Each year, Forrester analysts field over 20,000 inquiries on a variety of topics, which provide insight into the key issues and challenges facing our clients in a variety of roles, including CIOs, enterprise architects, vendor strategists, and marketing professionals. Forrester defines enterprise mobility as the ability of an enterprise to communicate with suppliers, partners, employees, assets, and customers irrespective of location. During 2009, analysts fielded nearly 700 inquiries related to enterprise mobility issues, jumping from 550+ inquiries in 2008 and 360+ inquiries in 2007. What are these inquiries asking about? The key focus of these inquiries is on mobile applications, mobile devices, and mobile employee segmentation.
Questions about mobile applications accounted for over 20% of all enterprise mobility inquiries in 2009. The majority of these application inquiries were focused on vertical applications, including fleet management solutions in the transportation industry that enable more efficient, real-time routing of vehicles. Today, email and calendaring mobile applications are mainstream in most enterprises, so many companies are broadening their mobile application initiatives to address the needs of particular types of line-of-business workers in their industry (e.g., retail, healthcare, transportation, financial services.) We expect continued growth in the number of mobile application inquiries during the coming year.
Enterprises are deploying a wide range of horizontal and vertical mobile applications. Results from Forrester’s 2010 Network and Telecom survey of IT decision makers at North America and European firms show that horizontal mobile applications such wireless email, have been implemented or are being implemented by 86% of firms, and calendaring and personal information management applications have been deployed by 68% of firms. The next wave of mobile application deployment is focused on meeting the needs of line of business (LOB) workers such as sales force and field service professionals, or industry-specific requirements such as inventory management applications in retail, or location-based applications in the transportation arena. Survey data shows a persistent level of application implementation and planned deployment among 14% – 19% of enterprises for mobile sales force, field service and emergency response applications. We expect this mobile LOB application deployment to gain momentum in 2010.
The methods enterprises use to acquire and develop these mobile applications vary widely. Homegrown or in-house mobile application development is commonly used by 40% of North American and European enterprises. Approximately 30% of all enterprise organizations use a local, regional, or national external developer for mobile application development requirements. North American enterprises are significantly more likely to purchase mobile applications from a mobile service provider portal site or from a mobile application store. Between 24% and 29% of North American enterprises use these two types of mobile application development approaches, compared with only 11% to 15% of European firms.
On Monday, June 7th, AT&T will introduce two new smartphone data plans, which will replace the current $30/month unlimited data plan offer and will make smartphone data packages affordable to more customers. The DataPlus package does, indeed, lower the entry-level price for smartphone users. The DataPlus package costs $15 per month for 200 megabytes of data, with the option of purchasing an additional 200 megabytes of data for $15. Customers who are heavy data users can purchase the DataPro plan, which is a 2-gigabyte package for $25 per month. If customers go over this limit, an additional gigabyte of data costs $10. DataPro customers can also use their mobile devices as wireless modems to connect other devices (e.g., laptops) to the network for an additional $20 per month.
The net-net of these new packages is that customers using the DataPlus plan get a voice and data plan for $55 per month and customers on the DataPro plan pay $65 per month, compared with the current price of $70 per month. These price cuts will benefit the increasing number of employees who are responsible for paying for their own voice and data plans. Results from Forrester’s 2010 Enterprise And SMB Networks And Telecommunications Survey show that approximately 30% of over 1,000 surveyed enterprises have already cut the number of employees who qualify for corporate-liable mobile data and voice services, and 17% plan to cut the number of employees on corporate-liable voice and data services this year.
I'm excited to introduce a new way for marketers and product managers to get answers to their most pressing issues and challenges. Forrester has launched an online community for technology marketers and product managers as the premier destination for leaders to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will also be part of the community, helping facilitate the discussions and sharing their views.
The community is open to all technology marketers and product managers.
Here’s what you’ll find:
A simple platform on which you can pose your questions and get advice from peers who face the same business or technology challenges.
Insight from our analysts, who weigh in frequently on the issues and point to relevant research.
Fresh perspective from peers, who share their real-world success stories, best practices, and templates.
Content on the latest technologies and trends affecting your business — from Forrester and other thought leaders.
I encourage you to become part of the community:
Ask a question about a business or technology problem.
Start a discussion on an emerging trend that’s having an impact on your work.
Contribute to an existing discussion thread from a community member.
Share templates with your peers for common artifacts like social media guidelines or campaign outlines.
Suggest topics for upcoming Forrester research reports.
Earlier this week SAP acquired Sybase for $5.8 billion. Blogs from my colleagues Stefan Ried and Holger Kisker primarily address the database and business analytics components of the acquisition. However, it is important to recognize how prominently SAP emphasized Sybase’s success as a mobile middleware platform and solution provider as a key driver of the acquisition. SAP highlighted the importance of extending mobile applications to billions of mobile users worldwide over any device as a strategic imperative. Forrester’s 2010 survey of IT decision makers in nearly 2,000 North American and European enterprises highlights the critical role of mobile applications and smartphone devices in corporate strategic initiatives. When it comes to mobile applications, 45% of enterprises prioritize supporting more mobile applications for out of office users as a critical or high priority in the coming year, and 33% state that supporting more mobile applications for employees who work in the office is an important or critical priority. In addition, supporting the use of more smartphones is an important or critical priority for 44% of enterprises.
