Global Headquarters: 5 Speen Street Framingham, MA USA P F

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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 M o b i l e E n t e r p r i s e A p p l i c a t i o n D e v e l o p m e n t P l a t f o r m F o r e c a s t a n d V e n d o r S h a r e s Stacy K. Crook John Jackson I N T H I S E X C E R P T The content for this excerpt was taken directly from the IDC Market Analysis Report, Worldwide Mobile Enterprise Application Development Platform Forecast and 2012 Vendor Shares, by Stacy K. Crook,and John Jackson (Doc # ). All or part of the following sections are included in this excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, Vendor Profile, and Methodology. Also included is Table 1. I D C O P I N I O N Driven by major technology trends in consumer and enterprise markets, the mobile enterprise application development platform market (enterprise MADP) is in a period of rapid growth. In 2012, IDC believed the total market reached a size of $938.6 million. By 2017, the market will experience a 38.7% CAGR to reach $4.8 billion. The following are key findings from this study: Today, there is no one-size-fits-all approach to mobile application development. While some organizations will choose to buy a mobile enterprise application development platform that includes front-end, middleware, and integration components, approaches that combine various standalone front-end tools with a mobile back end as a service (MBaaS) are gaining popularity as well. The practice of pairing existing middleware investments and native development techniques for building mobile apps is also alive and well. While the discussion centers around a "mobile first" strategy to development today, IDC believes these products will help lay the foundation for modern multichannel development practices in the future, rather than serving as specialized product sets to build apps for devices running "mobile" operating systems. In addition to mobile application development, many vendors also include various elements of mobile enterprise management (mobile device, application, content management) in their offerings. These elements may be included within a mobile application development suite or sold as standalone products that easily integrate with the broader platform. As vendors in this space work toward broadening their capabilities, acquisitions are becoming increasingly central to achieving this goal. As examples of this, IBM acquired Worklight in February 2012 and Appcelerator completed its purchase of Singly in Antenna Software was acquired by Pegasystems in October IDC expects consolidation in this space to continue over the next two to three years. Filing Information: November 2013, IDC #244418, Volume: 1 Mobile Enterprise Software: Market Analysis

2 I N T H I S S T U D Y This study examines the mobile enterprise application development platform market for the period from 2012 to 2017, with vendor revenue trends and market growth forecasts. Worldwide market sizing is provided for A five-year growth forecast for this market is shown for A vendor competitive analysis, with vendor revenue and market shares of the leading vendors, is provided for This study also includes profiles of leading vendors and identifies the characteristics that vendors will need to be successful in the future. M e t h o d o l o g y See the Learn More section for a description of the forecasting and analysis methodology employed in this study. Note: All numbers in this document may not be exact due to rounding. T h i s S t u d y I n t r o d u c e s S i g n i f i c a n t R e v i s i o n s T h a t R e f l e c t a M o r e A c c u r a t e a n d R e l e v a n t M e a s u r e o f t h e M a r k e t Since 2001, IDC has been covering the mobile enterprise application development market. In our first iterations of the study, we called the market "mobile middleware," which was representative of the main function of the software a middleware server that extended the reach of existing back-end applications out to the mobile device. In the very beginning, these mobile middleware servers might just provide the extension of one app, such as , out to the device. In some cases, the server functioned mostly as a deployment and management engine, such is in the case of BlackBerry's BES; in other cases, the platform was used to both develop and deploy apps, such as the former Sybase SUP platform. As time went on and technology trends such as consumerization took hold, there was a need in the market for mobile application development platforms to not only extend the reach of an existing app but to build new cross-platform mobile apps as well. The apps being built were more complex and would often need to access more than one back-end data source. As such, the name of the market evolved to be called the mobile enterprise application platform (MEAP) market. These platforms often included proprietary frameworks to build front-end apps; the core middleware services needed for connection management, sync, security, and so forth; and the back-end integration components to tie into the existing infrastructure. While the idea of an allin-one platform is still very relevant, many providers in this space have opened up their offerings so that developers can choose which front-end tools they prefer to build client-side applications in. The MEAP vendor in this instance is providing the middleware services and back-end integration components that are so crucial for enterprise application deployments and libraries that tie into a third party's mobile application framework. # IDC

