total cost of ownership models enterprise and government mobility applications mobile and wireless...
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Total Cost of Ownership ModelsEnterprise and Government Mobility Applications
Mobile and Wireless PracticeJosh Martin, Sr. AnalystDavid Krebs, Practice Director
2 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,355. This is 34% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $2,814. This is 59% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.9% and 13.7% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 4.6% and 16.6% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 50-80 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile device’s TCO.
3 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers continue to enjoy a TCO advantage in certain applications
4 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$3
4,7
88
$1
4,0
71
$1
7,8
41
$1
1,7
78
$6,9
58
$2,8
14
$3,5
68
$2,3
56
Annual & Five Year TCO (in USD) • Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 34% premium• Large Form Factor: 59% premium
TCO is highest for commercial grade large form factor solutions
5 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
5 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
16.6%
4.6%
13.7%
7.9%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.9
• Commercial Grade Large Form Factor: 5.6
• Rugged Small Form Factor: 4.6
• Commercial Grade Small Form Factor: 5.8
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard Costs
IT Support
Productivity Loss
Total Cost of Ownership (Five Years)
27.3%
40.8%
29.2%
49.8%
6 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
Productivity loss represents a significant proportion of TCO – especially for non-rugged units
Five Year TCO by Form Factor and Key Contributor
7 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
8 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
VDC Research Methodologies
Target Communities Sample Size
Enterprise and Government Mobility End Users – Mobile Devices
362
Enterprise and Government Mobility End Users – Mobile Device Management Software
383
Enterprise and Government Mobility End Users – Mobile Printers
111
TOTAL END USER SURVEYS 856
• The following programs constituted the core of our primary data collection efforts.
• Review of survey tools with research sponsors
• Structured Web surveys were conducted with key enterprise and government mobility solution decision makers at organizations in the following sectors:
Healthcare Services Industrial/ Manufacturing Transportation Public Safety Utilities Telecommunications Retail Services Professional Services
Enterprise and Government Mobility End User Research
9 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
VDC Research Methodologies
• VDC also incorporated extensive secondary research to further develop and substantiate our findings, including: Analysis of Financial Reporting – For all the suppliers whose stock is publicly traded, VDC obtained and
analyzed statements of quarterly earnings, 10Ks, 10Qs, annual reports, financial analysts’ reports and rating agency reports. In the case of privately held corporations, VDC obtained and analyzed D&B reports as well as financial information from other sources.
Internet – VDC thoroughly probed the corporate Web sites of all of the target vendors and extracted all relevant information. VDC analysts registered with all applicable company “consultant/analyst” programs to access information not available to the non-business community.
Trade Press Search & Analysis – VDC conducted a detailed search and analysis of the product-related trade press. The information was used to provide context for our research and findings.
Other Sources – Industry associations, standards bodies, independent consultancies, academic institutions, government agencies, resellers and end-users and consortiums.
Enterprise Mobility Secondary Research
10 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
VDC Research Methodologies
Hard Costs
Hardware• Mobile Platforms• Peripherals
Software• Upfront Fees• License Fees• Development Costs
System Design and Integration• Application Design and
Development• System Integration• Staging
Soft Costs
Training• Initial User Training• On-going User Training
Operational• System Maintenance• 3rd Party Technical Support• Internal Technical Support• Upgrades• Application Management
Downtime• Lost Manpower/Wages• Lost Revenues• HW Replacement
TCO Models
11 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Handheld/ PDA
Notebook/ Convertible
Slate Tablet
Vehicle Mounted
UMPC
WearableA
mer
icas E
ME
A
Vertical Markets
Regional Markets
Mobile Computer Form Factors
Asi
a-P
acif
ic
Govern
men
t
Man
ufact
uring
Utiliti
es/ T
elco
Tran
sporta
tion
Retai
lHea
lth C
are
Prof.
Servi
ceEduca
tion
VDC Research MethodologiesGovernment and Enterprise Mobility Research Scope
12 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Considering your organization's most recent mobile deployment, what level of benefits has your organization achieved?
Improved real time decision making
Increased first time fix
Reduced operating
costs
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
13 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Tangible Mobile Investment Benefits Realized
End users reporting substantial improvements in a variety of workflows, processes, customer service and revenues as a result of mobile solution investments.
Mobile solution ROI and technology investment drivers are consistently strong
Rate the following mobility issues or concerns in terms of their level of importance to your firm
(1=Extremely unimportant; 6=Extremely important)
Supporting dual mode devices (work and personal use)
Clear mobile asset and software inventory management
Reducing support costs
0.0 1.0 2.0 3.0 4.0 5.0 6.0
14 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Leading Mobility Investment ConcernsMinimizing device downtime is a top of mind issue for organizations
Managing the TCO of mobile device deployments is a consistent ‘top of mind’ issue for organizations deploying mobile solutions.
15 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
15 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
0%
5%
10%
15%
20%
25%
30%
35%
Industry Representation
Cross Section of Industries RepresentedTCO research targeted mobile workers across a variety of industries
• The research was designed to achieve a representative sample across industries with the higher proportion of mobile workers and strongest investments in mobility solutions
• Research targeted mobile and wireless purchase system specification decision makers
16 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
16 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Noteb
ooks
Smar
tpho
ne
Rugge
d ha
ndhe
ld/PDA
Rugge
d Not
eboo
ks
Handh
eld c
ompu
ters
Slate
Tablet
s
Netbo
oks
UMPCs
0%
5%
10%
15%
20%
25%
30%
35%
Primary Device Form Factor for Most Recent Deployment
…and Device Types DeployedA cross section of device form factors evaluated in TCO models
Total units deployed: 274,445
• Survey sample represented an installed base of 274,445 devices for their most recent deployed devices
• Level of ruggedness of small form factor deployments:
• Fully rugged: 34.8%
• Semi rugged: 56.5%
• Durable: 8.7%
• Level of ruggedness of large form factor deployments:
• Fully rugged: 30.6%
• Semi rugged: 41.7%
• Durable: 27.8%
For your most recent mobile deployment, what is the primary environment within which the mobile computers are deployed/ operated?
Large Form Factor -
Commercial Grade
Large Form Factor - Rugged
Small Form Factor -
Commecial Grade
Small Form Factor - Rugged
Total0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Corporate/Carpeted Facility Healthcare/Hospital Warehouse/DC/Port/Yard
Retail Store Field - Mounted in Vehicle Field - Non-mounted
Manufacturing Shop Floor Restaurant/ Hospitality Other
17 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
…and usage environments
• Clearly a high correlation exists between primary use environments and the device form factor and level of ruggedness deployment
• To drive the most accurate TCO analysis – and comparative analysis – VDC only compared similar environments and applications.
Environment dictates device type and ruggedness
18 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
What extreme environmental conditions are your mobile devices frequently or occasionally exposed to?
