Imad Mouline - CTO APM Solutions, Compuware
AUDIO VIA PC SPEAKERS & PHONE# 866-900-5706 ID# 36582924
Tony Baer - Senior Analyst, Ovum
Sara Kaufman - Analyst, Ovum
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Assuring the customer mobile web experience: The Business case
Tony Baer & Sara Kaufman
26 January 2011
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Mobile web coming on strong
Performance impacts your brand & bottom line
The mobile Internet application delivery chain
Mobile performance is not somebody else’s problem
Gomez customer experiences
Summary
Agenda
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Mobile web coming on strong
Relentless consumer appetite for mobile data, speed, personalization
iPhone transformed our vision of smart phones, spurred appetite for higher end devices, sophisticated mobile content & applications
Continued growth in wireless connections, mobile broadband
Continuing mobile network evolution
Mobile networks around the globe upgrading/optimizing for data
Migration from 2G to 3G, commercial introduction of 4G
Rapid growth of tablets and MIDs (Mobile Internet Devices)
New devices, form factors and services mean new performance concerns
Consumer demand for mobile access to the Internet is accelerating and will continue to grow rapidly over the next five years.
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Mobile evolution: a virtuous cycle
2007 iPhone introduction
Demand for better apps, richer content
Demand for more 3G broadband connections
2010 Droid, iPad emergence
RIM, Palm, Nokia, others
respond4G emergence
The cycle will keep repeating itself!
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Big and small screen mobile broadband increasing
Source: Ovum Smartphone Forecast 2010-2015
• Tablets and MIDs will grow at 60.3% CAGR through 2015
• iPad Shipments of tablets/MIDs based on “lite” OSs will rise from 14.2M units to more than 150M units
Source: Ovum Tablets and Mobile Internet Devices Forecast 2010-2015
• Global smartphone shipments will
grow at 18.6% CAGR through 2015
• Smartphones in 2009 made up 16% of total handset market
• By 2015, smartphone penetration will rise to 39% (573.8M units)
19% CAGR
244M
574M
60% CAGR14M
150M
Tablets/MID growth (units shipped)
0
100
200
2010 2011 2012 2013 2014 2015
Smartphone grow th (units shipped)
-150100350600
2010 2011 2012 2013 2014 2015
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Consumers increasing use of mobile services
Source: Ovum Applications Download Forecast 2010-2015
Source: Ovum Mobile Broadband Users and Revenues Forecast 2009-2014
• Mobile broadband connections will quadruple by 2014, growing at 47% CAGR to 1.9B
• App downloads will reach 21.3B by 2015 ( 31% CAGR), 3X 2010 levels
• Messaging will also rise; application messaging growth will be 5x that of basic texting (20.4% CAGR)
Mobile broadband users (millions)
0
1,000
2,000
3,000
2010 2011 2012 2013 2014
1.9B
47%CAGR.41B
Total application downloads (billions)
0
10
20
2010 2011 2012 2013 2014 2015
6B
21B
Total application downloads (billions)
0
10
20
2010 2011 2012 2013 2014 2015
6B
21B
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Performance impacts your brand
Mobile performance data essential for managing SLAs & brand reputations
Over 50% expect mobile web to perform as well as desktop*
32% of consumers will abandon mobile sites if load time > 5 seconds*
80% reported m-commerce problems*
Poorly performing website ultimately hits your brand!
