The Future of Mobile Enterprise Enterprise Apps & The Mobile Workplace Evolution to a Mobile World Mobile Web
Compu ng and Global IT Ecosystem
10,000,000,000 Desktop Web
1,000,000,000 PCs
100,000,000 10B 1B Microprocessors 100M 10,000,000 Number of Units Mainframes 10M 1,000,000
1M 100,000 1970 1980 1990 2000 2010 2020E Changing Landscape
PC Industry Mobile Industry 370M PC’s sold in 2012 Est 1.9b units sold worldwide in 2012
Est. 1.8b PC’s currently in use worldwide 3.5b mobile users, over 50% of the world’s popula on
Accepted lifespan is 3 - 5 years Accepted lifespan is 2-3 years
O en shared amongst different users Unique end user
Laptops are quasi-portable and accessible while desktops Can be taken and used anywhere are sta c • Hardware Centric “My Device, My PC” Informa on Centric “My Data”
PCs are turning into tradi onal Smart devices are the new PCs, with servers, used for large data storage, func onality and usage converging media collec on, backup. with tradi onal PC usage. Mobile Enterprise Timeline
2010 2011 2012 2013 2014E 25% of enterprise 50% of enterprise Mobile devices exceed PCs communication on Mobile communication on mobile BYOD
PC purchases by consumers surpass Flat & declining PC Tablet device sales exceed Sales enterprise sales sales PCs
Workflows uncaptured by Enterprise mobile apps duplicate/appify PC Mobile begins to replace PC software automated Apps based software functions legacy/PC software by mobile apps
More established Small App Dev teams M&A market for enterprise Vendors players enter create first enterprise mobile heats up apps market Global Mobile Enterprise Market ($US B)
Process & Back-end Reinven on Ini al App Builds
$15,000
$12,500
$10,000
$7,500
$5,000
$2,500
$0 2010 2011 2012 2013E 2014E 2015E
Source: Forrester Research, Inc. Mobile Applications for the Enterprise
paperless office workflow automa on analy cs & big data
• Asset/Expense Management • Field Service Automa on • Customer Engagement • Audits • Inventory Management • Opera onal KPIs • Inspec ons • Mobile Office (mail, IM, calendar) • Real-Time Data Flow • Invoicing • Mobile Web • Unified Address Book • Sales/Purchase Order Management • Salesforce Automa on • Usage Metrics • Work Order Management • Unified Communica ons • User Feedback
Benefits of Mobile Enterprise Making Data Capture More Deeper Customer Rela onships Accurate & Efficient
Modernizing & Mobilizing Legacy New Product Development and Interfaces Revenue Capture
Real-Time Workforce and Automa on of Workflows Customer Collabora on
Data Available at All Times Stronger ROI Apps Disrupt Telecom Market
Historical New Paradigm
Mobile Poor customer choices, dominated by More choice, handset customization, Hardware Telco’s and tied to service plans plan flexibility
Limited to apps supplied by OEM +1M apps for consumer and App Market (sms, camera) or OEM app market enterprise, open app market
Market Telco and OEM OS & App Market Nexus
Compe ve Basis Phone Plan Pricing Handset Price, App Market, OS Global Mobile Application Revenue ($US B)
$50
$40
$30
$20
$10
$0 2009 2010 2011 2012 2013E 2014E 2015E
Source: Forrester Research, Inc. Enterprise Mobile Vendors
Mobile Device Management Market Share Enterprise Mobile App Platform Market Share
SAP 18.1% SAP 16.1%
Microsoft 9.4% Microsoft 12.2%
IBM 9.1% IBM 7.7%
HP 7.8% HP 5.1%
Source: IDC
The enterprise mobile market is highly fragmented--engendering opportunity for independents and consolidators alike. Many of these vendors have collapsed into suites from an ecosystem of partners that have collaborated to deliver more comprehensive solu ons. Enterprise Mobile Market Dynamics CTO CMO
IT Services Core Product Marketing The Problem
