The Enterprise Mobility Study

Indian Market Analysis

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Agenda

Scope & Definition of Enterprise Mobility

Key Enterprise Mobility Trends

The scope of enterprise mobility encompasses hardware, network & data, applications and associated services

Hardware/ Platform
Smartphone Tablet Handheld Feature phone iOS Android Symbian WebOS Blackberry

Network & Data

LAN WLAN WWAN GPRS Edge CDMA UMTS HSPA WiMax LTE

Applications
Email SFA Field Service ERP/ CRM/ BI SCM Social/ Collab HR Finance Vertical apps Others

Enterprise Mobility Management

Asset Lifecycle Management

Expense Management

Application Management

Middleware, hardware components Professional Services, System Integration

Help Desk

Security Management Quality & Usability Testing

Agenda

Scope & Definition of Enterprise Mobility

Key Enterprise Mobility Trends

Certain key themes have emerged in the enterprise mobility market in India

Accelerated Growth of Enterprise Mobility

Increased Start-up StartActivity in Mobility

Ecosystem Play in Market Development

Key Trends

Moving Beyond Email

Concerns on Security and Integration

e

Declining Costs & New Opportunities

d

The Indian Enterprise mobility market has rapidly evolved over the last three years

$300

Enterprise Mobility Market (excluding Devices) in India, USD Million

Enterprise Mobility Market Split by Service Lines

$250 Average cost of smart devices of USD 125-150 adds over an above the enterprise mobility market

$244.0 10% 10% 36% 16% $94.1

$200

$150

$100 20% $50 $38.6 Apps & Customization Prof. Services/ SI Usability & Testing

8%

$0 H1 2009 H1 2010 H1 2011

Network & Data Backend HW/ SW Security & Compliance

Unlike developed markets, developing countries are emerging as mobile first markets

Country
USA Germany Brazil Russia India China

Mobile Subscribers
350 Mn 107 Mn 215 Mn 221 Mn 840 Mn 896 Mn

3G Penetration
47% 28% 10% 5% 1% 6%

Internet Users
245 Mn 66 Mn 76 Mn 60 Mn 100 Mn 477 Mn

Installed PC Base
295 Mn 55 Mn 42 Mn 50 Mn 25 Mn 230 Mn

Number of Days to Reach 1 Million Units Sold (Global)

iPod 360

Notebooks 180

iPhone 74

iPad 28

Devices penetration in India has been rapidly increasing

There are about 840

12.2 Million user

base of 3G has been garnered in India

There is an installed base of 25 Million computers in India

Million active mobiles

operational in India

Smart Phone market share is about 15% in India

On an average of about

The tablet PC market in India sells about 1

15 Million mobile
subscribers are added every month in India

Lakh tablets per

annum

The PC penetration in urban household has reached 38%

The laptop market is growing at a CAGR of

50%

One of the fastest tablet affinity worldwide

A combination of demand side trends accelerated the acceptance of mobility experience in India
Key Demand Trends in Enterprise Mobility

Early Adopter Industries

Industries leading the way in applying mobility services to their operations include banking, manufacturing, retail, hospitality and healthcare. Eg. HDFC, ICICI, Tata Chemicals, Godrej, Future Group, Dr. Reddy s Laboratory etc.

Emerging Industries for EM

Automotive, logistics and consumer goods companies are increasingly using mobile supply chain systems to streamline inventory management, replenish stock, track demand, and manage shelf space and storage in an optimal manner. Eg. Lucas TVS, Future Groupd, Eureka Forbes, AFL couriers

IT Consumerization as an Enabler Telecommuting and Work from Anywhere Social Media as a Business Tool

As more and more employees are getting exposed to next generation technologies and devices, the enterprises are beginning to follow suite . Eg. SAP India is using more than 200 iPads, Hero Honda gave iPad 2 to its top executives in India, Adobe provided HTC smartphones to all its employees etc.

The wider acceptance of social media is combining with greater usage of smart phones and tablet PCs to create the mobile office, where well-connected employees can work from virtually anywhere. As a result, more employers are providing flexible work arrangements for employees, including flexible schedules and telecommuting options. Eg, IBM The acceptance of social media as a business communication and collaboration tool has gained momentum as more people access Facebook, Twitter, YouTube, and LinkedIn from their mobile devices. Moreover, these social networking sites are being used as marketing walls by companies like Flipkart, Healthkart, Yebhi, etc.

