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.
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.
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.
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!
Google, the online search superpower, has for years sought to maximize "eyeballs" -- in search marketing, a colloquial term for ad impressions viewed online.
Lately, though, Google's been going after a new kind of eyeballs. The literal kind.
Hot off of its announcement of a future product roadmap for smart contact lenses, Google today announced a partnership with VSP -- the largest optical health insurance provider in the United States -- for Google Glass. The New York Times quoted me saying, "the key business model of the year for wearables is becoming embedded into the health care system." By injecting wearables into health care:
The addressable market expands.VSP serves 59 million members with vision care insurance.
Costs go down. VSP will offer subsidized frames and prescription lenses tailored to Google Glass. Some VSP members save additional money on purchases with pre-tax payroll deductions for the money they spend on optical care.
Credibility goes up. By coordinating with opticians and opthamologists, Google Glass can be recognized as consistent with healthy optical practices.
My esteemed colleagues Renee Murphy and Nick Hayes joined me in a fully collaborative, marathon evaluation of 19 of the most relevant GRC platform vendors; we diligently pored through vendor briefings, online demos, customer reference surveys and interviews, access to our own demo environment of each vendor’s product, and as per Forrester policy, multiple rounds of fact checking and review. The sheer amount of data we collected is incredible.
Today, Technopolitics welcomes back Fatemeh Khatibloo to continue our discussion of privacy and data transparency in honor of Data Privacy Day 2014, held on January 28. Data Privacy Day is held in honor of the 1981 signing of Convention 108, the first international treaty on data and privacy, by the Council of Europe. With privacy and data transparency now a mainstream issue, Fatemeh discusses how companies can use this moment as an opportunity to build stronger, more trusting relationships with their customers by being more open, clear, and targeted with data collection and retention.
Fatemeh will also be hosting a joint webinar with Forrester identity and access management expert, Eve Maler,"Contextual Privacy: Making Trust A Market Differentiator" tomorrow in honor of Data Privacy Day at 1PM EST. Be sure to join and get a more in-depth look at how companies can take advantage of the opportunity for deeping the ties of trust with their customers through contextual privacy.
Our application development and delivery (AD&D) team has recently launched our survey on digital customer experience initiatives, and we’re looking for information on your digital customer experience strategy and technology investments. Some of the questions we’d like to get answers to include:
What projects (if any) you have planned for this year.
Details about what those projects look like (e.g. budgets, staffing, and primary decision-makers).
On January 22, 2014, a new mobile security player was born. This is the date that VMware announced its intention to purchase the mobile device management (MDM) firm AirWatch. With a price tag of $1.5 billion, this acquisition confirms that the mobile security market is scorchingly hot. This news comes on the heels of the November acquisition of Fiberlink by IBM. I expect additional mobile security market consolidation to occur throughout the remainder of 2014. This acquisition is a shot across the bow of any other major vendor looking to play in the mobile security market. If you don't step up and spend now, you might just be left holding the bag.