18 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
… and Environmental Conditions
Temperature (heat/cold)
Dust/Particulates
Humidty
Vibration
Water/Rain
Altitude
Salt fog
Other
0% 5% 10% 15% 20% 25% 30%
• End users are exposing the mobile devices to a wide variety of inclement conditions
• Mapping these conditions to identify the appropriate device is a critical step to minimize field-based device failure
• However – when analyzing failure rates and causes – this step is clearly often overlooked leading to higher than average TCOs.
• Even with rugged devices the wrong device is frequently selected. In response to the recent economic recession many end users have ‘traded down’ in terms of the level of ruggedness selected.
• As a result end users are experiencing higher than average failure rates for certain rugged devices.
Mapping environment and user requirements key to mobile device selection
19 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Please specify the following wireless communications functionality for these mobile computers.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Integrated Plug-In None
19 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Wireless Technologies Advance Mobile ROI
Bluetooth WLAN/WiFi WWAN GPS
Variety of wireless technologies leveraged to support mobile applications
• Interoperability requirements are driving requirement for new system developments.
• Traction of WWAN a function of application and environment. However, adoption of embedded WWAN solution in notebooks is lower than expected.
• Key applications on mobile solutions include reporting, resource access, GPS location-based services, sensor, information access, video, text messaging, voice mail/multi-media voice mail.
• Use of plug-in wireless cards or USB dongles is popular – especially with many notebook applications. However, these continue to represent a leading source of failure.
20 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Regarding WWAN requirements, how important is 3G functionality?
20 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
3G remains moderately critical…for now
Mission critical Nice to have No need Unsure/Don't know0%
10%
20%
30%
40%
50%
60%
70%
80%
Large Form Factor - Commercial Grade Large Form Factor RuggedSmall Form Factor - Commercial Grade Small Form Factor RuggedTotal
3G coverage expected to reach critical mass in 2010
• Many enterprise and government mobility applications have limited bandwidth requirements, thus lessening the need for more advanced technologies (such as 3G, 3.5G, 4G, etc.)
• However, as applications evolve and become more complex – for example the increased use of digital video in public safety – demand for improved wireless bandwidth and throughput is expected to grow.
• Moreover, broader market adoption – and coverage – poof 3G services is expected to reach critical mass in 2010/11 which should drive down prices.
21 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Please specify the following Input/output functionality requirements for your most recent mobile deployment
21 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Mobile Solution I/O Requirements Vary
Camera 2D Imager Laser Scanner Mobile Printer Credit Card Swiper
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Integrated Plug-In/Tethered None
Automating I/O capabilities is key to mobile solution ROI
• To support leading and emerging mobile applications, end users require a variety of I/O technologies, ranging from bar code scanners and imagers to credit card swipers and mobile printers.
• Managing these I/O solutions appropriately can significant improve the TCO of the final solution.
• In other words, while I/O solutions are frequently thought of as a ‘dumb accessory’ they frequently represent a key source of failure.
• It is imperative that end users apply the same rigorous requirements to I/O accessories (especially if plug-in or tethered) as they do to mobile device selection.
22 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Approach to I/O solution integration
22 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Approach to I/O Solution Integration
Large Form Factor -
Commercial Grade
Large Form Factor Rugged
Small Form Factor -
Commercial Grade
Small Form Factor Rugged
Total-10%
0%
10%
20%
30%
40%
50%
60%
70%
Using available output drivers Using third party output device management software
Application customization Don't know
Integration of I/O solutions can be cost and time intensive process
• Organizations take varied approached to I/O integration including the use of available drivers to more custom application development solutions.
• Typically, the need for more customized solutions is higher with small form factor applications.
23 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,355. This is 34% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $2,814. This is 59% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.9% and 13.7% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 4.6% and 16.6% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 50-80 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile device’s TCO.
24 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers continue to enjoy a TCO advantage in certain applications
25 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$3
4,7
88
$1
4,0
71
$1
7,8
41
$1
1,7
78
$6,9
58
$2,8
14
$3,5
68
$2,3
56
Annual & Five Year TCO (in USD) • Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 34% premium• Large Form Factor: 59% premium
TCO is highest for commercial grade large form factor solutions
26 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $1500.30 $3406.25 $875.00 $2187.50
Peripherals & Accessories
$333.40 $812.50 $125.00 $250.00
Software $726.81 $545.00 $175.00 $187.50
Services $443.42 $332.50 $467.50 $359.38
Warranty $456.76 $250.00 $137.50 $250.00
TOTAL HARD COSTS $3460.69 $5296.25 $1,780.00 $3,234.38
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
Hard costs include a variety of hardware, software and service costs
27 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$14,001.12 $4107.10 $7,273.20 $3,218.16
IT Support Costs & Replacement Costs
$17,326.39 $4,668.11 $8,787.36 $5,325.40
TOTAL SOFT COSTS $31,327.51 $8,775.21 $16,060.56 $8,543.56
Core assumptions:Large form factor – commercial grade failure (Y1): 16.6%Large form factor – rugged failure (Y1): 4.6%Small form factor – commercial grade failure (Y1): 13.7%Small form factor – rugged failure (Y1): 7.9%
Cost of lost productivity and IT support tied directly to device failure rates
28 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
28 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
16.6%
4.6%
13.7%
7.9%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.9
• Commercial Grade Large Form Factor: 5.6
• Rugged Small Form Factor: 4.6
• Commercial Grade Small Form Factor: 5.8
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard Costs
IT Support
Productivity Loss
Total Cost of Ownership (Five Years)
27.3%
40.8%
29.2%
49.8%
29 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
Productivity loss represents a significant proportion of TCO – especially for non-rugged units
Five Year TCO by Form Factor and Key Contributor
30 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
90 87
16.6%
4.6%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Rate of failures and resulting impact on productivity from each failure are significantly higher for commercial grade offerings. Each percentage point increased in failure results in
almost 5% increase in device TCO.
Failures and Lost Productivity: Large Form FactorRugged vs. Non-Rugged TCO Analysis
31 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
10
20
30
40
50
60
70
80
0%
4%
8%
12%
16%
20%
76
5313.7%
7.9%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Rate of failures and impact on productivity from each failure are significantly higher for commercial grade offerings. Each percentage point increased in failure results in
a 6% increase in device TCO.
Failures and Lost Productivity: Small Form FactorRugged vs. Non-Rugged TCO Analysis
32 – VDC Research Group, Inc.
TCO Analysis
1st Year 2nd Year 3rd Year 4th Year 5th Year0%
25%
50%
75%
100%
125%
Volume of Devices Replaced by Year (from initial year of deployment)
Non-Rugged Mobile Computers Rugged Mobile Computers
Over 60% difference in units replaced by third year
While non-rugged mobile solutions typically have lower adoption costs, for many applications, they represent a much smaller percentage of TCO in comparison to rugged solutions.
