gartner - the real economics of byod
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Federica Troni@federicatroni
The Real Economic Keys to BYOD
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
#GartnerSYM
BYO Doesn't Assure Cost Savings
0%
10%
20%
30%
40%
50%
60%
Reduced total cost Higher total cost
Cost Savings?Results Are Mixed
Strong SavingsStrong Increase
Moderate Savings
Moderate Increase
Reduced Total Cost Higher Total CostQ09. What Level of Benefit (Incl. Cost) Has
Your Organization Seen as a Resultof Its BYOD Program …?
Q10. Has (Cost Savings) Been an Issue for Your Organization as a Result of Your BYOD Program?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Key Issues
1. What are the main cost elements of aBYOD program?
2. What are the essential criteria for analyzingthe cost of BYOD programs?
3. How can the benefits of a BYOD programbe maximized?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Key Issues
1. What are the main cost elements of aBYOD program?
2. What are the essential criteria for analyzingthe cost of BYOD programs?
3. How can the benefits of a BYOD programbe maximized?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Visible and Hidden Costs
Hardware Software Facilities
IT Labor
Administration
End User Costs
Voice and Data
Stipends, Subsidies
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Which Costs to Consider?
Device Stipend?
Data Services?
Support?
Software!
Application and Data Access!
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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End Users and IT Software Costs
MDM
EMM
Client Management
Tools
CALs
VDA
Server Based
Computing
Hosted Vistrual Desktop
Client Hosted Virtual
Desktop
Workspace Aggregators
User Personalization tools
EFSSEA
Inclusion
The Organization Is Responsible for Compliance
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Key Issues
1. What are the main cost elements of aBYOD program?
2. What are the essential criteria for analyzingthe cost of BYOD programs?
3. How can the benefits of a BYOD programbe maximized?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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21%
15%
13%
18%
10%
13%
9%
48%
38%
35%
29%
29%
33%
29%
18%
32%
32%
24%
29%
22%
24%
8%
2%
7%
8%
4%
7%
7%
10%
9%
15%
11%
13%
11%
7%
18%
13%
20%
Mobile Device Management*
Infrastructure Expansion
File Share and Sync*
Virtual Desktop
Other Data Protections
Containerization/Isolation Technologies*
Other InfrastructureProtections
High Medium Low Planning Soon None Don't Know
BYOD Drives Investment in EMM and Infrastructure
N = 135 Who Cited Their Org. Actively Encourages BYOD
87%
84%
80%
71%
68%
67%
62%
Total % Making Investment
Companies Doing BYOD Will Invest in Enterprise Mobility Management, Infrastructure Growth, and Virtual Desktop
*Elements of EMM (2Q14 Gartner Magic Quadrant)
38%
Actively encourageBYOD
Q05. What Level of Investment Is Your Organization Making in the Following Key Technologies to Support BYO?
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Stipends, Reimbursements, Subsidies
• Subsidize legitimate business use of personal devices
• How you subsidize (allowance, stipend, or post-paid expense) has program cost implications, and may have tax impact
• Subsidize smartphone service plans, not smartphones
• Use subsidies to favor more supported devices
"My employer SHOULD subsidize the device and/or service plan"
"I do not expect a subsidy"
Source: Employee Attitudes Toward Bring YourOwn Device, 06 December 2013, (G00258129)
16%
84%
Employees resist personal cost-shifting
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Smartphone BYO Programs: A Wash!
• Difficult to have uptake without a stipend
• The BYO program will still increase user satisfaction
• Reduce enterprise effort in managing devices
• May want to drive adoption by offering basicenterprise options
$0 $500 $1,000 $1,500
Ent.-owned, fullymanaged
smartphone
User.-owned, semimanaged
smartphone
Hardware andSoftware
Voice and DataService
IT Labor
Administration
SRA
End User Costs$0 $500 $1,000 $1,500
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Tablets:Will Users Opt in Without Stipend?
Without a stipend, direct costs of user owned tablets are 64% lower.
With stipend and indirect costs, user owned tablets are 9% lower.
Will you spend $500K for 1,000 enterprise-owned or 2,745 user-owned Tablets?
