The Global Market for Mobile Managed and Professional Services

Transcription

1 2014 Enterprise Mobility & Connected Devices The Global Market for Mobile Managed and Professional Services DIY Mobilization to Give Way to Managed Mobility Part of the Strategic Insights 2014 Enterprise Mobility and Connected Devices Research Program: Track 5, Topic 4 By Eric Klein, Senior Analyst, with David Krebs, Executive Vice President [This report has been formatted for best viewing in the VDC Connect document management system. To log in, please go to

2 Inside this Report This report discusses and analyzes the opportunity for organizations to outsource mobile IT services to their internal end users and external customers and partners. The desire to utilize mobile devices for an increasing range of workflows has brought to light the complexity and challenges that IT must contend with as the range of mobile solutions they support continues to expand. The increased usage of mobile devices also has IT departments reconsidering how to best deliver increasingly business-critical mobile IT services. As these trends have become more visible, enterprise mobility vendors have begun to optimize their solutions to be delivered as a managed service. Professional services firms have also seen mobility becoming a factor in most of customers' deployment environment; this has created an expanded service opportunity beyond traditional mobile hardware support and break-fix services. Mobility-oriented services to support expanding deployment environments, application and database integration, as well as security, asset management and logistics services are key areas of focus for professional services firms. Market analysis and critical considerations are offered across service categories and industry sectors. The report integrates selected findings from VDC s recent managed and professional services survey of IT decision-makers in both midmarket and enterprise organizations. (Full survey data is provided as a separate Excel spreadsheet.) What questions are addressed? What is the market size and opportunity for enterprise mobility professional services? How are participating vendors expanding their enterprise mobility service offerings? With which mobile solution components are vendors having the most success? How are CSPs positioning themselves to compete with professional services organizations? Which vendors are succeeding with a managed service approach to enterprise mobility? Who should read this report? This report is for written for a diverse audience. Decision-makers across an organization can benefit from reading it. Anyone participating directly or indirectly in the development, marketing, or distribution of solutions to manage mobile deployment environments is a suitable audience. VDC Research, 2015 Page 1

3 Contents Executive Summary Key Findings Global Market Overview and Forecast Exhibit 1: Global Mobile Professional Services Revenues, (US $M) Exhibit 2: Current and Forecast Global Enterprise Mobility Solutions Professional Services Revenues by Service Offering (US $M) Exhibit 3: Current and Forecast Global Enterprise Mobility Solutions Professional Services Revenues by Vertical Market (US $M) Regional Forecasts Exhibit 4: Global Mobile Professional Services Revenues by Regional Market (US $M) Americas EMEA APAC Competitive Trends Complexity is Driving Mobile Professional Services Exhibit 5: Core Enterprise Mobility Managed and Professional Services Opportunities Recent Developments Competitive Landscape by Vendor Class Mobile Initiatives Spur Services Opportunity Dominant Handset OEMs Make Their Services Move Apple + IBM End-User Trends and Insights Exhibit 6: Ideal Partners for Implementing, Maintaining, Supporting Mobility Deployments Capabilities That Matter Most to Decision-Makers Exhibit 7: Rationale for Using Third-Party Services in Support of Mobile Deployments What Decision-Makers Look for From Prof. Services Partners Exhibit 8: Service Most Critical to Influencing the Success of Mobile Deployments Exhibit 9: Most Important Capabilities in the Selection of a Mobile Integration Partner Vendor Insights CSPs Must (Still) Avoid Being the Dumb Pipe Systems Integrators Vendor Insights Specialty Solution Providers Vendor Spotlights About this Report VDC Research, 2015 Page 2

4 Executive Summary Expanding mobile workforces have led to an increase in demand for more sophisticated mobile solutions. This in turn continues to expose the complexity and challenges for IT organizations as they try to support their growing deployment environments themselves. When considering the evolutionary stage of mobile IT in the enterprise, we see organizations recognizing that mobility can be a differentiator worthy of investment. However, even forward-thinking organizations are being held back due to the desire to run a lean IT organization and the inability to demonstrate the return on their mobile investments. But line-of-business users are successfully championing mobile projects; this has many CIOs looking to third parties to integrate mobile solutions and help standardize their IT assets, particularly in managing heterogeneous mobile deployments. In order for vendors serving the enterprise to capitalize on the business case their customers see in going mobile, they will need to architect and optimize their solutions accordingly and demonstrate that they can reduce the time-to-value (TTV) of these mobile initiatives and help their customers achieve a higher ROI. Mobilizing and integrating manual business processes and workflows with modern mobile platforms is not only complex but can be costly, as many legacy applications are not being abandoned and new mobile applications require a high degree of specialized skills. For this reason, VDC sees end-to-end as a service mobility solutions as the de facto choice for enterprises going forward. Considering the early stages of true mobile enablement in the enterprise, managed mobility services from managed service providers (MSPs), communication service providers (CSPs), and systems integrators (SIs) are poised to benefit from the current mobile boom. Due to limited mobile IT support capabilities, organizations are expected to expand their relationships with third-party solution providers that specialize in mobile solution support and integration. These vendors have proved their ability to deliver strategic business impact to their customers, not just operating cost reductions. VDC Research, 2015 Page 3

