Growing Demand for Mobile Enterprise Application Services

More capable smartphones and media tablets are now joining a variety of highly portable netbook computers that have already invaded the workplace. Many are being combined with mobile apps that tap into cloud-based productivity solutions.

According to the latest market study by ABI Research, healthcare is one of the most dynamic sectors for mobile technologies, and manufacturing is now the largest sector for mobile enterprise applications worldwide.

By 2016, manufacturing will generate approximately 23 percent of the nearly $5 billion in mobile enterprise application service revenues.

Mobile enterprise applications, also called mobile B2E applications, include dashboard apps, work flow approval apps, and line-of-business applications for both the smartphone and tablet.

ABI's mobile services practice director, Dan Shey, says, "Manufacturing beats healthcare for B2E app adoption and revenues because of its large employment worldwide and the breadth of occupations that can benefit from mobile apps."

China is also one of the biggest drivers for manufacturing B2E mobile app adoption.

Manufacturing is the second largest employer worldwide. Manufacturing also employs a wide range of occupations using B2E apps, including shipping or receiving workers, delivery drivers, management and supervisory personnel, sales, and installation and repair workers.

Moreover, China is the world’s manufacturing hub, which drives B2E app needs -- not only for Chinese manufacturers but also for companies visiting their Chinese subcontractors.

Healthcare is the top sector in B2E mobile app adoption when viewing the data at the regional level. Healthcare leads in Western Europe, the Middle East, and especially North America, where healthcare B2E adoption outpaces manufacturing by nearly five to one.

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Enterprise Cloud Applications Ongoing Impact on IT

The transition to managed cloud services is having a trickle-down effect on various stakeholders in the business technology landscape. As an example, in the evolving enterprise communications market, customer premise equipment (CPE) vendors must confront imminent erosion in their installed base -- as cloud services gain traction across the public, private, and hybrid cloud domains.

According to the latest market study by ABI Research, 41 percent of all enterprise communications users -- or 386 million lines or seats -- will be on virtual infrastructure by 2016, which is posing a serious danger to the traditional CPE market.

"For CPE vendors, the cloud threat is real," says ABI senior analyst Subha Rama. "By 2016, the communications CPE market will only grow 4.3 percent, while cloud communications will grow by over 21 percent, reaching $8 billion in revenues."

Smaller vendors with point solutions will see cloud services rapidly displace their installed bases. Moreover, some large systems vendors are becoming cloud providers or key enablers of this migration.

However, according to the ABI assessment, many of the CPE solutions are simply not "cloud ready" and will see performance downgrades when virtualized.

The Top Three Forces Influencing Cloud Migration are:

1. The growing adoption of data center architectures and virtualization technologies.
2. The need to integrate multiple applications to deliver the connected experience to users across different devices, including smartphones and media tablets.
3. The promise of lower costs and increased efficiencies from standardized platforms and processes in the cloud.

Enterprises are adopting a non-linear approach to cloud migration; while certain applications undergo experimentation, others are retained on premises.

Mixed environments and hybridization are becoming the norm, especially with larger enterprises. However, the technology to manage hybrid clouds and to enable seamless movement of applications instances across different vendor clouds is in its infancy.

"Enterprise mobilization is also driving migration to the cloud," says ABI practice director Dan Shey. "Cloud applications ease application delivery for businesses that are increasingly relying on access across fixed and mobile endpoints."

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Mobile Enterprise App Development Life-Cycle Services

Media tablet and smartphone software applications (apps) have entered the mainstream of business technology. In fact, results from recent market research by International Data Corporation (IDC) demonstrates that service providers are already reporting increasing enterprise and independent software vendor (ISV) activity -- centered upon the new commercial mobile apps ecosystem that has emerged.

These latest developments are establishing mobile initiatives for a variety of horizontal and industry-specific business-to-business (B2B) and business-to-consumer (B2C) application scenarios.

Enabling Mobile Enterprise Agile App Development

Furthermore, third parties are increasing their mobile application life-cycle investments to meet the growing demand for mobile applications -- such as native, Web-based or cross-platform -- with an emphasis on accelerating client mobile applications to market at lower total cost of ownership (TCO) with higher productivity and quality.

An insightful IDC study has analyzed the emerging new mobility services market and reviewed vendor investments in infrastructure and mobile intellectual property (IP) -- across fourteen different providers.

The following are key factors influencing growth in this segment:

• Accelerating mobile IP creation or investment and partnership activity through component reusability, application factories, and use of internal IP for rapid cross-platform portability are central to service provider investments.
• Partnerships with mobile enterprise application platform vendors are on the rise as are initiatives that integrate smart device technology with cloud-based back-end applications to improve efficiency, reduce cost, and generate new revenue streams.
• The importance of usability and user experience (UX) is becoming a critical best practice to accelerate development timeframes and ensure alignment to business expectations.
• Mobile development is frequently being packaged as part of broader mobile application life-cycle services -- with heightened attention to mobile platform selection, business case development, architectural planning (e.g. back end integration), and agile mobile development and testing.

"As third-party service providers move forward, they will need to address the broader spectrum of enterprise customer needs, from new entrants to the mobile space to more mature customers that have been engaged in a mobile road map strategy for a few years," said Rona Shuchat, director, Application Outsourcing Services at IDC.

The focus will be on building relevant and innovative business-centric solutions -- using mobile device apps as a key enabler.

As such, it's important to conceptualize new use-cases that will increase operational efficiencies and facilitate higher worker productivity, lower the cost of end-to-end order and supply chains, or introduce effective new ways of marketing products to end-customers via mobility.

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