Even as IT asserts its authority over enterprise mobility management, customers and adoption of mobile managed services?
What are the primary drivers for your organization's
adoption of mobile managed services ?
(Percentage of respondents select up to three)
- Internally, within the organization, the primary drivers of mobile managed
services are employee satisfaction and support of the IT staff, which has not
developed expertise in mobile deployment. Externally, rapid innovation in
mobile technologies has driven many organizations across all sizes and
vertical markets - to deploy mobile technologies as a means to keep pace with
competition as mobility facilitates new approaches to customer engagement.
- These primary drivers of mobile managed services adoption indicate that IT
decision-makers are motivated largely by strategic - as opposed to -
operational motives. For vendors, this indicates that investments to enhance
the scope and quality of their services will be advantageous - even at the
expense of increased prices for the customer.
Market Estimates & Forecasts
Vendor offerings in application-level security will see growing traction
The transition to a per-user model of mobile management
- As mobile technologies penetrate both the consumer and enterprise markets,
we are seeing employees utilizing multiple mobile devices on a regular basis
to access corporate data and applications. Smartphones and - increasingly -
tablets have seen strong growth in the enterprise - rather than replacing
devices such as the laptop or desktop PC, however, these devices are used
alongside these more established computing technologies. This trend is
especially acute in health care - where medical personnel may utilize several
devices in the course of their work. This trend will increasingly drive demand
for security and BI solutions capable of identifying and monitoring which user
is accessing which data. We will also see vendors develop more flexible
licensing and pricing models to accommodate these organizations, transitioning
to a per-user licensing/pricing system.
Evolving mobile services portfolios
- Security will always be the low-hanging fruit for management of enterprise
technologies. Moving forward, however, we will see vendors supplement their
MDM and mobile security management offerings with more sophisticated, targeted
security services. This includes drilling down into mobile security with
application-level security policies and services for data loss prevention
including dual-persona solutions (where separate ‘business’ and
‘personal’ profiles co-exist on a single device), sandboxing of
applications, and app “wrappers”(enabling security policies and
encryption to be applied to a single application). These solutions have all
entered the market in the past 12 months, and are already seeing traction as
MDM and MAM providers look to differentiate and expand their solution sets.
Verizon's new Application Certification program will evaluate and rate all
apps in their app store against certain protocols, indicating their level of
security and enterprise readiness.
- We will also see increasing demand and adoption of the enterprise app
store as organizations begin to implement more strategic mobile initiatives,
and increase their app development capabilities. This market will see
considerable growth as vendors build in value-added offerings such as mobile
analytics and BI capabilities to differentiate their offerings from those of
Hybrid solutions as the new norm
- As the mobile services market continues to evolve, with new offerings and
vendors entering the market, vendors are increasingly challenged with
development of a comprehensive end-to-end mobile management platform. Antenna
- with its AMP chroma platform - is an example of a vendor offering a single -
simple yet sophisticated - mobile management console. As vendors partner to
develop more comprehensive solution sets, it will be importantthat these
vendors also be able to customize these bundled service offerings. For the SMB
market, especially, flexibility will be required to meet the price
restrictions in the large enterprise, IT will expect customization of these
service offerings to meet their unique requirements. As much as possible,
vendors must develop seamless mobility management platforms, capitalizing on
synergies across their partners' solutions, and simplifying IT's vendor
Talent acquisition key to driving vendors' mobile platforms
- Talent acquisition wilt remain an important consideration for these mobile
MSPs as they continue to shape and evolve their mobile services portfolios.
Individuals such as Jim Somers (former AT&T) and Mark Watson (former IBM) at
Antenna and Mark Siegel (formerly McAfee) at Mocana are playing a significant
role in shaping the evolution of this market. Vendors must invest not only to
advance their mobile technologies, but in the continued evoolution of their
mobile services capabilities against those of competitors. Symantec's recent
aquisition of Nukona added value not only in advancing its MAM capabilities
but in adding Chris Perret and Mark Gentile to therteam.
Strategic Issues, Drivers & Trends
Today's rapidly expanding mobile managed services market will inevitably converge - mobile ISV market to see increased acquisitions
Co-Opetition & Channel Play
- The growing influx of mobile technologies into the workplace has created a
wealth of opportunities. The market continues to expand with new vendors,
products, solutions and services entering the market each day. This vendor
ecosystem includes everyone from carriers, mobile ISVs, enterprise ISVs and
hardware OEMs to large and small Sis.
- Mobile MSPs have employed strategies from increased M&A to seeking
third-party partnerships (including white-label partnerships) to adapt to this
channel-centric market. Announcements of new market acquisitions are frequent,
as companies look to grow their customer base, grow their product portfolio,
expand their market reach, or - increasingly - for talent acquisition.
- Each of these players has struggled to exploit its unique market
positioning to carve out a strong market play. Co-opetition remains a mainstay
for this market, however, and the channel its backbone, as these vendors
recognize their inabilityto satisfy each stage of mobile lifecycle support and
customer engagement at a competitive level. Each of these vendor communfties
commands unique potential in this market.
The Path to a Consolidated Mobile Managed Services Market - History Predicts the Future
- We will see further acquisitions and consolidation in this immature market
(e.g. Symantec acquiring Nukona and Odyssey, Wyse acquiring Trellia, SAP
acquiring Syclo) as vendors bring new technologies and solutionsto market.
Looking at the evolution of the marketfor traditional managed services, we see
many similarities - the flood of startups into the market with innovative
solutions and venture funding, staggered acceptance and adoption of these
services and the wave of market acquisitions as an early sign of market
- More important than these similarities, however, are the variations -
telcos have invested early to establish their role in this market(namely AT&T,
VZW, Orange). Systems integrators, conversely, have been slowerto see success
early on, and have advanced slower than other vendor communities - this will
change as we see mobility as a managed service mature, and companies look to
systems integrators as trusted consultantsand technology specialists.
- Maturation and consolidation of this market - although inevitable - will
be a non-issue for the short-term. Looking long-term (at least 2-3 years out),
we see mobility shifting from a standalone service to an integrated piece of
enterprise technology management. As this occurs, mobility will no longer
represent a product category in and of itself - ISVs, OEMs, telcos, and mobile
ISVs will strive to differentiate their solutions from those of competitors
and build up the resources and infrastructure required for enduring success in
- Systems integrators, and those replicating this business model -
integrating others' solutions, but building strong customer relationships -
will wield a strong advantage over competitors. Tier 2 and 3 SIs such as Vox
Mobile, Peak Technologies, Stratix, and Decision Point embody this business
model on a smaller scale, and may become attractive acquisition targets for
large Sis. As trusted advisors to the enterprise, with extensive experience
and resources to support mobility as a service, maturation of the mobile
managed services market will favor the systems integrator business model and
vendor community. Proof of this is carriers acquiring professional services
companies (Verizon acquiring Terremark, AT&T acquiring in Compass) and
repticating this business model.
About the Team
David Krebs, Vice President.
Eric Klein, Senior Analyst.
Balca Korkut, Analyst.
Britt Libby, Analyst.