System Fragmenta on Developers have the challenge of making Appcelerator’s acquisi on of Cocofish. To apps for mul ple pla orms, or some mes some degree CPT tools reduce headaches not being able to support a favored for developers, but s ll don’t offer a pla orm of a client. To deal with market solu on for enterprises trying to manage a fragmenta on, cross pla orm tools such as workforce using a mixture of corporate and source translators and web-to-na ve BYOD hardware and on different systems. toolkits were developed to increase the As mobile and enterprise apps become number of pla orms developers could more cri cal to the enterprise, an write for. Unsurprisingly, this has been a overarching solu on is required. significant source of M&A ac vity recently. Some notable acquisi ons include IBM’s Solu on for the Enterprise: purchase of enterprise app pla orm Mobile Device Worklight for an es mated $70M and Management Mobile Device Management
What is MDM? Mobile Device Management (MDM) so ware Enterprise MDM services assist enterprises in secures, manages, monitors and supports mobile managing their complex mobile, communica ons, devices deployed across different mobile and IT needs with managed security, so ware, operators and enterprises. MDM func onality applica on, and inventory management services o en includes distribu on of data, applica ons, across mul ple pla orms and opera ng systems, and configura ons for mobile and smart devices. primarily on smart enabled devices. MDM MDM applies to both employee owned products services are becoming more and more cri cal to (BYOD) used in the enterprise as well as company the enterprise as mobile devices become a more owned devices. popular and economical means of servicing workflows.
Building an MDM Strategy Mobility Framework Security Policy Device Support
Mobility frameworks establish tablet MDM security policies establish a Device management policies establish support guidelines including: the types of framework for elimina ng security processes for introducing new devices supported, which opera ng threats, though a series of passwords and applica ons and devices to the enterprise systems, the level of security, whom is best prac ces for applica on network, define how those devices and responsible for costs, and which management. There should be recourse applica ons should be used and employees will be covered. to lock out data on stolen or lost devices managed, and set guidelines for and offer an -malware and an -intrusion maintaining and servicing the devices. layers. Enterprise Mobile M&A Mobile enterprise M&A exploded in 2012. 2011 Mobile Enterprise M&A Ac vity 2012 Mobile Enterprise M&A Ac vity
Mobile Enterprise Mobile So ware (other) Mobile Enterprise Mobile Software
7% 14%
93% 86%
Buyers are increasingly u lizing M&A to address enterprises struggling with the BYOD phenomenon to fully capture the poten al for mobile apps/ web to accelerate their business with the new technologies.
Source: Capital IQ Mobile Enterprise M&A Landscape
• Unprecedented ac vity in mobile app development, start-up M&A Volume by Year (Deals) crea on, and subsequent M&A ac vity is a means of working new solu ons into established por olios. 400
348 • The diversity of mobile buyers comes from a number of 300 different focus areas. Tradi onal technology providers as well as those without a technology por olio are entering the mobile 235 arena. 200 220
100 115 0 “The confluence of compu ng, connec vity and the 2010 2011 2012 2013E cloud means that your phone is an extension of everything you do. The new rule is ‘mobile first’ in everything. Our job is to make mobile be the answer • FY 2013 M&A volume is on pace to reach 348 transac ons, a to everything.” marked increase over 2012’s 235 transac ons. -Eric Schmidt, Chairman, Google • Mobile so ware M&A now accounts for 15.9% of all so ware M&A transac ons, up from 3.7% in 1Q10 Recent MDM Funding Rounds ($M)
Record Rounds Recent Round Total Funding
AirWatch, a global leader and innovator in $300 mobile device security and enterprise mobile management, secured a $200M Series A $266 Round last February a er ini ally only receiving $25M in financing. This is a clear $225 $225 signal that acquisi ons to build out mobile work suites are about to explode. $200