52% of consumers unlikely to return to a website they had trouble accessing from their phone*
Performance shapes the user experience
39% say speed more important than functionality*
Source: 1000-user survey conducted for Gomez by Equation Research
M-commerce expectations just as demanding as e-commerce
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Performance impacts your bottom line
Customers who abandon your site = Lost Business
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The mobile Internet has many moving parts
Variety of client platforms/footprints
Bandwidth more constrained
Location, Location, Location
The mobile Internet application delivery chain
Windows 7 & Chrome
iPhone & SafariiPad & Safari
iPhone App
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• Major ISP
• 3rd party services/ CDNs
• User’s Mobile Carrier
• Local tower coverage
• Mobile device class
• Mobile OS platform
• Mobile browser
Internet performance factors: Mobile vs. traditional Internet
Traditional Internet
Mobile Internet
Internal IT Infrastructure
Load Balancing
Servers
OS/virtualization
Storage
Network
• Major ISP
• 3rd party services/ CDNs
• User’s ISP
• Client OS platform
• Web browser
Application Design
Architecture
Configuration settings
Browser compatibility
Programming language
Rich client framework
Native coding vs. Transcoding
JavaScript
Fir
ewa
ll
The end user experience is the sum of all these factors
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Environment drives experience & expectation
Different clients with different usage patterns
Different bandwidth consumption
In transit vs. stationary
Quick vs. long-running interaction
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Mobile performance is not somebody else’s problem
Ultimately your brand is at stake
Carrier is obvious scapegoat BUT
Issues may also occur with service providers, platforms, etc.
Pinpoint problems quickly – before they snowball!
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Arm yourself with the facts!
Monitor application performance
• Are key transactions & web pages performing optimally across the devices that matter?
Hold service providers’ feet to the fire
ISPs, Cloud Service Providers, CDNs
Benchmark clients & networks
Compare performance across Blackberry, Droid, iPhone and other devices on specific carrier networks
Compare performance by region
Get the picture from end-to-end
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Business:
Personal finance, mutual funds distribution channel Mobile objectives/ambitions:
Mobile services evolving from inquiry-based to transaction-based Technology innovation key to value proposition and brand reputation
Business Case for Monitoring:
Mobile - a key customer service channel New competition raising the stake
Gomez customer experiences
Case Study Large US mutual funds company
“On market volatility days, people make crazy transactions. If your Website is not available in the critical time when the client needs it, you will lose your retail and eventually 401K customers.”
“Customer churn prevention—that’s what being the best in performance means to them.”
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Gomez customer experiences
Business
Applications for traditional, Internet and mobile offerings
Mobile objectives/ambitions
Mobile Web imperative to maintain market relevance Get quantifiable evidence of how apps/Web services perform
Business case for monitoring
Part forensics, part of QA process for product development Reducing customer attrition goes straight to the bottom line
Case Study Leading software firm
“With all our different services, our apps need to pop no matter what device. It’s a question of survival of the brand.”
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Gomez customer experiences
Business:
Personal wealth management; high wealth advisory business, direct trading
Mobile objectives/ambitions
Employing mobile to advance brand reputation, expand customer base, and grow bottom line
Key component of company’s future business Business Case for monitoring:
Which trading apps and functionality appeal to new clientele? Which apps and functionality perform best in a mobile—which don’t
Case Study Personal wealth management advisory firm
“Time is money. The more downtime you have, the more it costs you.”
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Mobile web is coming on strong
More, smarter devices + more bandwidth = more demand for high quality mobile Internet
Consumers expect mobile web performance = desktop performance
Performance trumps functionality
Your brand depends on site performance
Consumers will abandon slow mobile sites and never come back! Lost visits = lost business
Arm yourself with the facts!
Not always the carrier’s fault Compare by device, interaction, carrier, region – from end to end!
Summary
Good mobile performance protects the bottom line!
The Business Case For Assuring The Customer Mobile Web Experience
Imad Mouline - CTO APM Solutions, Compuware
Smartphones Have Redefined Mobile End-Users’ Experience Expectations
Mobile users expect rich, engaging mobile website and application end-user experiences
End-Users’ Mobile Experience Expectations Are Increasing
Not Meeting Your End-Users’ Mobile Experience Expectations Negatively Impacts Brand Equity And Revenue
Research shows 60% of mobile Web users had a problem in the past year when accessing a Website on their phone
Social media & customer ratings
allow users to record their frustration in
real-time, negatively impacting revenue and brand equity
Mobile Service Performance Impacts Business Results
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 150
5
10
15
20
25
30
Abandonment Rate - All Browsers
Page Load Time Band (sec.)
