tco of rugged vs non-rugged mobile solutions in enterprise environments
DESCRIPTION
Hear the latest research from VDC and understand the total cost of ownership of rugged vs non-rugged mobile solutions.TRANSCRIPT
vdcresearch.com1© 2011 VDC Research Group, Inc.
Mobile & Wireless
Mobile & Wireless Practice
Rugged Tablet Calculus:
Understanding the Total Cost of Ownership of Mission Critical Mobile SolutionsJune 2013
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vdcresearch.com2© 2011 VDC Research Group, Inc.
Mobile & Wireless
Agenda
vdcresearch.com
About VDC Research
Tablet Market Dynamics
Total Cost of Ownership Models
Rugged Tablet TCO
vdcresearch.com3© 2011 VDC Research Group, Inc.
Mobile & Wireless
About Us
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o Industry Development Scenarios
o Market Opportunity Fit Screening, Rating & Ranking
vdcresearch.com4© 2011 VDC Research Group, Inc.
Mobile & Wireless
20102011
20122013
20142015
Approximately 17% of tablets used in enterprise settings and workflows
EM
PO
WE
RIN
G T
HE
MO
BIL
E W
OR
KE
R W
ITH
TH
E R
IGH
T TA
BL
ET
Tablet Growth Outpacing All Mobile Form Factors
Global PC and Tablet Shipments (Units)
Tablets are not new to the enterprise. Many
vertical workflows supported by tablets.
Introduction of iPad and Android tablets
providing lift to the market.
However, consumerization is less about
bringing consumer devices into enterprise and
more about introducing ‘consumer’ interfaces
on enterprise devices.
Ease of use/ user interface and new
power/performance paradigm are critical
enablers of next wave of tablet development.
Moreover, the horsepower of ARM-based
media pads will be a limiting factor for more
sophisticated enterprise mobile applications.
Windows 8 being closely monitored and has
potential to disrupt some Android momentum.
vdcresearch.com5© 2011 VDC Research Group, Inc.
Mobile & Wireless
EXTREMELY IMPORTANT VERY IMPORTANT SOMEWHAT IMPORTANT NOT THAT IMPORTANT0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
12.3%
47.0%
35.0%
5.7%
Level of importance of TABLETS as a strategic mobile computing and commu-nications platform
Tablets becoming a more strategic mobile computing and communications platform
Approximately six in ten organizations perceive tablets as very or extremely strategic as a mobile computing and communications platform.
vdcresearch.com6© 2011 VDC Research Group, Inc.
Mobile & Wireless
CURRENTLY USING TABLETS
CURRENTLY USING TABLETS AND PLANNING TO EVALUATE AND/OR DEPLOY AN UPGRADE
CURRENTLY EVALUATING TABLETS
PLANNING TO EVALUATE AND/OR DEPLOY A NEW TABLET SOLUTION
EVALUATED TABLETS BUT DID NOT DEPLOY
NO CURRENT PLANS TO EVALUATE OR DEPLOY A TABLET SOLUTIONS IN NEXT 12 MONTHS
DON'T KNOW
0.0% 10.0% 20.0% 30.0% 40.0%
Tablet Investment Situation
Broad interest in tablets among enterprise and government organizations with 55% currently using or evaluating/planning to deploy tablets
Resulting in broader adoption of tablets in the enterprise
Few organizations that evaluate tablets decide not to deploy. Balanced mix between current users and evaluators with almost 30% of organizations with no
current tablet initiatives.
vdcresearch.com7© 2011 VDC Research Group, Inc.
Mobile & Wireless
INCREASING REVENUES
REDUCING MOBILE COMPUTING COSTS
IMPROVING SCHEDULE PERFORMANCE
OBTAINING BETTER INSIGHT INTO OPERATIONAL PERFORMANCE
EMPLOYEES DEMANDING TABLET SUPPORT
IMPROVING CUSTOMER SERVICE AND SATISFACTION
IMPROVING MOBILE WORKER PRODUCTIVITY
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Tablet Investment Drivers
Tablet viewed as a key workforce productivity and customer engagement platform
Organizations focusing on worker productivity and customer satisfaction and interaction as the key tablet investment drivers.
vdcresearch.com8© 2011 VDC Research Group, Inc.
Mobile & Wireless
From direct sunlight exposure to use of device with wet or gloved hands, all impact the usability of mobile devices by field workers
Considering the Use Environments Critical to Device Selection
None of the above
Device exposure to extreme vibration
Device exposure to extreme (low/high) temperatures
Use of device in wet conditions (rain)
Use of device with gloved hands
Use of device in direct sunlight
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
38%
22%
24%
28%
28%
43%
Environments or scenarios common to your most recent mobile deployment by form factor
vdcresearch.com9© 2011 VDC Research Group, Inc.