5 Key Findings The global enterprise mobility professional services market reached $7.6 billion in 2014 and is forecasted to grow to a $11.0 billion market opportunity by 2018, a compound annual growth rate (CAGR) of 9.5%. Systems integration and deployment and system maintenance and break/fix services were the largest mobile professional services categories in 2014, accounting for 30.7% and 30.1% respectively. Mobile managed services accounted for 7.4% of professional services revenues in Our forecast indicates a double-digit CAGR for four of the five key vertical markets we tracked, with health care growing the fastest (13.2% CAGR). Government sector spending accounted for more than 25% ($2.8 billion) of the enterprise mobility professional services market opportunity in Countries in the APAC region lead global demand for enterprise mobility professional services and are forecasted to grow at an 11.0% CAGR through our forecast period. Implementing a mobile strategy is complex. Determining the appropriate policies and tools for the use of mobile devices and applications within an organization requires significant expertise, flexibility, time, and capital. Organizations are demonstrating a willingness to invest in mobility management but increasingly prefer to outsource these efforts, particularly as the ranks of mobile users they are supporting increases. Mobile continues to be more strategic, with two-thirds of organizations indicating the support requirements for their frontline mobile workers are similar to those of their knowledge workers. VDC estimates that between 10 and 15 million mobile devices are actively being managed in enterprise environments. This has led to expanded managed mobility services across the IT landscape and throughout the channel (e.g., network infrastructure providers, SIs, and CSPs). Telecom expense management (TEM) remains as a key starting point for organizations as they adopt mobile managed services due to the tangible ROI it can deliver. We expect to see a shift to more sophisticated managed services in 2015 with security, application, and content management becoming more prevalent. VDC Research, 2015 Page 4

6 Global Market Overview and Forecast VDC s forecast indicates that the global market for mobile professional services (inclusive of mobile systems design, application development, help desk, maintenance, depot services repair and replace hardware configuration, software provisioning, and training) will grow by 9.5% annually through 2018, reaching $11.0B. As shown in Exhibit 1, the market for enterprise mobility solutions for professional services reached $7.6B in Systems integration and deployment and maintenance (inclusive of depot services) accounted for 61% of the enterprise mobility professional service market in 2014, reaching $4.6B. The competitive landscape for mobile professional services remains very fluid. Solution providers span large system integrators, CSPs, and vertically oriented specialty solution providers. As the market for these services evolves, we see new partnership models emerging, especially from hardware OEMs who are keen on expanding their service footprint to offset the ongoing challenges they are encountering with their hardware business. With the exception of traditional break/fix services, making this transition will be a significant challenge for most vendors; however, they have a significant opportunity ahead of them if they partnership effectively due to the complexity that organization must contend with as they pursue their mobile enablement initiatives. Exhibit 1: Global Mobile Professional Services Revenues, (US $M) VDC Research, 2015 Page 5

7 Mobile enablement has and will continue to have a profound impact in the enterprise, with the most visible area being the need to invest in solutions to manage and support mobile deployments. Organizations have been scrambling to ensure their devices are secure and have been investing in EMM and enhanced security solutions that can bring peace of mind to expand mobile deployments and enable access to corporate content behind their firewall. However, as depicted in Exhibit 2, several key mobile IT infrastructure elements as well as support and training issues must be considered as mobility strategy becomes formalized. Exhibit 2: Current and Forecast Global Enterprise Mobility Solutions Professional Services Revenues by Service Offering (US $M) Exhibit 3 shows the revenue allocation for mobile professional services across several key verticals where mobile solutions are seeing continued adoption and maturation. The growth rates of the service categories VDC tracks is relatively even, with the overall CAGR of 10% in our forecast period. However, the wide majority of revenues remains in traditional and core professional service offerings such as systems integration, maintenance, and break/fix services. VDC Research, 2015 Page 6

8 Vendors offering mobile professional services are seeing similar demand for a wide range of mobile service offerings in these same vertical markets. However, these vendors are finding that the mobile applications for these environments require significant customization, integration with application platforms, and with legacy systems (such as mainframes). While an ecosystem of integration partners focused on mobile solutions that work with these large ISVs thrives, significant challenges and complexities associated with these activities abound. Professional services vendors are challenged with delivering a broad range of mobile IT and process services to multinational firms. Most find this to be difficult due to their lack of having a local presence in all of the regions of their large multinational customers. Exhibit 3: Current and Forecast Global Enterprise Mobility Solutions Professional Services Revenues by Vertical Market (US $M) VDC Research, 2015 Page 7