Mobile replacement cycles vary widely by platform
What factors, if any, would convince your form to accelerate your mobile hardware replacement cycle?
Attractive trade-in value
Hardware is problematic
Application deployment cost reduction
Technological obsolescence of legacy system
Desire to switch suppliers
Prospect of more attractive TCO/ROI
Other
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
33 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Factors Accelerating Mobile Device ReplacementTrade-in value is a key consideration for end users timing device upgrade
• Over the past 18 months average replacement cycles have increased as end users have extended the life-cycle of existing solutions in response to economic pressures
• Entering 2010, pent up demand and recent mobile OS releases could contribute to an resurgence in mobile device upgrades/ replacements
• One factor that is critical to end users – and could drive them to accelerate this upgrade cycle – is the trade in value of their existing solutions
• This will generally benefit rugged solutions more as there exists an active refurb market for these mobile devices
Leading hardware related sources of device failure
Hard drive
Keyboard/keypad
Display
Plug-in wireless card
Peripheral/accessory
Media drive
Embedded wireless radios
Others
0.0% 10.0% 20.0% 30.0%
Large Form Factor - Rugged Large Form Factor - Commercial Grade
34 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Leading Sources of Failure: Large Form FactorSome change in the leading sources of device failure
• Hard drive, display and keypad are the leading sources of device failure for large form factor solutions
• Although the adoption of flash memory remains limited, it will clearly address many of the hard drive failure concerns
• Peripherals – which frequently are not selected with the same level of rigor as mobile devices – continue to be a significant source of failure for mobile solutions.
• This is more of an issue with rugged solutions which tend to be coupled with more peripherals
Leading hardware related sources of device failure?
Display
Keyboard/keypad
Embedded wireless radios
Peripheral/accessory
Plug-in wireless card
Others
0.0% 10.0% 20.0% 30.0% 40.0%
Small Form Factor - Rugged Small Form Factor - Commercial Grade
35 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Leading Sources of Failure: Small Form FactorSome change in the leading sources of device failure
• For small form factor solutions the key sources of vulnerability are the display and the keyboard
• In addition, wireless radio failure is beginning to show up with increasing frequency. This is often more of a software as opposed to hardware issue.
• As with large form factor solutions, peripherals are a key issue – especially for application supported by rugged devices.
• Peripherals – such as mobile printers – are frequently not selected with the same level of ruggedness as the mobile device which can cause issues.
Leading causes of mobile device failure?(criteria ranked as a ‘top three’ source of failure)
Dropping device
Software issues
Dust exposure
Excessive temperature exposure
Excessive vibration exposure
Water/liquid exposure
Intentional damage
EMI exposure
Others
0.0% 10.0% 20.0% 30.0% 40.0%
Large Form Factor - Rugged
Large Form Factor - Commercial Grade
36 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Leading Causes of Failure: Large Form FactorSoftware is second leading cause of failure, behind only dropping the device
• Not surprisingly dropping the device was the single most frequently cited cause for device failure
• Software (application; OS; utilities; etc.) was cited as the second leading issue. The use of device management software to help remotely diagnose and fix these issues have greatly reduced their impact on TCO.
• The fact that the leading causes of failure did not differ substantially between rugged and non-rugged solutions suggests that end users are frequently not adopting the device with the most appropriate level of ruggedness (i.e. deploying a semi-rugged device for an application that requires a fully rugged unit).
Leading causes of mobile device failure?(criteria ranked as a ‘top three’ source of failure)
Dropping device
Water/liquid exposure
Software issues
Excessive temperature exposure
Dust exposure
Intentional damage
Excessive vibration exposure
EMI exposure
Others
0.0% 10.0% 20.0% 30.0% 40.0%
Small Form Factor - Rugged
Small Form Factor - Commercial Grade
37 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Leading Causes of Failure: Small Form FactorDropping device and liquid exposure are key causes of failure
• Similar to large form factor devices, dropping the device was the leading cause of failure for small form factor solutions.
• In addition water exposure – especially for non-rugged devices – was a critical issue.
• Software failure was equally significant between rugged and commercial grade solutions. The use of device management software to help remotely diagnose and fix these issues have greatly reduced their impact on TCO.
Location/Approach to Fixing Failed Devices
Fixed remotely
Fixed by end user
Fixed in third party service depot
Unsure/don't know
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Small Form Factor - Rugged Small Form Factor - Commercial Grade
Large Form Factor - Rugged Large Form Factor - Commercial Grade
38 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Approach to Fixing Failed DevicesMost devices sent to service depot for repair
Ability to address failure remotely in the field can greatly enhance device TCO. This is mostly relevant for software related failures.
Device Failure Consequences (percent of units)
No trouble found
Covered by warranty
Unit replacement
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Small Form Factor - Rugged Small Form Factor - Commercial Grade
Large Form Factor - Rugged Large Form Factor - Commercial Grade
39 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Device Failure Consequences‘No trouble found’ is consequence in approximately 10% of failure incidences
The ability to appropriately diagnose the issue (in real time before sending to a depot) can greatly reduce ‘no trouble founds’. Will also lessen requirement for replacement units.
Mobile Worker Productivity Loss Following Device Failure(in minutes)
40 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Mobile Worker Productivity Loss
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
90.00 87.00 76.00
53.00
Substantial productivity loss as a result of device failure
Mobile workers can lose up to 90 minutes of productivity as a result of device failure.
Average Internal Device Fix/Repair Time(in minutes)
41 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Time Spent to Fix Failed Mobile Device
0.00
20.00
40.00
60.00
80.00
100.00
120.00
108.00 95.00
68.00 65.00
Internal mobile administrator and helpdesk support requirements substantial
Internal support (helpdesk or mobile admin) can take up to 108 minutes per device failure.
42 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,988. This is 43% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $3,423 This is 53% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors) are displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 8.5% and 16.7% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 6.5% and 17.5%for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 76-101 minutes of productivity when their mobile device failed. Productivity loss represented as much as 52% of a mobile device’s TCO.
43 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many field mobility applications
44 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
Although standard messaging and workforce management applications remain key, the number of field service applications supported continues to grow – on average organizations support over 4 unique apps.
