Mobile World Congress 2014 Will Push The Mobile Mind Shift

Dan Bieler

Mobility is becoming pervasive in the enterprise. Smart devices, including wearables, are appearing in all sectors, both in developed and emerging markets. Businesses that fail to prepare for the mobile mind shift risk losing their competitive edge. I hope this year’s Mobile World Congress, which kicks off on February 24, will emphasize the interaction between business processes and mobility — in addition to the traditional gadgets.

I focus primarily on themes relating to the connected business and social collaboration, and I will travel to the world’s leading mobile event in Barcelona to gain new insights into several questions in these areas:

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Securing The Asia Pacific Airwaves

Clement Teo

by Clement Teo and John Brand

VMware recently announced that it has signed a definitive agreement to acquire AirWatch, a leading provider of enterprise mobile management and security solutions. The acquisition is expected to provide customers with the most complete solution to manage users, devices, and applications across server, desktop, and mobile environments.

My colleagues Tyler Shields and Christian Kane have already shared their views and published two reports on the acquisition. Tyler has also raised some questions about AirWatch’s burn rate.

But what does it mean in Asia Pacific?

VMware obviously has had to expand its penetration beyond the server-centric virtualization market. So far, it has had mixed success with selling virtualization as a platform in the region, even though it has successfully entrenched itself as a leading hypervisor provider (unfortunately, VDI has proved a difficult sell for VMware in AP). In order to gain much deeper penetration and traction, VMware needed to add an end user computing offering to its portfolio. The pairing should result in:

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The UK Government’s Drive To Improve Public Sector Technology Procurement Is Fundamentally Flawed

Duncan Jones

Transformation Should Focus On Improving Outcomes, Not Merely On Increasing Competition

I’ve spoken with many IT Procurement leaders in public sector organizations ranging from US county schools districts to national governments. Most are prevented from applying best practices such as Strategic Software Sourcing by their politicians’ ill-conceived edicts and directives, such as those included in this announcement by the UK’s Cabinet Office that optimistically claims “Government draws the line on bloated and wasteful IT contracts”. In related press interviews the relevant minister Francis Maude complained that “a tiny oligopoly dominates the marketplace” and talked about his intention to encourage use of open source alternatives to products such as Microsoft Office, to increase competition and to divert more spend to small and medium-sized IT companies. The new edicts include bans of contracts over £100 million or 2 years’ duration and of automatic renewals. Mr. Maude claims these rules “will ensure the government gets the best technology at the best price”.

Mr. Maude and his team have a laudable and important goal but their approach is misguided, in my opinion. Short term contracts, indiscriminate competition and avoiding sole source category strategies will deliver neither the best technology nor the best price, because:

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Lenovo Bets On The Mobile Mind Shift And Aims To Be A Digital Platform

Frank Gillett

Lenovo’s made three strategic moves in just one month: 1) Buying IBM’s x86 server business, 2) Reorging into four business units – most importantly including one called “ecosystem and cloud group”, and 3) Buying Motorola Mobility. The later two are driven by the mobile mind shift – the increasing expectation of individuals that they can access information and service, in context, in their moment of need. Smartphones are central to that – as are the ecosystem and cloud services that deliver value through the smartphones.

Lenovo has stated intentions to become a leading smartphone maker globally, building on their leading position in the China market. Buying Motorola Mobility is a much quicker way for Lenovo to access the premium smartphone market with a leading Google Android (not forked Android) offering - than trying to do it with their existing design teams and brand reach. Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets, and built critical mass makes a lot of sense. 

But Motorola has not been shooting the lights out with designs or sales volumes in smartphones. So the value is simply in brand recognition to achieve market recognition faster - and to dramatically expand the design and marketing team with talent experienced at US and Western markets. 

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Wearables Require A New Kind Of Ecosystem

JP Gownder

In the fast-moving markets of wearables and IoT, it's easy to be dazzled by new technologies. But what's more impressive to Forrester is a coherent, disruptive business model. I've written that 2014 will be the year of wearables 2.0, when select vendors develop real wearable business models. To help that journey along, I'd like to offer up a hypothesis for a new industry axiom:

In the era of wearables and the Internet of Things, tech companies must create a new kind of ecosystem  an ecosystem not of developers, hardware makers, or services companies, but of brands, healthcare providers, retailers, financial services companies, and governments.

I'm still testing this hypothesis out, and will write about it in future research. In the meantime, I'd like to hear your examples. To give you a sense of what I'm talking about, it's an ecosystem comprised of companies in:

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Master Has Presented MDM With Clothes! MDM Is FREE!

