HMD Global Business Smartphone Purchase Survey 2018 Findings related to Western European business users Contents Introduction ............................................................................................................................................. 3 At a glance: .......................................................................................................................................... 3 Methodology ........................................................................................................................................... 3 Main findings ........................................................................................................................................... 4 Purchase criteria for businesses .......................................................................................................... 4 Businesses value a broad range of smartphones ............................................................................ 4 Affordable costs are important – especially for smaller enterprises .............................................. 5 Security patches, OS upgrades and bloatware ................................................................................ 6 Enterprise Mobility Management Solutions and deployment tools ............................................. 10 Age of smartphone fleet ................................................................................................................ 13 Smartphone brand as a purchase criterion ................................................................................... 14 Ranking of purchase criteria .......................................................................................................... 15 Importance of security features ........................................................................................................ 16 Antivirus software on smartphones .............................................................................................. 16 Mobile threat detection ................................................................................................................ 17 Regular and rapid security patches for smartphones ................................................................... 18 Enterprise Mobility Management (EMM) ..................................................................................... 19 Fingerprint sensor ......................................................................................................................... 20 Overview: rating of security features ............................................................................................ 22 Appendix: Android Enterprise Recommended programme .................................................................. 23 Awareness of Android Enterprise Recommended programme in Western European businesses ......................................................................................................................... 23 Impact of Android Enterprise Recommendation .............................................................................. 24 2 Introduction In July 2018, HMD Global – the home of Nokia smartphones – commissioned a survey on smartphone purchase criteria and security features in Western European businesses with 50+ employees. At a glance: • The supply of regular and fast security updates is the most important decision criterion when purchasing new business smartphones, followed by guaranteed OS upgrades and the supplier’s ability to provide a broad range of business smartphones. • Companies in Western Europe prefer more affordable mobile devices to high- priced models. • When comparing smartphone security features, regular and fast security patches are the most trusted, followed by built-in mobile threat detection, antivirus software and fingerprint sensors. • Support of deployment tools and compatibility with Enterprise Mobility Management solutions is still underestimated. Methodology The study was conducted by Lightspeed on behalf of HMD Global – the home of Nokia smartphones – in July 2018. Purchase decision makers from companies in France (100), Germany (100), Italy (100), UK (100) and Spain (100) were surveyed via phone. All of them are either entirely responsible for smartphone purchases (66.4%) or are responsible along with some other people in the organization (33.6%). Those surveyed represented smaller companies with 51 – 250 employees (229), middle-sized organizations with 251 – 500 people (118) and large corporates with 500+ employees (153). 3 Main findings Purchase criteria for businesses With the increasing digitalization of business processes and the mobilisation of employees, smartphones have become indispensable tools. This is why "mobile" is one of the big drivers for IT spending. We wanted to identify the most important criteria for business decision-makers when purchasing smartphones. Businesses value a broad range of smartphones Choice matters: 68% of purchasers want a large range of devices. It’s important to equip employees with smartphones that meet their individual needs. Only 7% of respondents felt that a broad range was unimportant. Purchase criterion: supplier offers a broad range of business smartphones not at all important 1% less important 6% reasonably important 25% important 41% very important 27% 0% 10% 20% 30% 40% 50% The survey results by company size show that the larger the company the more important a broad range of products becomes. Only 64% of the smaller companies (51-200 employees) say that a wide portfolio is important or very important, whilst 72% of large businesses (500+ employees) emphasise that choice is essential. This reflects the fact that large organizations tend to cover more functions. With a wider choice, those responsible can tailor their purchasing to find the perfect solution for every member of staff. They can choose a simple phone for workers who only need to make calls now and then or support heavy users effectively by specifying powerful smartphones with a large screens and a powerful processors. 4 Purchase criterion: supplier offers a broad range of business smartphones 1% not at all important 1% 1% 5% less important 7% 7% 22% reasonably important 23% 28% 43% important 42% 40% 29% very important 28% 24% 0% 10% 20% 30% 40% 50% >500 employees 251-500 employees 51-250 employees “The Nokia smartphone range is one of the most complete offerings of Android Enterprise recommended smartphones on the market today. It includes the high- end smartphone Nokia 8 Sirocco; the upper midrange models Nokia 7 Plus and Nokia 6.1; the recently launched Nokia 5.1 (32GB) and the value-for-money device Nokia 3.1 (32GB). In addition to the Android Enterprise Recommended smartphone fleet, we offer the budget smartphones Nokia 2.1 and Nokia 1 or our large selection of feature phones including the Nokia 3110 and the Nokia 8110 for more basic needs. Feature phones are also increasingly in demand from managers looking for secondary devices featuring a very long battery life to handle long voice calls.” Jon French, Vice President Western Europe at HMD Global Affordable costs are important – especially for smaller enterprises When it comes to purchase costs, Western European companies tend toward more affordable devices. 81% consider affordable smartphone purchase prices to be important to some degree. 66% of businesses put affordable purchase costs high on their list of decision criteria. 5 In terms of company size, we see a slight tendency for large enterprises with 500+ people to pay less attention to cost than smaller companies, but, in general, cost saving is also quite important to them. Purchase criterion: affordable price 2% 3% not at all important 2% 2% 7% 7% less important 6% 7% 25% 29% reasonably important 28% 21% 41% 35% important 43% 44% 25% 26% very important 21% 25% 0% 10% 20% 30% 40% 50% total >500 employees 251-500 employees 51-250 employees “Due to digitalization and related high investment costs, ICT budgets are under pressure at most companies. Therefore, cost-efficient purchasing is important for all of them. This is evident from the widespread adoption of BYOD concepts: 85 percent of those surveyed say that their company allows the use of private smartphones for work. On the one hand, they want to give employees the opportunity to use their preferred smartphones, but on the other hand they also want to save on their own procurement costs. Cost-efficient procurement has several aspects: affordable purchase costs, great durability for a long device lifetime and the option to choose from a broad range of smartphones. The latter is important to ensure that everyone gets exactly the model that fits their needs - low requirements can be met with a cheaper device.” Jon French, Vice President Western Europe at HMD Global Security patches, OS upgrades and bloatware 6 The research company Ponemon Institute reports that in 2017 the global average cost of a single data breach reached $3.62 million. That finding reveals that organizations should take IT security in general – and mobile security in particular – very seriously. An important element in a enterprise security strategy is the rapid availability and immediate deployment of security patches to keep vulnerability low and to prevent cyber criminals exploiting security gaps. We therefore wanted to know the importance of security patches as a purchasing criterion. The results found are encouraging: 95% of Western European enterprises are aware of the