The convergence of a variety of drivers is enabling the faster adoption of mobility solutions in India
Key Business Drivers Better Customer Service Productivity advantage Employee satisfaction Staying competitive Reducing operating cost New business opportunities Supply chain management 0% 18% 18% 18% 20% 40% 60% 34% 32% Key Reasons for Mobility

50% 46%

Push from top management Collaboration amongst employees Get more work time out of employees Pull from end users (customers or employees) Reducing communication costs 0% 42%

69%

67%

64%

58%

20% 40% 60% 80%

*Analysis based on survey responses of 150 IT decision makers in India

As enterprise mobility moves from being a concept to reality, a variety of innovative use cases are parallely emerging

a
BFSI Financial Inclusion Central Bank Loan repayments HDFC Collections Bajaj Auto Finance

b
Pharmaceuticals Medical Reps Dr. Reddy s Lab Senior Management Novartis

c
Construction Business Intelligence ISPAT SCM Ultratech Cement

d
Chemicals Unified Communication Tata ERP/CRM Coromandel Fertilizers

e
Automotive Query & Alerts Lucas Senior Management: Hero group

f
Hospitality & Real Estate Customer Service 4 Season s Home Automation Lodha Grp. Sales - Unitech

d
Transport & Logistics Proof of Delivery AFL Couriers Fleet Tracking Mag Logistics

e
Retail Store Operations Pantaloons Customer Service- Shoppers Stop ERP/CRM ITC

f
Consumer Durables Order Management Usha Int. Dealer Sales Godrej CRM - Voltas

A lot of entrepreneurial/ start-up activity is being observed in the mobility space in India

Number of Digital Start-ups in India Rapid growth of mobile/ smart devices penetration in India has presented a lucrative opportunity Marketplaces 39.7% Many tech companies such as RIM, Qualcomm, Intel etc. are looking to provide seed funding and venture capital to start-ups working in the mobility space in India Mobility 23.6% National Capital Region (NCR), followed by Bangalore are the hubs for mobility start-ups Ojas ventures has funded companies such as Tyfone in India JiGrahak, a mobile commerce start-up recently raised USD 10 million from Nexus India Capital Total Digital Start-ups = 750

Others 9.3%

Media/ Ent. 6.4%

E-Commerce/ Shopping 20.8%

Increased acceptability of majority of the mobile platforms is a key motivation factor for start ups
Mobility Platforms Supported by Indian Enterprises

Symbian

13%

4%

63%

21%

Windows Mobile

28%

21%

41%

10%

Blackberry

98%

2%

Android

34%

26%

29%

11%

iOS

27%

8%

50%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% Not Sure

100%

Already supported

To be supported in next 2 years

Will never be supported

*Analysis based on survey responses of 150 IT decision makers in India

The relative ease of development and conducive ecosystem are the key drivers for start-up activity in this space
Ease of Development Apple Android Blackberry Java Symbian Windows

Hard Medium Easy

Convergence of ecosystem including end users, telcos, device manufacturers, and developers is providing a conducive environment for mobility solutions Increase in support forums available across platforms makes it convenient for the entrepreneurs/ developers to build on top of these platforms
*Analysis based on survey responses of 200 developers/ start-ups/ entrepreneurs/ freelancers in the mobility space

Case studies of mobility startups

b
Mobien Technologies
Mobientech was founded in 2006 and is focused on providing Enterprise Mobility solutions iNotify is their Mobile Application framework which enables enterprises to deploy enterprise CRM and ERP solutions to the mobile platform Key customers include Bajaj, Dalmia Cement, ITC ltd.etc. Deployment of iNotify in Nagarjuna Fertilisers for the supply chain automation was chosen as one of the Top 50 IT implementations in 2007 by PC Quest

Preludesys
Preludesys is a 10 year old company with 3 year experience in the Enterprise Mobility Front Developed a flagship Enterprise Mobility Platform named AnB and offer mobile application development and customization services Key customers include Yamaha, Zenstar, Epson etc. Ranked as one of the fastest growing company based on recognitions from Deloitte, Inc. 500 consecutively for the last 6 years

AccelTree
AccelTree software is a 8 year old company Designed their own MEAP by investing 3 years in R&D. The platform was specifically developed for the India market Key customers : Not revealed Have developed innovative mobile application deployment offerings in the form of pay-by-use, ownthe-license and mobility-by-demand model

iPath Technologies
iPath Technologies is an 8 year old company providing mobilization solutions for business and consumer application Developed iAllWays Enterprise Mobilization Platform to serve the Enterprise Mobility in India They are currently working with a large SI for deploying Enterprise Mobility Solutions and are doing a POC for companies in FSI space

While e-mail is the most commonly used mobility applications, IT decision makers are also starting to look at other application segments
Applications Already in Use or to be Used in the Next 24 Months
Global Positioning System/Location Based Services Consumer Instant Messenger Field Service Time Management/Billing Unified Communication Supply Chain Management Enterprise Resource Planning Customer Relationship Management Sales Force Automation Professional Instant Messenger Social Networking Corporate e-mail 0% Deployed 10% 20% 30% 40% 12% 20% 24% 31% 49% 41% 35% 98% 50% 60% 70% Not sure 80% 90% 14% 6% 25% 33% 47% 37% 45% 41% 25% 39% 41% 43% 25% 20% 39% 47% 51% 49% 47% 41% 43% 31% 27% 25% 20% 24% 2% 0% 100%