Mobile Application Opportunities: Field MobilityGreater variety of applications supported
Maintenance / Repair / Diagnostics
Location Based Services
Work Order Automation
Workforce Management
Asset Management
Dispatch Management / Scheduling
Facilities Management
Mobile POS/ Mobile Electronic Payment
Surveying
Meter Reading
Surveillance / Inspection
Spare Parts Logistics
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Leading Field Mobility Applications
FIELD MOBILITY
45 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$3
6,6
48
$1
7,1
13
$2
6,1
76
$1
4,9
39
$7,3
30
$3,4
23
$5,2
35
$2,9
88
Annual & Five Year TCO (in USD)
FIELD MOBILITY
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 57% premium• Large Form Factor:47% premium
46 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 1,642.00 $ 3,906.25 $ 875.00 $ 2,262.50
Peripherals & Accessories $ 391.75 $ 893.75 $ 125.00 $ 292.50
Software $ 726.81 $ 545.00 $ 175.00 $ 233.75
Services $ 496.77 $ 372.50 $ 467.50 $ 402.50
Warranty $ 333.40 $ 250.00 $ 137.50 $ 262.50
TOTAL HARD COSTS $ 3,590.72 $ 5,917.50 $ 1,780.00 $ 3,453.75
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
FIELD MOBILITY
47 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$15,049.78 $4,762.46 $13,678.63 $5,718.24
IT Support Costs & Replacement Costs
$18,027.65 $6,432.99 $10,717.06 $5,766.79
TOTAL SOFT COSTS $36,648.14 $11,195.46 $26,175.69 $11,485.03
Core assumptions:Large form factor – commercial grade failure (Y1): 17.5%Large form factor – rugged failure (Y1): 6.5%Small form factor – commercial grade failure (Y1): 16.7%Small form factor – rugged failure (Y1): 8.5%
FIELD MOBILITY
48 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
48 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
17.5%
6.5%
16.7%
8.5%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.1
• Commercial Grade Large Form Factor: 5.9
• Rugged Small Form Factor: 4.4
• Commercial Grade Small Form Factor: 5.5
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
FIELD MOBILITY
Hard Costs as Percent of TCO
49 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
9.8%
34.6%
6.8%
23.1%
FIELD MOBILITY
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard CostsIT SupportProductivity Loss
Total Cost of Ownership (Five Years)
38.9%
52.5%
28.1%
41.2%
50 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
FIELD MOBILITY
Five Year TCO by Form Factor and Key Contributor
Productivity loss represents a significant proportion of TCO – especially for non-rugged units
51 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
94
7617.5%
6.5%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Rate of failures and impact on productivity from each failure are significantly higher for commercial grade offerings. Each percentage point increased in failure results in
an over 4% increase in device TCO.
Failures and Lost Productivity: Large Form FactorRugged vs. Non-Rugged TCO Analysis
FIELD MOBILITY
52 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
20
40
60
80
100
120
0%
4%
8%
12%
16%
20%
101
76
16.7%
8.5%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Rate of failures and impact on productivity from each failure are significantly higher for commercial grade offerings. Each percentage point increased in failure results in
an over 5% increase in device TCO.
Failures and Lost Productivity: Small Form FactorRugged vs. Non-Rugged TCO Analysis
FIELD MOBILITY
53 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,403. This is 33% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $3,203. This is 40% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.4% and 15.7% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 7.6% and 13.9% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 63-88 minutes of productivity when their mobile device failed. Productivity loss represented as much as 42% of a mobile device’s TCO.
54 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many health care applications
55 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
Increased investment in EHR solutions is driving greater variety of healthcare service applications.
Mobile Application Opportunities: Healthcare ServicesGreater variety of applications supported
Asset Management
Wireless Email
Charting
Remote Physician Information Access
Charge Capture
E-prescribing
Home care
Patient Check-In/Out
Facilities Management
Patient Care Reporting from an Emergency Services Vehicle
In-home patient monitoring
Laboratory Management
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Leading Healthcare Service Applications
HEALTH CARE SERVICES
56 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$2
6,6
84
$1
6,0
14
$1
7,8
41
$1
2,0
14
$5,3
37
$3,2
03
$3,5
68
$2,4
03
Annual & Five Year TCO (in USD)
HEALTH CARE SERVICES
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 33% premium• Large Form Factor: 40% premium
57 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 1,708.68 $ 3,031.25 $ 820.00 $ 1,956.25
Peripherals & Accessories $ 479.26 $ 359.38 $ 132.50 $ 310.00
Software $ 811.83 $ 608.75 $ 162.50 $ 247.50
Services $ 666.80 $ 500.00 $ 402.50 $ 370.00
Warranty $ 291.73 $ 218.75 $ 145.00 $ 256.25
TOTAL HARD COSTS $ 3,958.29 $ 4,674.38 $ 1,662.50 $ 3,140.00
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
HEALTH CARE SERVICES
58 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$11,172.10 $5,390.02 $12,344.64 $4,466.45
IT Support Costs & Replacement Costs
$11,553.58 $5,949.28 $9,029.72 $4407.94
TOTAL SOFT COSTS $26,683.97 $11,339.29 $23,036.86 $12,014.39
Core assumptions:Large form factor – commercial grade failure (Y1): 13.9%Large form factor – rugged failure (Y1): 7.6%Small form factor – commercial grade failure (Y1): 15.7%Small form factor – rugged failure (Y1): 7.4%
HEALTH CARE SERVICES
59 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
59 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
13.9%
7.6%
15.7%
7.4%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.3
• Commercial Grade Large Form Factor: 6.2
• Rugged Small Form Factor: 4.5
• Commercial Grade Small Form Factor: 5.3
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
HEALTH CARE SERVICES
Hard Costs as Percent of TCO
60 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
14.8%
29.2%
7.2%
26.1%
HEALTH CARE SERVICES
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard CostsIT SupportProductivity Loss
Total Cost of Ownership (Five Years)
37.6%
40.8%
33.9%
42.1%
61 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
HEALTH CARE SERVICES
Five Year TCO by Form Factor and Key Contributor
62 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
78
6713.9%
7.6%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 5% increase in device TCO.
Failures and Lost Productivity: Large Form FactorRate of failures are significantly higher for commercial grade offerings.
HEALTH CARE SERVICES
63 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
0%
4%
8%
12%
16%
20%
88
63
15.7%
7.4%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 5.5% increase in device TCO.
Failures and Lost Productivity: Small Form FactorRate of failures are significantly higher for commercial grade offerings.
HEALTH CARE SERVICES
64 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,777. This is 22% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $3,424. This is 42% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.6% and 19.4% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 6.4% and 16.5% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 72-96 minutes of productivity when their mobile device failed. Productivity loss represented as much as 45% of a mobile device’s TCO.
65 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many public safety applications
66 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
Mobile public safety applications increasingly sophisticated and include a combination of graphics-intensive GIS solutions with large scale records management systems. In addition new security ID mandates – such as TWICs, ICAO and others –
is driving demand for new I/O functionality.