Mobile & Wireless
Failure rates of mobile devices used for line of business applications increases substantially for non-rugged devices
Tablets Smartphones0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Rugged Non-Rugged
The recent influx of consumer devices into the enterprise through broader support for BYOD programs and the desire by users for a more intuitive and modern platform has contributed to an increase in device failure rates.
Failure rates for popular (non-rugged) consumer devices used to support line of business applications exceeds 15% for tablets and 20% of smartphones, representing a measurable increase in comparison to the previous research conducted by VDC.
Conversely, failure rates of rugged devices dropped. While end users are using devices longer, on average, as a result to access to capital issues, a shift in device class deployed has contributed to a drop in average failure rate.
Mobile Device Failure Rates by Device Type
vdcresearch.com10© 2011 VDC Research Group, Inc.
Mobile & Wireless
Variety of hardware and software issues driving failure
MO
BIL
E S
OL
UT
ION
TR
EN
DS
Plug-in wireless cards
Peripheral/accessory
Wireless radios
Drive failure
Damaged keyboard/keypad
Software failures
Cracked display
0% 10% 20% 30% 40% 50% 60% 70% 80%
9%
16%
16%
19%
30%
48%
67%
Leading Symptoms of Device Failure
Leading Symptoms of Device Failure
Excessive vibration exposure
Dust particulates exposure
Excessive heat/cold temperature exposure
Unauthorized changes to device configuration/settings by end user
Water/liquid exposure
Software related issues
Dropping device
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
8%
9%
11%
14%
38%
42%
77%
Leading Causes of Device Failure
vdcresearch.com11© 2011 VDC Research Group, Inc.
Mobile & Wireless
Consumerization of IT less about bringing consumer devices into the enterprise and has more to do to delivering ‘consumer-like’ experience on enterprise devices.
In line of business, enterprise-lead processes dominate.
Leading consumer platforms – Android and iOS – still have major limitations for enterprise-centric use cases, especially in line of business environments. Key challenges include:
• Security support.
• Multitasking capabilities.
• WiFi Connection Management.
• Compatibility.
• Lifecycle support and version control.
• Help desk.
• Device and OS maintenance.
• File Transfer.
• Printing.
• Connectivity.
Microsoft Remains in Drivers Seat in Enterprise
vdcresearch.com12© 2011 VDC Research Group, Inc.
Mobile & Wireless
TCO critical to making right tablet investment decision
Hard Costs
Hardware• Mobile Platforms• Peripherals
Software• Upfront Fees• License Fees• Development Costs
System Design and Integration• Application Design and
Development• System Integration• Staging
Soft Costs
Training• Initial User Training• On-going User Training
Operational• System Maintenance• 3rd Party Technical Support• Internal Technical Support• Upgrades• Application Management
Downtime• Lost Manpower/Wages• Lost Revenues• HW Replacement
vdcresearch.com13© 2011 VDC Research Group, Inc.
Mobile & Wireless
Rugged device TCO measurably lower in comparison to non-rugged TCO
Tablets Smartphones$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Rugged Non-Rugged
As a result of the increased failure rates of consumer devices used in line of business environments, their TCO relative to rugged counterparts grew considerably.
Other challenges with consumer devices include:
• Accessory management
• Wireless performance
• Use with gloved hands/ wet conditions
• Lifecycle management
• Security
The appeal of consumer devices lies not only in their lower upfront adoption cost but also the significantly superior user experiences delivered on these devices.
It is here that rugged devices – especially handheld devices and tablets need to improve to counter this trend.
Mobile Device Annual TCO for Line of Business Applications
vdcresearch.com14© 2011 VDC Research Group, Inc.
Mobile & Wireless
Rugged Tablets Non-Rugged Tablets$0
$2,000
$4,000
$6,000
Annual Tablet TCO
Upfront Deployment Hard Costs IT Support Costs Productivity Loss Costs
IT S
uppo
rt a
nd P
rodu
ctiv
ity
Loss
Acc
ount
s fo
r 89
% o
f T
CO
Tablet TCO for Line of Business Applications
vdcresearch.com15© 2011 VDC Research Group, Inc.
Mobile & Wireless
IT budget pressures driving greater focus on ROI and TCO of mobile investments – major projects require hard metrics
Increasing importance for strong metrics such as ROI and TCO to not only validate investments but similarly to track and measure use of mobile solutions within the enterprise post deployment.
Line of business mobile solutions are business and mission critical – and need robust and reliable solutions to support them.
Consumerization of IT all about introducing consumer experiences – NOT technology – into the enterprise. Traditional enterprise oriented mobile solutions need to catch up.
Critical is aligning right mobile solution with target user and application environment. Flood of consumer technologies in the enterprise has driven spike in failure rates.
The cost of supporting and managing a device post deployment is just as if not more important that the upfront device investment.
Enterprise Mobility Investments: TCO and ROI Models Becoming More Critical
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