9 Regional Forecasts Exhibit 4: Global Mobile Professional Services Revenues by Regional Market (US $M) Americas Modernization Activities Driving Mobile Professional Service Opportunity Organizations in the Americas region are actively investing in modernizing their IT infrastructures to accommodate mobile enablement. We expect revenues to grow from $3.2B to $4.7B in our forecast period (9.2% CAGR). See Exhibit 4 above. Committing to significant up-front CAPEX investments continues to be the primary barrier for organizations, as most are challenged to keep up with the rapidly changing mobile market. Tight IT budgets, along with the persistent challenge of recruiting skilled personnel, are common pain points across all of the regions we surveyed but particularly among the organizations we interviewed in the Americas region. Organizations in this region were the most active in investing in mobile IT infrastructure upgrades to meet the requirements of today s changing work environment. Forward and reverse logistics support such as staging and kitting, depot repair, advanced replacement, and recycling are also service areas we see vendors continuing to have success with. Respondents in the Americas region demonstrated more interest in mobile applications-as-aservice and network-as-a-service in comparison to other regions. VDC Research, 2015 Page 8

10 Service Expansion Opportunity EMEA Maturing mobile deployments have created an opportunity for service expansion, and as a result, VDC forecasts revenues to grow from $2.6B to $3.6B in our forecast period (9.0% CAGR). See Exhibit 4 on Page 8. The European region s strong focus on manufacturing and government mandates for mobile solutions that provide compliance and traceability. Manufacturers (along with the transportation vertical) represent attractive targets for vendors offering enterprise mobility professional services. This is largely due to these organizations need to improve visibility and responsiveness within their supply chain. Network service activation and portal-based service catalogs with self-service capabilities are also in high demand in the EMEA region. Forward and reverse logistics support such as staging and kitting, depot repair, advanced replacement, and recycling are also service areas with which vendors are gaining traction. VDC believes that mobile solutions will continue to play a larger role in these sectors moving forward and lead to service-oriented revenue opportunities. APAC Strongest Mobile Professional Services Growth VDC forecasts revenues in APAC to grow from $1.8B in 2014 to $2.7B by 2018 (11.0% CAGR). See Exhibit 4 on Page 8. While much of the APAC region s economy has been reliant on debt-fueled growth, the seemingly unquenchable consumer thirst for mobile technology throughout much of the region makes enterprise mobile professional services the fastest-growing market we track. In China and other regions, urban renewal and technology infrastructure investments will lead to broad opportunities for mobile-oriented vendors. The technologies underlying these projects will enable a broad range of constituents in the mobile ecosystem to engage with enterprises with mobile advisory services, provide consulting, and offer opportunity for more strategic customer relations regarding mobile enablement. Many organizations in the APAC region are turning to partners for basic sourcing and logistics management. Partners are playing a critical role in speeding up mobile initiatives for key services including purchasing, provisioning, and activating devices. VDC Research, 2015 Page 9

11 Competitive Trends Complexity is Driving Mobile Professional Services The complexities associated with mobile implementations are expansive and range from device selection and provisioning to application and security management. One of the most complex requirements in deploying mobile solutions in enterprise settings is integrating with back-end systems and databases. While highly customized mobile applications can tightly integrate with enterprise systems, prepackaged applications often require either third-party software (development platforms) or custom installations to make them work. Enterprises developing applications that require tight integration with back-end systems will generally find that custom mobile solutions are best suited to their needs; however, even the largest and most sophisticated IT organizations lack the mobile acumen to design, develop, and integrate mobile solutions. Our research shows that there is a mobile deficit in the wide majority of IT organizations (meaning that lack skilled mobile expertise). Organizations are also quickly learning that the custom application development is costly and time-consuming. For mobile applications to truly become the new face of a business, choosing the right partner(s) is critical, as third parties can reduce the complexity of managing and securing mobile deployments while delivering the level of service required for business-critical deployments. We believe that customization will be the key to more successful mobile applications moving forward, from both an adoption and usability perspective, as well as for achieving the scalability required in an expanding mobile environment. Traditional managed service providers (MSPs) are honing their mobile managed service opportunity, advancing solutions and building out global partnership networks to support their mobile service capabilities. These vendors have also proven that they can quickly modify their solutions and keep up with the rapid pace of technological change in the mobile ecosystem, However, competition in this rapidly expanding market continues to grow. As large technology vendors worldwide (from leading CSPs and SIs to traditional ISVs and OEMs) detect and evaluate this sizeable market opportunity, they will need to demonstrate their ability provide a relevant portfolio of services that complements their existing capabilities and leads to sustainable and profitable growth. While challenging, differentiation and long-term viability can be achieved by demonstrating clear mobile expertise, providing solutions that simplify the mobilization process, and developing industry-specific expertise and partnerships to deliver the service quality required in enterprise deployment environments. Exhibit 5 depicts the broad range of enterprise mobility solutions vendors are delivering to the market. VDC Research, 2015 Page 10

