Enterprise Mobile Devices
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1 Enterprise Mobile Devices From Famine to Feast Jorge Fuenzalida, VP & GM, Strategy and Technology Group US Wireless Technology Forum July 20, 2006
2 The Business of incode incode services are provided to wireless and wireline carriers, OEMs, and technology companies, cable MSOs and enterprises. Business Business-Driven Wireless Technology Solutions Technology Technology and Strategy Services Integration Services Engineering Services Page 1
3 incode s Momentum A Growing Global Presence Experienced Team and Strong Investors Management Investors High Rate of Repeat Clients Page 2
4 The First Enterprise Mobile Device On-site at client location We ve come a long way!!! Page 3
5 Market Overview Steady growth in the Enterprise mobility market warrants more focus on the delivery of Enterprise-specific mobile capabilities Enterprise mobility growth outlook $21,012 $ Millions $12,307 Key factors driving growth Wireless adoption Technology standardization Wireless maturity $4,553 $3,193 $6,409 $5,577 Third party software development (application; management; security; etc.) Mobile Devices Professional Services Mobile Software Source: VDC Enterprise mobility deployments are shifting from islands of connectivity to more integrated enterprise solutions Page 4
6 Different Strokes for Different Folks The mobile workforce is diverse, and each user type desires a customized device to fit their particular purpose and lifestyle Mobile workers by type High Wireless Devices: Complexity, Durability, and Price Specialty 18% Field Services 15% Field Sales 22% Mobile/ White Collar 45% Applications/Peripherals Mobile Office Devices Wireless PDAs Conventional Smart Phones Blackberries Durable PDAs Rugged Laptops MRM Devices Brick Devices Feature Phones Low Low Basic Phones Ruggedization/Price High Source: VDC The challenge lies in managing the need for customized capabilities while still realizing economies of scale Page 5
7 Mobile Device Platform As its capabilities near those of laptop computers, the SmartPhone is emerging as a critical platform to support enterprise mobility applications Mobile Device Development Platform Breakdown Smartphone 42.1% Rugged PDA 34.6% Notebook 32.9% PDA 26.7% Rugged notebook 17.1% Tablet 15.0% Rugged Tablet 13.2% Demand for the SmartPhone is increasing among white collar users as it allows them to leave their laptops at home, while ruggedized PDA/notebook/tablets still rule for the blue collar and gray collar market Source: 2005 Mobile Developer Survey; N: 956 Page 6
8 Wireless Connectivity Requirements Enterprise devices, particularly ruggedized models used in blue collar applications, tie to multiple networks to function both inside and outside the "four walls Wireless Connection Types in Ruggedized Mobile Devices Challenges to integrating networks Interoperability between old and new networks Wireless LAN only 39% Wireless WAN only 16% Both WLAN & WWAN 45% Higher solution complexity Preserving legacy investments Network transparency is critical Enables continuous use Seamless handoffs and roaming Greater sharing of data Support for multiple networks may not be required for white and gray collar users in the future as high speed WWAN solutions become more ubiquitous Source: VDC Page 7
9 Enterprise Wireless/Mobility Continuum of Devices There will be a sweet spot in the $500-$700 device that meets the needs for both vertical applications and mobile professional/white collar $5,000/unit Examples of currently available devices ESTIMATE Panasonic Toughbook (~$4,000) Symbol MC-70 (~$1,800) Symbol MC-50 Enterprise Digital Assistant (~$900) Approximate Target Price for Mass Adoption in Enterprises (~ $500/unit) Reference Device Intermec CK61 Symbol 909x Panasonic CF-P1 HHP Dolphin Itronix Q200 Intermec CN30 Symbol MC70 Intermec 700 Series Intermec CK31 Intermec CN2 Symbol MC 50 BlackBerry 8700R Treo 650 HP ipaq hw6515 Audivox 5600 Approximate Price $3,300 $3,000 $3,000 $3,000 $2,800 $2,600 $2,400 $2,000 $1,800 $1,500 $1,100 $450 $400 $350 $200 Blackberry 8700 (~$300) Kyocera KX440 (~$200) $100/unit Page 8
10 US Intelligent Devices OS Forecast Symbian s share of the intelligent device market will decrease slightly by 2010, likely due to the growing popularity of Linux, while Microsoft s share is expected to decrease slightly as PDAs are replaced by SmartPhones 2005 US Market Share Intelligent Devices 2010 US Market Share Intelligent Devices Microsoft 40% Other (Linux, RIM, Palm) 25% Microsoft 35% Other (Linux, RIM, Palm) 34% Symbian 35% Symbian 31% Linux can be a formidable force as Motorola works in a Linux alliance with Vodafone and NTT DoCoMo to challenge the Symbian/Nokia dominance in the Smartphone market Sources: Ovum 2005, RCR Wireless News: Smart-phone OS market set for change as entrants contest Symbian July 3, 2006 Page 9
11 Top Five Reasons Why SmartPhones are on the Rise Smartphones -- devices with a "real" operating system -- are popular due to the demand for multi-function capabilties and the opportunity to consolidate devices Combines a number of devices 57% The available applications 55% Impressive capabilities 34% The phone has the most potential 31% Company sponsored application 21% Other 1% Source: InStat 2005 As SmartPhones become more popular, many people keep the same device for both business and personal use Page 10
12 Issues and Considerations There are a myriad of issue of issue to consider, and the answers are becoming clearer Dual Mode Issue Who is the Decision Maker? Funding Corporate Liability (CL) or Individual Liability (IL) Durability Cameras Security Emerging solutions Yes but specific to some markets that work indoors and outdoors Primary driver is COO as efficiency gains are demanded by the business. CIO is gatekeeper. Blue collar has always been CL; white collar is also moving to CL thanks to data needs Market is finding the midpoint for gray collar at more attractive price points Imaging for some applications (claims adjusters, security) There is clear need to manage data at rest (HW encryption) and kill the device Overall, enterprise devices are leveraging common platforms, and their ability to perform multiple functions allows for configurable solutions Page 11
13 Page 12
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