EXCERPT Strategies and Opportunities Driving Mobile Enterprise Application Development Life -Cycle Services

Rona Shuchat Mukesh Dialani

IN THIS EXCERPT
The content for this paper is excerpted from the IDC Vendor Needs and Strategies Report, Strategies and Opportunities Driving Mobile Enterprise Application Development Life-Cycle Services, by Rona Shuchat and Mukesh Dialani (Doc # 229772). All or parts of the following sections are included in this Excerpt: IDC Opinion, In This Study, Situation Overview, and Future Outlook. Tables 22 and 23 are also included.
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IDC OPINION
Third parties are stepping up their mobile application life-cycle investments to meet the demand for mobile applications (e.g., native, Web-based, cross-platform), whether for business to business (B2B), business to employee (B2E), or business to consumer (B2C), across vertical segments. Emphasis is on speeding client mobile applications to market at lower TCO and higher productivity levels (e.g., using crossplatform development tools and standardized development infrastructure such as SDKs and IDEs). In analyzing the mobility services market and reviewing vendor investments in infrastructure and mobile IP (across 14 providers), IDC is of the opinion that the following are key factors influencing growth in this segment: Accelerating mobile IP creation/investment and partnership activity. Strategies for component reusability, application factories, and use of internal IP for rapid cross-platform portability are central to provider investments. Partnerships with mobile enterprise application platform (MEAP) (middleware platform) vendors (e.g., Antenna) 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). Attention to up-front prototyping and rapid generation of user interface (UI) mock-ups, visualizations, and navigations are key to understanding and validating customer use cases and expectations from the start. This is becoming a critical best practice to accelerate development time frames and ensure alignment to business expectations. Mobile application development (AD) and life-cycle packaging. As enterprises leverage third parties to develop mobile solutions, flexible discrete or full life-cycle support strategies weigh in. IDC finds that mobile development services are frequently being positioned as part of broader mobile application lifecycle offerings. Areas of heightened attention include mobile platform selection,

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Filing Information: August 2011, IDC #229772e : Excerpt

business case development, architectural planning (e.g., SOA/multichannel and back-end integration), and agile mobile development (UX design) and testing. White space opportunities. As providers look to drive innovative mobile solutions across verticals, there will be significant opportunities to leverage social media, drive process reengineering efficiencies, and enable billing flexibility and cloud scalability while meeting the security, governance, performance, and localization requirements of customers.

IN THIS STUDY
This study presents 2Q11 primary research and analysis on how professional thirdparty organizations are investing in and supporting enterprise, ISV, OEM, and other technology customers in the planning, development, and deployment of mobile applications across industry verticals. Fourteen detailed vendor profiles are presented along with aggregate summary findings: Accenture, AT&T, Cognizant, CSC, Globant, HCL Technologies, HP Enterprise Services, IBM, iGATE Patni, Mahindra IT and Business Services, Sonata Software, Symphony, Tata Consultancy Services (TCS), and Wipro Technologies.

Methodology
In March 2011, to collect insights on the scope of vendor offerings and strategies targeted at building out mobile application development and testing services to meet client needs (enterprise, ISV, OEM, and other technology companies), IDC issued a vendor survey to over 30 global IT and product engineering service providers. Survey questions covered the following major areas: Current organizational structure to support mobile application development and broader life-cycle services (e.g., presence of a mobility center of excellence [CoE] or solutions unit dedicated to this effort) Current services available to support mobile application design and development, and mobile platforms supported Infrastructure/mobile lab investments Types of mobile solutions in demand from customers Focus of vendor investments in vertical-specific mobile application solutions Methodologies and development frameworks in use Skill sets and training programs of mobile application development teams Challenges in building out mobile design and development groups Mobile AD best practices being assembled

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 Go-to-market strategies Cross-selling strategies with horizontal and vertical service lines Critical joint ventures/partnerships announced in the past 612 months that are important to future growth of mobile application development/life-cycle services Availability or plans for mobility-as-a-service (MaaS) offerings Vendor views of the top 3 opportunities in mobile AD services over the next three years IDC collected detailed survey responses from Accenture, AT&T, Cognizant, CSC, Globant, HCL Technologies, HP Enterprise Services, IBM, iGATE Patni, Mahindra IT and Business Services, Sonata Software, Symphony, Tata Consultancy Services, and Wipro Technologies. Other vendor insights from companies such as Appirio, Capgemini-Sogeti, Fujitsu, Infosys, Mobilezapp, Sprint, and Verizon were also captured in this research effort. Key trends, capabilities, strategies, and direction are provided across global, offshore, and regional players.