Mobile Application Opportunities: Public SafetyCAD and RMS applications remain critical…however, next gen security requirements growing
Dispatch Management / Scheduling
Surveillance / Inspection
Wireless Email
Workforce Management
Ticketing / Citations
Command & Control / Communications
Crime Scene Imaging/Investigation
Asset Management
Location Based Services
Work Order Automation
Maintenance / Repair / Diagnostics
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Leading Field Mobility Applications
PUBLIC SAFETY
67 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$2
9,4
91
$1
7,1
18
$1
7,8
41
$1
3,8
87
$5,8
98
$3,4
24
$3,5
68
$2,7
77
Annual & Five Year TCO (in USD)
PUBLIC SAFETY
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 22% premium• Large Form Factor: 42% premium
68 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 1,900.38 $ 4,193.75 $ 1,027.50 $ 2,275.00
Peripherals & Accessories $ 640.13 $ 993.75 $ 162.50 $ 480.00
Software $ 656.80 $ 658.75 $ 195.00 $ 513.75
Services $ 685.14 $ 532.50 $ 387.50 $ 371.25
Warranty $ 341.74 $ 352.50 $ 160.00 $ 255.00
TOTAL HARD COSTS $ 4,224.18 $ 6,660.75 $ 1,932.50 $ 3,895.00
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
PUBLIC SAFETY
69 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$13,099.78 $5,310.24 $10,434.60 $4,343.33
IT Support Costs & Replacement Costs
$12,167.08 $5,147.10 $12,384.56 $5,648.25
TOTAL SOFT COSTS $25,266.86 $10,457.34 $22,819.15 $9,991.57
Core assumptions:Large form factor – commercial grade failure (Y1): 16.5%Large form factor – rugged failure (Y1): 6.4%Small form factor – commercial grade failure (Y1): 19.4%Small form factor – rugged failure (Y1): 7.6%
PUBLIC SAFETY
70 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
70 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
16.5%
6.4%
19.4%
7.6%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 4.2
• Commercial Grade Large Form Factor: 5.9
• Rugged Small Form Factor: 4.7
• Commercial Grade Small Form Factor: 6.3
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
Hard Costs as Percent of TCO
71 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
14.3%
38.9%
7.8%
28.0%
PUBLIC SAFETY
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard CostsIT SupportProductivity Loss
Total Cost of Ownership (Five Years)
31.8%
40.8%
31.4%
44.8%
72 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
PUBLIC SAFETY
Five Year TCO by Form Factor and Key Contributor
73 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
9692
16.5%
6.4%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 3.9% increase in device TCO.
Failures and Lost Productivity: Large Form Factor
PUBLIC SAFETY
Rate of failures are significantly higher for commercial grade offerings.
74 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged70
72
74
76
0%
4%
8%
12%
16%
20%
24%
75
72
19.4%
7.6%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 4.3% increase in device TCO.
Failures and Lost Productivity: Small Form Factor
PUBLIC SAFETY
Rate of failures are significantly higher for commercial grade offerings.
75 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,436. This is 38% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $2,427. This is 28% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.6% and 16.4% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 6.1% and 12.8% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 60-68 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile device’s TCO.
76 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many retail service applications
77 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
Material management applications remain central to mobile retail solutions. However, increasing focus moving forward on customer facing applications.
Mobile Application Opportunities: Retail ServicesGreater variety of applications supported
Asset Management
Inventory/Warehouse Management
Shipping & Receiving
Merchandising
Direct Store Delivery (DSD)/Route Sales
Mobile POS/Mobile Electronic Payment
Location Based Services
Facilities Management
Personal Shopping
PIMS (Personal Information Management)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Leading Retail Service Applications
RETAIL SERVICE
78 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
$1
6,9
32
$1
2,1
35
$1
9,6
62
$1
2,1
82
$3,3
86
$2,4
27
$3,9
32
$2,4
36
Annual & Five Year TCO (in USD)
RETAIL SERVICE
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 38% premium• Large Form Factor:28% premium
79 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 1,808.70 $ 3,062.50 $ 1,650.00 $ 937.50
Peripherals & Accessories $ 546.78 $ 650.00 $ 331.25 $ 112.50
Software $ 516.77 $ 486.25 $ 483.75 $ 170.00
Services $ 608.46 $ 426.25 $ 335.00 $ 352.50
Warranty $ 325.07 $ 308.75 $ 218.75 $ 122.50
TOTAL HARD COSTS $ 3,805.76 $ 4,872.00 $ 3,018.75 $ 1,695.00
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
RETAIL SERVICE
80 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$5,076.00 $2,708.40 $7,376.64 $3,564.60
IT Support Costs & Replacement Costs
$8,050.18 $4,554.33 $10,590.59 $5,598.62
TOTAL SOFT COSTS $13,126.18 $7,262.73 $17,967.23 $9.163.22
Core assumptions:Large form factor – commercial grade failure (Y1): 12.8%Large form factor – rugged failure (Y1): 6.1%Small form factor – commercial grade failure (Y1): 16.4%Small form factor – rugged failure (Y1): 7.6%
RETAIL SERVICE
81 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
81 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
12.8%
6.1%
16.4%
7.6%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 4.1
• Commercial Grade Large Form Factor: 4.9
• Rugged Small Form Factor: 4.2
• Commercial Grade Small Form Factor: 5.1
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
RETAIL SERVICE
Hard Costs as Percent of TCO
82 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
22.5%
40.2%
8.6%
24.8%
RETAIL SERVICE
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard Costs
IT Support
Productivity Loss
Total Cost of Ownership (Five Years)
29.7%
40.8%
22.6%
30.3%
83 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
RETAIL SERVICE
Five Year TCO by Form Factor and Key Contributor
84 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
-4%
0%
4%
8%
12%
16%
20%
24%
60 61
12.8%
6.1%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 4.0% increase in device TCO.
Failures and Lost Productivity: Large Form Factor
RETAIL SERVICE
Rate of failures are significantly higher for commercial grade offerings.
85 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
10
20
30
40
50
60
70
80
0%
4%
8%
12%
16%
20%
68
6516.4%
7.6%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 5.1% increase in device TCO.
Failures and Lost Productivity: Small Form Factor
RETAIL SERVICE
Rate of failures are significantly higher for commercial grade offerings.
86 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $2,874. This is 32% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $3,348. This is 36% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 8.5% and 16.7% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 7.5% and 17.5% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 74-81 minutes of productivity when their mobile device failed. Productivity loss represented as much as 44% of a mobile device’s TCO.
87 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many transportation applications
88 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
As new technologies - real time wireless connectivity, GPS navigation, telematics, etc.are adopted the range and depth of applications per device is expected to increase.
