mSolve Partners

Latest Mobile Industry Developments andLatest Mobile Industry Developments and Implications for CIOs

Dr. Mehmet UnsoyManaging PartnerManaging Partner

mSolve Partners

April 2011

www.msolvepartners.com mehmet@msolvepartners.com

Background

• Founded by Dr. Mehmet Unsoy mSolve Partners

• Arpanet/Internet pioneer in ‘70’sDr. Mehmet Unsoy

and Steve Gaynor• Mobile Industry Focused

Corporate Advisory Firm

• Bell Canada, Bell Northern Research

• Exec at Nortel in Asia & in USA• Mergers & Acquisitions (M&A),

Business Development and Strategic Advice

Exec at Nortel in Asia & in USA• CTO for British Telecom,17

wireless operators worldwide• CTO / CIO for O2 mobile

• HQ in Dallas, USA with global presence in 10 countries

• Current clients are from USA,

• CTO / CIO for O2 mobile operator in UK, Germany, Holland and Ireland

• Advisor / board member of 30+,UK, France, Finland and Turkey

Advisor / board member of 30+ young technology companies

• Partner at Cartagena Capital, M&A firm (Munich-based)

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M&A firm (Munich based)

Attended Latest Wireless Conferences

• Mobile World Congress (MWC) 2011– Held in Barcelona, Spain– February 14-17, 2011y ,– World’s largest wireless and mobility

show– 60,000 executives attending– Our detailed report @

www.msolvepartners.com• CTIA Wireless 2011

– Held in Orlando, Florida, USA– March 20-24, 2011– The largest wireless and mobility show

in the Americas– 40,000 executives attending– Our detailed report @ 8 members of mSolve team

participated at these conferences

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www.msolvepartners.com participated at these conferences, and held hundreds of meetings

Content

2

1. Key Trends and Implications

I li ti V ti l S t

3. Predictions for Mobile Industry

2. Implications on Vertical Sectors

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Key Trends in Mobility Sector

CloudsSmartphones

Implications on

Tablets Location

Implications on Enterprise

Device MgmtSocial Nets Device Mgmt

AppsOS’s

Social Nets

Great deal is happening in wireless / mobility industry,Huge impact on the Information Technology (IT) sector

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Huge impact on the Information Technology (IT) sector

Tablets

How many of you think Tablets are devices to be considered seriously for enterprise applications?

• 100+ new models have been announced by 64 different yvendors

• 50+ million tablets are expected to be sold in 2011!

• Total shipments of tablets will t t 242 3 illi it iamount to 242.3 million units in

2015

Tablets are “Post PC Era Prod cts” St J b A l CEO

6ConfidentialSource: iSuppli

Tablets are “Post PC Era Products”, Steve Jobs, Apple CEO

Apple iPad2• Apple’s iPad - launched only in

April 2010 and sold 15+ million in 9 months

• Started a brand new category of iPad iPad 2g ymobile devices

• 60,000 apps for iPad in iTunes

iPad iPad 2 • 1 GHz dual core processor, A5 Custom

designed, about 30% fasterg• Two cameras, one in front and one in

back, recording 720p HD; FaceTimevideo chat

• 33% thinner at 8 8 mm (one of the• 33% thinner at 8.8 mm (one of the thinnest in the market), and 607 gr. lighter, but not the lightest!

• Announced by Steve Jobs on March 2nd, launched in the US on March 11th,

• International launch started March 25th

• Estimated sales in 20 days – 5 Million• Priced from $499 and upApple currently holds commanding

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Priced from $499 and upApple currently holds commanding 78% of the tablet marketshare

Motorola Xoom

• 10.1 inch HD widescreen• 1 GHz Dual-core processor with

Android 3 0 (Honeycomb)Android 3.0 (Honeycomb)• HSPA+, Wi-Fi• Dual cameras: 5 Megapixel with

720p HD and 2 Megapixel720p HD, and 2 Megapixel webcam

• Announced at CES in January and launched in Februarylaunched in February

• Available for CDMA networks, Verizon in particularG /

Priced from $599

• 4G support / LTE upgrade coming

First Android Tablet to hit the market

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First Android Tablet to hit the market

Blackberry Playbook

• 1 GHz dual-core processor from Texas Instruments

• 7 inch touch screen, 2 HD video cameras, 5 Megapixel on the back and 3 Megapixel in the front

• Most extensive enterprise applicationsM lti t ki Fl h t• Multi-tasking, Flash support

• 4 different models with Wi-Fi, WiMAX, HSPA+ and LTE combinations

• Prices will match iPad 2 pricing• Prices will match iPad 2 pricing

• Recently announced that, in addition to Blackberry Java Apps, it will also fully support all Android apps but will be running on Android 2 3 (Gingerbread OS)support all Android apps, but will be running on Android 2.3 (Gingerbread OS)

• Will be launched on April 19th !