SITUATION OVERVIEW
Service providers are reporting increasing enterprise and ISV interest and activity in establishing mobile initiatives for a variety of horizontal- and industry-specific B2B, B2E, or B2C applications. Mobile Product Development and Test Service Strategies: Where Are Outsourcers Investing? (IDC #226453, January 2011) highlights the range of industry applications and challenges present in supporting the mobile application development and testing services life cycle. Mobile users typically have urgent needs to access information or complete specific tasks, with user experience being a core driver in determining mobile application relevancy and design criteria. Then there is the challenge of designing, developing, and testing multiple versions of an application to run on a wide variety of platforms (e.g., iPhone, Droid, Windows Mobile, BlackBerry) and significantly different device models on a given platform (e.g., tablet, smartphone) in a manner that exploits the unique capabilities of each device while maximizing software reuse and development and test efficiency. The need for localization support, back-end system integration, network interoperability, and security requirements also presents its myriad of challenges. In studying current vendor capabilities and market developments to meet rising enterprise demand for mobility solutions, IDC believes the following represent key events that are shaping the evolution of mobile application development and the broader mobile application life-cycle services ecosystem: Mobility solution CoEs: The establishment and proliferation of vendor mobile CoEs has been significant over the past 18 months as enterprises gear up to integrate mobility into both internal- and consumer-facing applications across industry verticals. Examples include Accenture's Smartphone CoE established in July 2010 and TCS' Mobility Solutions Unit formed in 2010. Many have created

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mobility solutions teams or mobile CoEs, some consolidating disparate resources across teams to drive a more unified approach, with higher levels of development consistency and user interface specialization being combined within rapid development and testing processes and frameworks. Others are promoting a central vision from a strategic group of mobility experts but supporting decentralized execution strategies across vertical groups. For example, HCL Technologies has over 15 teams involved in HCL mobility across convergence, product development, and enterprise mobility. Emerging and traditional players: Small and large, regional and global IT outsourcing companies that provide design and development services have been building out and partnering with mobile middleware and cloud companies to expand development services across multiple mobile platforms, investing in agile methodology and automated mobile development frameworks. Middleware vendors (e.g., Antenna, Rhomobile, Vaultis) have partnered with both traditional global outsourcers (e.g., Cognizant, Wipro) and smaller, more nimble IT development shops (e.g., Koombea, Surgeworks). Smaller companies, such as BSQUARE, are stepping in to offer strategic engineering services to OEMs, device makers, and application developers, with cross-platform development within complex environments. Design services offered by such vendors include software architecture and UI, board support packages, SDKs and mobile development platforms for Android, Windows Mobile, and other platform options. Focus on broader mobile application life-cycle services: Based on 2Q11 surveys of over 20 global third parties, many have not only established mobile CoEs to address growing demand for enterprise mobile application development but are positioning mobile development as part of a broader mobile application life cycle of services, whether developing for native, browser, hybrid, or MEAP middleware platform driven applications. The range of these life-cycle services extends from mobile road map planning, business case development, and platform selection to architectural planning (e.g., SOA/multichannel and back-end integration needs), mobile development (e.g., user interface design, agile development) to testing and maintenance. Multiple vendors indicate use of rapid prototyping, proof of concept (POC), and user interface design teams as part of the application development flow. While the research indicates that mobile development activity is also occurring within traditional AD organizations, most global outsourcers report the establishment of a leading mobile team that is spearheading mobile strategy, AD best practices, and training programs. Mobile road map and business process assessments: As some vendors highlight their front-end discrete mobility assessment services, others are leveraging business process assessment frameworks where business processes are being mapped against mobility solution benefits. The opportunity to streamline business processes in line with mobile application initiatives is a new target for driving operational efficiencies. Multiple mobile development platform approaches: As noted in the Mobile Application Development Life-Cycle Services: Vendor Profiles section, most