3 Over the years, a bifurcation began to develop in this market where mobile products, such as the BES and Lotus Notes Traveler, really became standalone servers that extended and provided management of the app (in addition to some overall device management as well) and were not competitive with products that offered full development environments that developers could leverage to build multiple app types, such as the ones profiled in this study. Hence, we have once again renamed this study to reflect the way the mobile application development market has evolved. In the past, both mobile and other packaged application revenue estimates were included along with the vendors that offered those products. However, to ensure that the vendor shares represent an apples-to-apples comparison, we have completely removed mobile from the study and also have done our best to separate packaged app revenue from platform revenue for MADP vendors. Due to these changes, some vendors have been removed completely and others' revenue estimates have significantly changed from what this study series has represented in years past. It is important to note that, because we have significantly changed the taxonomy for this study, vendor share revenue for 2012 should not be compared with any other historical IDC report. This study reflects the myriad ways that developers may choose to build mobile enterprise applications and the vendors that offer products to do so. They may choose to leverage all of the components of a comprehensive mobile platform offering that includes client- and server-side development and deployment components, or they may take more of a patchwork approach where the front-end tools come from a different vendor than the back-end platform. In this sense, the idea of a mobile back end as a service has become relevant, providing an alternative source for back-end middleware services to the enterprise. Or, developers may just do native development and connect to existing Web services. D e f i n i t i o n o f t h e M o b i l e E n t e r p r i s e A p p l i c a t i o n D e v e l o p m e n t P l a t f o r m M a r k e t Within this study, we are primarily counting revenue in three segments; it is important to note some vendors have offerings across multiple segments. Examples of offerings across these segments include, but are not limited to: Front-end development tools to build client-side mobile applications: Apple ios SDK, Appcelerator Titanium, Apache Cordova, Sencha Touch, Oracle ADF Mobile, Google's Android NDK, jquery Mobile, BlackBerry SDK, Adobe PhoneGap, and Salesforce Mobile SDK Platforms that provide middleware services and offer the ability to integrate mobile applications with back-end servers (on-premise, private, or public cloud): FeedHenry, StackMob, Kinvey, AnyPresence, Verivo Akula, Oracle Mobile Cloud Service, and Force.com Mobile enterprise application development platform suites that include all of the functionalities, from building client-side mobile apps to providing middleware services and integrating mobile apps with back-end servers, in one offering: IBM 2013 IDC #

4 Worklight, PegaSystems/Antenna AMPchroma, SAP Mobile Platform, Appcelerator Enterprise Platform, HP Anywhere, and Kony Development Cloud For any of these offerings, the product may be either delivered as an on-premise solution with a perpetual license or offered as a cloud service with a per-user/month licensing model. These vendors may offer such platforms to enterprise customers, mobile operators, device manufacturers, systems integrators, or other channel partners. Suppliers include pure-play mobile vendors, larger ISV and application providers, and device manufacturers that also provide software solutions. S I T U A T I O N O V E R V I E W K e y T r e n d s i n t h e M o b i l e A p p l i c a t i o n D e v e l o p m e n t M a r k e t In 2013, organizations are truly beginning to embrace enterprise mobility and are eager to build applications that improve customer engagement and employee productivity. In our most recent mobile enterprise survey, we found that the majority of companies today are investing or plan to invest in some kind of mobile application development platform, and that the apps they are building represent a broad mix of employee-, customer-, and partner-facing apps. As the mobile development space continues to heat up, it will be fascinating to observe the methods enterprises will employ to develop mobile applications. IDC's expectation is that solution choice will be highly dependent on the types of application experiences the company needs to provide to the end-user audience. For instance, an organization with mobile workers in remote locations will be best served by native applications with ample offline capabilities. However, another company with mobile workers that rarely venture out of well-connected environments could find that building front-end applications that connect to their existing Web application infrastructure works just fine for them. In fact, our survey found that, today, Web development is the most popular method employed by enterprises (see Figure 3). This isn't surprising given that choosing Web application architecture assists with issues of platform fragmentation and allows enterprises to leverage existing developer resources. While the technology approaches may vary, there are many horizontal trends that will ultimately drive the direction the market chooses: Multichannel development. Increasingly, enterprises will look toward taking a mobile-first approach toward development, but this doesn't mean desktop doesn't matter anymore. Enterprises will need one platform on which to develop apps that run across any end-user endpoint. This would include mobile, desktop, and Internet of Things type modules/devices. Cloud-based platforms. Cloud-based mobile application development solutions continue their ascendancy in the market, as companies find the low up-front investment and quick application deployments of these solutions attractive 2 # IDC