Mobile Application Opportunities: TransportationNew solutions leverage GPS and real time communication to increase efficiency
Shipping and Receiving
Inventory/Warehouse Management
Asset Management
Wireless Email
Fleet Management
Work Order Automation
Dispatch Management / Scheduling
Workforce Management
Location Based Services
PIMS (Personal Information Management)
Spare Parts Logistics
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Leading Transportation Applications
TRANSPORTATION
89 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
$2
6,1
57
$1
6,7
38
$2
1,0
74
$1
4,3
72
$5,2
31
$3,3
48
$4,2
15
$2,8
74
Annual & Five Year TCO (in USD)
TRANSPORTATION
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 32% premium• Large Form Factor: 36% premium
90 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 2,067.08 $ 3,581.25 $ 1,025.00 $ 2,068.75
Peripherals & Accessories $ 610.12 $ 710.00 $ 155.00 $ 481.25
Software $ 570.11 $ 568.75 $ 185.00 $ 531.25
Services $ 591.79 $ 423.75 $ 337.50 $ 375.00
Warranty $ 336.73 $ 305.00 $ 125.00 $ 243.75
TOTAL HARD COSTS $ 4,175.84 $ 5,527.75 $ 1,827.50 $ 3,700.00
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
TRANSPORTATION
91 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$10,292.40 $5,213.81 $9,237.89 $4,688.64
IT Support Costs & Replacement Costs
$11,688.35 $5,996.78 $10,009.05 $5,982.92
TOTAL SOFT COSTS $21,980.75 $11,210.58 $19,246.94 $10,671.56
Core assumptions:Large form factor – commercial grade failure (Y1): 17.5%Large form factor – rugged failure (Y1): 7.5%Small form factor – commercial grade failure (Y1): 16.7%Small form factor – rugged failure (Y1): 8.5%
TRANSPORTATION
92 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
92 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
17.5%
7.5%
16.7%
8.5%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.6
• Commercial Grade Large Form Factor: 5.8
• Rugged Small Form Factor: 4.2
• Commercial Grade Small Form Factor: 6.1
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
TRANSPORTATION
Hard Costs as Percent of TCO
93 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
16.0%
33.0%
8.7%
25.7%
TRANSPORTATION
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard Costs
IT Support
Productivity Loss
Total Cost of Ownership (Five Years)
33.3%
44.3%
31.7%
39.9%
94 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
TRANSPORTATION
Five Year TCO by Form Factor and Key Contributor
95 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
75 81
17.5%
7.5%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 3.5% increase in device TCO.
Failures and Lost Productivity: Large Form Factor
TRANSPORTATION
Rate of failures are significantly higher for commercial grade offerings.
96 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
0%
4%
8%
12%
16%
20%81
7416.7%
8.5%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 5.0% increase in device TCO.
Failures and Lost Productivity: Small Form Factor
TRANSPORTATION
Rate of failures are significantly higher for commercial grade offerings.
97 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/ Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Executive Summary
• Ruggedized devices – both large and small form factor – achieve a distinct TCO advantage in the core markets and applications under study. The average annual TCO of a ruggedized small form factor device (HH/PDA) is $1,978. This is 44% lower than the average annual TCO of a non-rugged small form factor device.
• The average annual TCO of a ruggedized large form factor device (notebook/tablet) is $2,935. This is 22% lower than the average annual TCO of a non-rugged large form factor device.
• The leading sources of failure included hard drives (for large form factors), displays and keyboards. In addition, faulty software and unauthorized changes (by end users) to device settings were frequently cited as sources of failure. Average failure rates for rugged small form factor devices was 7.9% and 12.9% for non-rugged small form factor devices. Average failure rates for rugged large form factor devices was 6.9% and 15.2% for non-rugged large form factor devices.
• Failure rates of non-rugged devices have trended downward over the past couple of years as device vendors focused increasingly on device durability. However, the recent economic recession drove organizations to extend the life cycles of their mobile devices and also drove adoption of lower end devices (such as netbooks). Both factors contributed significantly to an upswing in average failure rates of mobile devices.
• Lost productivity – as a result of mobile device failure – was a leading contributor to TCO . On average mobile workers lost 52-80 minutes of productivity when their mobile device failed. Productivity loss represented as much as 37% of a mobile device’s TCO.
98 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Ruggedized mobile computers have a TCO advantage in many industrial applications
99 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice
Increased investment in industrial wireless solutions driving next generation of process management and workforce management solutions
Mobile Application Opportunities: IndustrialGreater variety of applications supported
Wireless Email
Inventory/Warehouse Management
Field Sales (Sales Force Automation)
Maintenance/Repair/Diagnostics
Shipping & Receiving
Facilities Management
Workforce Management
Asset Management
Work Order Automation
Quality Control & Quality Assurance
Dispatch Management/Scheduling
WIP Tracking
Location Based Services
Plant Operations via Human-Machine Interface (HMI)/GUI
0% 10% 20% 30% 40% 50% 60% 70%
Leading Industrial Mobility Applications
INDUSTRIAL
100 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Rugged vs. Commercial Grade TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
$1
8,7
94
$1
4,6
75
$1
7,6
25
$9
,89
0
$3,7
59
$2,9
35
$3,5
25
$1,9
78
Annual & Five Year TCO (in USD)
INDUSTRIAL
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications under evaluation – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 44% premium• Large Form Factor: 22% premium
101 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Hard Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Mobile Hardware $ 1,625.33 $ 3,656.25 $ 910.00 $ 2,206.25
Peripherals & Accessories $ 373.41 $ 531.88 $ 145.00 $ 297.50
Software $ 686.80 $ 608.75 $ 152.50 $ 260.00
Services $ 623.46 $ 518.75 $ 357.50 $ 342.50
Warranty $ 310.06 $ 281.25 $ 155.00 $ 263.75
TOTAL HARD COSTS $ 3,619.06 $ 5,540.63 $ 1,720.00 $ 3,370.00
Replacement cycle assumptions:Large form factor – commercial grade: 3 YearsLarge form factor – rugged:4.5 YearsSmall form factor – commercial grade: 2.5 YearsSmall form factor – rugged: 4.5 Years
INDUSTRIAL
102 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Deployment Cost Breakdown: Soft Costs
AGGREGATE FIVE YEAR COSTS
Large Form Factor – Commercial Grade
Large Form Factor – Rugged
Small Form Factor – Commercial Grade
Small Form Factor - Rugged
Productivity Loss from HW Failure
$6,814.08 $4,252.80 $6,279.94 $2,206.46
IT Support Costs & Replacement Costs
$8,360.77 $4,881.20 $9,624.78 $4,313.21
TOTAL SOFT COSTS $15,174.85 $9,134.00 $15,904.72 $6,519.68
Core assumptions:Large form factor – commercial grade failure (Y1): 12.9%Large form factor – rugged failure (Y1): 7.9%Small form factor – commercial grade failure (Y1): 15.2%Small form factor – rugged failure (Y1): 6.9%
INDUSTRIAL
103 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
For your most recent mobile device deployment, what percent of your installed base failed at least once?