Aba
ndon
men
t Rat
e (%
)
Source: Gomez real user monitoring
Abandonment Rate Across 200+ Sites / 177+ Million Page Views Over 2 weeks / All Browsers
Mobile Service Performance Impacts Business Results
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 150
5
10
15
20
25
30
Abandonment Rate - All Browsers
Abandonment Rate - iPhone Safari
Page Load Time Band (sec.)
Aba
ndon
men
t Rat
e (%
)
Source: Gomez real user monitoring
Abandonment Rate Across 200+ Sites / 177+ Million Page Views Over 2 weeks / All Browsers vs. iPhone Safari
BANKING TRAVEL NEWS RETAIL SPORTSFastest Fastest Fastest Fastest Fastest
3.138 sec 4.086 sec 6.301 sec 8.602 sec 15.837 sec
Slowest Slowest Slowest Slowest Slowest
Mobile Website And Application Performance Is Not Somebody Else’s Problem
Your competitors’ mobile services are delivered over the same wireless networks as your own
Differences in mobile web page response times across verticals3 US locations, AT&T/iPhone, 27 Dec 2010 to 24 Jan 2011
More Mobile Traffic During Black Friday & Cyber Monday
iOS Devices’ Page Views Across Multiple Major North American Retailers, Nov 15 – Dec 4, 2010
User Experiences On iPhone & Droid Suffered During Cyber Monday
The Compuware Gomez UX Index provides a gauge of user satisfaction based on the speed & availability of major retailers' mobile sites
During Cyber Monday •The UX index dropped an average of
3 points•The highest drop of 6 points in the
UX index occurred during 4 - 6 PM• Resulting in a significant increase in the
potential number of frustrated users
Employees
Mainframe
Storage
Data Center
Web Services
Mobile Components
Web Servers
App Servers
DB Servers
Load Balancers
WANOptimization
Virtual/Physical Environment
LocalISP
Mobile Carrier
Browsers
Devices
MajorISP
Content Delivery Networks
3rd Party/Cloud Services
Customers
Employees (via WAN)
Cloud Private Public
Network
Is it my data
center?
Is it an ISP or the Internet?
Is it a 3rd party
provider?
Is it a browser
or device?
Delivering Quality Mobile Web And App Experiences Is Difficult
1. What is the business impact?
2. Where is the root cause?
Know Your End-Users And Their Context
Can end-users complete key transactions in the mobile context? Under time pressure While on the move Often one-handed With intermittent network connections & GPS signals
What devices do they use?
What networks are they on?
What are their usage patterns?
What is their location?
What else are they doing?
Simplify And Think End-User Goals
Fewer steps to complete an end-user goal equals better perceived performance from an end-users’ perspective
Know If Your Mobile Site’s Performance Compares Favorably To The Competition
Your competitors’ mobile site and app performance
contributes to shaping your customers’ expectations
Prepare For Success
Mobile site & app traffic exceeded expectations & overwhelmed mobile delivery infrastructure
leading to slow load times & outages
Adopt A “One Web” Application Performance Management Philosophy
What constitutes mobile?
Web & mobile sites & applications often share infrastructure & web services
Important to leverage established and common best practices, metrics and technologies for both mobile and web channels
Garner operational efficiencies Identify mobile specific problems, web specific problems or both across the entire
web application delivery chain – from device to datacenter
iPhone AppiPad & Safari
Windows 7 & ChromeiPhone & Safari
How To Assure The Customer Mobile Web Experience
Make sure your mobile service meets end-users’ experience & performance expectations
Know your end-users and their context
Simplify and think end-user goals
Know if your mobile site’s performance compares favorably to the competition
Prepare for success
Adopt a “One Web” application performance management philosophy
The Business Case For Assuring The Customer Mobile Web Experience
Questions
Reduced downtime 45%
Reduced seven-step transaction time by 50%
Increased conversions 10%
Validated decision to consolidate three data centers
Achieved under 3 second response time and 99%+ availability
Reduced homepage load time from 11.3 seconds to 3.4 seconds
Improved page load times 23%
Saved 50%+ in staff and fees
Gomez Customers Enjoy Measurable Benefits
For more information visit Gomez.com or contact us at +1 781.778.2700