Consumer vs. Enterprise Devices: Which is Right for your Business?

Presented by Worldwide Business Research

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TODAY’S SPEAKERS

DAVID KREBS VP, Enterprise Mobility and Connected Devices VDC Research

JOHN POMERLEAU Director, Industry Solutions Motorola Solutions

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Leveraging Connected Smart Mobile Devices to Enable Real Time Decision Making and Transaction Processing

among Remote Mobile Workers

WHAT IS ENTERPRISE MOBILITY?

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MASSIVE SCALE TO DEVICES CONNECTING TO INTERNET

1995 2000 2012 2020

Stationary (PC) Computing

(you go to device)

Mobility/ Consumerization

(device with you)

IoT 1.0

(age of devices)

IoT 2.0 (people, processes,

integration)

200M

10B

50B

Source: Cisco, VDC Research

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META TRENDS IMPACTING ENTERPRISE ORGANIZATIONS

Accelerating Profits in Face of

Squeezed Margins

Improving Staff

Efficiency and

Productivity

Identifying New

Revenue Streams

Improving Route and

Driver Efficiencies in Face of

Rising Fuel Costs

Improving Customer

Loyalty and Repeat

Business

Maximizing Asset

Lifecycles

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44% 32%

31% 28%

25% 24%

23% 21%

16% 14%

11% 10%

0% 10% 20% 30% 40% 50%

Improved mobile worker productivity

Reduced operating costs

Improved real-time decision making

Increased sales/ revenues

Improved employee collaboration

Reduced paperwork

Improved competitive advantage

Improved customer loyalty & repeat…

Encouraged innovation

More accurate billing

Reduced asset failures

Less employee overtime

Most Important Business Initiatives Impacted by Mobility

ENTERPRISE MOBILITY IS BUSINESS CRITICAL

Accelerated ROI for Mobile Solutions as Solution Functionality Spans Multiple Capabilities

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19%

22%

24%

25%

25%

27%

27%

30%

34%

0% 10% 20% 30% 40%

Most secure OS

Corporate standard

Availability of enterprise support and managementtools

Reliability of the hardware

Wide availability of applications of all kinds

Adoption cost

Software reliability

Ease of integration with legacy enterpriseapplications

Ease of use

What are the primary factors driving selection of your organization’s mobile devices for use by frontline mobile workers?

EASE OF USE IMPORTANT. HOWEVER, ENTERPRISE FEATURES SIMILARLY CRITICAL

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Which Operating System are you planning to use in the next 12-24 months?

-Android -iOS -Windows Embedded Handheld 6.x -Windows Next Generation

POLLING QUESTION

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25%

24%

23%

21%

17%

15%

14%

13%

8%

Washed out display in bright conditions

Non responsive touch display in wetconditions

Security vulnerabilities

Remote management and supportcapabilities

High incidence of accessory failure

High incidence of device hardware failure

Lack of enterprise-class accessories

High incidence of software failure

Application not intuitive / easy to use

What, if anything, are the most significant issues experienced with the mobile devices used by LOB workers?

CONSUMER DEVICES FACE ISSUES ADDRESSING ENVIRONMENTAL CONCERNS

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38%

33%

22%

18%

17%

15%

13%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

Remote management and supportcapabilities

Security vulnerabilities

Washed out display in brightconditions

High incidence of device hardwarefailure

Application not intuitive/easy to use

Lack of enterprise-class accessories

Non responsive touch display in wetconditions

Line of Business Mobility Issues of Greatest Concern to Organization

ENTERPRISE MOBILITY ISSUES FAR REACHING

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43%

28%

28%

24%

22%

38%

0% 10% 20% 30% 40% 50%

Use of device in direct sunlight

Use of device with gloved hands

Use of device in wet conditions (rain)

Device exposure to extreme(low/high) temperatures

Device exposure to extreme vibration

None of the above

Line of Business Mobility Issues of Greatest Concern to Organization

CONSIDERING THE USE ENVIRONMENTS CRITICAL TO DEVICE SELECTION

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tablets Smartphones Notebooks HandheldComputers

Evaluation of Rugged Devices Prior to Deployment

Yes No

CONSUMER DEVICES WITH NEW DEPLOYMENTS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tablets Smartphones Notebooks HandheldComputers