5 features. Fast time to market is a key driver for these options, and as such, IDC expects almost all vendors playing in this space to have cloud-based solutions within the next year or so. Move toward open standards-based solutions. In a rapidly moving space such as mobile, end-user enterprises are often very concerned about vendor lock in. Because of this uncertainty, companies will increasingly seek standardsbased solutions that allow them a greater range of flexibility as the market evolves. Although companies may want to avoid tying themselves too much to any one vendor, the reality is that there are benefits to solutions that offer a consistent way to develop and deploy apps across many operating systems. Integration to multiple data sources. One of the most difficult parts of modern mobile application development is integration across the multiple back-end data sources that a single client-side app must connect to. The fact that the app must connect to back-end data sources behind a company firewall has posed enough of a challenge in the past, but now apps often have to connect to enterprise and consumer cloud services as well. Managing identity and APIs across all of these different data sources is a key source of complexity for mobile enterprise application development. Focus on design. In the new consumerized world we live in, it is of utmost importance that mobile applications engage users. Doing so requires a laser focus on the user experience, or UX of the application. Designers, developers, line of business, and IT must be in a constant feedback loop of communication to deliver apps that drive return on investment. Integration with MEM/security. Increasingly, the large vendors in this space such as SAP, IBM, Microsoft, HP, and Oracle offer both mobile application development and management and security technologies. From a competitive standpoint, this has encouraged other, smaller pure-plays in the space to offer these as well either within their own offering or via partnership. As IDC has said for many years, mobile management and security technology should be deployed at the same time as the apps, so this makes sense. However, it can also make what is an already complicated and time-consuming sale even more so as it opens up the stakeholder set beyond application development to IT operations and security as well. Partnerships. As the companies responsible for much of the implementation and ongoing maintenance work of application deployments, large systems integrators such as Accenture, IBM Global Services, Capgemini, and Wipro are important partners to gain in this space. In addition, as this market moves toward being increasingly cloud based, mobile operators offer another attractive channel to bring full mobile solutions to market. P e r f o r m a n c e o f L e a d i n g V e n d o r s i n Table 1 displays the 2012 worldwide revenue and market shares for mobile enterprise application development platform vendors IDC #

6 T A B L E 1 W o r l d w i d e M o b i l e E n t e r p r i s e A p p l i c a t i o n D e v e l o p m e n t P l a t f o r m R e v e n u e b y V e n d o r, Revenue ($M) Share (%) SAP IBM Apple Oracle Salesforce Antenna Software Kony Microsoft Wavelink Sencha Verivo Google Appcelerator Subtotal Other Total Source: IDC, October # IDC