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providers are supporting native application development for iOS, Android, BlackBerry, Windows Mobile and Windows Phone, J2ME, and Symbian, with a few noting support for BREW and proprietary platforms. Partnerships are increasingly highlighted for support of MEAP solutions with SAP/Sybase Unwired Platform (SUP), mFoundry, 3i, Antenna, Vaultus, Volantis, Rhomobile, MobileIron, and Vipera. Custom mobile Web development is centered on the use of PHP, .NET, and Java. Use of HTML5 is growing, with JavaScript libraries like jQuery, jQTouch, and Sencha and the use of products like Appcelerator and Phonegap. Increasing investment in proprietary mobile IP assets: Investment in internal IP assets is noteworthy, as many vendors have already launched mobile application services that address mobile UI design and mobile middleware design/development services, data exchange management, user and device management, and mobile analytics. Agile-SCRUM appears to have emerged as the preferred software development methodology across vendors. Some are placing special emphasis on its applicability to the onsite offshore model. Automated frameworks and component reusability: Strategies for component reusability and the development of automated frameworks for agile application portability across mobile platforms are central to many SI investments. Many report the availability of reusable components like charting components, media components, message handling components, encryption/decryption, barcode scanning, SSL-based security, and so forth, within repositories. Proprietary inhouse examples are cited by multiple vendors. Portfolio expansion from ISV to enterprise customer: Some vendors are expanding the focus of their service portfolios to address mobility services for both the ISV and the enterprise customer. For example, Symphony established a mobile CoE that began with a charter that was focused on mobile enablement for ISVs and mobile engineered IP solution accelerators and has recently been expanded to incorporate the enterprise mobile domain. Convergence of cloud and mobility solutions: Some vendors are more focused on the convergence of cloud and mobility, working toward helping enterprises and ISVs develop business cases where smart device technology is coupled with Web-based back-end applications to reduce cost and increase efficiency and productivity, with revenue monetization factored in. Collaboration between UX design and engineering teams: Collaboration between user experience design (UxD) teams and engineering teams is increasing as greater emphasis is being placed on how mobility impacts business processes, consumer interfaces, and integration with back-end systems. For example, HCL has a user design team (250+ team members) that collaborates with other CoEs such as HCL's Android CoE and Mobility SIP CoE (which focuses on POC development around technology implementations). Resource skill sets in demand: Service providers are recruiting a mix of mobile architects and senior and junior developers to support the rapid growth of mobile AD teams. Capabilities in mobile architecture, native mobile application development, and user experience design are being sought. For mobile Web applications, which often use technologies such as .NET, Java, HTML, and

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JavaScript, many of the providers report sourcing these skills from a larger pool of resources across their internal global delivery networks. As these mobile solutions teams evolve, hiring and training programs are focused on the following critical skill sets: Native application development. Survey results indicate higher priority for iOS and Android skills, with Windows Phone and BlackBerry following. Skill sets for J2ME developers, Samsung bada, and Microsoft Surface developers are also mentioned. Mobile user-experience designers. Many providers indicate establishment of design teams that bring together a mix of interaction designers, visual designers, and HFI-certified usability analysts (e.g., Cognizant, CanvasM). TCS has a dedicated global user experience design team, iGATE Patni promotes a UX design team, Accenture has a user experience framework, IBM has its Application Innovation Services group, and so on. Mobile architects and technology consultants. These resources are viewed with high priority as enterprises look to develop or refine mobile application road map plans and architecture strategies that take security and compliance into account. HTML5/JS/CSS3. These programming skills are viewed with high priority across multiple providers.

