MODERNIZING MOBILE IN THE WAREHOUSE

APRIL, 2018

Kevin Lollock

Regional Manager – Field Specialist Teams: OS and Developer Platforms

kevin.lollock@zebra.com

If the rate of change on the outside is faster than the rate of change on the inside, the end is near.

Jack WelchChairman & CEO, GE (1981-2001)

CHANGE IS HAPPENINGBY 2020…

ONLINE RETAIL SALES

THE MOBILE WORKFORCE

ON-DEMAND ECONOMY

DIGITAL PATIENT CARE

30%of hospitals running real-time healthcare systems

Gartner

HEALTHCARE RETAIL MANUFACTURING TRANSPORTATION& LOGISTICS

15%of shipments areinstant delivery

McKinsey

15%of retail sales occur online

(15% CAGR)

Gartner

42%of global workforce are

mobile workers

IDC

E-COMMERCE IS DRIVING CHANGEIN THE LOGISTICS INDUSTRY

ENTERPRISE MOBILE COMPUTING CONTINUES TO EVOLVE…

First All-touch

Android Inventory

Solution. Increases

Productivity by 14%.

First Rugged

Enterprise

Digital

Assistant

First Enterprise

Digital Assistant

(EDA)First Thermal Printer

for On-demand

Barcode Labeling

Founded as Data Specialties by

Ed Kaplan and Gary Cless

First Handheld

Laser Barcode

Scanner

First Barcode

Printer

First Laser-Scannable

Two-dimensional Barcode

First Wearable

Computer

First Mobile RFID

Printing Solutions

First Smart

Environment

for Thermal

Printers

First IoT Platform for Enterprise

Applications (Zatar)

First Android-

based

Enterprise

Wearable

Computer

Only Migration Path

to Modern OS for

Legacy Windows

Applications

1969 1982 1986 1991 1997 2004 2008 2013 2015 2016 2017

PDT Devices –

Proprietary OS PDT Devices –

DOS OS

DOS OS

PocketPC, WinCE

and Palm OS

PocketPC, WinCE OS

First

Enterprise

Tablet (2011)

Android OS

*

Palm OSEnds

First Rugged

RFID Handheld

*

Last WinCE core update

THE WELL-TRAVELED PATH IS COMING TO AN END.Since 2010, enterprises have bought more than 15 million mobile units – 99 percent with a Windows-embedded O/S.

• By 2020/21, Microsoft will end extended support of Windows Mobile and CE-embedded O/S.Mainstream support of Windows Mobile is already past; mainstream support of CE ends soon.

• You will need to rebuild your applications regardless of which operating system you choose.

Since 2010, 99% of Enterprise Operating Systems have been a Windows-embedded OS

• Microsoft Extended Support

Retirement for WEH and CE 7

occurring in 2020 and 2021

respectively

• Microsoft Extended Support

Retirement for CE 6 occurring in April

2018

Products ReleasesGeneral

Availability

Mainstream Support

Retired

Extended Support

Retired

WEH 6.5 12/17/2010 1/13/2015 1/14/2020Windows Mobile 6.5 (std Pro) 9/11/2009 1/8/2013 None

WE CE 7 3/15/2011 4/12/2016 4/13/2021

WE CE 6 9/3/2003 4/10/2012 4/10/2018

https://www.microsoft.com/windowsembedded/en-us/product-lifecycles.aspx

2010201020102010 2014201420142014 2018201820182018

ENTERPRISE OPERATING SYSTEM ADOPTION

Microsoft Announces dissolution of Windows Mobile OS Development

Latest News confirming that Win10Mobile is not the focus…

https://www.theverge.com/

2017/9/26/16365424/bill-

gates-android-phone-switch

http://www.bbc.com/news/technology-41551546

https://www.pcworld.com/article/3231965/

windows-phone-os/windows-10-mobile-

phones-are-dead.htmlhttps://www.theverge.com/2017/10/

9/16446280/microsoft-finally-

admits-windows-phone-is-dead

October 2017 – The End of Win10 Mobile

9

Microsoft has 106 published Applications on

Google Play Store (Mar ‘18)

https://play.google.com/store/apps/developer?id=Microsoft+Corporation&hl=en

Microsoft Continued Support For Android

Zebra Confidential

WW MOBILE OS MARKET – ANDROID DOMINATINGAndroid + IOS => 99.7% Share

Jan 2016, @ 1.7%

market share

MSFT Earnings Call 4-23-17 “We had no material Phone revenue this quarter.” “in devices, we expect

revenue to decline with negligible revenue from Phone.”