7 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 The worldwide market for mobile enterprise application platform software will grow from $938.6 million in 2012 to $4.8 billion in 2017 at a CAGR of 38.7%: Revenue includes product software licenses or subscriptions and maintenance fees for worldwide mobile enterprise application development platforms software vendors. As with other emerging mobile software markets, the majority of revenue sits in the North American market right now, but EMEA and APAC in particular offer meaningful future growth opportunities. Table 3 shows IDC's top 3 assumptions and Table 4 presents the key forecast assumptions for the worldwide mobile enterprise application platform market for V e n d o r P r o f i l e s SAP SAP is headquartered in Waldorf, Germany, and has locations in 130 countries worldwide. SAP's mobile application development platform offering is named SAP Mobile Platform. SAP Mobile Platform is a mobile application development platform enabling mobile developers to build and deploy enterprise, business, and consumer applications. Mobile applications developed or prepackaged mobile applications customized on the SAP Mobile Platform can be connected to any SAP or non-sap data sources, with support for ios, Android, BlackBerry, Windows, Windows Phone, and Windows Mobile devices. In October 2013, SAP announced the upcoming release of SAP Mobile Platform 3.0. With this release, the company focused on platform extensibility and developer productivity by supporting a greater range of open source and open standards, such as OData, OSGI Spring architecture, Apache Cordova support, HTML5, and HTTP REST. With this release, the company aims to improve developer productivity by offering a common SDK for both on-premise and cloud mobile apps, WYSIWYG development environment for HTML5 apps, bringyour-own-tools (BYOT) support, standards-based data integration, and enhanced offline/synchronization support. In addition, the SAP Mobile Platform brings new app and platform core services in the areas of 3D visualization, analytics (supported by the underlying HANA platform), augmented reality, geolocation, coupons, banking, loyalty, and more. SAP also recently announced the SAP Mobile Platform, cloud version, which will run atop the HANA cloud platform and leverage database and app services from this architecture IDC #

8 E S S E N T I A L G U I D A N C E Opportunity to help enterprises realize ROI on mobility deployments. Many companies deploy mobile applications without truly thinking through the business implications of those apps. Vendors that can assist their clients in developing a business case for deploying mobile applications will be thought of as strategic partners instead of just another technology vendor. In addition, there is an additive opportunity to help customers think through how their broader IT infrastructure needs to evolve to properly take advantage of key trends such as mobile, social, and cloud. Growing importance of multichannel development. While there are currently some limitations on the execution of the write once, run anywhere concept, it does appear that the lines between mobile-specific OSs and desktop OSs are beginning to blur. On the flip side, device fragmentation shows no sign of slowing down, and companies will have an increasing need for platforms that abstract the need to write apps for multiple devices. While most enterprises think of mobile as separate to the desktop computing environment today, vendors should futureproof their solutions by taking a multichannel approach to development offerings. Explore partnership possibilities to facilitate portfolio expansion. Given the vast differences in customer needs and preferences when it comes to mobile applications and MADP functionalities, partnerships are a key factor for broadening vendor capabilities as a means of addressing the demands of the market. SIs, VARs, mobile operators, and OEM device manufacturers are all examples of potential partners that can help to provide additional layers of value and support on top of the foundational offering. L E A R N M O R E R e l a t e d R e s e a r c h The Role of the Corporate App Store in the Mobile Enterprise (IDC #242996, September 2013) Worldwide Mobile Enterprise Software, Services, and Infrastructure Forecast (IDC #241657, July 2013) Worldwide Mobile Enterprise Management Software Forecast and 2012 Vendor Shares (IDC #241650, June 2013) Mobile Enterprise Developer Survey, 2Q13 (IDC #241651, June 2013) 2013 Mobile Application Management and Security Technology Assessment (IDC #242183, June 2013) Worldwide Business Use Smartphone Forecast and Analysis (IDC #241599, June 2013) 6 # IDC

