tco of rugged vs non-rugged mobile solutions in enterprise environments

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vdcresearch.co m 1 © 2011 VDC Research Group, Inc. Mobile & Wireless Mobile & Wireless Practice Rugged Tablet Calculus: Understanding the Total Cost of Ownership of Mission Critical Mobile Solutions June 2013 Brought to you by

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Hear the latest research from VDC and understand the total cost of ownership of rugged vs non-rugged mobile solutions.

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Page 1: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Brought to you by

Page 2: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 3: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

vdcresearch.com3© 2011 VDC Research Group, Inc.

Mobile & Wireless

About Us

Market Intelligence for Technology Vendors & Investors

Direct-Contact Primary Market Research

Deeply Segmented Data

Expert Insights

Validated Results

Custom Consulting Services for Your Most Critical Business Decisions

Research-Based Consulting

Transparent Tools & Methodology

o Highly Customized Survey Guides & Output Templates

o Sophisticated Market Estimate & Forecast Models

o Detailed, Flexible Stakeholder Maps & Profiles

o Industry Development Scenarios

o Market Opportunity Fit Screening, Rating & Ranking

Page 4: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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.

Page 5: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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.

Page 6: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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.

Page 7: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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.

Page 8: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 9: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 10: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 11: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 12: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 13: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 14: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 15: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

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

Page 16: TCO of Rugged vs Non-Rugged Mobile Solutions in Enterprise Environments

Thank You!

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