Gartner es mates that nearly 70% of US $150 medium-to-large enterprises will buy an MDM product within the next five years. So mobile $113 enterprise players are working hard now to $97 differen ate their offerings from the rest of $75 the marketplace and get ready to compete as $64 $60 $60 large vendors prepare to start buying mobile $40 enterprise assets. $30 $0 Zenprise Mobile Iron Domo Good Technology Airwatch Mobile Device Management Acquisitions
TEV / Deal size LTM Rev. Date Acquirer Target Target Description Strategic Rationale LTM Rev TEV ($M) ($M) (x)
Good Technology, Provides smart phone application and data 10/2/12 AppCentral, Inc. Extend MAM offerings na $1 na Inc. distribution, monitoring and management software as a service (SaaS) for businesses globally Provides enterprise mobile device Monitor and secure mobile 12/5/12 Citrix Systems, Inc. Zenprise, Inc. $327 $23 14.2x management for businesses data
VizualMobile provides device management Strengthen MDM practice by 9/20/12 GFI Software VizualMobile na na na SaaS for businesses globally. offering cloud-based solutions
LANDesk WaveLink Provides smart phone and tablet device Enable end-to-end mobile 6/20/12 $90 $20 4.5x Software Corporation management software management
Provides mobile data synchronization and Increase scope necessary to 1/31/12 Myriad Group AG Synchronica $38.9 $18 2.2x backup software for mobile device compete manufacturers and telecom service providers globally. Symantec Provides smart phone application distribution 3/20/12 Nukona Inc Complete MAM offering $28 na na Corporation software and SaaS that enables businesses to deploy enterprise app stores. Symantec Odyssey Increase Symantec's offerings 3/5/12 Provides mobile device management software $60 $5 12x Corporation Software in MDM security
Numara Software, Provides Web-based mobile device To compete with MDM and 10/18/11 Fromdistance $7 $1 7x Inc. management software certificates MAM providers
Mean $44.7 $11 6.4x Median $49.44 $18.0 5.8x Selected Mobile Services Acquisitions
TEV / Deal size LTM Rev. Date Acquirer Target Target Description Strategic Rationale LTM Rev TEV ($M) ($M) (x)
Intrepidus Provides mobile application and device Widen range of offerings, 8/20/12 NCC Group $5.8 $3.3 1.8x Group security services. It offers assessment industry IP, and new tech services. customers Mobivity Holdings Front Door Provides Web-based mobile marketing Strengthen position in mobile 5/21/13 $2.69 na na Corp. Insights LLC software that enable businesses to deliver marketing solutions marketing text messages to consumers. Provides mobile entertainment content Generate product, customer 3/8/11 Vringo, Inc. m-Wise, Inc. $3.7 $2.8 1.3x delivery and management software and and cost synergies software as a service for business globally Provides mobile advertising campaign Enhance Motricity' s ability to 1/31/11 Motricity Adenyo creation and analytics and mobile web design deliver a full range of mobile $100 $20 5x software for businesses globally data service solutions Provides Web design, online marketing Enhance mobile and digital 6/20/12 WPP Group plc AKQA $540 $189 2.9x campaign creation and management, and offerings social media and mobile marketing services Providesfor Web businesses design, globallysearch engine Increase the scale of digital 2/22/12 Aegis Group plc Roundarch optimization (SEO) and social media advertising $125.3 $62.8 2x marketing services Augme HipCricket provides targeted mobile SMS, Provide mobile marketing 8/4/11 HipCricket, Inc. $44.5 $9.4 4.7x Technologies, Inc. MMS, and Email marketing services for solutions businesses Provides mobile and social media marketing Enhance program for na na 3/16/12 PlayPhone, Inc. Social Hour Inc. $51.5 services for businesses. marketing and lead generation on mobile devices Mean $109.2 $47.9 3.0x Median $48 $14.7 2.5x Selected Mobile Technology Acquisitions
TEV / Deal size LTM Rev. Date Acquirer Target Target Description Strategic Rationale LTM Rev TEV ($M) ($M) (x)
