2012 Small and Medium Businesses Mobile Solutions Study

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1 2012 Small and Medium Businesses Mbile Slutins Study April, 2012 Sanjeev Aggarwal Laurie McCabe Brent Leary Arjun Aggarwal 4/10/2012 Cpyright SMB Grup 1

2 Why is Mbility Slutins Imprtant? In the next 3-4 years the mbile internet traffic will surpass the desktp internet traffic, driven by mbile internet/data enabled devices The Mbility fcus is shifting away frm wireless carriers and device manufacturers ver t mbile perating systems, sftware and service prviders (clud-based datacenters) Rapid grwth fr smartphnes and tablet categry. Number f devices in this categry far exceeds number f laptps Emergence f vertically integrated ecsystems driven by Apple and nw pssibly being adpted by Ggle In the lnger-term - mbile applicatin platfrm, innvative mbile applicatin slutins and mbile service prviders will be the market drivers and nt the device r device OS/ middleware prviders 4/10/2012 2

3 Business Issues Mbile devices, applicatins and services are dramatically reshaping SMBs revenue mdels, business strategies and hw emplyees interact with ther emplyees, partners and custmers. T gain share in this large and diverse market, vendrs need t develp prduct and marketing strategies based n a slid understanding f: Key drivers and inhibitrs fr mbile slutins and services adptin. The discvery, learning, evaluatin and selectin prcess fr mbile slutins and services. Tp functins/wrkflws that SMBs use/plan t use mbile slutins fr. Internal gvernance and purchase criteria fr mbile slutins. Hw SMB factrs such as cmpany size, industry, user rle and age f businesses impact attitudes, adptin, spending and plans fr mbile slutin. slutins. 4/10/2012 3

4 Mbile Slutin Ec-System Increasing # and type f devices Fewer service prviders (SP) Cellular/Wi-Fi Plicies - Net neutrality Vendr SP relatinships Mbile OS Mbile Devices & Service Prviders Internal Emplyees Rle based Functins-Wrfflw Plicies Mbility challenges & pprtunities Increasing mbile wrkfrce Rle-based adptin Spending n devices, data plans and applicatins Mbility management Segmentatin New & innvative apps Appl. access & integratin Business functins in demand Mbile Apps MarketPlaces Tp mbile business and cllabratin apps. used Mbile Applicatins & Services External Custmers Partners Suppliers Increasing cmpetitin Integratin with webpresence Mbile websites Scial netwrking Mbile payments slns. Mbil e-cmmerce Security & cmpliance 4/10/2012 4

5 Mbility Study Fcus Challenges & pprtunities Mbile Apps. Marketplace Cmpany demgraphics Mbile apps. ffered externally current & planned Small & Medium Businesse s Mbile apps usage (current, planned) internally Current and planned usage f devices and services Cmpany mbility dynamics Spending devices & services (vice, data, apps), changes in next 12 mnths The study will als prvide trending insights based n year-ver-year data cmparisns with the SMB Grup s 2010 Small and Medium Business Mbile Slutins Study. 4/10/2012 5

6 Key Questins this Study Will Answer Hw d SMBs think mbile slutins can help address their key business challenges and pprtunities? Hw much are SMBs spending tday n mbile slutins and hw much d they expect t spend? What percentage f the IT budget is fr mbile slutins and devices? What are SMBs tp infrmatin surces fr mbile slutins trends and infrmatin? What are the tp drivers and inhibitrs fr SMBs t adpt mbile business slutins? What business functins (and tp applicatins) are SMBs using mbile slutins fr nw and fr what are they planning t use them? What slutins d mbile slutins need t integrate with? What percentage f SMB emplyees use smart mbile devices and slutins fr wrk? What kind f plicies and gvernance d SMBs have abut prviding mbile devices, slutins and services t emplyees? Hw des mbile slutin adptin vary based n cmpany size, user rles, industry, and cmpany age? Hw des mbile slutin adptin impact brader SMB business and technlgy strategy? What types f prviders d SMBs purchase mbile (cellular and Wi-Fi) slutins frm? Hw des mbile slutin adptin affect the selectin f cellular service prviders? What s the rle f mbile applicatin marketplaces in the cnsideratin, evaluatin and purchase prcess fr mbile business slutins? What are SMBs perceptins f the tp benefits mbile slutins prvide? What are their tp issues/cncerns abut mbile slutins? What mbile slutins (and tp applicatins) are the SMBs planning t ffer t their custmers, prspects, partners, etc.? (e.g. Mbile e-cmmerce and mbile payment prcessing ) 4/10/2012 6