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Blackberry owners will love this Playbook!

HP Touchpad 9 7 i h t h• 9.7 inch touch screen,

• WebOS platform • Powered by a dual-core Qualcomm

Snapdragon processor running at 1.2GHz

• Superb User Interface, from Palm• Outstanding multitasking capabilities• Will be launched in the US in June• Prices will match Apple iPad 2Prices will match Apple iPad 2• However, lacks full commitment of

HP executives• Blown out of the water by iPad 2• Blown out of the water by iPad 2

announcement

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Need major commitment from top HP execs to be successful against Apple

Samsung Galaxy Tabs 7, 8.9 and 10.1

• Galaxy Tab 7 launched last year• 7 inch touch-screen, Android 2.2 OS• Slow performance, not a good match with iPadp g

• Galaxy Tabs 8.9 and 10.18 9 inch and 10 1 inch to ch screens• 8.9 inch and 10.1 inch touch screens

• 1 GHz Dual-core processor, Android 3.0 OS• Tab 8.9 is the thinnest tablet (8.6mm) and

lightest (470 gr.)g ( g )• Much better competition to iPad 2

Example Prices:Example Prices:Tab 8.9 with 16GB ($469), & with 32GB ($569)

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Samsung has the widest selection of Tablets in the market

LG G-Slate

• 8.9 inch touch-screen• 1 GHz dual-processor, from NVIDIA• 3D display, a first for tablets, even p y

though it requires wearing 3D glasses

• Two rear-facing 5-Megapixel t d 3D t tcameras to record 3D content, as

well as 1080p HD content• Front facing camera for video

conferencingconferencing• T-Mobile USA availability in April

2011, for $529 with 2 yr contract First 3D Display on Tablets

With this much power and capabilities of Tablets, who needs PCs and Laptops?

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Tablets vs. PCs at Enterprise

• 25+% of all tablets sold this year, will be acquired by enterprises• 5 Million tablets will be deployed in Retail and Healthcare sector this year• Deloitte estimates for 2011:Deloitte estimates for 2011:

– 390 Million PCs + Laptops +Netbooks sold– 375 Million Smartphones sold

55 Million Tablets– 55 Million Tablets– So, Smartphones + Tablets already overtook PCs +

• Cannibalization of PCs by Tablets is expected to be around 20-30%T bl t t j t N th A i h (M St l )• Tablets are not just a North American phenomena (Morgan Stanley)– Extreme interest to purchase tablet in the U.S. is only 11% – Extreme interest to purchase tablets outside of the US is 21%

E i h bl i Chi i 41%– Extreme interest to purchase tablets in China is 41%• Oracle, SAP etc are working hard to have all their enterprise software to

be extended to tablets and Smartphones

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It is time to declare that “Post PC era” has started

Some New Smartphones – from MWC 2011

Samsung Galaxy S IIWith HD screen8 Megapixel Autofocus HD

LG Optimus 3DFirst Dual-core Smartphone, Displays 3D content without

HTC ChaCha and SalsaWith dedicated “F” logo to facilitate Facebook integration with every g p

camera, and a 2nd camera for video Conf.

p yrequiring glasses, has double camera for 3D user-generated content

g yfunction of the phone

Smartphones are breaking new grounds in technology

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Best Smartphone from CTIA ?

• HTC EVO 3D Smartphone• 4.3 inch, glasses-free 3D

display,• 1.2 GHz dual-core processor• Android 2.3 Operating

System• Dual 5-Megapixel cameras for

generating 3D content• Mobile hot-spot support for up

to 5 Wi Fi devicesto 5 Wi-Fi devices• WiMAX support• Will be launched on Sprint in

the summerthe summer

Glass-free 3D Display for Smartphone !Similar 3D Displa for Tablets is on the a

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Similar 3D Display for Tablets is on the way

Smartphones

• Chinese operators / manufacturers are coming up with their variants

– Ophone (an Android Smartphone)– Uphone (a Linux Smartphone)

Implications:• Smartphones will get far more

smart!smart!• Featurephones will get smarter as

well !• Device hardware is becoming 31% of Europeans and 27% of • Device hardware is becoming

commodity• Prices of Smartphones will come

down drastically

American subscribers are already using Smartphones

y• Smartphones will exceed

Featurephones by 2014, and • Soon, almost everyone will have a

Enterprises must• Incorporate Smartphones into their corp.