http://framinghamsource.com/index.php/2017/03/24/idc-smartphone-sales-rebound-2017-5-year-growth-rate-3-8/

2017 IDC Mobile OS Market Share

Forecast(unit shipments)

Windows Phone - “IDC expects 2017 volumes to decline

69.5% to just 1.8 million units” 0.12% market share (Q2’17)

Source: IDC Worldwide Quarterly Mobile Phone Tracker, March 1, 2017

IDC/Gartner Mobile OS Market Share (units Shipped)

Q4 16 WW Shipments = 431M Units

(Over 180 Android Vendors)

http://www.gartner.com/newsroom/id/3323017

Android Adoption Among Industrial HH Device Vendors

Multi-Vendor

Industrial HHAndroid Device

Introductions

TC55 MC40 MC67 ET1 MC32

BP30 BM180 HM45

CN51 70E 7800

T41X T41G T41S

Skeye Alegro Skeye Dart

TC70

Total # of Vendors = 31 VendorsTotal # of Devices = 254 Devices

Device Mix

By OS

July 2016

# Vendors Supporting

Each OS Type (31 Total Vendors)

AndroidCE

WM

WE8/10

Short Term Disruptive, Long Term Positive

Improved User Experience (Ux)

• Hard keys-> All Touch (ATTE)

• Flattening UI’s

• Leveraging Gestures

• Larger Screens->Friendly Rendering

• Portrait & Landscape Capabilities

Zebra Technologies Confidential

Enterprise Customers Are Taking This Opportunity To Re-Architect &

Modernize Their Mobile Applications/Solutions

Applications & Solutions

• Increased Management & Security

• Cross-Platform, OS Agnostics App Frameworks

• Incorporation of Business Analytics

23

I N D U S T R Y L E A D E R S H I P

I N N O VAT I O N I NA N D R I O D

WHY MODERNIZE LEGACY PLATFORMS?

• Legacy mobile platforms are reaching EOL by 2020.

• Satisfaction with existing solutions waning

• Cost of supporting and maintaining legacy solutions and applications is increasing

• Inability to leverage advances in modern mobile devices

• Tighter alignment of applications with business processes

• Changing expectations of incoming workforce

3%

1%

7%

18%

28%

33%

9%

0% 10% 20% 30% 40%

Very Dissatisfied

Dissatisfied

Somewhat Dissatisfied

Neutral

Somewhat Satisfied

Satisfied

Very Satisfied

Source: 2015 Enterprise Mobility Decision

Maker Survey; n=533

Level of satisfaction with existing LOB mobile solutions

“CONFLUENCE”

CONSUMER INFLUENCE WITHOUT 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 , wear, Susceptibility

Low Audio Out

Limited Data Privacy

No Roadmap

Consumer Feature Focus

Battery Management

Zebra Technologies Confidential Restricted

Application MSFT-To-Android Migration Many Options & Tools To Facilitate

(1). Rewrite C# -> Java(1). Rewrite C# -> Java

Staying Native – Performance Optimized

Basic Porting of C# to Java (“a class is a class

is a class”)

Code Translators (mixed feedback)

(2). Abstract To Web Constructs (HTML5, JS)

(2). Abstract To Web Constructs (HTML5, JS)

Convert To Web Apps or Hybrid Apps

Good Platform Portability

Performance & Look-and-Feel Can Be a Challenge

(3). Retain C# .NET (3). Retain C# .NET

Leverage Common Lang Runtime (CLR) Development Framework (e.g. Xamarin )

Attributes of Native App

performance & UI

Retain Partial Legacy Code(% varies widely)

