VDC Research: Enterprise & Government Mobility Market Blog

Event Recap – Citrix Synergy

Citrix succeeded in demonstrating it can innovate on application delivery and customer service

I had the pleasure of attending Citrix's Synergy customer event this past week in Orlando Florida. The event was well attended (about 7.5K on-prem, and roughly 5K remote attendees) and featured a nice mix of vendors on the show floor that ranged from small startups to heavies such as Cisco, IBM, Intel and Microsoft. After narrowly missing its Q1 numbers a few weeks ago, Citrix needed to demonstrate that its recent restructuring and organizational changes were positives; and that they were helping to transition the business to its next phase of growth. The company's GM and CSO for Workspace Services Geir Ramleth summed it up nicely when he said: "This is a new Citrix — we're moving in a more cohesive way." Citrix was successful in this vein, Synergy provided a big opportunity to showcase a robust innovation pipeline in front of the company's most important customers.

The Suite Always Wins (right?)

If you've been tracking the evolution of mobile enablement in the enterprise, you know that many vendors are vying to deliver "holistic" or "end-to-end" mobility solutions (suites). The goal is certainly a noble one, but it is not very realistic. Most large firms are working with several EMM and complementary security vendors, as well as with a variety of application development platform and tool vendors; while this is not ideal, it is a fact of life (today at least). However, as Apple, Google, Samsung and Microsoft continue to refine their mobility solutions, vendors like Citrix will need to focus on helping businesses simplify application delivery and provide them with tools that can help with implementing best practices and with  mobile architecture and security policies. Bottom line, differentiating is going to get tougher. From what I heard at Synergy, Citrix gets it, and is working hard on developing new products and services that will enable businesses to move beyond thinking about which devices to provision and support by offering device and network agnostic solutions that can manage modern mobile applications while enabling them to move legacy applications to a cloud environment via a single control plane.

The "suite approach" isn't going away (IBM, Oracle and SAP have proved that), but it is changing. Opening up platforms is critical moving forward; customers don't want to be "locked in", and need the flexibility to run the applications of their choosing. While Citrix maintains a broad portfolio of products: XenApp, XenDesktop and XenServer to secure data via virtualization, NetScaler and CloudBridge to secure the network, and XenMobile, WorxApps and ShareFile (and now Workspace Cloud) to provide a containerized environment for productivity applications, to share content and provision applications, it is a stretch to call these a "suite". However, the range of these solutions shows how many elements are needed in a modern enterprise. Not to mention important partners that vendors like Citrix must integrate with that can help deliver capabilities for streamlining app development, enhanced security, secure messaging, and user experience reporting/monitoring. Bottom line, suites sound good to customers, but require complementary solutions. While the vision and approach that Citrix is pursuing to enable their customers to seamlessly manage and provision modern mobile applications while helping them move to the cloud is the right one; others have moved in this direction too.

Feud Continues — Enzo and Beyond the Horizon

The fact the VMware unveiled its project "Enzo" the day before Citrix's Synergy event wasn't surprising (after all, Citirix announced key enhancements to XenApp and Xen Desktop the day before VMworld kicked off last summer). Regardless, both Enzo and Citrix's Workspace Cloud share a similar goal and  make use of a control plane to enable customers to deliver a comprehensive mobile workspace to their end users; with the aim of better orchestration between apps, physical resources and the cloud. I plan on digging deeper to learn more about the technical differences between these competing solutions; suffice it to say that these are complex and have the potential to disrupt how end user computing services are delivered. Both Citrix and VMware have robust solutions; however they both are challenged by the strong interdependencies that exist between their various solution components — not to mention limited backwards compatibility as they update their platforms.

One Final Thing ...

The big reveal at Synergy was Dynamic Containerization (DC) which appears to bypass the need to access and modify an app's source code (a cumbersome and very limiting process). DC brings the ability to containerize any publicly available app from the Apple App Store or Google Play Store. I had the opportunity to speak with several key stakeholders that were involved in developing DC; there is no question that Citrix has proved they can deliver this capability (I've saw a demo), however, I'm skeptical as to whether the method/IP is in violation of the TOS of both Apple and Google. End users would love this capability and have been asking for it; however this will be a wait and see as the product matures.

The #UNCEO

Mark Templeton has been with Citrix from the beginning, he's plain-spoken, down-to-earth and is the epitome of the #UNCEO. CEO's like John Legere and Marc Benioff may be the most prominent #UNCEO's, but Templeton should be right there with them (credit to my friend @bobeagan for mentioning this at the event). Not only does he pull off this vest, but Templeton made it a priority to visit with many of his company's partners on the show floor (even the smallest vendors).

Ping Mark and encourage him to be more active on Twitter - it's not too late. After all, Obama just joined this week!

Wrap

This blog didn't cover several of the important initiatives that were revealed at Synergy; namely: WorkspaceHub (a dongle which incorporates both BLE and WiFi and features with VGA and HDMI inputs) that leverages Octoblu (a Citrix cloud platform) to manage M2M interaction between devices by using sensors and wireless connectivity. The demo of this tech wowed the audience as it showed how a workspace could be seamlessly "moved" from one device to another. The integration with Amazon's Echo was the most impressive element as it enabled voice-control in the workplace. Concierge: which enables real-time customer service and support directly from within a mobile application (great use of #WebRTC). Citrix also showed off CubeFree: a modern version of the WiFi finder mobile app but for finding reliable workspaces (cool concept).

Upon leaving the event, it was clear that the company's key executives and product owner/managers had been busy working on the technology that was showcased. Citrix's vision is a good one, but it will definitely take time for companies to make a meaningful move in the direction that the company is moving in. There are a variety of factors that have placed CIOs in a holding pattern when it comes to extending mobile applications to their workforce. These range from the acknowledgment of not being properly equipped to support mobile platforms (from an IT and resource perspective) to being unable to successfully articulate the value proposition and ROI from mobile enablement to corporate leaders. But from what I'm seeing in the market, it will only be a matter of time ...

 

Event Recap ― SAP SAPPHIRE (Mobile Perspective)

2014 proved that SAP can play "in the cloud", but they still need to get their mobile house in order ...

S/4HANA's Big Roll out

To no one's surprise, this past week's SAPPHIRE conference was all about S/4HANA, the next-generation ERP suite that SAP launched this past February. The company's CEO Bill McDermott spoke with conviction about the importance of digitization and customer centricity, and made it clear that S/4HANA was going to deliver on the "simple promise" and help businesses become both data-driven and seamless.

S/4HANA is definitely a big deal, as it has a notably reduced footprint which will reduce complexity and simplify migration. But the speed of the platform is what will be the most appealing (3-7x the throughput and up to 1,800 times faster analytics, according to SAP). It remains to be seen how quickly the company will be able to capitalize from its robust and cloud-optimized business suite. SAP did a superb job this year in getting key prominent customers to participate on stage at SAPPHIRE — of course, the risk is that the spokesperson goes "off script" — this seemed to happen when Walmart's EVP and CIO Karenann Terrel proclaimed "I hope to see S4/HANA delivered in my lifetime ... it’s on my bucket list." Ouch. SAP needs to quickly prove that migration can be simple and beneficial. Progress is being made (the company revised its Q1 S/4HANA customer count to 400+ (from 370), but the bet on S/4HANA is so large, that the pace will need to increase quickly.

Google and Facebook

McDermott provided some new details on the future of his company's partnership with Google, saying that it will "make work easier for people". Google's Executive Chairman Eric Schmidt (via video) described it as "a great day", and explained how SAP software integration with Google for Work was a priority for the company. Schmidt went on to say: "What's great about this first step, with all the big customers that we jointly have, is that we are now able to show the power of web and mobile computing and the power of all that data and computation that SAP has been producing for years."

There were no real new details pertaining to the partnership with Facebook; however it is clear that the companies have been collaborating together since last summer. It appears as thought they have made progress by leveraging S/4HANA to enable businesses to build on-the-fly social media marketing promotions and target Facebook users with customized advertisements.

There were other notable announcements at the event, including a new CRM digital for customer engagement (DCE) application (initial 30-day free trial then $29/user/month), as well as some clear progress on the IoT front — however, the remainder of this post will focus on what we learned about the company's progress in augmenting its Mobile Secure product portfolio.

Rick is Running

SAP snagged a true mobility veteran in Rick Costanzo who has been running the company's global mobility BU for just over a year. Costanzo also is responsible for the company's Telco business (a recent reorganization called for the two BUs to merge) — however, the reorg. along with the departure of several key mobile executives, raised some eyebrows. After meeting with several key mobility executives (including Rick Costanzo), the party line was that the BUs were not only similar in size, but were better together. Could be. But, SAP needs the newly consolidated Telco and Mobility business units to enhance its delivery scale, increase agility, generate portfolio synergy and improve profitability. This is precisely what seems to be in the works, with a realigned go-to-market strategy, and a dedicated enterprise mobility sales organization. This is good progress considering Costanzo's short tenure. 

Mobile Secure, Apps and Key Partners

SAP is hinting at further integration of its development platform (SMP) with its Mobile Secure solution — this makes sense, and seems to be direction that others are moving in as well. The company also announced partnerships with Innovapptive and Sitrion to complement its custom mobile app platform; both offer prepackaged mobile apps and leverage S/4HANA's mobile services. SAP continues to benefit from its partnership with Mocana, and alluded to new synergistic partners that will likely be revealed in Q3. SAP continues to de-emphasize its Afaria brand (smart), and is leading with the right messaging: security. However, differentiation is becoming increasingly difficult for all enterprise mobility vendors — in this vein, SAP should be more aggressive with showing its customers that has been successful in unifying its disparate development platforms (SUP, Syclo, Mobilizer) and showcase its content and application management capabilities.

One last take away — key SAP mobility executives seem to be working well with key ecosystem partners such as Apple, Google, and Microsoft. In my view, the company's customer footprint in the enterprise is more valuable than it realizes; this puts SAP in a excellent negotiating position with these larger and highly sought after partners.

Off to Citrix Synergy!

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Following Record Q2 Earnings, Apple Turns to Partnerships to Bolster Enterprise Ambitions

This week, Apple made headlines with record earnings in Q2, mostly on the back of iPhone 6 sales, while iPad sales continue to slip. In an effort to maintain the tablet’s relevance, Apple is redoubling its efforts in the enterprise, where the iPad has gained considerable traction. To that, CEO Tim Cook announced that Apple is working with an increased number of partners to expand its reach into the enterprise and change how people work. The partnership goes well beyond IBM to include app developers like Box, bigtincan, Docusign, ServiceMax, Revel, MicroStrategy and Workato to expand Apple’s reach well into the enterprise ecosystem. While OEMs partnering with ISVs is not new within the enterprise – we have only to look to both BlackBerry and Samsung’s teaming up with SAP as a counterexample – it nevertheless represents a continuation of Cook’s vision to firmly plant Apple in the enterprise. With Windows 10 looming on the horizon, growing Surface 3 and Surface 3 Pro sales and a stagnating market for consumer tablets, the pressure for Apple to establish itself as not only a viable competitor, but the competitor to beat in an increasingly competitive market.

Consumer devices still hold considerable influence

While iPad sales have stalled in the consumer market, their influence continues to grow within the enterprise, as a growing number of companies are looking to mobilize their workforce. SVP and CFO Luca Maestri cited a survey in Monday’s earning call in which 77% of corporate buyers looking to buy tablets within the next six months plan to purchase iPads. VDC estimates that in 2013, nearly 6 million devices were deployed into enterprise and government applications, accounting for nearly half the market of consumer grade tablets in the enterprise – a number that is sure to grow. The power of the brand and the familiarity of the user interface have made the tablet nearly the de facto choice for non-rugged deployments in the enterprise. In a world in which “tablet” and “iPad” are synonymous for many, particularly in an enterprise purchasing position, Apple’s potential is enormous. The groundwork Cook laid in opening up Apple and iOS to outside partnerships in previous year, particularly in making a decisive break with the company’s Jobsian roots in partnering with IBM for enterprise solutions, is providing a strong foundation upon which Apple can build.

In the land of enterprise mobility, user experience is king

However, to be successful in the enterprise, Apple needs to ensure the strength of its partnerships and its app ecosystem. Tuesday’s headlines of dozens of American Airlines flights being grounded due to an enterprise iPad app glitch is a glaring reminder as to the vulnerabilities that abound in the push to mobilize. Even when the stakes are not quite as high, there need nevertheless remains to ensure an integrated experience that functions in conjunction with robust security. While Apple is partnering with major ISVs, many smaller, best of breed names on the list will have the opportunity to bring their capabilities to the forefront on a much larger stage. Companies like bigtincan are looking to bring seamless functionality to the forefront, particularly in working with Apple’s Handoff technology to enable users to work with content across all form factors, as well as using other iOS features like TouchID and the ability to add external content from iOS8 enabled apps. Meanwhile, ISV Workato is partnering with Apple to provide an even deeper level of app integration that enables end users to enable workflows across applications without the need to app-swap. By opening itself up to such a broad spectrum of partners, Apple could shore up its position even further in the enterprise space, especially if it can provide the user experience enterprise consumers have come to expect through their personal devices.

Partnerships are bringing enterprise to all platforms

While much of the enterprise attention is focused on the iPad, given its commercial potential despite the rapid maturation of the form factor, another enterprise foothold could be the newly launched Apple Watch. Although much of the media attention has been dedicated to consumer adoption rates and applications, VDC has already looked at the potential for the wearable to pave the way for smartwatches to become a more integral part of enterprise mobility. Regardless of form factor, though, Apple has nurtured a healthy ecosystem of third-party applications and peripheral devices that are empowering enterprise across industry verticals that solidify the company’s capabilities beyond personal consumption. Moving forward, however, one concern Apple will need to address is the breadth of its services beyond its partnership with IBM, particularly as companies like Samsung have moved to expand its enterprise presence through a comprehensive services solution. The challenge now that it has donned the mantle of enterprise competitor will be to ensure that Apple can bring these partnerships to fruition and gain the necessary traction to successfully compete against the likes of Microsoft and Samsung in a world where services, user experience, and seamless integration are paramount.