network, and• Take advantage of almost all their

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“Smart” phoneg

customers having a “Smart” Phone

Mobile Cloud for Enterprises

• Given that – Smartphones become smarter and

more widespread– Mobile broadband becomes more

real, and– Delay / Latency comes down with

i l t h l inew wireless technologies• Mobile Cloud based services become

feasible and economicalMobile operators Public Clouds– Mobile operators – Public Clouds

– Enterprises– Media companies, or

Any organizations institutions (e g

Some well-known examples today• Mobile social networks• Mobile gaming• Recent HP Cloud Services– Any organizations, institutions (e.g.

schools) or individuals• Recent HP Cloud Services

announcements

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Enterprise should consider flexible Hybrid Cloud Architectures,including Public & Private Clouds with Fixed & Mobile Access

Mobile Social Networking for Enterprise

• About 170 Million enterprise social networking users by 2014• Increasingly significant portion of social networking is through mobile

Use mobile social networking to improve effectiveness of your enterprise

18Confidential Source: Knowledgeinfusion.comSources: Radicati Group Research

effectiveness of your enterprise

Location, Location, Location• 2010 was the year of the Location Based Services

(LBS)• Analysts predict: global market for LBS will be $21B by

20152015• Integration of LBS, with various vertical services, such

as retail, social networking, m-commerce, advertising, • Barcelona announcement of deCarta effectively• Barcelona announcement of deCarta effectively

challenging Google Maps, with free, while-label mapping APIs,

• Location-based social networking, Facebook Places, gfoursquare, etc.

• Turkish company Telenity, is a global success, especially in India with LBS

Implications:• Leverage location information for all your relevant enterprise apps• Some cloud services you use may already incorporate location info

19ConfidentialSources: ABI Research

Some cloud services you use may already incorporate location info• Offer your service to your clients, based on the location information

Operating Systems

Good Old Days! OS Challenges for Enterprise ahead

• Today Microsoft dominates the PC / Laptop world at the Enterprise• However,However,

– Big shift of increased use of Tablets and Smartphones,– Diversity of OS’s at the Tablets and Smartphones,

Enterprise Apps need to span multiple OS’s, not just multiple devicesYou must develop strategy acquire new skill-sets & re-allocate budget!

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You must develop strategy, acquire new skill-sets, & re-allocate budget!

Mobile Enterprise Apps & Device Management

• End users spent $6.2 Billion, downloaded 4.5 Billion Apps in 2010

• Downloads are expected to increase 5-fold • Have you got your mobile

enterprise apps strategy?to 25 billion apps by 2015

• Microsoft and RIM announced major partnership at CTIA • Is device / OS specificpartnership at CTIA

• Microsoft Cloud computing, Blackberry Playbook tablet and enterprise apps

• Expect 3 cloud service launches for RIM

Is device / OS specific strategy good enough?

• E.g. MaaS360 Cloud service by Fiberlink already offers Mobile Device Management strategy for all devices at the enterprise

Enterprises need comprehensive Mobile Device Management strategy

strategy for all devices at the enterprise

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g gy

Content

2

1. Key Trends and Implications

I li ti V ti l S t2. Implications on Vertical Sectors

3. Predictions for Mobile Industry

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Mobile Money Mounts Momentum

• Mobile money services by mobile operators• Mobile apps on Smartphones by Banks

I t ti l R itt M bil P t

• World Bank estimates $440B sent by 175 M Subs in 2010,

$

• In developed world, m-Payment is part of convenience

International Remittances Mobile Payments

• This amount will grow to $72 Trillion by 2040

• Use of handsets and mobile technology would drastically

• For mobile banking, Turkish banks already offer various apps / services;

• In developing world, there is a huge un-banked population;technology would drastically

reduce the cost of international money remittances

banked population;• 1.7 Billion mobile subs don’t have a

bank account• m-Banking is perfect to meet the needs

f b k dof un-banked

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Mobile Phone Replacing your Wallet

• Only about 15% use mobile banking in North America

• However, 94% of North Americans would use mobile phone for m-payment if they know it is secure (*)

• 73% of the North Americans identify Security as the most important barrierSecurity as the most important barrier, followed by 12.5% for simplicity and 8.4% for speed

Implications for Enterprises:• Incorporate most secure technology and products into your service• Promote security as part of the marketing of the service• Promote security as part of the marketing of the service• Do not sacrifice security for sake of simplicity

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(*) Mobio Survey March 2011

Mobile Health – Endless Opportunities• MyGlucoHealth – Bluetooth

enabled blood Glucose meters• GlucoTel – Java & Bluetooth

Connected thru Smartphones

• Piix Smart Bandaid (by Qualcomm), • Provides heart monitoring and

wireless ECG transmission

• Connected thru Smartphones to secure databases

• Lower-power Bluetooth technology will make them even cheaper

PrescriptionPrescription bottles with a wireless cap, that flashes and plays a ringtone to

• Significant use of Smartphones and tablets

• Drastically changing the way the medicine is practiced a ringtone, to

remind patients to take their pills

p• Tons of medical apps• A lot more to come

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Our September 2010 Newsletter at http://www.msolvepartners.com/

Mobile Health – Revolution Ahead• Use of Brain waves and

Bluetooth• Non-invasive Central

Telemetry Unit

• Augmented Reality Smartphone Apps• Using the camera and smarts in the

phone• Recognizing everyday objects egTelemetry Unit Recognizing everyday objects, eg.

Money, packaged goods, bottles, medication, signs and landmarks

• Helping elderly and visually impaired consumers

• Controlling devices, robots, e.g. dialing a phone number,

• Significantly improving the lives of spinal

• Human Signal Engine and Personalized Medicine

consumers

• Real-time speech recognition through Smartphones

cord injury or paraplegic patients

Medicine• Connecting patients to caregivers, with

non-invasive sensors,

Smartphones• Real-time translations

• Gathering info from • Contextually aware speech

assistance for hearingGenomics, Proteomics, tests, scans, sensors

• Chronic disease mgmt

assistance for hearing impaired or speech impaired

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Smartphones, Tablets and M2M are coming togetherin the mobile healthcare revolution

Machine to Machine (M2M) Internet of ThingsE i CEO H V tb h d di t d 50• Ericsson CEO, Hans Vestberg had predicted 50 Billion devices to be connected to Internet by 2020

• Skeptics questioned the number; but it is possible:• Connected Healthcare devices• Connected Healthcare devices• Smart Grid and Energy / Utilities• Connected Appliances and Consumer

ElectronicsElectronics• Connected Automotive and Transportation• All security gadgets, • All retail outlets financial & banking devices S E i 2010All retail outlets, financial & banking devices• Government institutions and outlets• Military institutions, personnel, and devices

Source: Ericsson -2010

CIO’s need to focus on:• Issues like, connectivity, addressability, security, authentication, privacy• How to converge Internet of People and Internet of Things synergistically

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• How to leverage Internet of Things for corporate business objectives

Content

2

1. Key Trends and Implications

I li ti V ti l S t

3. Predictions for Mobile Industry

2. Implications on Vertical Sectors

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Predictions for Near Future

• Tablets are here to stay, & will play a major role in Enterprise

– Tablets will exceed laptops in 2012/2013Tablets will exceed laptops in 2012/2013

• Less than $100 Smartphones

– By 2012 without operator contract– By 2012, without operator contract

• Locations, Locations, Locations

– Leveraging location will be commonplace!– Leveraging location will be commonplace!

• Rich Communication for everyone!

– HD Video communication on your Handset or Tablet– HD Video communication on your Handset or Tablet

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Predictions for Near Future

• Social Networking for Enterprise

– Corporations leveraging Facebook and TwitterCorporations leveraging Facebook and Twitter

• Internet of Things

– Let’s connect everything that makes sense– Let s connect everything that makes sense

• Unseating of Nokia from the top

– Will lose market share and industry influence– Will lose market share and industry influence

• End of Microsoft dominance in the Enterprise

– End of the monopoly!– End of the monopoly!

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Thank You!

Contact• Email: mehmet@msolvepartners com

References• CTIA 2011 Report – March 2011 NewsletterEmail: mehmet@msolvepartners.com

• Link us at LinkedIn• www.linkedin.com/in/munsoy• mSolve Partners

p• Mobile World Congress (MWC) 2011 –

February 2011 Newsletter• Mobile Money Mounts Momentum – January

2011 Newsletter• Friend us on Facebook:• www.facebook.com/munsoy• MSolve-Partners-LLC

• Follow us on Twitter

2011 Newsletter• Internet of Things and People Converge –

November 2010 Newsletter• 2010 is the Year of m-Health – September • Follow us on Twitter

• Twitter.com/munsoy• Twitter.com/mSolvePartners

2010 Newsletter• Everything above and this presentation will be

available at www.msolvepartners.com

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