This is a report from our premium subscription research service The Internet Analyst. The Internet Analyst is currently in beta, with a formal launch coming towards the end of 2009. To sign up for a free beta trial, please submit your name and email address here.
This trend is important for two reasons:
- First, the enterprise represents a huge potential market for iPhone and other smartphone growth
- Second, the dominant enterprise smartphone vendor, Research In Motion, looks increasingly vulnerable
Following up on our last report, we made calls to several companies that manage smartphone enterprise operations for businesses.
We found that, in many cases, employees are driving the trend.
In addition, we believe the growing enterprise market could drive 20-25 million incremental smartphone sales over the next 3-5 years. The companies we spoke with account for over one million mobile users. One of them, a mobile-services firm, manages mobile for 18 of the top 20 companies in terms of Blackberry deployments.
Here are two key points we found:
- Executives buy iPhones for personal use and like them so much they bring them to work and tell their IT departments to service them.
- IT departments are resistant at first, given cost and security concerns. IT departments that do give in tend to either offer both BlackBerries OR iPhones to their employees–or allow the employees to purchase whatever phone they like and then reimburse them.
To be clear: iPhone share of the enterprise is still small. But this trend is growing…
HUGE UPSIDE IN ENTERPRISE SMARTPHONE GROWTH
After surveying IT companies, internal IT departments, and cellular carriers, we estimate that only about 10% to 15% of corporate employees currently use smartphones. As smartphone use in general grows, and email/mobile web use becomes more engrained in daily work habits, the per cent of employees who use them could grow to 25% to 30% over the next 5 years. Even this modest share gain would represent about 20-25 million smartphones sold for enterprise use during that period.
SECURITY REMAINS THE BIGGEST HURDLE TO CORPORATE ADOPTION
According to the companies we spoke with, most clients would like to support multiple smartphone platforms, but security remains the biggest issue. Blackberry, with its Blackberry Enterprise Server, is the most secure, and this has helped RIM grab about a 60% share of the total enterprise smartphone market. Here is a breakdown:
About 10% to 15% of corporations that deploy smartphones already support multiple platforms or are planning to soon, according to our contacts. We believe this number could grow closer to 20% over the next 5 years as employees demand multi-platform capability, and the cost of managing multiple platforms decreases.
FINANCE AND GOVERNMENT MAY NEVER GO APPLE, BUT THERE ARE PLENTY OF OTHER INDUSTRIES TO TAP
Because Blackberry offers the most secure smartphone enterprise service, there are several industries we believe will not consider switching smartphones or offering multi-platforms due to the sensitivity of their communications and data.
The two industries we see as the least likely of switching from Blackberries are Finance and Government.
These are huge industries, but they make up only 20% of the total US workforce. That still leaves 80% of the total 150 million US workforce.
Companies we spoke with said they are seeing the most iPhone adoption in industries like media, entertainment, hospitality, transportation, and consumer packaged goods. Here is a breakdown of these industries in terms of employees and per cent of total US workforce.
For more charts on smartphone enterprise issues click here.
This is a report from our premium subscription research service The Internet Analyst. The Internet Analyst is currently in free beta form, with a formal launch coming towards the end of 2009. To sign up for a free beta trial, please submit your name and email address here.
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