1. vdcresearch.com 0 © 2011 VDC Research Group, Inc. Mobile & Wireless Mobile & Wireless Practice Rugged Tablet Calculus: Understanding the Total Cost of Ownership of Mission Critical Mobile Solutions Presented by Peter Poulin Vice President, Marketing for Motion Computing March 2013 Brought to you by

2. vdcresearch.com 1 © 2011 VDC Research Group, Inc. Mobile & Wireless Agenda vdcresearch.com About Motion About VDC Research Tablet Market Dynamics Total Cost of Ownership Models Rugged Tablet TCO

3. vdcresearch.com 2 © 2011 VDC Research Group, Inc. Mobile & Wireless About Us Peter Poulin - Vice President, Marketing Who we are:  Award-winning technical experts with decades of industry experience What we do:  Improve worker productivity, data accuracy and security  Enable real-time decision making at the point-of-service How we do it:  We make it our business to understand your business  Through rugged tablet PCs, tailored accessories and services we deliver mobile technology solutions customized to your business workflows Who we serve  Field Service  Healthcare  Utilities  Construction  Retail  Public Safety  First Responders

4. vdcresearch.com 3 © 2011 VDC Research Group, Inc. Mobile & Wireless About Us Market Intelligence for Technology Vendors & Investors  Direct-Contact Primary Market Research  Deeply Segmented Data  Expert Insights  Validated Results Custom Consulting Services for Your Most Critical Business Decisions  Research-Based Consulting  Transparent Tools & Methodology o Highly Customized Survey Guides & Output Templates o Sophisticated Market Estimate & Forecast Models o Detailed, Flexible Stakeholder Maps & Profiles o Industry Development Scenarios o Market Opportunity Fit Screening, Rating & Ranking

5. vdcresearch.com 4 © 2011 VDC Research Group, Inc. Mobile & Wireless Approximately 17% of tablets used in enterprise settings and workflows EMPOWERING THE MOBILE WORKER WITH THE RIGHT TABLET Tablet Growth Outpacing All Mobile Form Factors Global PC and Tablet Shipments (Units)  Tablets are not new to the enterprise. Many vertical workflows supported by tablets.  Introduction of iPad and Android tablets providing lift to the market.  However, consumerization is less about bringing consumer devices into enterprise and more about introducing ‘consumer’ interfaces on enterprise devices.  Ease of use/ user interface and new power/performance paradigm are critical enablers of next wave of tablet development.  Moreover, the horsepower of ARM-based media pads will be a limiting factor for more sophisticated enterprise mobile applications.  Windows 8 being closely monitored and has potential to disrupt some Android momentum.

6. vdcresearch.com 5 © 2011 VDC Research Group, Inc. Mobile & Wireless Tablets becoming a more strategic mobile computing and communications platform Approximately six in ten organizations perceive tablets as very or extremely strategic as a mobile computing and communications platform.

7. vdcresearch.com 6 © 2011 VDC Research Group, Inc. Mobile & Wireless Broad interest in tablets among enterprise and government organizations with 55% currently using or evaluating/planning to deploy tablets Resulting in broader adoption of tablets in the enterprise Few organizations that evaluate tablets decide not to deploy. Balanced mix between current users and evaluators with almost 30% of organizations with no current tablet initiatives.

8. vdcresearch.com 7 © 2011 VDC Research Group, Inc. Mobile & Wireless Tablet viewed as a key workforce productivity and customer engagement platform Organizations focusing on worker productivity and customer satisfaction and interaction as the key tablet investment drivers.

9. vdcresearch.com 8 © 2011 VDC Research Group, Inc. Mobile & Wireless From direct sunlight exposure to use of device with wet or gloved hands, all impact the usability of mobile devices by field workers Considering the Use Environments Critical to Device Selection

10. vdcresearch.com 9 © 2011 VDC Research Group, Inc. Mobile & Wireless Failure rates of mobile devices used for line of business applications increases substantially for non-rugged devices The recent influx of consumer devices into the enterprise through broader support for BYOD programs and the desire by users for a more intuitive and modern platform has contributed to an increase in device failure rates. Failure rates for popular (non-rugged) consumer devices used to support line of business applications exceeds 15% for tablets and 20% of smartphones, representing a measurable increase in comparison to the previous research conducted by VDC. Conversely, failure rates of rugged devices dropped. While end users are using devices longer, on average, as a result to access to capital issues, a shift in device class deployed has contributed to a drop in average failure rate. Mobile Device Failure Rates by Device Type

11. vdcresearch.com 10 © 2011 VDC Research Group, Inc. Mobile & Wireless Variety of hardware and software issues driving failure MOBILE SOLUTION TRENDS Leading Symptoms of Device Failure

12. vdcresearch.com 11 © 2011 VDC Research Group, Inc. Mobile & Wireless Consumerization of IT less about bringing consumer devices into the enterprise and has more to do to delivering ‘consumer-like’ experience on enterprise devices. In line of business, enterprise-lead processes dominate. Leading consumer platforms – Android and iOS – still have major limitations for enterprise-centric use cases, especially in line of business environments. Key challenges include: Security support. Multitasking capabilities. WiFi Connection Management. Compatibility. Lifecycle support and version control. Help desk. Device and OS maintenance. File Transfer. Printing. Connectivity. Microsoft Remains in Drivers Seat in Enterprise

13. vdcresearch.com 12 © 2011 VDC Research Group, Inc. Mobile & Wireless TCO critical to making right tablet investment decision 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

14. vdcresearch.com 13 © 2011 VDC Research Group, Inc. Mobile & Wireless Rugged device TCO measurably lower in comparison to non-rugged TCO As a result of the increased failure rates of consumer devices used in line of business environments, their TCO relative to rugged counterparts grew considerably. Other challenges with consumer devices include: Accessory management Wireless performance Use with gloved hands/ wet conditions Lifecycle management Security The appeal of consumer devices lies not only in their lower upfront adoption cost but also the significantly superior user experiences delivered on these devices. It is here that rugged devices – especially handheld devices and tablets need to improve to counter this trend. Mobile Device Annual TCO for Line of Business Applications

15. vdcresearch.com 14 © 2011 VDC Research Group, Inc. Mobile & Wireless Tablet TCO for Line of Business Applications

16. vdcresearch.com 15 © 2011 VDC Research Group, Inc. Mobile & Wireless IT budget pressures driving greater focus on ROI and TCO of mobile investments – major projects require hard metrics Increasing importance for strong metrics such as ROI and TCO to not only validate investments but similarly to track and measure use of mobile solutions within the enterprise post deployment. Line of business mobile solutions are business and mission critical – and need robust and reliable solutions to support them. Consumerization of IT all about introducing consumer experiences – NOT technology – into the enterprise. Traditional enterprise oriented mobile solutions need to catch up. Critical is aligning right mobile solution with target user and application environment. Flood of consumer technologies in the enterprise has driven spike in failure rates. The cost of supporting and managing a device post deployment is just as if not more important that the upfront device investment. Enterprise Mobility Investments: TCO and ROI Models Becoming More Critical

17. ? ? i i For More Information: www.motioncomputing.com For More Information: www.motioncomputing.com Questions: Contact Motion at 1-866-MTABLET or 512-637-1100 (option 4) OR email Peter directly at ppoulin@motioncomputing.comppoulin@motioncomputing.com Questions: Contact Motion at 1-866-MTABLET or 512-637-1100 (option 4) OR email Peter directly at ppoulin@motioncomputing.comppoulin@motioncomputing.com