7 Deliverables and Pricing Optin A: Extended Package Study Results, Presentatin plus Additinal Crss Tabs and Inquiry time $17,500 Study presentatin (Pwer Pint frmat) Web cnference presentatin f key findings and Q&A 3 hurs f additinal inquiry (including additinal crsstabs) PDF f study results with emplyee size crsstab banner fr all questins Analysis and crsstabs by industry SMB Grup will cmpare similar data pints frm the 2010 SMB Rutes-t-Market Survey t prvide trend analysis in key areas Optin B: Basic Package Study Results $16,000 Study presentatin (Pwer Pint frmat) PDF f study results with emplyee size crsstab banner fr all questins Please cntact us if yu d like t schedule time t learn mre. r call Sanjeev Aggarwal (508) /10/2012 7

8 2010 Small and Medium Businesses Mbile Slutins Study Example f Analysis and Presentatin December 2010 SMB Grup Sanjeev Aggarwal Laurie McCabe Arjun Aggarwal Surce: SMB Grup 2010 Small & Medium Business Mbile Slutins Study, December /10/2012 Cpyright SMB Grup 8

9 Table f Cntents Abut the 2010 Small and Medium Business Mbile Slutins Study Executive Summary and Key Findings Very Small Business: 1-19 Emplyee Analysis Cre Respndent Demgraphics Survey Highlights Detailed Demgraphics Small Business: 1-99 Emplyees Analysis Cre Respndent Demgraphics Survey Highlights Detailed Demgraphics Medium Business: 100-1,000 Emplyees Analysis Cre Respndent Demgraphics Survey Highlights Detailed Demgraphics 4/10/2012 9

10 What this market research prject cvers? Mbile Slutins Spending Business Challenges Mbile slutin Drivers/Barriers Mbile Website/App. Transactins Infrmatin Surces Mbile Websites Mbile Devices and Service Prviders Mbile App. Marketplaces Mbile Business App. Usage Mbile Prductivity App. Usage 4/10/

11 Tp Drivers fr Mbile Slutin Adptin Mre wrk flexibility, better infrmatin access and custmer service drive mbile adptin acrss small businesses, regardless f size. Small Business Quicker access t peple and infrmatin t make better/faster decisins Extend the wrk day Wrk mre easily frm the field, hme, and in ther lcatins Increasing emplyee demand fr mbile devices and services Custmer/partner/supplier pressure t use mbile devices and services Imprve custmer service Empl. 26% 36% 7% 1 5% 7% Empl. 26% 3 2% 19% 8% 5% 1-19 Empl. 24% 2% 45% 2% 15% 8% Ttal 24% 2% 4 2% 15% 4% 8% Sample Size = ) What d yu view as the tp 3 drivers fr using/prviding mbile devices, vice and general data services and mbile business applicatins t emplyees in yur rganizatin? December 2010 Cpyright 2010, SMB Grup, All rights reserved 11

12 Tp Obstacles fr Mbile Slutin Adptin As cmpanies grw, tp cncerns are abut the same. Hwever, csts becme less imprtant than security, applicatin availability, management and supprt. VSB SB MB Vice and data service csts Pr netwrk service/reliability Cncerns abut data, netwrk r transactin security Cncerns abut string sensitive data n devices Pr perfrmance f mbile applicatins Difficult t manage mbile devices and applicatins Cncerns that emplyees als use their devices and Lack f applicatins availability Lack f a cmpany plicy r strategy t deply mbile Cmpliance with standards Lack f/inadequate supprt Emplyee resistance t using mbile business applicatins 1 12% 10% 7% 5% 4% 2% % Valid Cases 40% Vice and data service csts Cncerns abut data, netwrk r transactin security Pr netwrk service/reliability Cncerns abut string sensitive data n devices Pr perfrmance f mbile applicatins Cncerns that emplyees als use their devices and services Difficult t manage mbile devices and applicatins Lack f applicatins availability Emplyee resistance t using mbile business applicatins Lack f a cmpany plicy r strategy t deply mbile Cmpliance with standards Lack f/inadequate supprt 12% 1 10% 7% 6% 4% 2% 2% 2% 37% Vice and data service csts Cncerns abut data, netwrk r Lack f applicatins availability Pr netwrk service/reliability Cncerns abut string sensitive data n Cncerns that emplyees als use Lack f/inadequate supprt Pr perfrmance f mbile applicatins Difficult t manage mbile devices and Cmpliance with standards Lack f a cmpany plicy r strategy t Emplyee resistance t using mbile business 8% 8% 8% 7% 6% 6% 5% 5% 4% 14% 27% Q14.) What d view as the tp 3 bstacles t using/prviding mbile devices, vice and general data services and mbile business applicatins t emplyees in yur rganizatin? 4/10/

