Mobile Device Management Report 2006-2011: Evaluating The Business Case of FOTA and Beyond

• When will FOTA handset shipments reach critical mass?
• Is there a compelling case for full operator deployment of MDM?
• What impact can OTA MDM have on KPIs, including churn and ARPU?
• What will be the market impact as FOTA expands to support customisation and personalisation?
• What revenues will MDM see by 2011?
• What is driving and inhibiting OTA MDM?
• What kind of impetus will the introduction of open standards provide for operators to adopt OTA MDM?
• Will hosted MDM services be popular in enterprise and operator markets?
• Will large integrated solution providers emerge to target both sectors?
• What are vendor and handset maker strategies with FOTA?

Executive Summary

1.1 A clear business advantage is not yet visible in the operator MDM market

1.2 New Services are Creating a New Need

1.3 Over-the-Air Mobile Device Management Offers a Solution

1.3 Challenges to Over-the-Air Mobile Device Management (OTA MDM)

1.4 Market Trends

1.5 Market Forecasts

1.6 Conclusions

Chapter 2 Introduction

2.1 History of Device Management

2.2 The Emergence of Over-the-Air Device Management

2.3 Components of an MDM solution

2.3.1 Defining MDM

Figure 2.1: MDM and its components

2.3.2 Two separate markets exist

2.3.2.1 Enterprise/corporate market

2.3.2.1 Operator/handset OEM market

2.4 Research Methodology

2.5 Focus and Objectives of the Report

Chapter 3 Market Analysis and Forecasts

3.1 Justification for MDM Implementation

3.1.1 Operators and Handset Manufacturers

3.1.1 Device complexity is increasing rapidly

Table 3.1: Mobile Phone Capabilities by Generation - 2.5G vs 3G handsets

Chart 3.1: Mobile device trends - average number of applications and updates per handset, 2003-2011

3.1.2 Impact of device complexity on consumer usage patterns

Chart 3.2: Percent of mobile users who avoid new services due to device complexity

3.1.3 Costs to Handset Manufacturers

3.1.3.1 Recall costs are costing the industry billions and will continue to rise

Chart 3.3: Firmware recall costs, 2004-2006

Chart 3.4: Typical cost breakdown for handset recalls (%)

3.1.3.2 Effect of recalls on OEM and carrier brands

Table 3.2: Brand Trust among consumers of Handset Makers and Carriers

3.1.3.3 Who is responsible for recalls?

3.1.3.4 Which handset manufacturers are most plagued by firmware recalls?

Table 3.3: Handset models recalled

3.1.4 Operator Issues

3.1.4.1 MDM as a tool for minimizing manual work for end-users

3.1.4.2 3G and Smartphones

Table 3.4: Penetration of 3G Handsets by Country in Western Europe, 2005-2010

Table 3.4: Relative Monthly Consumption of Mobile Data Services By Type Over 2G and 3G Networks

3.1.4.3 Summary of Operator and OEM Benefits from MDM

3.2 How OTA Works

3.3 The Enterprise Market

3.3.1 Why enterprises are adopting automated OTA device management

Chart 3.5: Smartphone Shipment as a Percentage of Total Handset Shipment, 2005-2011

3.3.1.1 Manage devices from multiple vendors and carriers

3.3.1.2 Manage multiple user configurations and profiles

3.3.1.3 Synchronize data, files and applications

3.3.1.4 Deploy software updates

3.3.1.5 Mitigate risk by securing remote devices with kill or lock functions

3.3.2 How does enterprise DM differ from operator market?

Table 3.5: Characteristics of Enterprise vs Consumer Focused MDM

3.4 Glossary

3.5 Technical Focus

3.5.1 Server

3.5.2 Intelligence layer

3.5.3 Applications

3.5.4 The DM/OTA process

Figure 3.1: Packet exchange in a DM session

3.6 Standards

3.6.1 Interoperability standards remain a work in progress

3.6.2 OMA-DM/FUMO standard will drive operator deployments

3.6.3 OMA-DM handsets still require some provisioning

3.6.4 FUMO

Figure 3.2: FUMO architecture

3.6.4.1 FUMO components and interfaces

3.6.4.1.1 The FUMO Enabler

3.6.4.1.2 The FUMO Agent Component

3.6.4.1.3 The DM Client Component

3.6.4.1.4 The Large Object Download function of the DM Client

3.6.4.1.5 The Alternate Download Client component in the device

3.6.4.1.6 The DM Server component

3.6.4.1.7 The Interface FUMO-1

3.6.5 PIC

3.7 Types of MDM Applications

Figure 3.3: Current MDM capabilities

3.7.1 Provisioning/Configuration

Figure 3.4: Role of MDM in the value chain

3.7.1.1 Two methods exist for initial non-manual provisioning

3.7.1.2 Typical features encompassed in a configuration application

3.7.2 Firmware over-the-air

Chart 3.6: Typical handset memory storage capacity, 2005-2011

3.7.2.1 Three approaches to FOTA

3.7.2.1.1 Patching

3.7.2.1.2 Padding

3.7.2.1.3 Computation

3.7.2.2 Characteristics of an efficient update process

Figure 3.5: FOTA update process

3.7.2.1 Handset OEMs that offer FOTA

Table 3.6: OTA-enabled handset models

3.7.2.2 Financial Advantage of FOTA

Table 4.7: Costs savings achievable with FOTA

3.7.2.3 FOTA is evolving towards supporting customization and personalisation

3.7.2.4 Challenges to FOTA updating

Table 3.8: FOTA updating challenges

3.7.3 Diagnostics

Chart 3.7: Cost savings that can be achieved by operators through OTA diagnosing and repair, 2005-2010