12 Exhibit 5: Core Enterprise Mobility Managed and Professional Services Opportunities Recent Developments Device-centric services, such as maintenance and break/fix, are core to the enterprise mobility professional services opportunity; however, as mobile deployments expand, we continue to see organizations gravitate toward solution-oriented value propositions. We see a marked shift toward more strategic mobile enablement around collaboration and customer engagement. As demand for more sophisticated mobile solutions grows, professional services vendors will begin to see traction for vertically oriented mobility consulting services. Differentiation will be challenging and will be best achieved through domain expertise and customer references. These service opportunities are being furthered by a variety of constituents in the mobile ecosystem. Vendors offering enterprise mobility management (EMM) solutions are having success offering EMM as a managed service; however, new opportunities have emerged for organizations to outsource their BYOD management. These services can speed new user activations and device provisioning and complement established help desk and depot services as new devices are deployed. TEM is still front and center in many mobile service discussions and provides very real cost savings opportunities (particularly for large enterprises with corporate liable programs). Integrating TEM with mobile managed services or other mobile professional service suites represents an increasing and interesting dynamic that will become increasingly attractive moving forward. For example, SAP and Tangoe have agreed to collaborate on software development, which has resulted in the integration of Tangoe's Mobile TEM software suite with SAP's Mobile Secure (EMM) solution. We expect to see other EMM vendors enter into similar partnerships and to sharpen their focus on positioning their products for partners to offer as a managed service. VDC Research, 2015 Page 11

13 In this vein, we advise professional services firms to focus on augmenting their value proposition. Below are some of the critical success factors we recommend: Rapid deployment services the ability to fast-track projects while helping customers understand the ROI potential of their investments. Establishing a global service footprint a critical element to being able to cater to multinational corporations. Developing vertical industry expertise to cater to the variable requirements that are typical across industries. Advance monitoring and analytics capabilities the ability to leverage cloud service and deliver real-time remote monitoring capabilities will be a key area for competitive differentiation moving forward. VDC Research, 2015 Page 12

14 Competitive Landscape by Vendor Class As organizations expand their mobile deployments and increase their investments in new mobile technologies, new services opportunities will continue to emerge. The ecosystem of participating vendors has quickly expanded and includes a broad range of constituents, from CSPs, mobilefirst ISVs, traditional enterprise ISVs, and SIs to hardware OEMs and smaller SIs that specialize in enterprise mobility. While mobile-first ISVs have been very influential innovators in this space, these vendors rely heavily on channel sales through CSPs and SIs to get their software to market and, for the most part, lack the resources and brand to compete alongside leading mobile MSPs. Rather, SIs and CSPs are leading the market, delivering holistic suites of mobile services to market and having success in leveraging mobile solutions to further their existing relationships with their customers. VDC sees CSPs, ISVs, SIs, and OEMs as needing to sharpen their messaging around their mobile professional services capabilities. These vendors are missing a growing revenue opportunity and need to be aware of the traction that smaller mobile specialists are seeing in the market. Vendors such as Denali, Peak/Ryzex, Stratix, and Vox Mobile continue to demonstrate their adeptness at moving swiftly and winning important contracts. While CSPs such as Verizon, Sprint, and T-Mobile have capitalized on their strength in services such as telecom expense management (TEM) to enter the mobile services market, others who have developed more robust solution portfolios and partnership networks, such as AT&T and Vodafone, need to continue to productize their own solutions to emerge as leaders in the growing mobile professional services market. VDC sees CSPs continuing to feel constant pressure on their voice and messaging revenues from over-the-top providers. This trend makes succeeding with mobileoriented professional services critical for continued growth. Among traditional ISVs, Oracle and Microsoft have been slow to cultivate mobile service capabilities, while SAP and Infor continue to make significant strides in mobile service offerings (largely on the backs of large SIs such as Capgemini, Cognizant, HCL Technologies, igate, Infosys, Mahindra Satyam, and TCS) as well as partnerships with the services arms of technology vendors such as Dell, HP, and IBM. VDC s research indicates the majority of these aforementioned SIs (and technology vendors) are increasing their investment levels in their mobile-oriented capabilities (around products as well as services). Finally, in the OEM space, traditionally rugged players such as Motorola Solutions and Intermec have transitioned to broadening their mobile services portfolios. However, these vendors are challenged to expand outside their traditional rugged client base to service organizations using multiple device types or platforms. As the mobile services space matures, mobile expertise and the ability to target the right segment of customers with customized mobile service offerings will help to unlock significant (and largely untapped) value and revenues. VDC Research, 2015 Page 13