Replacement of Existing Rugged Devices with Consumer Devices

Yes No Don't know

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MOBILE DEVICE CONSIDERATIONS FOR FRONTLINE MOBILE WORKERS

Field Service/

Inspectors Delivery Drivers

Warehouse Workers

Retail Associates

Healthcare Workers

Mobile Workflows

• MRO • Inspections • Safety Audits

• Pickup/ Delivery

• Material Handling

• Picking/ Placing

• Fulfillment • Receiving/

Shipping

• Inventory Management

• Mobile POS • Clienteling • Merchandizing

• Medication Administration

• Patient Care • Mobile HER • Specimen

Management

Device Considerations

• Hazardous Rated

• 6’ Drop to Concrete

• Daylight Visible Display

• Gloved Hand • Wet Display • Temperature

• 6’ Drop to Concrete

• Daylight Visible Display

• Gloved Hand • Wet Display • Temperature

• 6’ Drop to Concrete

• Gloved Hand • Cold Chain • Wearable

• 6’ Drop to Concrete/ Carpet

• Daylight Visible

• 6’ Drop to Concrete/ Carpet

• Disinfectable

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RUGGED VALUE PROPOSITION STUCK WITH LEGACY HARDWARE

43%

51%

6%

Perception of Ruggedized Devices

Ruggedized devices are significantly

lagging behind key mobile technology

trends

Ruggedized devices are on a par with key mobile technology

trends

Ruggedized devices are leading key mobile technology trends

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MOBILE TCO: JUST BECAUSE YOU CANNOT SEE IT…

Hardware & Software Acquisition

System Design & Deployment

User Training

Operational Costs

Downtime Costs

Hardware Lifecycle

Software Lifecycle

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7%

4%

23%

18%

0%

5%

10%

15%

20%

25%

Smartphones Tablets

Annual Failure Rate by Form Factor

Rugged Non-Rugged

Influx of consumer mobile devices in enterprise line of business workflows driving up failure rates

Many smartphones and tablets are being deployed with specialized accessories – such as a sled based device for scanning and payment.

Other challenges with consumer devices include:

• Accessory management • Wireless performance • Use with gloved hands/

wet conditions • Lifecycle management • Security • Battery management

MARKET FUNDAMENTALS FOR RUGGED ENTERPRISE DEVICES STRONG

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9%

16%

16%

19%

30%

48%

67%

0% 20% 40% 60% 80%

Plug-in wireless cards

Peripheral/accessory

Wireless radios

Drive failure

Damagedkeyboard/keypad

Software failures

Cracked display

Leading Symptoms of Device Failure

VARIETY OF HARDWARE AND SOFTWARE ISSUES WITH CONSUMER DEVICES

8%

9%

11%

14%

38%

42%

77%

0% 20% 40% 60% 80% 100%

Excessive vibrationexposure

Dust particulatesexposure

Excessive heat/coldtemperature exposure

Unauthorized changes todevice

configuration/settings…

Water/liquid exposure

Software related issues

Dropping device

Leading Causes of Device Failure

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68

78

67

53

79 87

0

10

20

30

40

50

60

70

80

90

100

Smartphones Tablets

Min

utes

Productivity Loss, Diagnosis & Time Required to Redeploy

Productivity Loss

Internal Time Spent to Diagnose and Repair

Time Required to Redeploy

LEADING TO SIGNIFICANT WORKER PRODUCTIVITY LOSS

148

71

56 52

88 77

0

20

40

60

80

100

120

140

160

Field Applications(WAN)

Facility Applications(LAN)

Min

uite

s

Productivity Loss, Diagnosis & Time Required to Redeploy

Productivity Loss

Internal Time Spent to Diagnose and Repair

Time Required to Redeploy

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DEVICE FAILURE A KEY CONTRIBUTOR TO TCO

Each

1% Increase

in Device Failure

…

Equates

a 5% Increase in TCO

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HANDHELD/SMARTPHONE TCO MODELS

