Digital Deployment as a Competitive Advantage

Shaun Collins

CEO CCS insight

Digital Deployment as a

Competitive Advantage

Shaun Collins

CEO

CCS Insight

@shauncollins

3© CCS Insight

Boundaries between Devices Are Blurring

Consumer needs

Communication

Personal Media and content consumption Communal

Content creation

Productivity, computing power

Portability

Screen size

Smart-

phones

Larger

smart-

phones

PhabletsSmall

tablets

Large

tablets

Convertibles,

small

notebooks

NotebooksAll-in-one,

TVs, etc

<=4.0" 4.1"-5.4" 5.5"-6.9" 7.0"-8.9" 9.0"-10.9" 11.0"-13.9" 14.0"-18.9" 19"-23" 23"+

4© CCS Insight

The Tablet Filled the Gap between Phones and Laptops

5© CCS Insight

Phablets and Small Tablets Bridged the Gap between Phones and Tablets

6© CCS Insight

Mobile Devices Are Now a Continuum with New Categories

+97%+43%

+252%+132%Growth in

volume (units)

from 2012 to 2017

Growth in

value

from 2012 to 2017

Source: CCS Insight

7© CCS Insight

Mobile Devices Are Now a Continuum of Homogeneous Screens

2.4-inch 3-inch 4.5-inch 5-inch

6-inch 7-inch 8-inch

10-inch

8© CCS Insight

Enterprise Priorities in 2014

9© CCS Insight

European IT Budgets on the Increase

Increase more than 10%

Increase 5% to 10%

Increase 0% to 5%

Unchanged

Decrease 0% to 5%

Decrease 5% to 10%

Decrease more than 10%

18%

19%

9%

37%

5%

8% 4%

IT budget change, 2014 versus 2013

10© CCS Insight

Which Areas Will Be Prioritised?

0% 10% 20% 30% 40% 50% 60%

Hardware

Software

Cloud services

Outside services

Maintenance

Staff

None

49%

52%

31%

25%

33%

43%1%

European IT budget priorities, 2014

11© CCS Insight

Which Areas Will Be Prioritised?

0% 10% 20% 30% 40% 50% 60%

Hardware

Software

Cloud services

Outside services

Maintenance

Staff

None

49%

52%

31%

25%

33%

43%1%

European IT budget priorities, 2014

12© CCS Insight

IT Projects Priorities in Europe in 2014

0% 10% 20% 30% 40% 50% 60%Server virtualization

Tablet PCs

DR/BC

Smartphones

Mobility

BI/BA/data warehousing

Backup for virtual servers

Custom app development

Net management and monitoring

Network-based security

Virtual networks and storage

Identity and access management

Mobile applications

European IT project priorities, 2014

13© CCS Insight

IT Projects Priorities in Europe in 2014

0% 10% 20% 30% 40% 50% 60%Server virtualization

Tablet PCs

DR/BC

Smartphones

Mobility

BI/BA/data warehousing

Backup for virtual servers

Custom app development

Net management and monitoring

Network-based security

Virtual networks and storage

Identity and access management

Mobile applications

41%

40%

37%

European IT project priorities, 2014

14© CCS Insight

74 76 78 80 82 84 86 88 90 92 94

Mobility/Security

2014 2013 2012

Management Investment Priorities Moving to Mobility Quickly

15© CCS Insight

Every Minute, We Communicate in Multiple Ways

700,000

100

1,500

15,000

205

million

98,000

400,000

7,000

Facebook updates

New LinkedIn accounts

New blog posts

iPhone apps downloaded

E-mails sent

New tweets

Skype calls

New pictures uploaded to Flickr

Source: CCS Insight and company reports

16© CCS Insight

Three in Four Phones in Use at the End of 2013 Will Be Smartphones

0%

20%

40%

60%

80%

100%

Smartphones

Non-smartphones

15

15.5

16

20122013

20142015

20162017

2018

15.715.7 15.7

15.7 15.7 15.815.9

Proportion of smartphones

and non-smartphones (%)Smartphone

installed base (M)

Source: CCS Insight

Netherlands

installed base

17© CCS Insight

LTE Transforms the Device Landscape by 2015

Source: CCS Insight

Phone

volume (M)