15 Mobile Initiatives Spur Services Opportunity VDC sees the IT function within the enterprise as having much to gain from mobility investments and initiatives. Not only can the deployment of new services be simplified by taking advantage of cloud-based solutions that are available from their existing ISV partners, but mobilizing ERP applications can provide enterprises with the opportunity to re-engage and re-invigorate their relationships with their employees and customers, in addition to offering their suppliers new tools to improve communications and get closer to sales and customers. Inevitably, the continued expansion of mobile deployments and new application scenarios will make the market opportunity for enterprise mobility professional services more pronounced, particularly for those vendors who have global reach via partnerships with local professional services organizations. Dominant Handset OEMs Make Their Services Move Samsung introduced its Global Enterprise Services, dubbed Samsung 360 Services for Businesses, earlier this summer. The offering includes technical support and management for enterprise and security applications as well as for the devices themselves. Wisely, Samsung has designed the program to accommodate BYOD environments and mobile device ecosystem writ large (i.e., mobile platforms such as Apple and competing Android hardware will be supported). While the move is in direct response to Apple s partnership with IBM (see below), the move does speak to the growing trend toward enterprise mobility professional services as a more primary means of competitive differentiation for hardware vendors. The service is anticipated to launch to a select group of pilot customers this quarter, with a full market launch in Q Expansion into the EMEA and APAC regions is planned, as well as a broadening of the solutions portfolio beyond the initial offerings. Theoretically, the benefits for the enterprise will be straightforward faster deployments, and reduced cost and complexity. With Samsung providing consulting services on top of support, firms will have the opportunity to focus on more strategic tasks. Many enterprises have limited mobile IT expertise and lack the infrastructure, management and application development platforms required for mobile enablement. Samsung can capitalize on the increasing acceptance of Android as a viable mobile platform for the enterprise from both a hardware and services perspective. Apple + IBM IBM has transitioned toward the cloud, big data, and enterprise mobility, having moved away from the personal computing hardware in the past decade and now making key acquisitions in mobility, analytics, security, and cloud computing to position itself for inevitable IT modernization activities. The clearest signal that IBM continues to demonstrate its mobile aspirations came earlier this summer, when the company announced it had entered into an exclusive partnership with Apple. In the agreement, IBM will bring its MobileFirst solutions to the ios platform and allow the former rival to sell iphones and ipads with industry-specific solutions. VDC Research, 2015 Page 14

16 Considering the enterprise-grade features that continue to be augmented with each successive update to ios, the announcement makes it abundantly clear that Apple is keen on transitioning from consumer trendsetter to enterprise powerhouse. By teaming up with IBM, Apple has further augmented its presence in the enterprise and is likely to find its way into new and large deployment environments. To date, the company s ability to penetrate the enterprise was via its massive consumer popularity; however, the company was hindered by a lack of professional services, support, and distribution channels. In addition to the engineering of native, industryspecific applications for ios, Apple seeks to overcome this with the combination of AppleCare for enterprise that is supplemented with on-site technical support and service that will hold considerable appeal for CIOs worldwide. By offering support service capabilities ranging from break/fix support and onboarding to asset and application management and security services, Apple has laid down the gauntlet and has made it clear that it is playing to win. News of Apple and IBM s new partnership is having a visible effect on other OEMs, particularly BlackBerry and Microsoft. For the former, this will likely mean forging an even closer relationship with competing platforms (where the company has hesitated in the past). BlackBerry s recent collaboration on enhanced security with Samsung is a good example of the need for creative partnering to augment market positioning and remain relevant in the market. Meanwhile, Microsoft is in the midst of its own re-positioning as it is poised to announce the largest round of layoffs in the company s history. Microsoft has struggled to bring its devices into the era of mobility and only made its Office suite available for the ipad in March With Apple and IBM s exclusive new partnership, and Samsung s services strategy, both BlackBerry and Microsoft will be increasingly challenged to gain traction in enterprise deployment environments. VDC Research, 2015 Page 15

17 End-User Trends and Insights As the mobile technologies that are used to empower employees and make them more productive continue to evolve, IT must decide whether it will buy and integrate solutions themselves or outsource. It is a decision about where and when to invest a company s time, money, and other resources in products. Considering the constrained budgets IT organizations must deal with, the opportunity to save this capital via outsourcing can be highly attractive. However, trusting an external third party with managing mobile deployment environments comes at a price the potential for loss of control. The main argument against outsourcing is that IT departments may have built a strong competency around certain technologies that support a company s core business. Few IT departments have built a strong competency in mobility, and even fewer view mobility as core to their business. While mobility is starting to become a necessity for business activities, many companies are really just beginning to develop a mobile strategy. For this reason, as employees are demanding support for their mobile devices, IT is at a crossroads: either develop competency in mobility or outsource it to a managed mobility or professional services firm. Considering the continual pressure to do more with less, outsourcing is becoming increasingly attractive. Exhibit 6 shows the types of organizations that IT departments are turning to for outsourcing the management and maintenance of their mobile deployments. Exhibit 6: Ideal Partners for Implementing, Maintaining, Supporting Mobility Deployments VDC Research, 2015 Page 16