38%

29%

33%

Rugged HH/Smartphone TCO Contribution

Hard CostsIT SupportProductivity Loss

12%

38% 50%

Consumer Smartphone TCO Contribution

Hard CostsIT SupportProductivity Loss

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Rugged HH/Smartphone

ConsumerSmartphone

Handheld/ Smartphone TCO

ProductivityLoss Costs

IT SupportCosts

UpfrontDeploymentHard Costs

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What wireless carrier(s) are you currently using? -AT&T -Verizon -Sprint -Bell/Rodgers/Telus -Other

POLLING QUESTION

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Let the application and environment drive device selection Don’t make accessories an after-thought Prepare for the ‘hidden costs’ Focus on sustainable application development Focus on mobile device and software lifecycle management Plan for more training than anticipated

MOBILE INVESTMENT RECOMMENDATIONS

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MOBILITY TRENDS

• Service Demands increasing • Require highly skilled individuals • Work day is variable, complex in location

and task • High degree of compliance-focused work • Unpredictable dynamics of the work day

Result is:

Mission Critical in Timing, Skills and Consequence

23

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FOUR QUALIFYING QUESTIONS: WHEN IS A SMARTPHONE BEST AND WHEN IS A MORE DURABLE RUGGED DEVICE NEEDED?

1. Data collection needed through scanning, signatures, geocoding location info, time stamp or pictures?

2. Environmental conditions? 3. Roadmap and support now and

after the sale? 4. How long do you plan to use

the device?

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POLLING QUESTION

How long do you keep your devices? -2 years or less -3 years -4 years -5 years or more

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MOBILE OS MARKET DYNAMICS ANDROID LEADING MOBILE OS IN 900M+ UNIT MARKET

WW SMARTPHONE MARKET (UNITS)

2,000

1,500

1,000

500

0 2010

305

494.50

722.40

918.60

1,076.30

1,237

1,380.40

1,536.10

2011 2012 2013 2014 2015 2016 2017

Worldwide. DC

2013 MSI PARTNER SURVEY ON OS DIRECTION

53% of EMC partners identified Android as the OS with the strongest demand from their rugged mobile computing enterprise customers

Which operating system do you see most in demand from your customers (all devices)?

1H’13 OS PREFERENCE

ANDROID

BLACKBERRY OS/QNS

APPLE iOS

WINDOWS CE

WINDOWS EMBEDDED HANDHELD

WINDOWS MOBILE PHONE

59.1%

2.7%

29.1%

43.6%

33.6%

32.6%

http://www.gartner.com/it/page.jsp?id=1622614

CURRENT WW SMARTPHONE OS MARKET SHARE

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% Q4’12 Q1’12 Q2’13 Q3’13

20.9%

3.0% 2.9% 3.3% 3.6%

18.2% 14.2% 12.1%

69.7% 74.4%

79.0% 81.9%

CAGR = 25.7% 919M Units in ‘13

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CONFLUENCE “BEST OF” CONSUMER + ENTERPRISE

CONSUMER COMPROMISE

Security Vulnerabilities

Limited Wi-Fi Support

Consumer life Cycles

Multi-Piece Solutions

UI/Ux Flexibility

Multi-User

Ability To Customize

Limited Data Collection

Compliance To Regulatory Mandates

Mindshare

Theft / Shrinkage

Forced Services & Pushed Notifications

App Procurement

Durability Impact Susceptibility

Low Audio Out

Limited Data Privacy

No Roadmap

Consumer Focus

Battery Management

CONSUMER INFLUENCE

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Value Tier Mid Tier Premium Tier

Microsoft Legacy OS / Key Based

New OS / Touch Centric

MOTOROLA MOBILE COMPUTING SOLUTIONS

TC55 Android JB

MC45 WEH6.5

NFC

MC65 WEH6.5

MC67 WEH6.5

Android JB, Dual WAN

MC75 WEH6.5

ES400 WEH6.5

MC95 WEH6.5

MC40 Android JB

ET1 Android JB

TC70 Android KitKat MC3200

Android JB

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TCO CALCULATOR REPORT

www.motorolasolutions.com/TCO

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TCO CALCULATOR REPORT

VDC Research has successfully audited Motorola's TCO assessment tool and has certified that the logic, calculations, and underlying assumptions within it are consistent with their own research, and that the representation of ruggedized and non-ruggedized devices is reasonable and equitable.

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QUESTIONS?

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