Recent Trends in Enterprise Mobility

November 28, 2011

The enterprise mobility sector is rapidly growing as the demand for preferred personal devices such as tablets and smartphones, specifically Apple and Android platforms, continues to penetrate the enterprise with strong momentum. Moreover, Apple recently stated that the portion of Fortune 500 companies with a combination of testing or deploying of iPads and iPhones is 92% and 93%, respectively. Specific examples of enterprise use cases from a recent New York Times article include: airlines replacing printed flight manuals, navigation charts and other material that pilots are required to bring on board with iPads; and Standard Chartered, a financial services company, is supplying approximately 11,000 iPhones to employees in an effort to move them away from BlackBerrys, which have limited ability to create apps specific for their changing operations. The charts below show significant worldwide commercial tablet shipment growth, as well as increased tablet deployment in the enterprise.

“Consumerization” is driving the IT enterprise adoption of personal devices. There are a number of factors driving this movement, but the most important are employee demand, preference and “anytime, anywhere” access. However, accelerated adoption of these devices into the enterprise is leading to challenges and changes to find solutions that will enable full functionality, security, management and cost savings. As the volume of enterprise file-based content grows exponentially, businesses will continue to aggressively pursue initiatives that enable them to overcome challenges of integrating heterogeneous platforms and devices within existing infrastructure.

Industry leaders, such as VMware and Citrix, as well as a few smaller companies with expertise in the sector, recognize this tremendous opportunity, and are focused on developing enterprise secure solutions. Moreover, these mobile devices enable ideal synergies with SaaS and Cloud services. As such, adoption of enterprise mobility trends is anticipated to continue to drive an already active deal sector.

Overall, transactions within the enterprise mobility sector continue to be executed at a significant rate. Recent transactions of significance within this space include: Citrix’s acquisitions of both ShareFile (valued at 5.8x revenue) and App-DNA (valued at 5.9x revenue). Since the beginning of 2011, The 451 Group reported 342 deals completed in the Enterprise Mobility Sector, with 44 of those deals being done since Q4 (with a median EV / Revenue multiple of 4.0x).

-Frank Cordek, Associate


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