13 Mbile Device and Service Prcurement Plicies The emplyee size band represents a tipping pint where businesses becme much mre likely t determine, purchase and issues bth devices and services t achieve mre cntrl ver expenses, prductivity and cllabratin. Small Business Hw des yur cmpany prvide mbile devices Emplyees are respnsible fr prcuring and paying fr mbile devices n their wn The cmpany prvides emplyees with the ptin t purchase their wn device r use a cmpany-supplied device The cmpany prvides allwances fr individuals t purchase mbile devices Hw des yur cmpany prvide mbile service plans Emplyees are respnsible fr prcuring and paying fr mbile service plans n their wn The cmpany prvides allwances fr individuals t purchase their wn service plans frm any carrier they chse The cmpany prvides allwances fr individuals t purchase their wn service plans frm designated carrier(s) The cmpany cntracts fr service plans frm a carrier(s) and prvides them t emplyees Empl. 10% 15% 14% Empl. 8% 9% 17% 66% Empl. 10% 20% 2 47% Empl. 4% 19% 25% 52% 1-19 Empl. 7% 22% 18% Empl. 12% 12% 2 55% Ttal 8% 20% 19% 52% Ttal 10% 15% 20% 55% Sample Size = 143 A) Hw des yur cmpany prvide mbile devices t emplyees? B) Hw des yur cmpany prvide mbile vice, text and data service plans t emplyees? December 2010 Cpyright 2010, SMB Grup, All rights reserved 13

14 Mbile Devices Authrized fr Emplyees Blackberry RIM plays a much larger rle in cmpanies with 20+ emplyees than in VSBs (1-19). Larger small businesses are als mre likely t authrize and use Windws-based purpse-built devices than smaller cunterparts. Small Business Apple iphne device Blackberry (RIM) devices Ggle Andrid-based devices Micrsft Windws Mbile-based devices Palm OS-based devices Nkia Symbian-based devices Apple ipad tablet Other tablet devices (e.g. Dell Streak) Empl. 4 54% 30% 39% 18% 9% 24% 7% 46% 1 2% Empl. 3 60% 2 22% 10% 4% 17% 34% 5% 0% 1-19 Empl. 25% 34% 19% 2 7% 7% 2% 44% 6% Ttal 26% 37% 20% 22% 8% 4% 8% 2% 4 4% 6% Sample Size = ) What type(s) f mbile device(s) d yu use and authrize yur cmpany emplyees t use fr business purpses? December 2010 Cpyright 2010, SMB Grup, All rights reserved 14

15 Use f Mbile Vice and Data Service Prviders AT&T and Verizn are the tp prviders fr all small businesses. Small Business Alltel AT&T Wireless Cellular One Metr PCS Nne f these Qwest Wireless Sprint (Nextel) T-Mbile U.S. Cellular Verizn Virgin Mbile Empl. 3 0% 4% 1 5% 39% Empl. 4 0% 2% 1 5% 0% 35% 1-19 Empl. 2% 38% 0% 4% 10% 8% 2% 3 Ttal 38% 0% 4% 1 8% 2% 34% Sample Size = 143 December ) Which mbile service plan vendr(s) d yu use and authrize yur cmpany emplyees t use? Cpyright 2010, SMB Grup, All rights reserved 15

16 50-99 Empl. Satisfactin with Mbile Service Prviders Verizn custmers are mre likely t be satisfied/very satisfied than AT&T custmers. Hwever, unlike AT&T, Verizn als has a small percentage f very dissatisfied custmers. 0% 7% ATT Wireless - Satisfactin ATT - Very Satisfied ATT - Neutral ATT - V Dissatified 2 30% ATT - Satisfied ATT - Dissatisfied 40% Empl. 6% 6% SMB by Verizn - Satisfactin Verizn - Very Satisfied Verizn - Neutral Verizn - V Dissatified Small Business Verizn - Satisfied Verizn - Dissatisfied 39% 47% Empl. 0% 1 29% 55% Empl. 0% 0% 9% 36% 55% 1-19 Empl. 19% 30% 48% 1-19 Empl. 2% Ttal 18% 30% 48% Ttal 2% 1 42% 44% Sample Size = ) Hw satisfied are yu with yur mbile services vendr? December 2010 Cpyright 2010, SMB Grup, All rights reserved 16