Provides GPS-based cargo vehicle tracking Strengthen market position 4/23/12 Securitas AB Trailback $5 $2.1 2.4x systems and software for the transportation globally and shipping sectors Provides enterprise messaging middleware Enable Software AG's 4/16/12 Software AG my-Channels for financial institutions, businesses and customers to integrate their $25 $5 5.0x government agencies globally. enterprise applications devices through a universal Provides cross-platform smart phone and Enhance MEAP and mobile 1/31/12 IBM Corporation Worklight, Inc. messaging layer. $70 $10 7.0x Web application development software SDK offerings
Strengthen PayPal's leadership 7/7/11 eBay, Inc. Zong Provides mobile payment processing software position in mobile payments $240 na na and digital goods Provides mobile application development Add to business process 5/31/11 Software AG Metismo Ltd. $15 $1 15.0x software for businesses portfolio offerings
Research in The Astonishing Provides smartphone user interface (UI) Enhance RIM's user 12/2/10 $125 $25 5.0x Motion Tribe AB development software for mobile device experience manufacturers Research in QNX Software Provides middleware, development tools, and QNX embedded operating 6/1/10 $200.1 $40 5.0x Motion Systems operating system software and services for system provided RIM an in- International embedded design applications house OS Provides a mobile Web browser and a mobile Enhance internet experiences 3/26/10 Nokia Corp. Navarra, Inc. $130 $25 5.2x widget building platform on Nokia mobile device
Mean $101.3 $15.4 5.7x Median $97.5 $10 5.2x Emerging Frontier - China’s Enterprise Mobile Market
China’s Enterprise Mobility Market (USD, Billions) $15
$13
$11
$9
$6 $10.32 $4 $6.05 $2 $3.47 $1.25 $2.07 $0 $0.63 $0.82 2010 2011 2012 2013E 2014E 2015E 2016E
The world’s largest mobile operator, China Mobile, developed its own smartphone OS (Open Mobile System) based on Android with support from OEM’s, along with a cross-pla orm mobile market app store.
Once China’s app market becomes less fragmented, foreign developers will take greater interest in building enterprise apps for China based clients. China’s Mobile Market
Not Just Another Market Smart devices in China (M) Smartphones as % of Mobile Market China’s mobile market ma ers not simply because it has a growing popula on of 1.3b. Fewer and 300 50% fewer Chinese are accessing the web via PC, and as online services such as electronic payments become appified, many tradi onal online services will be 240 40% conceived and designed as ‘mobile only’ products.
180 30% Convergence Not surprisingly, China’s app market is growing in 120 20% tandem with smart device prolifera on. An inevitable convergence between mobile, cloud, and BYOD along the lines of the American experience 60 10% means plenty of opportuni es for global vendors of enterprise mobile services as well as M&A ac vity by Chinese buyers and sellers. 0 0% 2011 2012 2013E 2014E 2015E Other Emerging Mobile Trends
The New Rules of the Game 1. Rapid and much shorter innova on 4. Symbio c and parallel growth--OEMs, cycles--mobile enterprise apps will ramp app developers, telecoms, middleware much faster than enterprise web apps providers, big data analy cs firms did a decade ago 5. M&A will con nue apace. Best mobile 2. Convergence between enterprise mobile innova ons have incubated through and communica ons, commercial, social small and nimble startups and larger networking, and legacy so ware firms need to build extensive solu on sets 3. Extensive opportuni es in emerging markets--leapfrog license so ware 6. Appifica on will change users from en rely thinking about “my device” to “my data.” Will demand access to data via mobile devices from anywhere Future of Mobile Enterprise
Mainstream Today Mainstream Tomorrow
Market Leadership
Strategic Customer Satisfaction
Productivity
Protection
Efficiency
Operational Cost Value to the Enterprise Valuethe to
Telecom Expense Connectivity Mobile Device Security Application Management Management Management Management Management Enterprises will migrate to managed mobility services for operational and strategic benefits. Elements of Mobility
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