$0 $200 $400 $600 $800 $1,000 $1,200
Ent.-owned, fully managed
User-owned, semimanaged Hardware and Software
Voice and Data Service
IT Labor
Administration
Stipend
End User Costs
Hardware and Software
Voice and Data Service
IT Labor
Administration
Stipend
End User Costs
$0 $200 $400 $600 $800 $1,000 $1,200
By 2019, 85% of enterprises will provide no direct compensation for
BYOD purchases.
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Windows Applications on Tablets?
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
$1,000.00
Enterprise-owned fullymanaged tablet
Employee-owned semimanaged tablet
Employee-owned semi-managed tablet w/SBC
Employee-owned semi-managed tablet w/HVD
+11%
+85%
Base
Stipend
Administration
IT operations labor
Hardware and softwareData
-28%
-64%
-25%
+49%
Worthwhile considering if it eliminates the need for another endpoind device or if it reduces the TCO of the secondary device
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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How BYOPC Will Users Access Applications?
(Preliminary Numbers)
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Org. Owned BYODDevice/User
BYO + SBC BYO + Local VM BYO +Persistent HVD
BYO + PooledHVD costs
BYO + DaaS
-4%
Hardware & software
IT operations labor
Administration
Stipend
Base
+24
%
+26
%
+4
8%
+42
% +56
%
-20%
+8%
+10
%
+31
%
+26
% +39
%
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Key Issues
1. What are the main cost elements of aBYOD program?
2. What are the essential criteria for analyzing the cost of BYOD programs?
3. How can the benefits of a BYOD programbe maximized?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Lessons Learned: Program
Understand your goals.
Don't overreach with policy Controls (e.g., EMM):
- But it's hard to get MORE restrictive over time.
One global framework with local variations.
Target the right set of users, those that want BYOD and that are comfortable with technology.
Target the right set of devices, don't stopat smartphones.
Some users will opt-out. What do they get?
Consider CYOD where appropriate.
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Lessons Learned: Support and Financial
Redraw the boundaries of IT responsibilities and implement three levels of support as suggested by the managed diversity support framework
Subsidies vary by job role and country
Know your fully-loaded cost per device/employee
Handle international travelers carefully
- Loaner programs, concierge service, travel alerts
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Lessons Learned: Liabilities
Employee is liable for business use of personal apps
E-Discovery can lead to device seizure
Employee privacy protections: Personal data, location
Employee responsibilities for app licensing
Employee maintains personal equipment and data
Enterprise support limits
Protect the organization via signed policy stating:
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Goals Matter!
If the Purpose Is:
Then You Should:Employee
Satisfaction
Cost
Reduction
Mobile
Expansion
Measure Success by Perception Total CostParticipation
Rate
Communicate Benefits for Existing
Mobile Users
Senior Management
Priorities
Benefits to All
Workers and
Business Units
Focus onEmployee Choice,
Subsidies
Cost Controls,
Subsidy Limits
Workforce
Enablement Apps
Provide Device and
App Controls
Modest Controls Heavier Controls,
Limited Device
Choice
Vary by
Worker Type
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Conclusions: Leveraging BYOD for Business Benefit
• Segment users, define multiple management regimesOne size of management won't fit everyone
• BYO must be a win-win bargainEveryone gives something, everyone gets something
• Know your fully loaded costsUse the Gartner TCO chart of accounts
• Expect additional investmentsE.g., EMM, containers, app shielding, VDI, infrastructure, etc.
• Revisit application architectures and toolsThinner = Lower cost and more device neutral
• Use third-party management and payment processing servicesEsp. for more complex scenarios (multi-country/region, complextax situations)
• Look on this as an opportunity, not a problemIdentify new opportunities for application growth enabled by BYOD
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Recommended Gartner Research
Understand the Financial Impacts of BYOD Federica Troni(G00271207)
Use TCO to Assess Choices in Devices, Support Policies and Management Approaches Federica Troni (G00271167)
Intangible Benefits of BYOPC Must Be Considered to Offset Likely Cost Increases Michael Silver (G00271628)
Bring Your Own Device: The Results and the FutureDavid A. Willis (G00264028)
Toolkit: BYOD Mobile Device Policy TemplateRich Doheny and others (G00258603)
Magic Quadrant for Enterprise MobilityManagement SuitesTerrence Cosgrove (G00261703)
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