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Total Cost of Ownership Models Enterprise and Government Mobility Applications Mobile and Wireless Practice Josh Martin, Sr. Analyst David Krebs, Practice.

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Presentation on theme: "Total Cost of Ownership Models Enterprise and Government Mobility Applications Mobile and Wireless Practice Josh Martin, Sr. Analyst David Krebs, Practice."— Presentation transcript:

1 Total Cost of Ownership Models Enterprise and Government Mobility Applications Mobile and Wireless Practice Josh Martin, Sr. Analyst David Krebs, Practice Director

2 1 – 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

3 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile devices TCO. 2 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers continue to enjoy a TCO advantage in certain applications

4 3 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 4 – 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? 4 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

6 5 – 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 6 – 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 7 – 2009 VDC Research Group, Inc. Mobile & Wireless Practice VDC Research Methodologies Target CommunitiesSample 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 SURVEYS856 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 8 – 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 9 – 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 3 rd Party Technical Support Internal Technical Support Upgrades Application Management Downtime Lost Manpower/Wages Lost Revenues HW Replacement TCO Models

11 10 – 2009 VDC Research Group, Inc. Mobile & Wireless Practice Handheld/ PDA Notebook/ Convertible Slate Tablet Vehicle Mounted UMPC Wearable Americas EMEA Vertical Markets Regional Markets Mobile Computer Form Factors Asia-Pacific GovernmentManufacturingUtilities/ TelcoTransportation Retail Health Care Prof. ServiceEducation VDC Research Methodologies Government and Enterprise Mobility Research Scope

12 11 – 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

13 Considering your organization's most recent mobile deployment, what level of benefits has your organization achieved? 12 – 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

14 Rate the following mobility issues or concerns in terms of their level of importance to your firm (1=Extremely unimportant; 6=Extremely important) 13 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Leading Mobility Investment Concerns Minimizing 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 14 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice 14 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Cross Section of Industries Represented TCO 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 15 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice 15 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice …and Device Types Deployed A 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%

17 For your most recent mobile deployment, what is the primary environment within which the mobile computers are deployed/ operated? 16 – 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 17 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice What extreme environmental conditions are your mobile devices frequently or occasionally exposed to? 17 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice … and Environmental Conditions 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 18 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Please specify the following wireless communications functionality for these mobile computers. 18 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Wireless Technologies Advance Mobile ROI BluetoothWLAN/WiFiWWANGPS 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 19 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Regarding WWAN requirements, how important is 3G functionality? 19 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice 3G remains moderately critical…for now 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 20 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Please specify the following Input/output functionality requirements for your most recent mobile deployment 20 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Mobile Solution I/O Requirements Vary 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 21 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Approach to I/O solution integration 21 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Approach to I/O Solution Integration 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 22 – 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

24 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile devices TCO. 23 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers continue to enjoy a TCO advantage in certain applications

25 24 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 25 – 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$ $ $875.00$ Peripherals & Accessories $333.40$812.50$125.00$ Software$726.81$545.00$175.00$ Services$443.42$332.50$467.50$ Warranty$456.76$250.00$137.50$ TOTAL HARD COSTS$ $ $1,780.00$3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years Hard costs include a variety of hardware, software and service costs

27 26 – 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 $14,001.12$ $7,273.20$3, IT Support Costs & Replacement Costs $17,326.39$4,668.11$8,787.36$5, TOTAL SOFT COSTS$31,327.51$8,775.21$16,060.56$8, 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 27 – 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? 27 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

29 28 – 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 29 – VDC Research Group, Inc. 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 Factor Rugged vs. Non-Rugged TCO Analysis

31 30 – VDC Research Group, Inc. 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 Factor Rugged vs. Non-Rugged TCO Analysis

32 31 – VDC Research Group, Inc. TCO Analysis 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

33 What factors, if any, would convince your form to accelerate your mobile hardware replacement cycle? 32 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Factors Accelerating Mobile Device Replacement Trade-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

34 Leading hardware related sources of device failure 33 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Leading Sources of Failure: Large Form Factor Some 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

35 Leading hardware related sources of device failure? 34 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Leading Sources of Failure: Small Form Factor Some 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.

36 Leading causes of mobile device failure? (criteria ranked as a top three source of failure) 35 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Leading Causes of Failure: Large Form Factor Software 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).