9 The State of Mobile Enterprise Software in 2013: An IDC Survey of Applications, Platforms, Decisions, and Deployments (IDC #241690, June 2013) Worldwide Smartphone Mobile OS Forecast and Analysis (IDC #238366, December 2012) Worldwide Mobile Enterprise Application Platform (MEAP) Forecast and 2011 Vendor Shares (IDC #237864, November 2012) M e t h o d o l o g y The IDC software market sizing and forecasts are presented in terms of packaged software revenue. IDC uses the term packaged software to distinguish commercially available software from custom software, not to imply that the software must be shrink-wrapped or otherwise provided via physical media. Packaged software includes programs or code sets of any type commercially available through sale, lease, or rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-to-use packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of these are counted by IDC as packaged software revenue. Packaged software revenue excludes service revenue derived from training, consulting, and systems integration that is separate (or unbundled) from the right-touse license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme. It is the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments. The market forecast and analysis methodology incorporates information from five different but interrelated sources: Reported and observed trends and financial activity. This study incorporates reported and observed trends and financial activity in 2012, including reported revenue data for public companies trading on North American stock exchanges (CY 1Q12 4Q12 in nearly all cases). IDC's Software Census interviews. IDC interviews all significant market participants to determine product revenue, revenue demographics, pricing, and other relevant information. Product briefings, press releases, and other publicly available information. IDC's software analysts around the world meet with hundreds of software vendors each year. These briefings provide an opportunity to review current and future business and product strategies, revenue, shipments, customer bases, target markets, and other key product and competitive information IDC #

10 Vendor financial statements and related filings. Although many software vendors are privately held and choose to limit financial disclosures, information from publicly held companies provides a significant benchmark for assessing informal market estimates from private companies. IDC also builds detailed information related to private companies through in-depth analyst relationships and maintains an extensive library of financial and corporate information focused on the IT industry. We further maintain detailed revenue by product area models on more than 1,000 worldwide vendors. IDC demand-side research. This includes thousands of interviews with business users of software solutions annually and provides a powerful fifth perspective for assessing competitive performance and market dynamics. IDC's user strategy databases offer a compelling and consistent time-series view of industry trends and developments. Direct conversations with technology buyers provide an invaluable complement to the broader survey-based results. Ultimately, the data presented in this study represents IDC's best estimates based on the previously mentioned data sources as well as reported and observed activity by vendors and further modeling of data that we believe to be true to fill in any information gaps. Historical Market Values and Exchange Rates Historical market values presented here are as published in prior IDC documents based on the market taxonomies and current U.S. dollar exchange rates existing at the time the data was originally published. For markets other than the United States, these as-published values are therefore based on a different exchange rate each year. Because many individual countries contribute to regional totals, it is difficult to give precise differences between current and constant currency values in this document. However, the scale of the difference can be understood from the movement of the U.S. dollar against major regional currencies. Customers should consider multiplying regional historical market values for each year by the change in value of the U.S. dollar against representative currencies in the region as shown in Table 5. This will provide a better approximation of local market growth. For example, to restate 2011 eurozone values into 2012 dollars, one would adjust the 2011 value downward by 8% (because the dollar strengthened against the euro in 2012). Please refer to IDC's regional research studies containing historical forecasts for multiple countries for more accurate regional growth in local currencies. Note that this discussion applies only to historical values prior to and all future years are forecast at a constant exchange rate. 8 # IDC

11 S y n o p s i s This IDC study examines the mobile enterprise application development platform market for the period from 2012 to 2017, with vendor revenue trends and market growth forecasts. Worldwide market sizing is provided for A five-year growth forecast for this market is shown for A vendor competitive analysis, with vendor revenue and market shares of the vendors, is provided for This study also includes profiles of selected vendors and identifies the characteristics that vendors will need to be successful in the future. "Today, there is no one-size-fits-all approach to mobile application development," says Stacy Crook, research director of Mobile Enterprise Software research at IDC. "While some organizations will choose to buy a mobile enterprise application development platform that includes front-end, middleware, and integration components, approaches that combine various standalone front-end tools with a mobile back end as a service (MBaaS) are gaining popularity as well. The practice of pairing existing middleware investments and native development techniques for building mobile apps is also alive and well." 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 #