Are tablets and rich mobile devices the next killer

app for Asian enterprises?

Pranabesh Nath

Rohit Partha

ICT Practice

Frost & Sullivan November 2011

2

Today’s Presenters

Rohit Parthasarathy is an Industry Analyst with the

Asia-Pacific ICT practice at Frost & Sullivan. Rohit has

over 7 years of consulting and industry experience in

technology and outsourcing with large MNCs across

US and Europe in the areas of market strategy, new

product development, financial modeling and cost

analysis.

Pranabesh Nath, Industry Manager

Frost & Sullivan

Rohit Partha, Industry Analyst

Frost & Sullivan

Pranabesh Nath is an Industry Manager with the

Asia-Pacific ICT practice at Frost & Sullivan.

He has overall responsibility for the enterprise

communications practice in the Asia Pacific region.

3

Agenda

Trends in UC and Mobility1

Tablets in Enterprise Mobility

Drivers and Restraints affecting tablet adoption2

3

Enterprise strategies for tablet adoption 4

Market opportunity in Asia-Pacific5

4

More than $14 billion spent on UC solutions

in the last 3 years in Asia Pacific

0%

5%

10%

15%

20%

25%

CA

GR

(2

00

9-2

011

)

US

$ M

illi

on

2009 2010 2011 CAGR

5

Key Industry Shifts

Social

Mobile Multi-Media & Internet

Network

•3G Penetration Growth

•Smartphone proliferation

•Tablet demand

•Mobile Apps

•More time on Social Networks than

Email

•Primary communication medium to

share content & discuss

•Secular trends across demographics

•Skype, Google, Facebook

•Search & Commerce to Content &

Communication

•Consumer Video adoption

•Cheaper Bandwidth

•More Bandwidth

•Secure & Optimized Networks

•Cloud Computing

•Virtualization

Industry

Shifts

6

On Device

On Demand

On Premise

Interplay of devices and delivery models

Network Foundation

• BYOD adoption to explode

• Cloud platforms are

emerging

• Hybrid models to drive TCO

• Virtualization expected to

drive integration

• Open architecture enables

borderless solutions

• Security & control are key

issues

Inte

rpla

y

7

Mobility is a key growth area

$938

$204

$616

$2,144

$435

$1,252

8%

12%

16%

Video IM/Presence + Mobility

Conf. Services

US

$ M

illi

on

Revenue ($ Million)

2011 2017 CAGR

• Integrated solutions will become

the norm

• Cloud platforms are gaining

momentum

• Software endpoint clients are

gaining momentum

• Increasing focus by customers in

a utility model

• Growth in the SMB segment to

be driven by software & services

• $9.15 Bn total UC market by

2017

8

Tablet Adoption: Drivers and Challenges

Rank Driver 1-2 Years 3-4 Years 5-7 Years

1 Consumerization of IT High High Medium

2 Improved collaboration Medium High High

3 Ease of use in certain industry verticals Medium Medium Medium

4 Growth of cloud-based applications Medium Medium Medium

Rank Challenges 1-2 Years 3-4 Years 5-7 Years

1Security constraints, management,

Medium Medium Low

2Cost of deployment

Medium Low Low

3Usage models important for success

Medium Low Low

9

Tablets in Enterprise Communication

• New and innovative use cases are being created as tablets are being deployed in

enterprises. We believe that the following are the key ones that will increase the trend

of tablet adoption in the enterprise and thereby significantly impact enterprise

communication:

Enterprise Tablets

Increasing productivity and

collaboration

Compelling customer-

engagement experience

Accessing growing cloud-based services

10

Use-Cases in specific verticals

Increasing productivity and

collaboration

Creating compelling customer-

engagement experience

Accessing growing cloud-based services

Healthcare

Government

Retail

Education

• Fast access to patient data

• Better collaboration between

hospitals or between doctors

• Ability to report and access

information instantly

• Document progress, submit forms

and obtain approvals when in field

• Shorten sales cycles by

answering product queries on the fly

• Deliver high-impact, customized

product presentations

• Offer integrated learning

experience with images, audio and

video

• Use social media to make learning

collaborative experience

Drivers Verticals Key considerations

11

Use Case Evolution

2010-2012 2012-2014 2014>>

Evolution of Use Cases for Tablet devices

Business Impact

Personal Productivity Tools

Conferencing and

Collaboration

Sales force apps

Business Intelligence

Vertical Specific

Desktop Virtualization

12

Building blocks needed for a successful enterprise tablet

strategy

• Aside from identifying compelling use-cases for the tablet, enterprises need to take a

look at new capabilities required and organizational changes to be made. Three of the key

challenges include:

Corporate-owned

Employee-owned

Hybrid

Approach

• Availability of key

business applications –

ERP to the many

corporate applications

required to support

business

operations

• Approach for an

Enterprise App Store

• Security requirements

within VPN and for

cloud-based

applications

• Robust encryption and

password enforcement

to ensure data security,

tracking and remote

wipe

• Processes required to

manage

synchronization of data

sources

• Permissible sources

of apps and

updates

Enterprise Tablet

StrategiesApplications Security

Device/data

Management

13

Enterprise approach to tablets

Able to access

Partially able

to access

Not able to

access

Type of Business Application Employee

-owned

Corporate-

owned

Hybrid

Approach

Corporate E-mail

Conferencing

and collaboration

Mobile Device

Management

Enterprise Social

Networking

File Sharing

and Distribution

Desktop Virtualization

14

Which strategy works well

Employee-

owned

Corporate-

owned

Hybrid

Innovation-

oriented

Control-

oriented

Enterprise

devices to

Start-ups,

technology

firms

Large

enterprises

sales and field

force

Hands-off

style of

management

Seamless

integration

with existing

infrastructure

BYOD

policy for other

employees

Low Cost of deployment High

Impact

on

Ente

rprise

Corporate Email

Conferencing and

Collaboration

File Sharing and

Distribution

Enterprise Social

Networking

Desktop

Virtualization

Corporate-

owned

Employee-

owned

Cost of Deployment vs. ImpactStrategies suited for

organizations

High

15

Asia-Pacific Market Opportunity

$9.8

$44.2$17.9

$48.2

2011 2015

Employee-Owned

17.9 48.2

Corporate-Owned

9.8 44.2

Mark

et

Op

po

rtu

nit

y

(in

US

$ m

illio

ns)

35%

CAGR

24%

Note: Total market opportunity includes revenues from both corporate-owned and employee-owned devices

Source: Frost & Sullivan Analysis

$27.7

$92.4

2011 2015

Mark

et

Op

po

rtu

nit

y(i

n U

S$ m

illio

ns)

Enterprise Tablet Total Market Opportunity Forecast,

Asia Pacific, 2011–2015

~140k~38k

Number of users

16

Product Landscape

Consumer

Tablets

Third-party

Tablets

Enterprise

UC Tablets

Enterprise

Tablets

• Amazon Kindle fire tablets

• Microsoft with Windows 8

powered tablets

• Google Chrome tablets

• Fujitsu and Toshiba tablets

powered by Intel’s atom

processors

• Enterprise and UC tablets by

telecom service providers such

as NTT Docomo, Singtel, China

Telecom

Competitors – 2012 and

beyond

17

Key Takeaways

• Enterprise mobility is a complex offering

• Macro-economic factors will impact demand

• Tablets complement to existing collaboration endpoints rather than replace – holistic

enterprise strategy is necessary

• Software clients on mobile devices will be the first step, followed by complete

enterprise solutions

• Use cases important for adoption, and may increase opportunity further

• Australia, Japan, South Korea and Singapore some of the early adopters

• Mix of factors necessary for success – applications, security, device/ data

management

18

Frost & Sullivan Asia-Pacific Enterprise Tablet Research

Other sections:

Tablet Impact on Key Industries

Market Opportunity - Forecasts and Trends

Sub-Region Breakdown

Competitive Landscape: Current and Future Market Direction

Competitive Analysis of Players in the Value Chain

Product Landscape

Case Studies: Enterprise Deployment of Tablets

19

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For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

+603 6204 5832

djeremiah@frost.com

Carrie Low

Corporate Communications

Asia Pacific

+603 6204 5910

carrie.low@frost.com

Jessie Loh

Corporate Communications

Asia Pacific

+65 6890 0942

jessie.loh@frost.com