2015 Enterprise Mobile Application Report

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1 2015 Enterprise Mobile Application Report By Chris Marsh, 451 Research June 2015 Sponsored by Mobilize the Enterprise

2 Research Overview The Enterprise Mobile Application Report evaluated the level of demand for mobile applications in the enterprise and the challenges that companies face to meet the demand. The survey captured responses from more than 480 participants that represent IT management, IT development and line of business across a range of industries in North America, Europe and Asia Pacific regions. The global survey analysis was completed by 451 Research in March Global Survey of 484 Interviews 15% 30% 38% USA USA UK Germany Australia Executive Summary The demand for new mobile apps (for customers, partners and employees) is still very strong. And interestingly, companies are broadening their focus beyond core processes and application silos. IT is being expected to step up across the lifecycle, extending traditional support and performance monitoring to new mobile projects alongside input on supporting architectures and GRC (governance, risk management and compliance). However, given budget and resourcing limitations, skills gaps, legacy infrastructure, overall technology fragmentation and immature lifecycle workflows, IT departments are ill-equipped to meet the demand for mobile apps. There is also still a disconnect between the intention for the majority of internal development to be done by professional developers and the availability of those skills to enterprises. The challenge is many companies are faced with little workflow automation across the lifecycle, with too high a proportion of budgets assigned to development over post-production optimization to support the volume of apps that companies are planning. Key Takeaways There were several interesting takeaways from the survey revealing challenges that companies are facing in meeting the increased demand for mobile applications and obstacles to success mobile app development and deployment. There is a disconnect between aspirations and capabilities. Lots of apps Custom infrastructure Scarce developers Of companies planning 20+ employee apps, around 60% are also planning 20+ customer and partner apps 34% currently custom-build their back-end integrations; rely on their application provider 71% expect IT to be managing those app projects Enterpise Mobile Application Report: Chris Marsh, 451 Research

3 A growing proportion of companies will look to IT for the bulk of their internal apps development. Professional developers in IT Non professional devs in IT Professional devs outside of IT Business analysts outside IT Other employees outside IT 1% 4% 15% 13% 19% 0% 20% 30% 40% 50% 60% 70% 80% 43% 68% Key Findings Following are key findings from the research report around the quantity and types of mobile apps that companies have deployed and will be deploying in the next two years. In addition, who typically takes the lead in project managing mobile app initiatives. Q1: What is your company s revenue size? More than $1B 27% % of Dme spent now on specific internal app dev projects Bulk of development on internal apps in two years $500M to < $1B 30% % of time spent now on specific internal app dev projects Bulk of development on internal apps in two years $300M to < $500M 24% It s not just development where IT is expected to step up to the plate. Role of IT in Mobile Apps Projects 1. Suppor9ng deployed apps 2. Performance monitoring 3. Pre- produc9on tes9ng 4. Providing the architecture 5. Governance, risk, compliance 6. Back- end development 7. Front- end development 8. Designing UIs Now (6-10) Should Be (6-10) 70% 73% 70% 79% 69% 71% 67% 70% 65% 72% 64% 73% 64% 69% 65% 69% Two-thirds of apps over the next two years will be externally developed. Anticipated developers of planned apps over the next two years: 14% Externally by a digital agency partner 35% Internal development Externally by a systems integrator $200M to < $300M Less than $200M Q2: How many people are employed in your organization? More than % 0% 3% 22% 0% 5% 15% 20% 25% 30% 35% 34% 45% 0% 20% 30% 40% 50% Q3: What is your organization s primary industry? Manufacturing Financial Services Retail Energy/ U;li;es 19% 25% 28% 14% Externally by a developer partner 21% Externally by a business applica;on vendor Healthcare 9% Insurance 9% 0% 5% 15% 20% 25% 30% Series Enterpise Mobile Application Report: Chris Marsh, 451 Research

4 Q4: What is your primary job function? C- Level 20% Q6: How many {Employee} mobile applications in total is your department planning to deploy over the next two years? Chart Title General Manager 17% VP Level 8% Director 22% Manager 33% 19% 43% 0% 5% 15% 20% 25% 30% 35% Q5: How may {Customer} mobile apps is your department planning Chart to Title deploy over the next two years? 13% 15% 49% 23% 24% less than to to Less than to to % increase in companies planning to have 10 to 50+ employee mobile apps in two years Q7: How many {Partner} mobile applications in total is your department planing to deploy over the next two Chart years? Title Less than to to less than to to % increase in companies planning to have 10 to 50+ customer mobile apps in two years 57% less than to to Less than to to % increase in companies planning to have 10 to 50+ partner mobile apps in two years Enterpise Mobile Application Report: Chris Marsh, 451 Research