103 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Average Mobile Device Failure Rates
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
12.9%
7.9%
15.2%
6.9%
• Average Annual Failure Incidence (of devices failing at least once)
• Rugged Large Form Factor: 3.6
• Commercial Grade Large Form Factor: 5.7
• Rugged Small Form Factor: 4.2
• Commercial Grade Small Form Factor: 5.9
• Over the course of the past 2-3 years average failure rates – especially for non-rugged devices – have trended down.• This was largely in response to the increased
focus on designing more durable devices (integration of flash memory was a key contributor).
• However, in response to the recent economic pressures, end users have extended the life cycle of mobile devices and adopted less expensive solutions (such as netbooks) resulting in an increase in failure rates.
After trending down, failure rates are again increasing
INDUSTRIAL
Hard Costs as Percent of TCO
104 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Hard Costs as Percent of TCO
Large Form Factor - Commercial
Grade
Large Form Factor - Rugged
Small Form Factor - Commercial
Grade
Small Form Factor - Rugged
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
19.3%
37.8%
9.8%
34.1%
INDUSTRIAL
• A significantly greater percent of TCO is accounted for by upfront ‘hard’ costs for rugged solutions as opposed to non-rugged solutions
• End users – especially recently – are dissuaded by the high upfront costs of rugged mobile solutions. However, what is frequently unclear to them is the significant costs associated with deploying the wrong device for a particular application.
• Moreover, only 23% of respondents conducted a thorough TCO analysis in support of their most recent mobile device deployment
Large Form Factor - Commercial Grade
Large Form Factor - Rugged
Small Form Factor - Commercial Grade
Small Form Factor - Rugged
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00
Hard Costs
IT Support
Productivity Loss
Total Cost of Ownership (Five Years)
22.7%
35.9%
29.4%
36.5%
105 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
TCO Cost Breakdown
Productivity Loss as a Percent of TCO
INDUSTRIAL
Five Year TCO by Form Factor and Key Contributor
106 – VDC Research Group, Inc.
Large Form Factor - Commercial Grade Large Form Factor - Rugged0
10
20
30
40
50
60
70
80
90
100
-4%
0%
4%
8%
12%
16%
20%
24%
8480
12.9%
7.9%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 4.4% increase in device TCO.
Failures and Lost Productivity: Large Form Factor
INDUSTRIAL
Rate of failures are significantly higher for commercial grade offerings.
107 – VDC Research Group, Inc.
Small Form Factor - Commercial Grade Small Form Factor - Rugged0
10
20
30
40
50
60
70
80
0%
4%
8%
12%
16%
20%
68
5215.2%
6.9%
Lo
st P
rod
uct
ivity
with
ea
ch D
evi
ce F
ailu
re
(min
ute
s)
Ave
rag
e F
ailu
re R
ate
of M
ost R
ece
nt
De
plo
yme
nt (Y
ea
r 1)
Each percentage point increased in failure results in a 5.3% increase in device TCO.
Failures and Lost Productivity: Small Form Factor
INDUSTRIAL
Rate of failures are significantly higher for commercial grade offerings.
108 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
Summary Observations
• A critical aspect of any successful TCO analysis needs to include the business elements of TCO. These include anticipated length of deployment and planned replacement cycles, failure rates and causes of
failure, the opportunity cost of lost productivity—to name a few. Of equal importance to TCO is an analysis of the end user’s needs based on their work flow and work
environment.
• To determine "true" TCO, it is imperative to consult both hard (direct) and soft (indirect) costs. Downtime costs, including any productivity loss and lost revenue streams, factor in here. VDC’s research
shows that over 70% of the cost of owning a mobility solution can come after the initial purchase.
• Understanding soft costs and being able to marry the best possible mobile computer with the target user and application is ultimately what will set apart mobility innovators. It is imperative to balance the user, application, deployment environment and—perhaps most importantly—the
mission criticality of the applications.
109 – VDC Research Group, Inc.
110 – 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Table of Contents
Executive Summary
Research Scope and Methodology
Survey Demographics
Mobile Device Total Cost of Ownership
Mobile Device Total Cost of Ownership: Vertical Market Analyses Field Mobility Healthcare Services Public Safety Retail Services Transportation Industrial/Warehouse
Summary Observations
Appendices: About VDC Research Ways to work with us Licensing terms and conditions
111 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
About VDC Research Group
VDC Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a number of technology markets including: Automatic Identification and Data Collection, Embedded Hardware and Systems, Embedded Software and Tools, Industrial Automation and Control, Mobile and Wireless, and Power Conversion and Control. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world’s leading technology companies, many high-profile start-ups and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs and custom research and consulting services. Founded in 1971, the firm is located in the Boston area.
Please visit our Web site at www.vdcresearch.com to learn more, or call: 508.653.9000
112 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Ways to Work With Us
This report is one of many ways VDC Research Group can help you better navigate your market and grow your business. In addition to published research, VDC Research Group offers a range of services designed to meet your specific tactical and strategic decision-support needs.
Retained Services – VDC Retained Services provide clients with ongoing access to our research staff for a predetermined fee. By entering into a Retained Services Agreement, VDC will commit resources to you and your team each month, but the specific research, analyses and advisory work we undertake for you can be decided by you on an as-you-go basis. Clients in particularly dynamic markets derive significant benefits from the ability to obtain up-to-the minute insights and guidance from our research and consulting teams.
Custom Research and Consulting Service – VDC’s Custom Research and Consulting Services provide clients with the insights and guidance they need to make significant business decisions with confidence in the midst of an uncertain future and complex markets. To date, more than a thousand clients have benefited from our research-driven guidance and exceptionally close client collaboration. Our unique approach ensures that all of our assistance and recommendations are based upon rigorous analysis of information gathered by VDC directly from the marketplace. By engaging VDC when faced with important market strategy decisions, clients maximize the likelihood of achieving their specific goals, including growing revenue, increasing margin, successfully expanding into new markets, or improving the performance of the channel.
VDC is prepared to assist your organization with any of the strategic and tactical initiatives described below : Market Expansion – Into new verticals, applications, account sizes, or geography. Feature Set Definition – For product upgrades, new product lines, product line extensions. Technology Strategy – Including standards adoption, open-source strategy, Service Oriented Architecture (SOA) business model migration. Distribution Strategy – New channel development, channel strategy, channel performance audit. Customer Satisfaction & Loyalty – Existing customers, defections, sales loss analysis. Strategic Acquisition – Of a peer, new entrant, intellectual property.