3.7.4 MDM Can Mitigate Unnecessary Product Returns

3.8 Market Characteristics

Chart 3.8: Worldwide Data Revenue (2005-2011)

Chart 3.9: Worldwide Average Data ARPU (2003-2011)

3.8.1 Operators

3.8.1.1 What do operators want from MDM?

3.8.1.2 Operator attitudes to OTA MDM

Chart 3.10: Survey - What do you view as the top barriers slowing the adoption of FOTA?

3.8.1.3 Operator Deployments

Table 3.9: Operators that have rolled out OTA MDM

3.8.2 MDM Vendors

Chart 3.11: Percentage of MDM market that is automated in the configuration component

3.8.3 Operator MDM market is open to vendors and large system integrators

Table 3.10: Major FOTA solution providers

Table 3.11: Major Configuration and Diagnostics Solution Providers

3.8.3 The Role of SIM Cards in MDM

3.8.3.1 High-capacity SIMs and personalization

Table 3.12: Comparison of typical vs HC SIMs

3.9 Geographical Differences

3.9.1 Japan and Asia

3.9.1.1 A sophisticated FOTA market

Table 3.13: Handset terminals recalled in Japanese market

3.9.1.2 Japanese experience shows the dangers of OTA configuration

3.9.2 Europe

3.9.2.1 SIM Issues and SIM-secured FOTA

3.9.2.2 Configuration will remain the main MDM deployment in Europe in the short term

Chart 3.12: Percentage of European customer care inquires related to configuration

3.9.3 United States

Chart 3.13: Voice and data ARPU of to 4 US carriers, Q3 2004-Q2 2006

3.9.4 Rest of the World

3.10 Barriers to MDM Implementation in the Operator Market

3.10.1 Longetivity of legacy terminals

3.10.2 Penetration of FOTA handsets

Chart 3.14: FOTA-enabled handset shipments and as % of total handset shipments, 2006-2011

3.10.3 Installed base of 3G phones

3.10.4 Customization and personalization will result in a flexible and complex software environment

3.11 Market trends

3.11.1 Towards a customer focus

3.11.2 Operator MDM market will assume the characteristics of enterprise DM

3.11.3 Automated solutions will become ubiquitous

3.11.4 Virus protection via OTA

3.11.5 Value-added services

3.11.6 Managed MDM services will gain in popularity

3.11.7 Customization

3.11.7.1 BPM and customization

3.11.7.2 The emergence of SOAs

3.11.8 Business intelligence and analytics

3.12 Revenue and deployment forecasts

Chart 3.15: Operator deployments of OTA MDM, 2006 & 2011

Chart 3.16: Operator MDM revenues, 2006-2011

Chart 3.17: Enterprise MDM revenues, 2006-2011

Chart 3.18: Operator vs Enterprise MDM revenues, 2006-2011

Chapter 4 Competitive Landscape

Table 4.1: Major MDM vendors by category

4.1 Bitfone

4.1 Company profile

4.1.2 Product and strategic analysis

Table 4.2: Fusion DM components

4.2 Brightpoint

4.3 Ericsson

4.3.1 Company profile

4.3.2 Product analysis

5.4 HP

4.5 IBM

4.6 InnoPath

4.6.1 Company profile

4.6.2 Product and strategic analysis

Table 4.3: InnoPath’s iMDM Device Suite

4.7 Insignia

4.7.1 Company profile

4.7.2 Analysis

4.8 LogicaCMG

4.9 mFormation

4.9.1 Company profile

4.9.2 Product and strategic analysis

Table 4.4: mFormation’s operator customers

4.10 Mobilethink

Figure 4.1: Mobilethink Terminal Management Platform architecture

4.11 Motorola

4.11.1 Company profile

4.11.2 Product and strategic analysis

4.12 Nokia

4.12.1 Product and strategic analysis

Table 4.5: Nokia Service Management solution

4.13 Perlego

4.14 Red Bend

4.14.1 Company profile

4.14.2 Product and strategic analysis

Table 4.6: vCurrent mobile technology

4.15 Sicap

4.15.1 Company profile

4.15.2 Sicap analysis

Table 4.7: Sicap’s operator customers

4.16 SmartTrust

4.16.1 Company profile

4.16.2 Product and strategic analysis

Table 4.8: S martTrust’s partners and customers

4.17 Synchronica

4.17.1 Company profile

4.17.2 Product and strategic analysis

Table 4.9: Synchronica's device management product portfolio

4.18 Sybase iAnywhere

4.18.1 Company profile

4.18.2 Product and strategic analysis

Table 4.10: Afaria MDM solution features

4.19 VeriSign

4.20 OTA Flash Forum

Chapter 5 Conclusions and Recommendations

5.1 Conclusions

5.2 Recommendations

5.2.1 For Vendors

5.2.2 For Operators

5.3 For Handset Manufacturers

Appendix A Lead author’s profile

Appendix B About visiongain

Appendix C Report evaluation form