The Sybase acquisition will enable SAP to deliver mobile applications to the growing number of individuals using mobile devices and smartphones. Sybase has a suite of mobile solutions including the Sybase Unwired Platform, a mobile client development platform which supports device platforms including RIM, Google Android, and Apple iPhone. The Sybase 365 mobile messaging platform supports messages for over 700 enterprise customers, including many leading communication service providers. Mobile assets account for about one third of Sybase’s $1.2 billion revenues, and are the fastest growing segment of the business.
A combination of factors is combining to reshape and recast the IT services sector. These factors include the continued weak economic environment, the further development of a global delivery model (GDM), new uses of technology across clients’ go-to-market and supply chain ecosystems, the adoption of cloud and SaaS utility-based pricing and delivery models as well as the adoption of a selective sourcing model by buyers. Forrester asserts that these changes will have a dramatic impact on the make-up and dynamics of the IT services business just as the shift to PCs dramatically changed the minicomputer/hardware market in the late 1980s and early 1990s.
Over the past several weeks my colleague John McCarthy and I have conducted extensive research around the future of the IT services market which forms the basis of our forthcoming major research report to be published in June 2010. We talked to approximately 20 of the leading vendor strategists from both leading service provider organizations as well as other key market players like ISVs, SaaS providers and communication services firms. We now offer interested vendor strategists the unique opportunity to hear from us what the major outcome of the research was and what key implications and recommendations they draw for vendor strategists. For this we have designed a workshop format that will deal with the following key questions:
Will the emergence of cloud and SaaS impact the traditional IT services market?
When and how will that impact play out?
How will the economic slowdown and declining IT budgets impact users’ services spending?
What are the key attributes for success in the new services market?
If you are interested in such a workshop (either in person or via web conference) please let us know and we will be happy to schedule according to your needs.
HP acquired Palm for $1.2 billion in cash, ending recent speculation over who would purchase the struggling handheld device manufacturer. On the surface, this acquisition appears to bolster HP’s mobility strategy with Palm’s webOS mobile operating system, carrier relationships, experienced mobility personnel, and intellectual property.
However, if you look under the hood, this acquisition has a key flaw. HP currently offers iPAQ PDAs and handsets that use Microsoft’s Windows Mobile operating system, but these devices have had limited success among enterprise users. Will acquiring Palm put HP in a strong position against other competitive mobile operating systems vendors? Not necessarily. In Forrester’s survey of over 1,000 IT decision makers in North American and European enterprises, only 12% of firms officially support or manage Palm devices. In comparison, 70% of enterprises support BlackBerry smartphones, and 29% support Apple iPhones. Android devices, the newest entrants in the mobile OS wars, have strong momentum and are officially supported by 13% of firms.
HP did gain some important assets as part of the acquisition. Palm's carrier relationships are a plus, and HP can leverage its strong international distribution channel to expand the reach of these mobile devices on an international level. Palm’s highly skilled employees, mobile operating system R&D expertise, and intellectual property are also a benefit. In the short term, HP’s acquisition gave Palm a new lease on life, but given the intensely competitive mobile device landscape, HP’s $1.2 billion investment may not pay off in the long term.
Last week at Forrester’s Marketing Forum, I had the pleasure of sitting three rows back from a panel discussion comprised of a who’s who of B2B marketing executives: Chris Bradshaw, Senior Vice President and Chief Marketing Officer, Autodesk; James K. Cornell, Senior Vice President and Chief Marketing Officer, Prudential Retirement; Deborah Nelson, Senior Vice President of Marketing, Enterprise Business, Hewlett-Packard; Marjorie Tenzer, Vice President, Marketing & Communications, IBM Americas, IBM. The panel was moderated by Forrester’s own Peter Burris, Principal Analyst and Research Director.
Here’s 45 minutes of discussion distilled into four key takeaways:
We have all heard a lot about the growing segment of information workers including senior executives, managers, legal professionals, and financial service executives who use their smartphones for work. About 45% of all employees in the US are information workers, and Forrester survey results show that nearly 15% of these workers use smartphones for work. In addition, nearly 33% of information workers are issued smartphones by their company, and about 25% select and purchase a smartphone that may, or may not be supported by the company. We expect the info worker segment to grow significantly as more employees work away from their desk or telecommute.
Vendor marketing and strategy professionals across the mobile value chain must understand how information workers use smartphones and applications, so they can successfully develop products to address the needs of these workers. Information workers are going beyond plain vanilla email, calendar and PIM applications. Many are trying out instant messaging, productivity apps to access Word, Excel, and PowerPoint documents, and location-based services. To tap the fast-growing slice of information workers relying on their smartphones, business application categories must be clearly identified on mobile operator portals and mobile app store sites. Device manufacturers and mobile operators must also ensure smartphone features and functionality address both personal and professional user needs. Are there other strategies vendors are using to address the needs of the mobile information worker segment?
Hello, fans of Vendor Strategy. Welcome to Forrester's new-look VS blog. We will be aggregating analyst posts across our entire Vendor Strategy research team here, so bookmark it and please come back often.
Here's how my colleague Cliff Condon summarized Forrester's move to a new blog platform:
Hey everyone. Here it is – Forrester’s new blog network. We made some changes to improve the experience for readers and to encourage more analysts to blog. Feel free to poke around and let me know what you think.
There are a few things I’d like to point out to you: