VDC Research: Enterprise & Government Mobility Market Blog

BlackBerry’s Uphill Battle to Regain Enterprise Confidence

It’s no secret that BlackBerry is working to maintain its relevance in enterprise mobility. CEO John Chen emphasized just last month at Mobile World Congress that the firm had engineered a new strategy to restore customer’s confidence in BlackBerry. Both in Barcelona and at a meeting with analysts in January, Chen has stressed the relationship with enterprise as central to the company’s strategy and success. Potential revenue enhancing opportunities have emerged, such as the news that the company intends to support the Windows Phone platform with its upcoming BES 12 release (BBM support for the Windows Phone platform was also disclosed), and the announcement that Ford will be using the company’s QNX platform for its next-generation Sync system—however, while these initiatives have potential, we see the company’s reluctance to abandon its hardware orientation as hurting its long term prospects. While there remains a window of opportunity to maintain relevance with a device centric strategy (The firm made a wise choice by partnering with Foxconn to defray the downside of its unsustainable (and unprofitable) manufacturing operations), we believe the upcoming Z3 (low end consumer device) and Q20 (a QWERTY keyboard sporting enterprise-grade smartphone) are the company’s last chance. This is primarily due to the fact that there is a marked loss in mindshare with enterprise customers—according a recent VDC survey, the lack of confidence is quite stark.

Forecast is Gloomy

Our survey showed that BlackBerry’s support among larger enterprises (organizations with greater than $500M in annual revenues) has continued to has lose ground to both the Apple and Android platforms. BlackBerry also lagged significantly and was the least-supported OS, both among BYOD and enterprise-issued devices according to our study. When asked point-blank about their likelihood in investing in BlackBerry, the same companies showed a marked level of ambivalence:

While Apple and Android are the dominant mobile platforms in the enterprise, we believe that there is room for a third ecosystem—particularly one with enterprise-grade capabilities.

Need for Speed

While the new Z3 and Q20 devices are slated for later this year, BlackBerry needs to move quickly as new devices such as Samsung’s S5 (April) and Apple’s iPhone 6 (September?) are fast approaching. Both are high-end devices and feature notable enterprise-grade enhancements that will be difficult to match.  In the meantime, the company should continue to enhance its focus on its BYOD management solutions—else, the road ahead will continue to be long and increasingy uphill.

(Research and written contribution by Kathryn Nassberg)

Rumors and Rugged Consumer Devices at Mobile World Congress

Lions and tigers and phablets, oh my!

With Mobile World Congress looming on the horizon, there has been considerable buzz surrounding the anticipated unveilings in Barcelona. The enterprise-friendly range of display sizes continues to grow, with rumors of HTC introducing a new member to its line of Desire phablets, and LG’s recent confirmation of the G Pro 2. This reinforces predictions of phablet use to grow significantly in 2014, particularly within business environments. The increased focus on mobile devices in a data-centric setting and desire for larger screens could help bolster the form factor’s popularity, despite its unwieldy size and ungainly nomenclature.

 “Samdroid” continues its enterprise push

Other anticipated launches include Samsung’s Galaxy S5, which could help the firm make further inroads into a predominantly Apple-dominated enterprise setting.  Nokia has also garnered considerable attention with talk of the Nokia X being launched at MWC. Leaked images of the Android OS featuring Windows 8-style tiles has people both intrigued and confused, especially given its new relationship with Microsoft. The device also raises questions as to the possibility of devices capable of running on multiple platforms, which could potentially be alluring in enterprise setting, particularly for BYOD.

Smartphones get tough

Meanwhile, VDC is keeping an eye on manufacturers like Kyocera and Sonim, who are making inroads into the consumerization of ruggedized features that have traditionally been associated with specialized enterprise devices. As price points continue to drop, this could pave the way for consumer-grade devices that boast greater levels of ruggedness and environmental protection, particularly in regards to water-resistance. While current options for non-enterprise rugged smartphones are limited, announcements from MWC could well herald a shift towards more durable consumer devices and create an upset among more traditional rugged manufacturers.

Big changes on the horizon

While VDC anticipates announcements at Mobile World Congress to highlight the continued development of devices that are increasingly enterprise-capable both in regards to performance and form factor, we nevertheless believe that the truly disruptive technologies are still on the horizon. Right now technology such as flexible displays and wearable devices are in their infancy, and have generated significant buzz, but current pricing and a lack of widespread practical applications have meant that they are primarily in a proof-of-concept stage. If the technology is able to move beyond this and gain more widespread acceptance, it has the potential to revolutionize the mobile device market…just not this year.

Large-scale Deployments Increase Growth Potential for BLE, iBeacon

Bluetooth Low Energy (BLE) technology is poised to revolutionize consumer in-store experience in 2014, further augmenting already existing mobile retail applications. VDC research from last year revealed that 23% of retail organizations had rolled out mobile applications to supplement their current in-store services, and that an additional 42% planned to deploy mobile applications in 2014. BLE technology, like that of Apple’s iBeacon, strives to address this gap with increased location and engagement services by allowing devices to communicate directly with one another.

A cheaper, more precise way to engage consumers

BLE represents a drastic improvement from existing solutions like Near Field Communication (NFC) and GPS-based geo-location. Bluetooth beacons eliminate the need for close proximity for interaction between devices by vastly increasing the data transfer range from the current distance of 8 inches to 150 feet, and at a much reduced cost. Additionally, BLE has a greater potential consumer reach, as all mobile devices come equipped with Bluetooth capabilities, instead of requiring a specific installation, as is the case for NFC. The greater range and improved precision also allows for retail stores to use micro-triangulation services in-store to improve both analytical capabilities and in-store promotions, creating endless opportunities for personalized marketing strategies on an individual level. Consumers who opt in will be able to view information such as reward points, daily deals, and history of purchases upon entering a given store. Such interactions have the potential to increase both consumer spend per visit and overall brand loyalty.  As of January 2014, a handful of companies have begun trial runs for BLE technology, with Macy’s, American Eagle Outfitters, and Safeway Supermarkets all running iBeacon in select stores across the US.

iBeacon goes mobile

Other companies are looking to take the new technology out of the store and onto the road. This week, smart driving assistant maker Automatic announced its device, which plugs directly into a car’s data port will now support iBeacon, representing one of the largest BLE beacon deployments to date. Automatic speculates the roll out will transform the traditional iBeacon retail framework to provide their users with similar automotive services such as pay for parking, gas, or automatic alerts as they drive. If successful, this could help pave the way for greater integration of BLE as a payment solution, boosting acceptance for other POS solutions, like that of PayPal, which was announced in September of last year, but has yet to gain widespread adoption.   

BLE is lucrative, but barriers remain

While many of the advantages that BLE offers revolve around its energy efficiency and potential reach, these strengths are tempered by existing barriers to adoption. Although the energy requirements for businesses deploying BLE are low thanks to its design (the technology can run on coin-cell batteries for months or even years), this is not the case for mobile device users, who frequently keep their Bluetooth capabilities switched off to conserve battery life. VDC estimates that only small fraction of device users keep theirs switched on. Another barrier is the limited access for Android devices and even Apple devices to a certain extent. BLE’s current reach within the Android ecosystem is severely limited (the technology requires Android 4+) and Apple’s reach is not as pervasive as believed: only iOS devices from the 4S generation have the same capabilities. However, with the imminent launch of Android-based Datzing as an Apple competitor that can function on older phones, Android’s present gap in this market could narrow significantly in the year to come. Barriers also remain on the enterprise side, as BLE in its current incarnation requires individual apps. Currently, there is no central iPhone app to interact with retail beacons using iBeacon. For businesses that already have mobile apps, this presents less of a limitation, as the functionality can be added, but for firms, a dedicated app will need to be designed to capture the benefits of the new technology.

Privacy remains a primary conern

One of the remaining hurdles that BLE technology will need to overcome is the most pressing of them all: that of privacy. Right now, beacon technology is based on company-specific applications that require opting in. However, the question remains whether, despite the current opt-in setup,  users will want businesses to know their every step and whether payment software can be trusted to charge the correct amount to a customer’s  credit card. More importantly, the issue remains as to whether BLE can succeed given the current environment in which revelations of security breaches like that of Target are becoming increasingly prevalent. Additionally, there are growing concerns surrounding data collection and overall privacy that many companies will need to address in order to allay consumer fears. VDC believes that the inherent effectiveness of the technology has tremendous capacity for consumer buy-in and will likely overcome most concerns surrounding privacy and security, but firms will nevertheless have to work to earn and keep consumer trust as BLE continues to gain traction. 

 

(By Kathryn Nassberg.Research and written contribution by Katelyn Moroney, Research Intern for Mobile and Wireless)

NRF: Mobility Trends for 2014

The National Retail Federation hosted its annual exposition in mid January at the Javits Convention Center in New York City. The two-day event featured 550 retail solution providers and nearly 30,000 attendees, a record for the event. VDC’s Mobility Analysts David Krebs and Kathryn Nassberg took the opportunity meet and speak with a variety of retail technology solution providers and retailers at the expo and observe the emerging mobility trends firsthand. These are some of their observations:

Competition between Microsoft and Android for rugged handheld share intensifies

The competition between Microsoft and Android is heating up in the ruggedized device arena. While Microsoft platforms remained the undisputed leaders in the rugged handheld sector in 2013, VDC anticipates that 2014 will be a breakthrough year for Android. Already, OEMs like Motorola, Honeywell, and Bluebird are offering ruggedized handheld devices featuring the Android OS, which is rapidly becoming a credible challenge to Microsoft’s hegemony in the rugged space. However, Android still has to prove itself in this arena and the market will closely follow the success of several large-scale deployments planned for the first half of 2014. As with any new platform, there have been growing pains in introducing ruggedized Android solutions, with many early products falling short of expectations. However recent release issues, such as application performance, scanner integration and security have been largely addressed. Nevertheless, the perception of Android as a less secure and fragmented platform persist and the rugged mobile OEM vendor community would benefit from a more cohesive approach in addressing these issues.

A much-needed development has been clearer communication among rugged mobile OEMs with respect to their development initiatives. Although much of 2013’s lack of direction was tied to Microsoft’s timeline, industry leaders such as Motorola Solutions created solution among partners and customers as they hedged between Microsoft and Android. The timing could not have been worse as the challenge from consumer devices (especially iOS) intensified. Today, we are seeing much greater conviction from rugged handheld OEMs regarding their Anroid roadmaps and believe that the devices and Android services available today can materially impact the market in 2014.  

Recent research among retail technology decision makers conducted by VDC Research in 2013 supports rugged vendor’s Android efforts. According to respondents currently using rugged handheld devices with plans to upgrade their legacy devices, over twice as many intend to migrate to Android-powered devices (33%) as opposed to Windows Embedded 8 Handheld devices (15%).

Apple loses some of its retail luster

Make no mistake; the use of Apple iOS mobile devices for enterprise mobile workflows is not going away. In fact, Apple continues to up its focus on the enterprise segments and the enterprise features embedded within its iOS devices.. However, following much iOS fanfare over the past two NRF events, VDC is hearing about retailers’ frustration with some of their Apple deployments with increasing consistency. Despite tremendous success in the consumer markets, the sheen has begun wear off for Apple devices for enterprises using the devices. Given Apple’s near-exclusive customer orientation, managing devices operating on iOS is no easy task and support in an enterprise setting is proving challenging. Moreover, firms are also encountering issues with wireless performance and supporting multiple users per device, further lessening Apple’s enterprise appeal. On top of these technical setbacks, there is also the pervasive issue of employee theft. VDC believes that in light of these issues, companies will increasingly look to other OEMs to meet their enterprise mobility needs.

EMV Compliance as a Mobile Payment Forcing Function?

The looming EMV compliance deadline of 2015 was a almost predictably absent theme at NRF. Although technology vendors are eager to sell EMV-compliant POS solutions and certain retailers (see WalMart) are moving forward more aggressively with their EMV rollouts, all will be moot until card issuers get serious. A major barrier in the US is that card issuers and their networks are married to signature-based interchange fees for credit and debit card transactions (PIN based transactions generally cost less for merchants in comparison to signature transactions). However, the fact remains that while the US accounts for nearly 30% of all charges/transactions, it also accounted for 47% of losses stemming from fraud.

Nevertheless, even with such a strong headwind, it is expected that EMV compliant investments will increase substantially over the next few years as retailers upgrade their POS infrastructure. The wild card here will be the impact of the continued shift to mobile solutions. Some retailers – such as Abercrombie – have announced plans for an all-mobile POS future. According to VDC’s most recent retail research, almost eight in ten respondents currently or plan to support mobile POS solutions within their retail organizations. While the shift to mobile does not necessarily mean a move away from EMV, it will open the doors for retailers to think of alternative payment options such as NFC and tap to pay solutions. Although card solutions are not going away, it is entirely conceivable that mobile payment will account for an ever-increasingly share of the market.

“Wait and see” was certainly a prevalent mantra among retail executives in regard to next generation POS solutions. The door is open for retailers to address both EMV and mobile payment needs and vendors such as ROAM are complying with the launch of an EMV-compliant mPOS terminal. However, addressing both simultaneously is perhaps too much to expect.

Low Frequency Bluetooth iBeacon technology ushering new customer engagement and in-store location paradigm

According to VDC’s most recent retail research conducted in 2013, 23% of retail organizations currently offer dedicated mobile applications with an additional 42% planning to roll out mobile customer engagement applications. These mobile applications are at the heart of many retailer’s omni-channel strategies and offer critical capabilities like price checking, product availability at other stores, mobile checkout, etc. However, the in-store experience of many of these applications have left customers expecting more.

What could fundamentally change this and boost their value to customers and especially enhance their in-store experience is by providing both time and location context. iBeacon technology delivers just that, but  without the need for a persistent WiFi or cellular connection. The micro-location technology leverages low-energy/low-frequency Bluetooth technology (BLE) that is increasingly integrated within today’s smartphones. These ‘beacons’ ultimately enable mobile app experiences with much higher accuracy than GPS. Transmitters are distributed through the store and shoppers who have downloaded the mobile app are detected when they enter the store. Use cases are solidifying as roll outs among major retailers such as Macy’s and Apple stores expand. This technology is uniquely positioned to address some of the major usage limitations of today’s mobile and potentially drive much higher customer engagement and loyalty.

Keeping technology investments in perspective…or avoid becoming the next JC Penney

The amount of innovative solutions and new partnerships unveiled at NRF is virtually limitless. However, retailers are already clearly challenged by the task of retraining staff and upgrading legacy IT and POS infrastructure. The memory of how JC Penny was crippled by insufficiently tested and implemented change is still fresh in everyone’s minds. The lesson here is: “unless the technology can directly improve retail sales performance, I don’t want it even if it is free.” This was reinforced by VDC’s recent research among retail decision makers who identified “increased revenues” as the number one metric used to measure mobile investments, followed by reduced operational costs and improved customer experience and loyalty.

All too often, retailers fall victim to hype and fail to fully think through the impact of a new solution. Although the role and impact of technology in retail is clear, one need only look at the ‘promise’ of item level RFID tagging to appreciate the challenge represented. However, often it is not an issue of technical limitations (as with RFID) but rather with how the technology is applied. In the case of mobile solutions, mobile payment and mobile POS offer some great examples. Starbucks is often identified as a pioneer in mobile payments. However, their mobile solution is hardly transforming the customer’s retail shopping experience (pulling out smartphone vs. pulling out a credit card). How about mobile POS solutions? Many today are glorified queue-busting solutions that do not fundamentally change customers’ experience, as goods still need to be bagged and security tags deactivated at a traditional check-out counter.

Frequently, it is not the technology that is the limiting factor but the fact that its implementation has not been fully vetted. Mobile investments are expected to continue to rise – 53% of retail respondents indicate an increase of 10% or more in their mobility investment budgets. The challenge will be aligning them with measurable improvements to a customer’s experience, loyalty and ultimately share of wallet.

These are themes that VDC Research will be tracking very closely as we launch our 2014 retail mobility research programs. Stay tuned!

Executive Bling and EMM

I'm not sure who coined it, but the term "executive bling" is not only funny, but has been a very accurate descriptor of mobile enablement in many of today's organizations. While nearly everyone now carries their own personal device with them at all times, in many organizations, executives continue to be an elite group that are offered a device (or choice of devices) once they attain a certain 'rank' at their place of employment. However, BYOD policy adoption continues to impact mobile enablement in large organizations (59% of the respondents to our latest survey claimed to have a formal BYOD support program in place) and has created a significant market opportunity for mobile-first ISVs. CSO's know that unprotected and unmanaged devices are likely to expose their organization to risks such as unauthorized access and data leakage – for this reason, VDC expects the number of devices "under management" to continue to grow rapidly and is the reason why our forecast for enterprise-oriented mobile solutions is so bullish. Our soon to be released global EMM market forecast shows a 24.6% CAGR from 2012 to 2017 for the ever-broadening solution range that is EMM.

MDM is Dead?

Some have boldly proclaimed that the MDM market is dead; that is pure bunk. The need for centralized oversight of configuration control, application usage and device protection couldn't be more important moving forward – the market is far from dead, it has just evolved. Not to mention that the usage of 3rd party software from EMM providers will increasingly be required for deployment environments where compliance reporting mandates the ability to conduct auditable events – in these scenarios, EMM solutions are needed to compensate for the technical limitations of even the latest mobile operating systems.  Bottom line, MDM solutions are foundational to EMM vendors’ platforms. What has changed, is the emphasis on data at rest and in motion – and of course the applications. Moving forward, I see this shift straining the partnerships that EMM vendors have engaged in and creating pressure on the strategic interactions among competing firms. This is a topic that will be expanded on in our upcoming (September) EMM Report .

Turning the Page on e-Textbooks

The fact that today’s book stores are more a relic than a real destination for those in search of textbooks reflects the digitalization of an entire industry. Both Borders and Cengage have declared bankruptcy over the last two years and companies like Barnes and Noble have tirelessly transitioned their strategy towards an online presence as opposed to their brick and mortar beginnings. It is therefore easy to cite the e-textbook as the next cutting edge in disruptive technology, especially due to price advantages posed by resellers like Amazon and their aggressive strategy towards digital content.  Take for example the survey released by the U.S. Public Interest Research Group that revealed seven in ten college students claimed not to have purchased a textbook at least once due to prices that were too high.

The pricing advantage of digital content however is not the only disruption the e-textbook poses for its traditional counterpart. In fact, the e-textbook market is only in its infancy as the following capabilities pose a threat to not only replace the textbook but re-imagine the quintessential learning experience:

• Capacity to embed interactive tools  and multimedia
• Ease of access to real time, updated content and Open Educational Resources (free, open licensed resources for the public)
• New distribution channels that offer instant, ubiquitous access to content, cannibalizing traditional models of distribution
• Ability to leverage big data and analytics

Simply transferring textbook content onto a digital platform is only the first step for the e-textbook market. In the horizon we see a complete transformation of once static content that promises to change how content is purchased, relationships with authors and the classroom as a whole. As such, the future of the e-textbook market boasts the following opportunities:

• Embedded assessments and interactive tools that align with core curriculum standards
• Social and collaborative platforms for discussion between students
• Leveraging data based predictive analytics and personalized learning
• OER based on established and proven pedagogy
• Ubiquitous support and resources for OER

As these opportunities become realized, established dominance by major textbook and publishing companies will be questioned, encouraging consolidation of the market. Smaller vendors specializing in these capabilities like Inkling and CaféScribe may be acquired while major vendors will be forced to continue to adapt to a changing textbook ecosystem as Pearson has already shown through its OER project Blue Sky. The rise of OER will severely disrupt existing textbook market control and bring legal battles over copywrited material to the forefront. Those looking to succeed will need to look beyond simple, digitalized content and embrace the change of the learning environment. 

Local & Mobile: What Foursquare’s Debt Financing means to the Retail Sector

Last week Foursquare, the social and location centered app, secured $41m in funding from Silver Lake Partners and existing investors Andreessen Horowitz, Union Square Ventures, O’Reilly AlphaTech Ventures, and Spark Capital. Foursquare had a rocky 2012 as seen in:

• Only about $2m in revenue generated
• Questions concerning its business model by market analysts and retailers alike
• Analyst speculation  on a possible buy-out or failure of Foursquare

It raises the question as to why Silver Lake, a private equity fund that has financed companies such as friedola®Tech and Dell, would put forth such a large investment in Foursquare. The answer is the promise of big data and mobile devices in the retail sector.

As of yet,  Facebook, Twitter, and more than 40,000 other applications have integrated Foursquare’s platform into their mobile applications. Just last month, Foursquare announced the addition of MasterCard and Visa to its partner roster – a big step for a company that has spent three years developing its relationship with American Express. This will be a huge opportunity for retailers, enabling collection and mining of customer data not available through in store metrics including:

• Customer location
• Customer brand & product preferences
• Propensity to spend
• Effectiveness of marketing and ad campaigns

While millions of dollars are spent each year on broad market research and customer preferences studies, Foursquare fills a huge gap in the retail industry, offering real-time feedback on local consumers. Foursquare enables retailers to connect with consumers, evaluate customer preferences and behaviors, and target marketing and advertising programs to increase the size of transactions.

Our annual survey of IT decision-makers in the retail market  shows that the most important business initiatives impacting mobile computing strategies and investment in retail services are opportunities to improve real time decision making and increase sales. 

Our research into the impact of retailers using mobile solutions to engage with customers has shown as much as a 30% increase in customer loyalty and repeat business.. There is no doubt that customers are going mobile and there is a strong desire for their retailers to do so as well. Consumers benefit from a smarter, more consistent shopping experience that allows them to purchase the products that they want.

As applications such as Foursquare increasingly penetrate the market and are embraced by merchants, companies neglecting to take advantage of online and social channels will be at a competitive disadvantage. It must be recognized that although mobile and social applications present valuable opportunities for the retail sector, it doesn’t imply success. Engaging with customers on a personal level and utilizing social applications requires a different type of marketing. It also requires that store associates are properly trained and incentivized to leverage these more intimate customer engagement services in addition to hardware and software solutions compatible with a user’s mobile device and the Foursquare platform.

 As much as Foursquare offers valuable insight and opportunities for the retail sector, their overall success is still dependent on end users. Data can only be collected if mobile users continue to check in and engage with the application.

Further, Foursquare’s recent decision to allow more retailer advertisements on its application could have negative implications. The sheer number of deals and ads run the risk of turning away users by bombarding them with information. Overall, the market for mobile solutions in the retail sector is sure to increase in line with retailers’ desire to connect with and be more informed about their customers. The question if Foursquare can provide these solutions while balancing advertising revenue with a positive user experience remains to be unseen. 

Apple Shells Out $20M – Keep an Eye on the Location-Based Services Market

Shelling out just under $20 million, Apple purchased startup WiFiSLAM earlier this month (reported by the Wallstreet Journal), adding the company’s indoor mobile location services to Apple’s broad library of technological proficiencies.  As the market for context-based services heats up, this move suggests Apple’s intent to play catch-up with its competitors in the market. 

• On the hardware side, vendors such as Nokia, Samsung, Sony and CSR were founding members of the In-Location Alliance, which launched in August 2012 to “(pioneer) new business streams for indoor environments.”
• In the OS market, Apple’s maps mishap demonstrated its weakness relative industry giant Google, which has pioneered advanced mapping and GPS-based directional software.  Google is also driving the market in indoor mapping of venues such as airports and shopping facilities.
• On the software side, expect to see more acquisitions similar to this one, as startups continue to drive innovation in the space.  Vendors such as aisle411 – offering an indoor geo-fencing solution for retailers – will look increasingly attractive as the market heats up.

What’s on the horizon for Apple?

First, let’s take a look at what WiFiSLAM brings to the table:

• Real-time pinpointing of device location, to 2.5m accuracy
• Location-tracking based on buildings’ ambient Wi-Fi signals
• Calculate consumer’s location in ~90 seconds

Integration of these location-based capabilities will drive a new wave of applications facilitating enhanced personal interaction and engagement.  Expect to see retail organizations leverage this technology with targeted advertisement, social networking and other types of consumer engagement. 

How much ground will Apple gain in the location-based services space?

Let’s be sure to level-set expectations. This is an important step for Apple and – more importantly – a key sign of what’s to come from Apple and from the location-based services market as a whole. And yet, in the end, the proof is in the pudding.  Apple has had its sights set on location-based technologies for a while now, with several other acquisitions in recent years.  Time is running out for Apple – and others – to bring a solid, stable location-based product to market.

M2M Channel Matchmaking at MWC

M2M is increasingly the hot topic at events like this week's Mobile World Congress 2013 in Barcelona. Technology vendors across the spectrum - from device and chipset hardware vendors to ISVs, mobile network operators, systems integrators - took this event as an opportunity to announce new partnerships in the M2M space.

Today's M2M ecosystem is messy.   It is fragmented, complex and - to a large degree - undefined.  We are just at the tipping point of recognizing the full implications M2M technology will have.  Thus the startlingly long list of M2M partnerships announced this week indicates a clear M2M strategy by today's technology vendors.  

Vendors such as Jasper Wireless,  Deutsche Telekom and RACO Wireless are looking to establish themselves as early leaders in the evolving M2M market.  In another sense, these vendors' partnering frenzy highlights the fear of falling behind as the M2M market evolves.  2013 will see the M2M market and vendor ecosystem slowly begin to fall into place.  

Partnerships Announced at MWC 2013 - Barcelona

• Axeda - Wipro
• Deutsche Telekom - Axesstel
• Deutsche Telekom - Qualcomm
• Device Cloud Networks - Orange Switzerland
• Ericsson - SAP
• Ericsson - Germalto
• Jasper Wireless - Mobily
• Jasper Wireless - Optus Business
• Jasper Wireless - Claro Brazil
• RACO Wireless - Sprint
• RACO Wireless - Telefonica

Global mHealth Market to Reach Over $8 Billion in 2016

Comprising a wide range of mobile hardware, software, and professional services offerings, the global mHealth market will grow at a CAGR of over 15% to surpass $8B in revenues in 2016.  

Drivers of mHealth Market Growth Include:

    Regional Adoption

• While unlikely to threaten the Americas' hold on overall revenues in the mHealth market, the
  APAC region is leading the market with a CAGR of 17.6% through 2016.  And yet, the APAC market will not be attractive for traditional mHealth vendors, with rugged device platforms and Windows Embedded systems.  

• Rather, much of the growth in the mHealth market in APAC (as in other emerging economies e.g. Africa) will be driven by consumer use of smartphone and tablet computers to expand regional health care access to remote regions.  Increasingly ubiquitous wireless networks and low-priced consumer grade technologies are facilitating medical access for poor and rural populations.

    mHealth Market Not Immune to BYOD's Spread

• Despite strict regulatory oversight and data security requirements native to health care environments, this market has proven markedly ripe for BYOD's spread – according to a recent VDC survey, 75% of healthcare organizations currently have or are considering BYOD policies. Tightening health care budgets are seeing IT departments accommodate increased flexibility in network access and app support for employees.  
• Yet while a favorite buzzword amongst mHealth analysts, BYOD’s direct market impact will be tempered as regulatory compliance considerations, data security risks, and device management challenges necessitate more restrictive BYOD policies.

    Market Shifts Drive Innovation in the Legacy Rugged Market 

• While rugged will see slower uptake across emerging economies, the market for these technologies will continue to grow across North America and Europe. In a market with mission-critical processes and chaotic workflows, device performance and reliability is key. Traditional rugged devices - already present in many health care settings (e.g. handhelds/ PDAs, slate tablets, rugged smartphones) - offer a level of enterprise-friendliness not commonly found in the consumer grade solutions market (e.g. maintenance options, OS upgrade cycle).  
• Moving forward, however, traditional rugged vendors will increasingly look at the end user experience to facilitate competitive differentiation. Rugged devices will increasingly incorporate some of the UI/UX enhancements and appealing graphics inherent to today's modern mobile platforms (e.g. iOS, Android).

For more information about VDC's Research on the mHealth market, check out our 2012 Report on mobile & wireless technologies in the Health Care Services market.