18 Organizations indicate that CSPs are their first choice as a mobility partner. CSPs have wellestablished brands in the enterprise and are the beneficiaries of long-standing customers that are accustomed to working with them for infrastructure updates and maintenance. Moving forward, organizations will be well served by appropriately vetting their managed mobility vendor partners training capabilities to ensure that these parties can demonstrate the ability to develop and update training material content as well as provide pre-packaged online training and documentation. VDC data shows that training all end users, administrators, and developers on the mobile solutions is critical for the success of a deployment. Additionally, vendors must demonstrate they have expertise in integrating a variety of mobility solutions into existing IT infrastructure as organizations needs are almost certain to evolve as deployments (and mobile application usage) expand. Capabilities That Matter Most to Decision-Makers Feature and functions aside, stability and experience in working with large enterprise customers are key capabilities for vendors to succeed in furthering their mobile professional services revenues. As shown in Exhibit 7, decision-makers view technical expertise as the most important criteria when choosing a partner to support their mobile deployments and integration strategies. Exhibit 7: Rationale for Using Third-Party Services in Support of Mobile Deployments VDC Research, 2015 Page 17

19 What Decision-Makers Look for From Prof. Services Partners Several organizations with rather sizable mobile deployments stated they have noticed increased failure rates occurring within the rugged mobile deployments that were 3 years old or more. This is to be expected and validates the need for speedy replacement and repairs. Many of these same organizations are beginning to invest in support services to their modern mobile platform (e.g. ios and Android devices) deployments. We believe that these expanding deployments represent sizeable opportunities for OEMs who can partner effectively to service organizations running multiple mobile platforms. The deployment environments that are most likely to be utilizing professional services, and that invest in support and maintenance services, tend to feature well-paid personnel who need to be productive (and happy). As shown in Exhibit 8, these enterprises are keen on not just reducing the complexity that comes with supporting an expanding mobile workforce but that are also interested in retaining the services of vendors that can help to reduce deployment time. Exhibit 8: Service Most Critical to Influencing the Success of Mobile Deployments Vendors who have productized mobile professional services must articulate the benefits of outsourcing the support elements of technical mobile solutions and make cogent sales arguments to their prospective customers. Setting aside price sensitivity (which typically ranks highly for IT decision-makers); timely repairs, and/or replacement of non-functioning or damaged mobile devices ranked at the top of the criteria that were most important in the selection of a support services vendor. Technical support capabilities and help desk services also ranked highly. Exhibit 9 shows the most important capabilities that organizations look for from a mobile integration partner. VDC Research, 2015 Page 18

20 Exhibit 9: Most Important Capabilities in the Selection of a Mobile Integration Partner Vendor Insights CSPs Must (Still) Avoid Being the Dumb Pipe CSPs must find a way to broaden their role in the enterprise mobility value chain. This requires striking partnerships with numerous mobile-oriented partners; most recently, this includes partnering with vendors that offer competing solutions. While CSPs have recognized the need to be more than data wholesalers and have engaged with several prominent mobile-first ISVs (typically via revenue sharing arrangements), they should continue to ramp up their services to participate more broadly in the value chain. CSPs have been augmenting their systems integration capabilities and can take advantage of these assets to offer required managed and professional services components, such as application management and enhanced security as well as other end-to-end service management capabilities, such as managing multiple tiers of end-customer billing. Ultimately, we see CSPs benefiting from their partners because they can bundle mobile solutions with their connectivity and facilitate billing and distribution. VDC Research, 2015 Page 19

