving force in 2013 and beyond will be mobile device management solutions in addition to traditional wireless TEM offerings." C o p y r i g h t N o t i c e This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2013 IDC. Reproduction is forbidden unless authorized. All rights reserved IDC #