Tyler Shields

Mobile device management is a fully commoditized market. In the strictest definition of MDM, the available functionality is limited to those application programmer interfaces that are made available by the operating system vendor (Google or Apple). There is very little that traditional MDM offerings can do to differentiate themselves from the other 100+ vendors in the market. This causes significant price pressure on the offerings. Value for MDM is rapidly approaching zero. As we have seen over the past year-and-a-half, core MDM component offerings have been continuously lowering their prices in an attempt to maintain market share. There is a transition by the major MDM players to expand well beyond the traditional "wipe," "lock," and "locate" concepts available to them into more advanced technologies such as content and collaboration systems, security components at the network and application layer, as well as partnerships and integrations with secondary market offerings. These features have value. MDM at its core does not.

I think it's about time someone came out and said it. Just like Dobby from the Harry Potter books, MDM should be free. I've been telling all of the vendors that I work with that if they don't put out their MDM offering in a freemium model very shortly, the other vendors will beat them to the punch. Traditional MDM offerings are a land grab for enterprise market share and should be used as an upsell or wedge into more advanced and differentiable offerings. I predict that in the next 6 to 9 months we will see most, if not all, of the leading MDM vendors giving away their core functionality.

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Why Bitcoin Is Here To Stay

Brian  Hopkins

When I stumbled across Bitcoin (or Bit-O-Coin, as my wife likes to call it) a few years back, my spidey sense started tingling. Since that time, I’ve made a few off hand remarks about the future of crypto-currency and received the expected “it’s another Dutch Tulip thing”. While I’m not an expert on the financial markets, I do have an excellent track record for identifying disruptive technology changes and I’ve concluded that crypto-currency is here to stay.

 

Here’s why:

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Artificial Intelligence - What You Really Need to Know

Michele Goetz

It looks like the beginning of a new technology hype for artificial intelligence (AI). The media has started flooding the news with product announcements, acquisitions, and investments. The story is how AI is capturing the attention of tech firm and investor giants such as Google, Microsoft, IBM. Add to that the release of the movie ‘Her’, about a man falling for his virtual assistant modeled after Apple’s Siri (think they got the idea from Big Bang Theory when Raj falls in love with Siri), and you know we have begun the journey of geek-dom going mainstream and cool.  The buzz words are great too: cognitive computing, deep learning, AI2.

For those who started their careers in AI and left in disillusionment (Andrew Ng confessed to this, yet jumped back in) or data scientists today, the consensus is often that artificial intelligence is just a new fancy marketing term for good old predictive analytics.  They point to the reality of Apple’s Siri to listen and respond to requests as adequate but more often frustrating.  Or, IBM Watson’s win on Jeopardy as data loading and brute force programming.  Their perspective, real value is the pragmatic logic of the predictive analytics we have.

But, is this fair?  No.

First, let’s set aside what you heard about financial puts and takes. Don’t try to decipher the geek speak of what new AI is compared to old AI.  Let’s talk about what is on the horizon that will impact your business.

New AI breaks the current rule that machines must be better than humans: they must be smarter, faster analysts, or they manufacturing things better and cheaper. 

New AI says:

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Just Let Me Fling Birds At Pigs Already! Thoughts On The Snowden/Angry Birds Revelations

Tyler Shields

“But until a person can say deeply and honestly, 'I am what I am today because of the choices I made yesterday,' that person cannot say, 'I choose otherwise.'” 

― Stephen R. CoveyThe 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

"Privacy is a decision best left in the hands of the professionals."

- Tyler Shields, Senior Analyst Forrester Research

This posting is in reference to the recent Snowden revelations that mobile applications are a conduit for governments to spy on citizens. New York Times article HERE.

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Was AirWatch Running Out Of Runway?!

Tyler Shields

It's hard to believe that a company could burn through $225 MILLION dollars in 11 months, but it looks like that may have been exactly what AirWatch did. According to data released by AirWatch and written by financial analysts (links to all data sources at bottom of post), AirWatch likely had burned through nearly all of its available cash in record time. Based on an assumption of $120K burn per employee (fully loaded) per year and an assumed removal of $50M in equity at the time of the venture round, AirWatch would have had somewhere between 5 and 6 months of runway left as of January 2014. These assumptions are corroborated by the fact that VMware has contractually extended AirWatch an offer to provide a bridge loan if the acquisition deal does not close in the next 6 months.

 

 

What did AirWatch do wrong? It sounds like they may have made some over-assumptions with regards to their growth rates for 2013. It could have possibly been the adoption rates in countries outside of North America. It may have just been bad luck. Or it could even be a cooling off of interest in mobile device management technologies based on containerization. We won't know exactly why they were getting near the end of the runway, but what we can say is that VMware may have overpaid in multiple. Based on the data provided by VMware of AirWatch bookings for 2013, VMware paid somewhere around 16x bookings for AirWatch. Man, that's a lot of bread!

 

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