21 AT&T The ability to deliver devices and applications is central to AT&T managed mobile service offerings. The company s API strategy further complements its ability to provide greater network visibility for organizations looking to manage their mobile workforce. AT&T has developed strong relationships with several prominent handset OEMs and is a major channel partner for sales to both consumers and the enterprise; this has translated into winning large-scale device lifecycle management services into the large corporate deployment environments. AT&T has developed its own prepackaged apps for fleet management as well as for field service and sales force automation. For organizations looking to develop custom applications, the company offers app development tools that provide easier, repeatable processes for rapid application development. As a managed service provider, AT&T is able to supplement or replace an organization s helpdesk by providing tier-two to tier-four support for all of these offerings. VDC Outlook: AT&T has a strong list of partners in providing its managed mobility services, including mobile-first vendors such as AirWatch, Good Technology, MobileIron, and OpenPeak. For application development, the company continues to retain partnerships with Pegasystems (Antenna Software), Kony Solutions, and Verivo, and AT&T resells these vendors tools to its customers. AT&T is in a formidable position when considering its large customer base. This allows the company to cross-sell a number of business services. AT&T continues to hone its mobility solutions and is demonstrating a strong willingness to partner and collaborate with vendors to augment is professional services capabilities. To date, most of the company s success is within the US. AT&T has yet to capitalize on its increasingly global footprint. Like competing CSPs, AT&T is seeing pricing pressure on traditional voice and data networks these vendors are also augmenting their managed and professional services offering with a strong emphasis on mobility. Sprint Sprint was a late mover in productizing its enterprise mobility services offerings as compared to rival CSPs; the company launched its cross-carrier Mobility Management platform in 2011 and has incorporated it into its Sprint Professional Mobility Services platform, a suite of service solutions. Sprint is primarily targeting the mid-market (100-10,000 device environments), which is not as competitive as the large enterprise market has become. Additionally, Sprint offers carrieragnostic services, a key capability given the broad array of devices entering organizations through more liberal BYOD policies. VDC Research, 2015 Page 20

22 VDC Outlook: Sprint s expansive network infrastructure and partnership network allows the company to compete in the market for mobile and professional services. The company has elegantly productized its mobile solutions and allows for customization based on customers unique needs. In order to compete more effectively in the market, Sprint must invest to continually innovate and evolve its offerings and build out a strong channel to target smaller organizations. We expect Sprint s mobility services to provide a strong foundation for future growth and expansion of its mobile managed and professional service offerings. Verizon Business Verizon s services strategy centers on development of a comprehensive, end-to-end solution for mobility management. The company has developed a comprehensive set of enterprise mobility services, including strategic lifecycle and support services. Verizon is focused on capitalizing on its broad network of customers and partners to provide increasingly industry-specific solutions to cater to these customers variable needs. VDC Outlook: Verizon has established a strong brand name as a reliable provider of wireless connectivity for the enterprise. The company is well positioned to be able to successfully use its brand and relationships with multi-national mobile organizations to expand its services footprint in the enterprise. Verizon Wireless should invest in expanding its mobile solution portfolio to build awareness of its enterprise mobile service offerings and build confidence in its expertise to consult and service organizations full set of mobility needs. Vodafone Global Enterprise Vodafone Global Enterprise (VGE) provides IT services for large enterprise customers in countries worldwide. Like competing CSPs, Vodafone has made notable investments to expand its device and data management capabilities through build-out of its TEM capabilities (including the acquisition of Quickcomm and TnT Expense Management). Additionally, VGE is strengthening its professional services portfolio in higher-margin growth areas such as cloud computing, unified communications, and business consultancy. VDC Outlook: VGE plans to continue to invest in its broad mobile managed and professional services portfolio through We expect to see increased attention to channel development and the formation of global partnerships to facilitate growth. While TEM and MDM remain core competencies for VGE, the company needs to expand its solution range, particularly around mobile application, content, and security management. To date, the company has lagged and has not been innovative in evolving its enterprise mobility service; for this reason, we see future mobile-oriented acquisitions as likely, as VGE has clearly stated its intention to grow rapidly in VDC Research, 2015 Page 21

23 Systems Integrators The complexity associated with rollout, support, and management of multi-vendor enterprisegrade mobility solutions presents a clear and attractive market opportunity for SIs. These vendors have served as trusted advisers for enterprises worldwide, facilitating technology adoption, implementation, integration, and deployment. For the SIs, managed mobile services are a natural progression of the infrastructure services these vendors typically offer. This is primarily due to the acceptance that workplace productivity solution portfolios they maintain have expanded to include mobile enablement. As the market matures, the focus will shift to management of corporate data and mobilizing workflows and customer applications. Many tier-1 SIs were slow to develop and productize mobile solutions. More recently, vendors such as Accenture, IBM, and TCS have doubled down on enterprise mobility initiatives and are embracing mobility as a core competency. SIs will continue to make this shift internally in terms of mobile expertise, and externally, building brand awareness and strong partner networks. Conversely, smaller SIs such as Enterprise Mobile (acquired by Honeywell), Stratix, and Vox Mobile have focused exclusively on developing mobile-first solutions. This has enabled these firms to establish a leadership position in deliver innovative and technologically advanced mobile solutions to the market. However, these vendors lack the infrastructure, global capabilities, and marketing budgets required to directly compete with larger competitors such as Accenture, Atos, Dell, HP, and IBM. To remain viable and expand their footprints, small SIs must forge partnerships in the channel and target tier-1 SIs, CSPs, large ISVs, and OEMs for help in bringing their unique (and often advanced) service offerings to the market. Atos Vendor Insights Atos has typically offered mobility management services alongside its workplace services solutions. The company has been slow at shifting from focusing predominantly on supporting BlackBerry and Windows Mobile deployment environments, but Atos has developed comprehensive cross-platform mobile support capabilities. Atos manages both applications and devices by elegantly integrating business policies around tools. Its offerings are modular and typically highly customized for their customers requirements. Atos Anytime Workplace and Anytime Mobile Device offerings are cloud-based services, whereas Managed Mobile Device is an on-premises approach. VDC Research, 2015 Page 22