17 Use and Planned Use f Mbile Cllabratin and Prductivity Slutins Small Business Vic & Vice nte recrding 79% 1 Cntact Infrmatin 72% 15% Calendar 7 14% Cmpany 70% 15% Web access and search SMS (Shrt Message Service), AKA texting GPS/navigatin and mapping Instant messaging (IM) Lcatin-based services travel, Dcument management Cnferencing applicatins Travel & expense tracker Presence, find-me fllw-me 9% 18% 17% 32% 30% 14% 49% 48% 67% 6 29% 26% 22% 27% 16% 24% 1 16% Current Planned Sample Size = ) What specific mbile cllabratin and prductivity applicatins d yu use/prvide r plan t prvide fr emplyees in yur cmpany t use? December 2010 Cpyright 2010, SMB Grup, All rights reserved 17

18 Use and Planned Use f Mbile Business Applicatins Mbile business apps fr VSBs are a huge, largely untapped pprtunity fr vendrs. The biggest grwth area is mbile marketing and advertising--pised t almst triple. Very Small Business Custmer management 5 36% Scial media marketing 34% 35% Delivery & shipment 29% 30% Time management & time capture 28% 3 Field service applicatins 25% 3 Currently Use Plan t Use Payment prcessing 2 26% Business analytics 20% 28% Emplyee payrll 18% 18% Mbile marketing and advertising 15% 42% Sales frce autmatin 14% 20% Supply chain integratin/inven 1 2 Fleet asset tracking 7% 12% Sample Size = ) What specific line f business applicatins (t supprt financial, marketing, sales, services, inventry management, peratins, etc.) d yu use and/r plan t prvide fr yur cmpany emplyees t use? 4/10/

19 Mbile Transactin Enablement Plans Current Plan Medium Business SMS cntact the sales r supprt Sharing--pst pictures, Check delivery status f my rders Add/view/change persnal Manage/administer transactin Shp/buy prducts Lg and track prduct and/r Pay fr prducts, gds, r services Check invice status 55% 5 50% 49% 47% 45% 42% 4 40% 3 37% 42% 38% 34% 39% 46% 52% 47% Pay bills/invices/bala Make payments/transfe 3 40% 3 36% December ) Which f the fllwing TRANSACTIONS can external users (custmers, suppliers, partners, etc.) cnduct thrugh yur cmpany's MOBILE WEBSITE AND/OR MOBILE APPLICATIONS? Cpyright 2010, SMB Grup, All rights reserved 19

20 2010 SMB Mbile Market Size Large and grwing SMB Opprtunity Annual Mbile Applicatin Spending, $3.14B, 12% Annual Mbile Device Spending, $3.12B, 1 Annual Mbile Management Spending, $2.10B, 8% 2010 Mbile SMB Spending $26.1B Annual Vice and Data Spending, $18.41B, 69% Vice and data service is the biggest part f SMBs mbile budgets (69%), fllwed by mbile applicatin spending(12%), mbile devices(1) and mbile device/applicatin management(8%) The highest grwth segments are mbile applicatins fllwed by mbile management 4/10/

21 Methdlgy Web-based survey Data cllected in late Oct./early Nv Sample selectin: Randm sample f small and medium businesses questins respndents/cmpleted interviews cvering the fur segments: Very small business (1-19 emplyees) Small business (20-49 emplyees, emplyees) Medium business ( emplyees, emplyees) Mid-market business (500 t 999 emplyees) SMB survey respndents are respnsible fr making Mbility Slutins evaluating and purchasing decisins. The survey is intended t prvide directinal guidance t slutin prviders as they develp their g-t-market strategies and messaging 4/10/

22 Survey Prcess SMB Cmpany Databases Target Quta: N=750 Natinally Representative Sampling Technlgy Slutins Selectin and Purchasing Decisin Makers in Nrth America Based Small and Medium Businesses (businesses with 1-1,000 emplyees) Web based survey Cmpleted Interviews: N= All emplyee sizes represented Representative f mst vertical industries Representative f mst regins Hme-based, nnprfit included Weighted by emplyee size 4/10/

23 SMBs Defined Small Businesses Medium Businesses Fewer than 100 emplyees (full-time) acrss entire crpratin Educatin, gvernment, nn-prfit rganizatins are included 100 1,000 emplyees (full-time) acrss entire crpratin Educatin, gvernment, nn-prfit rganizatins are included Lcatin: Hme-based businesses (Sh) are included Nn-prfits are included Lcated in Nrth America Franchises are nt included Purchase decisins driven by business/lcatin being surveyed Lcatin: Cmmercial lcatin Nn-prfits are included Lcated in Nrth America Franchises are nt included Purchase decisins driven by business/lcatin being surveyed 4/10/

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