In the next 24 months

*Analysis based on survey responses of 150 IT decision makers in India

As enterprise mobility matures among organizations, lot of internal departments will look to mobilize in the next 24 months
Mobility Status of Various Functions at Indian Enterprises
Retail HR Customer Service Field Service Finance Marketing Operations/Facilities Management Sales Executive/Corporate Management IT 0% Already mobilized 10% 20% 30% 49% 78% 90% 84% 40% 50% 60% 70% 80% 16% 31% 31% 37% 37% 73% 10% 16% 6% 6% 10% 18% 24% 18% 12% 18% 14% 10% 10% 45% 45% 31% 4% 25% 4% 4% 14% 2% 8% 0% 10% 2%4% 90% Not sure 100% 14% 57% 35%

To be mobilized in the next 24 months

No plans to mobilize

*Analysis based on survey responses of 150 IT decision makers in India

As companies optimize their mobility investments with innovative approaches, the operating cost is expected to come down in the future (1/2)
Operating Spend of Enterprise Mobility/ Person/ Year 2% 2% Change in Mobility Operating Spend in the next 2 years Decrease 40%

Increase by 0-5%

22%

Increase by 5-10% 34% 61% Increase by 10-15% Increase by more than 15% Not Sure INR 0 to INR 2,500 INR 5,000 to INR 10,000 INR 2,500 to INR 5,000 INR 10,000 or more 2%

22%

4%

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

*Analysis based on survey responses of 150 IT decision makers in India

As companies optimize their mobility investments with innovative approaches, the operating cost is expected to come down in the future (2/2)
Established companies as well as start-ups experimenting with capex models

Cost of mobile phones and tablets decreasing rapidly

Reduced Hardware Costs

Managed Services & Pay Per Use Models

Cloud Based Applications

Cloud ready backend infrastructure. Cloud application access through mobile

Business Policies for Mobility Usage

Tighter expense management policies to control mobility expenses

While enterprise mobility adoption is increasing, there are certain key challenges enterprise are struggling with (1/2)
Intensity of Issues with Enterprise Mobility
Supporting work & personal devices Device downtime 12% 6% 2% 8% 20% 50% 14% 24% 24% 4% 4% 6% 8% 10% 25% Medium High 14% 31% 20% 22% 50% Very High 35% 28% 35% 31% 29% 33% 25% 20% 75% Very Very High 31% 20% 25% 12% 100% 24% 35% 8% 4% 24% 32% 29% 26% 34% 39% 18% 22% 14% 8% 4%

Usability 0%6% 2% Data Breaches 0% 10% 2% Support Cost 4%2%

Security policies 0%6% Remote helpdesk Device Life cycle Management Software license conformance Locate/track devices 0% Very Low Low 12% 12% 8% 12%

While enterprise mobility adoption is increasing, there are certain key challenges enterprise are struggling with (2/2)
The average salary per employee in India is relatively very less and it is difficult for enterprises to give devices more that the salary of the individuals. Hence adoption is restrained to only senior level Indian customers are found to be very demanding. The expectation is to get everything delivered on the phone. Customers want out of the box (OOB) solutions

Most of the industries lack a standard supply chain. Also vernacular content is a huge challenge

Absence of key large player focus and lack of confidence with niche players is restraining large enterprises to move to mobile applications for core business Lack of business centric mobile applications as well as back end integration of applications is a challenge and hence adoption is currently at the dashboard, reporting level In case of full functionality applications, manageability is challenging. Security, compliance, provisioning, wireless management, lifecycle management, asset management are a additional costs Indian stakeholders are not very well informed about the advanced solutions being employed in other emerging geographies. There is also a lack of successful Indian case studies being preached

All ecosystem stakeholders are starting to play a key role in influencing the decision towards mobility solutions adoption
Primary Contact for Mobility Discussions Illustrative List of Ecosystem Players

Hardware Vendor

78%

HTC, Motorola, Apple, RIM

ISV

34%

Microsoft, Google, Oracle, SAP, McAfee, SFDC

SI/ VAR/ PS

29%

TCS, Infosys, Wipro, HCL

Wireless carrier

20%

Airtel, Vodafone, Aircel, Tata DoCoMo

Middleware

10%

Sybase, Antenna Software, Rhomobile

0%

20%

40%

60%

80% 100%

These ecosystem stakeholders seem to be converging towards a few strategic bets with respect to the enterprise mobility solutions in India

Hardware/ OEMs
Flux of low cost tablets with touch screen UI Aggressive enterprise push by OEMs