24 VDC Outlook: Atos systems integration practice has developed mobility offerings into a broad range of business-related functions from machine-to-machine (M2M) telematics services in manufacturing and insurance, patient services and clinical records in health care, to field workforce management solutions. Atos has the developed the ability to deliver customized mobile applications and can support all prominent application styles. The company s Context Broker Platform (real-time analytics and content provision platform) along with a private application management solution (Atos My Market) have made Atos a viable partner for mobile enablement services. Cognizant Cognizant has been leading with and expanding its mobile capabilities to its customers since While historically strong in offering outsourcing and development services, Cognizant has positioned itself as a business consultancy vendor. Like several of its competitors, the company s mobile, social, analytics, and cloud competencies are maturing and are key areas for innovation. With solutions such as Enterprise App Hub, an app store for the enterprise, Cognizant is developing internal IP and solutions capabilities to differentiate itself in mobile. Large enterprises remain the core target market for Cognizant. VDC Outlook: VDC expects the company to have continued success with its mobile professional services offerings, especially in its core vertical markets such as financial services and health care. We also expect Cognizant to expand its regional market focus to better address areas outside the US and to expand its solution portfolio with enhanced mobility solutions throughout the next few years. HCL HCL s end-user computing portfolio has evolved to incorporate mobile workplace services and the ability to support all prominent mobile platforms. The company has also productized key service and support functions for the provisioning and management of app stores, catering to variable ownership models and new-user support models. Key partners for the company include Airwatch, GoodCloud, MobileIron, and SAP. HCL also offers consulting services that span assessment, migration, build and design, deployment, application rationalization, and proof of concept. HCL s application support and management model for mobility is typically facility-based due to changes in infrastructure that are increasingly common to accommodate expanding mobile deployments. VDC Outlook: HCL s Enterprise Application Services division has recently extended its overall partnership with SAP by signing a new global managed mobility agreement, which will now permit HCL to resell, implement, and host SAP offerings, including the SAP Mobile Platform, SAP s Mobile Secure offering, and SAP mobile applications. VDC Research, 2015 Page 23

25 As part of its assessment and testing consultancy offering, HCL frequently gets involved with pretool evaluation, where the current and planned service-consumption model is considered. It then generates a recommendation report for the client, advising on cloud deployment vs. on-premises deployment. Consulting engagements are typically conducted with the IT department, which often does not have a mobile specialist. Often the company finds that its customers have already engaged with an EMM vendor but need help in areas such as policy development and application management. Clients often need help in determining their support requirement, which is an area where HCL s operations-optimization services will play well in our view. IBM Global Services IBM Global Services Organization (IGS) has done well in positioning itself to provide its customers with a path to transform their business and help modernize their IT infrastructures for the future. The company has expanded its portfolio of cloud-oriented solutions with analytics, big data, and mobile solutions and focuses on four specific service components that it sees as critical to capitalize on the mobile professional services market opportunity: Infrastructure services, such as those from Softlayer Business services in the more general SaaS portfolio Defined pattern services, such as its PureApplication services Composable services (PaaS), such as BlueMix VDC Outlook: IGS will use its enhanced mobile solution set to push both managed and professional services solutions into the large enterprise market. IGS is well positioned to deliver these services due to key mobile-oriented acquisitions such as Fiberlink, Softlayer, and Worklight. The company s IP and strength in applications, security, and enterprise-grade support delivery will provide IGS with strong growth and expansion during the next few years. However, we hear customers regularly complaining about the engagement process with IBM (particularly around mobile initiatives); the company must work at simplifying the way it engages with customers to make real progress. Infosys Infosys established its enterprise mobility practice in 2011 as a growth engine. The company s managed mobility and professional service offerings bring together mobile application consulting, application development and management, mobile device management, and mobile infrastructure management within a comprehensive and integrated offering. Infosys has capabilities to integrate the MDM dashboard with existing systems management tools. The challenge is that interoperable provisioning and policy enablement is not currently part of most end-to-end MDM platforms. Infosys is working on devising an offering using Microsoft s Active Directory policy to design such as solution and is also evaluating CA Technologies Client Automation solution for similar capabilities. VDC Research, 2015 Page 24