Retain C# .NET Skills

Integrated Into Microsoft Visual Studio

C#/

.NET

Xamarin EMDK

Zebra Technologies Confidential

Terminal Emulation Modernized

• Take existing “green screen” TE apps into an intuitive all touch experience

• Screen reformatting tool for additional design and customization

A Modern, More Productive User Experience

BEFORE AFTER

SOURCE:

Based on research conducted by

Zebra Laboratories, 2014

39% higher typing speeds

60% lower error rates

Gain 15 to 20% in productivity

All-touch Solutions Are Redefining Enterprise Productivity

Modern UI experience drives business gains

Android Portfolio Line-UpOptimized for Warehouse / Manufacturing Deployment Environments

TC8000 WT6000 VC80x

HANDHELDS

Premium Tier Mid Tier

MC33

WEARABLES

RS6000 RS4000 / RS5000

VEHICLE MOUNT

PLATFORM

ENHANCEMENT

Mobility DNA, provides customers with enterprise grade

capabilities for a simplified, integrated and more secure

solution.

BUSINESS TOOLS PRODUCTIVITY TOOLS MANAGEMENT TOOLS DEVELOPMENT TOOLS

Lower risk and expenseGain tighter security, enhanced

productivityEasy and efficient management.

Tools to easily access device

value adds

UnifiedCommunications

Automated Data Capture

Enterprise App. Delivery

Web ApplicationDevelopment

Wireless DEXContemporary UX

Barcode, NFC Staging

Cross Platform App.Development

Scanner Data Management

EMM Access to Mx Zebra Value Add

API’s for Android Development

Virtual Button Management

Controlled Associate Workspace

Enterprise Security, Manageability, Data

Capture, Connectivity

Enterprise BatteryEnterprise Security

Lifecycle

Enterprise Input

Protecting the Enterprise Android Investment…

Security Life Cycle / TCO

PLATFORM SECURITY PRINCIPLES

• If harmful applications

cannot execute, they can do

no harm.

• Zebra provides multiple

features to prevent

potentially harmful

applications from executing

• Tightly controls which

applications have privileged

access to our devices

DETECTIONDETECTIONDETECTIONDETECTIONPREVENTIONPREVENTIONPREVENTIONPREVENTION SECURITY UPDATESSECURITY UPDATESSECURITY UPDATESSECURITY UPDATES

• Zebra works closely with

Google to keep up with new

security vulnerabilities in a

timely manner

• Zebra provides detection

features to detect if

vulnerability has occurred

and take corrective action

Zebra is committed to ensuring that our devices provide a safe Zebra is committed to ensuring that our devices provide a safe Zebra is committed to ensuring that our devices provide a safe Zebra is committed to ensuring that our devices provide a safe

ecosystem for users and developersecosystem for users and developersecosystem for users and developersecosystem for users and developers

Study On Mobile Device SecurityHomeland Security April 2017

https://www.dhs.gov/sites/default/files/publications/DHS%20Study%20on%20Mobile%20Device%20Security%20-%20April%202017-

FINAL.pdf

Mobile device technology stack

Mobile Security Threats By Threat Category

In May 2016 The FTC & FCC Announced efforts to assess the Mobile Device Security Update Process

Study On Mobile Device SecurityHomeland Security April 2017

https://www.dhs.gov/sites/default/files/publications/DHS%20Study%20on%20Mobile%20Device%20Security%20-%20April%202017-

FINAL.pdf

Mobile device technology stack

Mobile Security Threats By Threat Category

In May 2016 The FTC & FCC Announced efforts to assess the Mobile Device Security Update Process

1). “The most important defense against mobile device security

threats is to ensure devices are patched against the publicly known security vulnerabilities”

2). “When making procurement decisions, enterprises shouldseek clear commitment from device vendors or mobile

carriers that security updates will be provided in a timelymanner”

3). “When a device model is no longer supported with updates,enterprises should decommission those devices”

– “Study on Mobile Security”, Homeland Security, April 2017

Who needs updates?

� One of the most Widespread cyber attacks.