37 Leading causes of mobile device failure? (criteria ranked as a top three source of failure) 36 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Leading Causes of Failure: Small Form Factor Dropping 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.

38 Location/Approach to Fixing Failed Devices 37 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Approach to Fixing Failed Devices Most 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.

39 Device Failure Consequences (percent of units) 38 – 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.

40 Mobile Worker Productivity Loss Following Device Failure (in minutes) 39 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Mobile Worker Productivity Loss 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.

41 Average Internal Device Fix/Repair Time (in minutes) 40 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Time Spent to Fix Failed Mobile Device Internal mobile administrator and helpdesk support requirements substantial Internal support (helpdesk or mobile admin) can take up to 108 minutes per device failure.

42 41 – 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

43 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 52% of a mobile devices TCO. 42 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many field mobility applications

44 43 – 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 Mobility Greater variety of applications supported FIELD MOBILITY

45 44 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 45 – 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, $ 3, $ $ 2, Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 3, $ 5, $ 1, $ 3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years FIELD MOBILITY

47 46 – 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, IT Support Costs & Replacement Costs $18,027.65$6,432.99$10,717.06$5, TOTAL SOFT COSTS$36,648.14$11,195.46$26,175.69$11, 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 47 – 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? 47 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

49 Hard Costs as Percent of TCO 48 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

50 49 – 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 50 – VDC Research Group, Inc. 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 Factor Rugged vs. Non-Rugged TCO Analysis FIELD MOBILITY

52 51 – VDC Research Group, Inc. 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 Factor Rugged vs. Non-Rugged TCO Analysis FIELD MOBILITY

53 52 – 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

54 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 42% of a mobile devices TCO. 53 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many health care applications

55 54 – 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 Services Greater variety of applications supported HEALTH CARE SERVICES

56 55 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 56 – 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, $ 3, $ $ 1, Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 3, $ 4, $ 1, $ 3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years HEALTH CARE SERVICES

58 57 – 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, IT Support Costs & Replacement Costs $11,553.58$5,949.28$9,029.72$ TOTAL SOFT COSTS$26,683.97$11,339.29$23,036.86$12, 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 58 – 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? 58 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

60 Hard Costs as Percent of TCO 59 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

61 60 – 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 61 – VDC Research Group, Inc. Each percentage point increased in failure results in a 5% increase in device TCO. Failures and Lost Productivity: Large Form Factor Rate of failures are significantly higher for commercial grade offerings. HEALTH CARE SERVICES

63 62 – VDC Research Group, Inc. Each percentage point increased in failure results in a 5.5% increase in device TCO. Failures and Lost Productivity: Small Form Factor Rate of failures are significantly higher for commercial grade offerings. HEALTH CARE SERVICES

64 63 – 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

65 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 45% of a mobile devices TCO. 64 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many public safety applications

66 65 – 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 Safety CAD and RMS applications remain critical…however, next gen security requirements growing PUBLIC SAFETY

67 66 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 67 – 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, $ 4, $ 1, $ 2, Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 4, $ 6, $ 1, $ 3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years PUBLIC SAFETY

69 68 – 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, IT Support Costs & Replacement Costs $12,167.08$5,147.10$12,384.56$5, TOTAL SOFT COSTS$25,266.86$10,457.34$22,819.15$9, 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 69 – 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? 69 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

71 Hard Costs as Percent of TCO 70 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

72 71 – 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 72 – VDC Research Group, Inc. 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 73 – VDC Research Group, Inc. 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 74 – 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

76 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 41% of a mobile devices TCO. 75 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many retail service applications

77 76 – 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 Services Greater variety of applications supported RETAIL SERVICE

78 77 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 78 – 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, $ 3, $ 1, $ Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 3, $ 4, $ 3, $ 1, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years RETAIL SERVICE

80 79 – 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, IT Support Costs & Replacement Costs $8,050.18$4,554.33$10,590.59$5, TOTAL SOFT COSTS$13,126.18$7,262.73$17,967.23$ 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 80 – 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? 80 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

82 Hard Costs as Percent of TCO 81 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

83 82 – 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 83 – VDC Research Group, Inc. 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 84 – VDC Research Group, Inc. 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 85 – 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

87 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 44% of a mobile devices TCO. 86 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many transportation applications

88 87 – 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: Transportation New solutions leverage GPS and real time communication to increase efficiency TRANSPORTATION