Netherlands

shipments

0

1

2

3

4

5

6

7

20122013

20142015

20162017

2018

1.10.8

0.40.3

0.20.2

0.2

4.8

2.9

2.0

1.2

0.70.4

0.1

0.2

2.5

3.7

4.6

5.25.6

5.9

GSM WCDMA LTE

18© CCS Insight

The First 20 Quarters of 4G and 3G Adoption Compared (Netherlands)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

3G

4G

4G forecast

Source: CCS Insight

19© CCS Insight

The Mobility Market is Complex and Unstructured

Content, Services and

Platforms

Networks

Mobile

Manufacturers

Influencers

PC

Manufacturers

20© CCS Insight

React and Rationalize: 2011/12

• Centralization, cost control and visibility

• Address consumerisation, device and app complexity - BYOD

• Mobile strategy and lifecycle management

• Mobile security and risk management

• Policy, governance and compliance

• Efficiency of ICT infrastructure

• Functional profiling

Enable and Transform: 2013/14

• Innovate

• Increase business agility

• Customer engagement and service

• Collaboration between employees, customers and suppliers

• Optimize processes

• Flexible and new ways of working

• Revenue and upsell or cross-sell

Summary: Many CIOs in "Reaction Mode" and Transitioning

21© CCS Insight

Mobility First — Servers to PCs to Mobile to Tablets

TCOROI

TCS"tactical" to "strategic"

22© CCS Insight

Multi-device usage fuels the need for cloud services

Brings higher traffic per user and per device

The Cloud is Central to a Consistent Multi-Screen Connected Enterprise

23© CCS Insight

Tom Daly (Director for Global Connections) “Its about enabling desire”

In 2014 the mobile team became larger than the desktop team

Released a Digital Design Guidelines – optimise mobile implementation

Coke Play – gamified loyalty programme aimed at Korean teens

Mobile video at the centre of the deployment – more mobile views than desktop in 2014

“There is nothing in our pipeline that does not have mobile in it”

Also helping Coke with operations, bottling, merchandising

Coca-Cola: ‘Phone in One Hand, Coke in The Other’

24© CCS Insight

Coping with Staggering Amounts of Data

Every day, 2.5 quintillion bytes

of data are created —

so much that 90 percent of the

data in the world today has been

created in the last two years alone.

IBM, 2013

25© CCS Insight

Eventually, Everything Will Be Connected

Smart metering Connected cars Smart cities

eHealth Connected home Retail

26© CCS Insight

Google Now and big data as examples

Constant challenges from regulators

The security of personal and professional cloud will be important

Cavalier attitudes to privacy will be a barrier to consumer adoption outside the US

Privacy and Security May Be Barriers to Some But Not All

27© CCS Insight

So What?

28© CCS Insight

CIOs are under increasing pressure to respond to complexity/fragmentation

• Fixed and mobile presence becomes a competitive advantage for enterprises

• Explosion of devices and stakeholder requests demands flexibility and agility

• Budgets straining to keep pace with these changes and challenges

Cloud and mobile are capturing the imagination of the enterprise

• CIOs are embracing cloud as they invest in more capable networks and devices

• Seeking out single providers for multiple services and bearers

• Integrating complex networks on premise and off-site

So What?

29© CCS Insight

Service providers are key to exploiting an enormous cloud / connection opportunity

• Enterprise security and customer confidence will be key

• Service Providers are central to the deployment of these solutions to large and small

enterprise

A complex combination of solutions and distribution will be crucial

• Providing complex solutions from one source will be central to these changes

• Consistent decisions across fixed and mobile properties will be expected

• Complex sourcing and QoS deals will move solutions from transactions to service

So What?

CCS Insight www.ccsinsight.comEMEA: North America:

268 Bath Road 21574 Castleton Street

Slough Cupertino

SL1 4DX CA 95014

UK Twitter: @ccsinsight US

Tel: +44 8450 574223 info@ccsinsight.com Tel: +1 408 886 1745

Shaun Collins

shaun.collins@ccsinsight.com

+44 7836 699970

@shauncollins