5 Q8: Which of the following NEW mobile applications types does your company plan to deploy over the next two years? Q9: Does your company currently use any of the following third-party vendor tools? Na?ve mobile OS tools App virtualiza?on Open source build frameworks Applica?on container Q10: Do you think it is preferable to use an integrated platform from a single vendor, as opposed to a variety of services from different vendors? Highly preferable Somewhat preferable Neither nor Not preferable at all Not preferable at all SOA plajorm MDM service MAP API Gateway MBaaS MAM service CRM - Sales CRM - Marke:ng A customer- facing website or applica:on General produc:vity apps CRM - Service / Support Field- service applica:ons Supply- chain applica:ons Partner applica:ons Task- based employee applica:ons Ver:cal specific industry applica:ons None of the above. CRM 2% 1% 1% 50% 41% 40% 39% 36% 36% 34% 33% 30% 27% 23% 0% 20% 30% 40% 50% 60% 14% 31% 39% 38% 38% 36% 44% 43% 41% 49% 47% 54% 0% 20% 30% 40% 50% 60% 53% 0% 20% 30% 40% 50% 60% Conclusion and Recommendation Although the demand is strong for mobile apps, for many companies, it s still in the early stages for mobile application strategies. To meet the demands, companies are still heavily reliant on external partners for the bulk of planned development. While an even greater proportion sees professional IT developers doing the majority of internal development, others outside of IT are taking up the slack. Enterprises are consequently falling unplanned into the citizen developer model. As a result, a burdened IT is beginning to look at other infrastructure strategies; however they are typically looking to existing web middleware and application vendors. While IT is still in the driver s seat when it comes to both the bulk of internal mobile app development and project management, Line of Business (LoBs) want input and greater collaboration, but only selective empowerment not sole responsibility for projects and budgets. It is critical that IT facilitate this to prevent fragmentation of tools and projects. There is a heterogeneous landscape of overlapping technologies at play in the enterprise, into which an accretive rather than a divide and conquer strategy is more likely to gain traction. The majority of companies unsurprisingly want their main tools to be able to integrate, but stop short of wanting deeply vertically integrated sole-vendor mobile stacks. Furthermore, enterprises are looking for greater architectural flexibility and ecosystem interoperability. There is a danger that a burdened IT is caught between the rock of suboptimal existing middleware and the hard place of new mobile solutions lacking extensibility and with this choice, will look to stretch existing investments. Companies using mobile-specific tooling are ahead of the pack. Companies with the higher numbers of deployed apps are significantly less likely to opt for custom back-end integrations and more likely to be using mobile tools like mobile application platforms and mobile back-end as a service Enterpise Mobile Application Report: Chris Marsh, 451 Research

6 Kony is the fastest-growing, cloud-based enterprise mobility solutions company and an industry leader among mobile application development platform (MADP) providers. Kony empowers today s leading organizations to compete in mobile time by rapidly delivering multi-edge mobile apps across the broadest array of devices and systems, today and in the future. Kony offers ready-to-run business mobile apps to help organizations better engage with customers and partners, as well as increase employee productivity through mobile device access to company systems and information. Powered by Kony s industry-leading Mobility Platform, enterprises can design, build, configure, and manage mobile apps across the entire software development lifecycle, and get to market faster with a lower total cost of ownership. For two years in a row (2013 and 2014), Gartner has named Kony a Leader in its Magic Quadrant for Mobile Application Development Platforms. Gartner also gave Kony the highest scores in 3 of 4 enterprise mobility use cases in their latest Mobile Application Development Platform Critical Capabilities Report, released December In additional to these recognitions, Kony was also honored in the Mobile Star Awards for achievements in enterprise application development; named the first place winner in CTIA s MobITs Awards in the Mobile Applications, Development & Platforms category, and included on the Inc list of fastest growing private companies in America. For more information, please visit Connect with Kony on Twitter, Facebook, and LinkedIn West Sand Lake Road #390 Orlando, FL info@kony.com Kony, Inc. All rights reserved Enterpise Mobile Application Report: Chris Marsh, 451 Research

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