Ransomware that encrypts computers and

demands payment

.... WannaCry (5/12/17)

.... BlueBorne (9/21/17)

• Works by masquerading as a Bluetooth device

and exploiting specific protocol weaknesses.

.... KRACK Attack (10/15/17)• A serious weaknesses in WPA2, an attacker

within range of a victim can exploit these

weaknesses using key reinstallation attacks

(krack).

… Spectre and Meltdown (1/4/18)• Meltdown and Spectre could allow hackers to steal sensitive data

without users knowing, exploiting processor security flaw that

could allow hackers to bypass the hardware barrier between

applications run by users and the computer’s core memory,

• Highly Secure Government & Public Safety Android Adoption– Android is the OS for the next generation Mission Critical High Assurance

devices being developed for enterprise and government applications.

• Enterprise– Android is the OS meeting regulatory security certifications in multiple verticals

Retail - PCI-DSS, Healthcare – HIPAA, Gov’t - FIPS 140-2

• Early Perceptions That Android Is “Not Secure” 1) Malware On Google Play Store (enterprise should white-list)

2) Early Android Releases (pre-ICS 4.0, release October 2011)

• Android has Demonstrated a History of Incremental Security Enhancements

– NSA “Security Enhanced” (SE Linux) Features, Per User VPNs, Address Space Layout Randomization (ASLR)…

ANDROID SECURITYALWAYS SEPARATE PERCEPTION FROM FACT

“The truth, though, is that Android security

is one of the most sensationalized and

misunderstood subjects you'll read about in the tech media today. Plain and simple,

a theoretical breach and a meaningful

threat that's actually putting users at risk

are two very different things.” --

http://www.computerworld.com/article/2475983/android/how-google-s-android-

security-is-about-to-get-even-smarter.html

“The truth, though, is that Android security

is one of the most sensationalized and

misunderstood subjects you'll read about in the tech media today. Plain and simple,

a theoretical breach and a meaningful

threat that's actually putting users at risk

are two very different things.” --

http://www.computerworld.com/article/2475983/android/how-google-s-android-

security-is-about-to-get-even-smarter.html

Google Monitors Actual Field Exploits– As Of May 2016 Zero DetectsOct ‘15

Zebra Technologies Confidential Restricted

Microsoft• Microsoft Legacy WM/CE

• Microsoft Has Ended Mainstream Support

• Zebra Continues To Support Customers

• Zebra has a viable Legacy OS strategy

• Microsoft Win 10 IOT Mobile Enterprise (W10IOTME)

• Microsoft Strategic Shift from Mobile OS � To On Premise & Cloud Services

• Win10 Mobile 0.12% Market share Creates A questionable future

Android • Driven by market demand, Zebra Introduced Android in Q4 2011

• Every Major Industrial Hand Held Device Vendor Now Supports Android

• Zebra Is Experiencing 250%-300% YoY Growth In Android Across All Major Verticals

• Android Flexibility Enables It To Run On Virtually All Devices

• Zebra Mx Enhances The Management & Security of Android

• Customers Have Android Options: AOSP or GMS/AFW

• Android Enables Zebra To Better Support Customers & To Extend The Life Cycle

• Lifeguard for Android extends the OS lifecycle beyond that of Consumer variants

28

OS Innovation Summary

Zebra Technologies Confidential Restricted

23

I N N O VAT I O N I N I N D U S T R Y

T R A N S P O R TAT I O N& L O G I S T I C S

E-COMMERCE IS DRIVING CHANGEIN THE LOGISTICS INDUSTRY

ANALYTICS IN THE SUPPLY CHAIN

PREDICTIVE ANALYTICS

Understanding loading trends and worker performance using historic

data, can help improve training and staff scheduling.

33

DATA COLLECTION REAL-T IM E AN ALYTICS NEXT BEST M OVE PREDICTIVE AN ALYTICS

T R A N S P O R T A T I O N & L O G I S T I C S

Zebra’s Future in the Modern WarehouseParadigm shift from “Point of Activity” to “Enhanced Awareness”

Survival of the fittest

It is not the strongest of the species that survive,

nor the most intelligent, but the one most

responsive to change.- Charles Darwin

THANK YOU