Training programs: Multiple service providers report establishing training programs that are focused on areas like usability analysis, heuristics, wireframing, rapid prototyping, and platform-specific human interface guidelines. Advanced application building includes data management and synchronization, integration of mobile applications with enterprise applications, performance management, and multichannel enablement of mobility. In some training programs, developers are given POCs to develop to demonstrate they can implement the knowledge they have acquired over a prescribed training period (e.g., CanvasM's training strategy). Challenges in growing mobile solution teams: Mobile technology is a rapidly changing area, and providers report major challenges in keeping the mobility teams up to date on technology trends and enabling them with newer technologies. There is growing investment by providers in tracking and investigating the latest mobile technologies, with smaller strategy groups often engaged. Many providers highlight capabilities in developing proof of concepts for clients with the aim of better understanding the application of technologies (e.g., the use of near-field communications [NFC], augmented reality [AR]) so that relevant and compelling solutions can be assembled quickly and efficiently with quality of service. Key challenges reported are: Building skill sets across multiple mobile operating system (OS) platforms. Training programs often include instructional materials with sandbox environments for hands-on training and mock exercises. Keeping

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up with OS platform and device evolution is expected to continue to tax development and test teams. Application portability across multiple platforms. With frequent OS version upgrades and screen size/resolution changes, many providers report use of in-house tools and evolution of best practices to address portingrelated challenges. Keeping pace with aggressive device changes. Service providers with strong partnerships with OEM vendors and telecom players indicate that these relationships are helping them get a better understanding of device road maps and market launches, which helps influence the direction of investment and the focus of mobility practices.

Cross-selling initiatives: Many service providers report they are bringing multiple types of expertise together to propose optimal solutions for clients. Most vertical teams in many of the outsourcing service organizations go to market directly with mobile offerings (e.g., TCS, IBM, Accenture). For those that have separate horizontal practices for services like SAP, Oracle, data warehouse/BI, or testing, there is increasing go to market jointly between these horizontal teams and the mobility solution teams.

Mobile Application Development Life-Cycle Services: Vendor Profiles

Sonata Software
Overview

Sonata Software established a dedicated CoE for mobility in 2010, with a dual focus on supporting ISVs and enterprise clients. For ISVs, Sonata Software supports the complete mobile software development life cycle (from development through testing and product sustenance). For enterprises, Sonata is highlighting a blend of enterprise mobility technology planning to develop client mobile road maps, with technology options for mobilizing existing enterprise applications or implementing solutions using mobile enterprise application platform solutions. Sonata Software is working toward the creation of a mobile solutions factory, leveraging some of the framework components it has already built with plans to add solution accelerators for specialization. For example, with its expertise in travel, transportation, and logistics (TTL), it is planning investments in TTL accelerators such as crew operations to address the demands of a geographically dispersed workforce. Sonata provides support across the following mobile development platforms: Android Windows platforms BlackBerry

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 iOS-based platforms J2ME MEAP (e.g., Sybase Unwired Platform) Table 22 highlights Sonata Software's service activity and investment focus in select vertical-specific mobile application areas. Table 23 provides a snapshot of mobile development initiatives that Sonata Software has completed on behalf of clients in different industry sectors.

TABLE 22
Focus of Sonata Software's Inv estments in Mobile Applications Across Verticals
Other (Travel, HealthApp Type mCommerce Mobile-enabled ERP/SCM Multimedia Gaming VoIP solutions Mobile map LBS M2M Other (social networking apps on mobile) X X X X X X X X X X care X BFSI Retail X X CPG Manufacturing Automotive O&G M&E X Transportation, Logistics) X X

BFSI = banking, financial services, and insurance; CPG = consumer packaged goods; O&G = oil and gas; M&E = media and entertainment; VoIP = voice over IP; LBS = location-based services; M2M = machine to machine
Source: IDC, 2011

TABLE 23
Sonata Software Mobile Application Development Reference Examples
Mobile Application Category

Industry

Sonata Software Reference Example

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TABLE 23
Sonata Software Mobile Application Development Reference Examples
Mobile Application Category mCommerce Mobile-enabled ERP/SCM Social based