89 88 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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 89 – 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, $ 3, $ 1, $ 2, Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 4, $ 5, $ 1, $ 3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years TRANSPORTATION

91 90 – 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, IT Support Costs & Replacement Costs $11,688.35$5,996.78$10,009.05$5, TOTAL SOFT COSTS$21,980.75$11,210.58$19,246.94$10, 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 91 – 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? 91 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

93 Hard Costs as Percent of TCO 92 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

94 93 – 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 94 – VDC Research Group, Inc. 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 95 – VDC Research Group, Inc. 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 96 – 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

98 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 minutes of productivity when their mobile device failed. Productivity loss represented as much as 37% of a mobile devices TCO. 97 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Ruggedized mobile computers have a TCO advantage in many industrial applications

99 98 – 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: Industrial Greater variety of applications supported INDUSTRIAL

100 99 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Rugged vs. Commercial Grade TCO 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

101 100 – 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, $ 3, $ $ 2, Peripherals & Accessories $ $ $ $ Software $ $ $ $ Services $ $ $ $ Warranty $ $ $ $ TOTAL HARD COSTS $ 3, $ 5, $ 1, $ 3, Replacement cycle assumptions: Large form factor – commercial grade: 3 Years Large form factor – rugged:4.5 Years Small form factor – commercial grade: 2.5 Years Small form factor – rugged: 4.5 Years INDUSTRIAL

102 101 – 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, IT Support Costs & Replacement Costs $8,360.77$4,881.20$9,624.78$4, TOTAL SOFT COSTS$15,174.85$9,134.00$15,904.72$6, 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

103 102 – 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? 102 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Average Mobile Device Failure Rates 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

104 Hard Costs as Percent of TCO 103 – 2009 VDC Research Group, Inc. Mobile and Wireless Practice Hard Costs as Percent of TCO 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

105 104 – 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

106 105 – VDC Research Group, Inc. 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.

107 106 – VDC Research Group, Inc. 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.

108 107 – 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

109 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 productivityto name a few. Of equal importance to TCO is an analysis of the end users 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. VDCs 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 andperhaps most importantlythe mission criticality of the applications. 108 – VDC Research Group, Inc.

110 109 – 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

111 110 – 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 worlds 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 to learn more, or call: www.vdcresearch.com

112 111 – 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 – VDCs 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.

113 112 – 2009 VDC Research Group, Inc. Mobile & Wireless Practice Ways to Work With Us – continued On-Site Meeting Participation – When making significant decisions, VDCs 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. Speeches & Presentation – Important events such as reseller conferences, partner conferences, product launches and related teleconferences and Webinars gain credibility from the participation of one of our analysts or consulting professionals. Our speakers enhance your event by providing your attendees with unique market insights and intelligence that will leave them better informed about your markets, and better prepared to support your business objectives. Our professionals can also provide additional credibility to your strategy by presenting to your audience fact-based research that supports your planning. 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.

114 113 – 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: 1. The right to post or store an electronic copy of the acquired report(s), database(s), spreadsheet(s), or extracts thereof (the Product) on a secure corporate Intranet server, portal or other location that is accessible to significant portions of or the entirety of the organization. 2. The right to store a physical copy of the Product in a corporate library that is accessible to significant portions of or the entirety of the organization. 3. The right to distribute the Product, either in parts or in its entirety, via , fax or hard copy, to other individuals who are current Employees of the organization. 4. 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. Please note that the VDC Enterprise License specifically excludes the right to: 1. Distribute or make accessible any portion of the Product to any individual who is not an Employee of the clients organization, including investors, Employees of partially or wholly owned subsidiaries, vendors and other firms that provide products and/or services to the clients organization. 2. Use the Product or portions thereof in meetings, presentations, documents, or other media or settings where the primary audience is composed of individuals who are not Employees of the clients company without the express written permission of an authorized representative of VDC. 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. 3. 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: Enterprise Licensing Terms & Conditions

115 114 – 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: 1. 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. 2. 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. 3. Distribute any portion of the Product to any individual who is not an Employee of the clients organization, including minority or majority investors, partially or wholly owned subsidiaries, vendors and other firms that provide products and/or services to the clients organization. 4. 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 clients 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: Team Licensing Terms & Conditions

116 115 – 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 clients 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.

117 116 – 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 worlds 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 to learn more, or call: www.vdcresearch.com

118 117 – 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 – VDCs 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.


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