The Future of Mobile Enterprise Enterprise Apps & The Mobile Workplace Evolution to a Mobile World Mobile Web Compung 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 populaon Accepted lifespan is 3 - 5 years Accepted lifespan is 2-3 years ONen shared amongst different users Unique end user Laptops are quasi-portable and accessible while desktops Can be taken and used anywhere are stac • Hardware Centric “My Device, My PC” Informaon Centric “My Data” PCs are turning into tradional Smart devices are the new PCs, with servers, used for large data storage, funconality and usage converging media collec&on, backup. with tradional 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 $0 2010 2011 2012 2013E 2014E 2015E Source: Forrester Research, Inc. Mobile Applications for the Enterprise paperless office workflow automa&on analycs & big data • Asset/Expense Management • Field Service Automaon • Customer Engagement • Audits • Inventory Management • Operaonal KPIs • Inspec4ons • Mobile Office (mail, IM, calendar) • Real-Time Data Flow • Invoicing • Mobile Web • Unified Address Book • Sales/Purchase Order Management • SalesForce Automaon • Usage Metrics • Work Order Management • Unified Communicaons • User Feedback Benefits of Mobile Enterprise Making Data Capture More Deeper Customer Relaonships Accurate & Efficient Modernizing & Mobilizing Legacy New Product Development and Interfaces Revenue Capture Real-Time Workforce and Automaon of Workflows Customer Collaboraon Data Available at All Times Stronger ROI Apps Disrupt Telecom Market Historical New Paradigm Mobile Poor customer choices, dominated by More choice, handset customization, Hardware Telco’s and tied to service plans plan flexibility Limited to apps supplied by OEM +1M apps for consumer and App Market (sms, camera) or OEM app market enterprise, open app market Market Telco and OEM OS & App Market Nexus Compeve Basis Phone Plan Pricing Handset Price, App Market, OS Global Mobile Application Revenue ($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 soluSons. Enterprise Mobile Market Dynamics CTO CMO IT Services Core Product Marketing The Problem System Fragmentaon Developers have the challenge oF making Appcelerator’s acquisi4on oF Cocofish. To apps For mul4ple plaorms, or some4mes some degree CPT tools reduce headaches not being able to support a Favored For developers, but s4ll don’t offer a plaorm oF a client. To deal with market solu4on For enterprises trying to manage a Fragmentaon, cross plaorm tools such as workForce using a mixture oF corporate and source translators and web-to-nave BYOD hardware and on different systems. toolkits were developed to increase the As mobile and enterprise apps become number oF plaorms developers could more cri4cal to the enterprise, an write For. Unsurprisingly, this has been a overarching solu4on is required. significant source oF M&A ac4vity recently. Some notable acquisi4ons include IBM’s Solu%on for the Enterprise: purchase oF enterprise app plaorm Mobile Device Worklight For an es4mated $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, communicaons, devices deployed across different mobile and IT needs with managed security, so[ware, operators and enterprises. MDM Func4onality applicaon, and inventory management services o[en includes distribu4on oF data, applicaons, across mul4ple plaorms and operang systems, and configuraons For mobile and smart devices. primarily on smart enabled devices. MDM MDM applies to both employee owned products services are becoming more and more cri4cal 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 eliminang security processes for introducing new devices supported, which operang threats, though a series oF passwords and applicaons and devices to the enterprise systems, the level oF security, whom is best pracces for applicaon network, define how those devices and responsible For costs, and which management. There should be recourse applicaons should be used and employees will be covered. to lock out data on stolen or lost devices managed, and set guidelines for and offer an4-malware and an4-intrusion maintaining and servicing the devices. layers. Enterprise Mobile M&A Mobile enterprise M&A exploded in 2012. 2011 Mobile Enterprise M&A Ac4vity 2012 Mobile Enterprise M&A Ac4vity Mobile Enterprise Mobile SoNware (other) Mobile Enterprise Mobile Software 7% 14% 93% 86% Buyers are increasingly uSlizing M&A to address enterprises struggling with the BYOD phenomenon to fully capture the potenSal for mobile apps/ web to accelerate their business with the new technologies. Source: Capital IQ Mobile Enterprise M&A Landscape • Unprecedented ac4vity in mobile app development, start-up M&A Volume by Year (Deals) creaon, and subsequent M&A ac4vity is a means oF working new solu4ons into established porQolios. 400 348 • The diversity oF mobile buyers comes From a number oF 300 different Focus areas. Tradi4onal technology providers as well as those without a technology porQolio are entering the mobile 235 arena. 200 220 100 115 0 “The confluence of compu.ng, connecvity 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 transac4ons, a to everything.” marked increase over 2012’s 235 transac4ons. -Eric Schmidt, Chairman, Google • Mobile so[ware M&A now accounts For 15.9% oF all so[ware M&A transac4ons, 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 aer ini4ally only receiving $25M in financing. This is a clear $225 $225 signal that acquisi4ons to build out mobile work suites are about to explode. $200 Gartner es4mates 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 differen4ate 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.