113 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Ways to Work With Us – continued
On-Site Meeting Participation – When making significant decisions, VDC’s analysts and consultants can be extremely valuable participants in your internal process. Our participation in team meetings allows you to add the unique insights of a full-time market expert to your process, ensuring that you are acting on objective third-party market intelligence instead of the potentially biased perspectives and groupthink that exist in most organizations. When meeting to plan new products, to plan your entrance into new markets, to build a business case for your board, to address challenges with your existing market strategy, and for a wide variety of other market-related issue sets, we encourage you to consider the participation of a VDC analyst or consultant.
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Executive On-Boarding Briefings – If you or someone on your team is new to their position, the company or the industry, VDC can radically accelerate their pace of learning so that they can deliver results much more quickly than they could otherwise. VDC is an expert at providing senior leaders with high-impact industry history briefings, market status briefings, competitive positioning briefings and much more. Our professionals can help new leaders make the novice-to-expert transition in record time.
114 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Use of this product is governed by a VDC Enterprise License. An Enterprise Licensing allows acquired research to be shared by all employees (including individual consultants or contracted employees) (“Employees”) of the organization. The specific privileges afforded by the VDC Enterprise License are as follows:
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Please note that the VDC Enterprise License specifically excludes the right to:
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7. Please also note that the products and services provided to you under an Enterprise License remain the exclusive property of VDC.
Based on your situation, Enterprise License fees have been included in the quote for research-related products. View this language online at: http://www.vdcresearch.com/Enterprise_License.asp
Enterprise Licensing Terms & Conditions
115 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Use of this product is governed by a VDC Team License. A team license allows acquired research to be share by a limited number of employees (including individual consultants or contracted employees) (“Employees”) within the organization. The specific privileges afforded by the VDC Team License are as follows:
1. The right for a limited number of individuals (typically not more than five), who are generally known to each other and are within the same company or business unit, to use and share the acquired report(s), database(s), spreadsheet(s), or extracts thereof (the “Product”).
2. The right to extract data, charts, graphs, tables or other portions of the Product for use in internal company presentations provided VDC is identified as the source of the extracted information using the following language: “© Copyright 2009 VDC Research Group, Inc. Source: Enterprise Mobility Solutions: Track 2: Vertical Markets and Demand Curves, Volume 5: Public Safety.”
3. The right to save copies of the Product on individual PCs or on a server that is accessible only to a limited number of colleagues who are generally known to each other.
Please note that the VDC Team License specifically excludes the right to:
4. Post or store an electronic copy of the Product on a corporate Intranet server, portal or other location that is accessible to the majority or entirety of the organization. Note: This right can be acquired by upgrading to an Enterprise License.
5. Store a physical copy of the Product in a corporate library that is accessible to the majority or entirety of the organization. Note: This right can be acquired by upgrading to an Enterprise License.
6. Distribute any portion of the Product to any individual who is not an Employee of the client’s organization, including minority or majority investors, partially or wholly owned subsidiaries, vendors and other firms that provide products and/or services to the client’s organization.
7. Use some or all of the Product in meetings or presentations where the primary audience is composed of individuals who are not Employees of the client’s company or business unit without the express written permission of an authorized VDC representative. When authorized, VDC must be identified as the source of the extracted information using the following language: “© Copyright 2009 VDC Research Group, Inc. Source: Enterprise Mobility Solutions: Track 2: Vertical Markets and Demand Curves, Volume 5: Public Safety."
Please note that the products and services provided to you under a Team License remain the exclusive property of VDC. View this language online at: http://www.vdcresearch.com/Team_License.asp
Team Licensing Terms & Conditions
116 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Notice of Copyright 2009 VDC Research Group, Inc.
The entire contents of Enterprise Mobility Solutions: Track 2: Vertical Markets and Demand Curves, Volume 5: Public Safety are proprietary to VDC Research Group, Inc. (VDC) and may not be distributed in either original or reproduced form to anyone outside the client’s internal organization within five (5) years of the report date without prior written permission of VDC.
VDC has devoted its best efforts to obtain for and provide to its clients as accurate data as is possible. Nevertheless, we cannot be held responsible for incorrect information provided to us by vendors, users, or others that we interview. Nor can we be held responsible for forecasts of the future evolution of an industry, which, in retrospect, proves inaccurate. Our goal is to provide the best possible analysis of an industry, utilizing data obtained through a time-proven and rigorous research methodology, for our clients to employ in developing strategies to compete in an uncertain and ever-changing business environment.
TRADEMARK ACKNOWLEDGEMENT: Many names of companies, associations, technologies, products and product types, etc. mentioned in this report comprise Trademarks, either registered or non-registered, owned by various entities. These are too numerous to mention individually. VDC acknowledges that ownership of these Trademarks exist, and requests that readers acknowledge this as well.
117 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
About VDC Research Group
VDC Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a number of technology markets including: Automatic Identification and Data Collection, Embedded Hardware and Systems, Embedded Software and Tools, Industrial Automation and Control, Mobile and Wireless, and Power Conversion and Control. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world’s leading technology companies, many high-profile start-ups, and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs, and custom research and consulting services. Founded in 1971, the firm is located in the Boston area.
Please visit our Web site at www.vdcresearch.com to learn more, or call: 508.653.9000
118 – 2009 VDC Research Group, Inc.Mobile & Wireless Practice
Ways to Work With Us
This report is one of many ways VDC Research Group can help you better navigate your market and grow your business. In addition to published research, VDC Research Group offers a range of services designed to meet your specific tactical and strategic decision-support needs.
Retained Services – VDC Retained Services provide clients with ongoing access to our research staff for a predetermined fee. By entering into a Retained Services Agreement, VDC will commit resources to you and your team each month, but the specific research, analyses and advisory work we undertake for you can be decided by you on an as-you-go basis. Clients in particularly dynamic markets derive significant benefits from the ability to obtain up-to-the minute insights and guidance from our research and consulting teams.
Custom Research and Consulting Service – VDC’s Custom Research and Consulting Services provide clients with the insights and guidance they need to make significant business decisions with confidence in the midst of an uncertain future and complex markets. To date, more than a thousand clients have benefited from our research-driven guidance and exceptionally close client collaboration. Our unique approach ensures that all of our assistance and recommendations are based upon rigorous analysis of information gathered by VDC directly from the marketplace. By engaging VDC when faced with important market strategy decisions, clients maximize the likelihood of achieving their specific goals, including growing revenue, increasing margin, successfully expanding into new markets, or improving the performance of the channel.
VDC is prepared to assist your organization with any of the strategic and tactical initiatives described below : Market Expansion – Into new verticals, applications, account sizes, or geography. Feature Set Definition – For product upgrades, new product lines, product line extensions. Technology Strategy – Including standards adoption, open-source strategy, Service Oriented Architecture (SOA) business model migration. Distribution Strategy – New channel development, channel strategy, channel performance audit. Customer Satisfaction & Loyalty – Existing customers, defections, sales loss analysis. Strategic Acquisition – Of a peer, new entrant, intellectual property.