Industry Retail CPG

Sonata Software Reference Example B2C: Developed application for social networking for the retail industry B2B: Developed application for direct sales distribution (sales force route optimization) for a global CPG giant B2C: Developed social networking application for a fashion retailer (This iPhone application is available at the Apple iStore.) B2B: Developing a platform for mobilizing enterprise applications securely

Fashion retail

Others

Cross industry

CPG = consumer packaged goods

Source: IDC, 2011

A summary of key Sonata Software strengths in mobile design and development include: Established usability (UXM) team. Specializes in mobile application UI design with agile methodologies, with a focus on extensive prototyping and field validations prior to rollout Investment in vertical solution accelerators. Emphasis on identifying and developing mobile vertical solution accelerators in areas of expertise like the TTL industry Keeping up with highly dynamic mobile technology landscape. Ability to adapt to highly dynamic mobile technology environment and ensure that technical team remains up to date on new developments Sonata Software has identified the following top 3 opportunities in mobile AD services: Extension of enterprise applications for mobility Enterprise mobile platform implementations mCommerce solutions
Summary and Opinion

Sonata Software is integrating mobility into its core areas of expertise, supporting the ISV community in mobile product development and its enterprise client base in horizontal mobilization of enterprise applications. IDC expects that Sonata Software's combined investments in a mobile solutions factory, along with the company's planned TTL solution accelerators, will strengthen existing offerings and help

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accelerate the pace at which highly agile mobile application development projects can be delivered. Sonata Software's ability to recruit expertise in enterprise mobility architecture, platform expertise, and implementation of enterprise mobility platforms like SAP/Sybase will be critical to the company's expansion. While Sonata Software's emphasis on usability considerations with rapid prototyping and field validation is key to quality, the company's ability to leverage prebuilt components and frameworks to accelerate application development will be equally important.

FUTURE OUTLOOK
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. In more detail: Customer maturity will vary. Many enterprise customers are still evaluating different alternatives to define their mobility road map. With an inclination to reuse existing assets as much as possible, enterprise customers are taking a close look at the best way to mobile enable their business applications (e.g., native versus mobile Web versus cross-platform MEAP solutions versus clouddriven platforms). The focus will be on building relevant and innovative business solutions. Simply creating a mobile solution without determining customer needs in reference to business evolution will not increase revenue. It is important to understand and conceptualize new use cases that can increase efficiencies and facilitate higher worker productivity, lower the cost of or improve management of the end-to-end order and supply chains, or introduce innovative ways of marketing and product positioning to build new revenue streams. A rapidly changing landscape with multiple OS platforms and form factors will tax enterprise LOB and IT. Enterprises will remain challenged to keep up with a number of different operating systems and mobile devices with different sets of features. Service vendors will need to continue to develop and test applications that are supported on multiple technology platforms with no set standards to follow. Even technology standards for browser-based applications, such as HTML5, are still evolving, and it will take time for the mobile application development market to stabilize. Agile development will require greater attention to nonfunctional requirements. Given that mobile applications are relatively smaller than other enterprise applications, expectations are that applications will be made available quickly on the mobile device, with incremental additions to functionality being provided on subsequent iterations. Usage of mobile applications, more than other applications, is more significantly impacted by nonfunctional requirements such as usability, security, and performance. As such, development teams will need to remain abreast of such requirements when designing, testing, and delivering applications to market.

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 User experience and usability will play a major role in mobile application adoption. With UX being such a significant component, assets for development methodology need to be enhanced. Estimation techniques and templates will need to be reevaluated periodically to meet mobile AD specifications. Contracts will be smaller with faster time to market. Survey research indicates that mobile application development engagements are tending toward smaller contract values, with compressed timelines and more flexible resource requirements compared with traditional enterprise AD life-cycle contracts. While multiplatform development may be part of a three-month engagement, third parties are expected to be able to increment the number of AD or testing resources as needed in collapsed time frames. Furthermore, enterprise customers, while keen on addressing mobility, are wary of impacts on current enterprise software architecture, which can result in suboptimal experience to the end user if application usability and performance are not adequately addressed as part of the mobile solution.

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