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Total Cost of Ownership

Consumer vs. Enterprise Device Decision

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Getting Started

“A mobile field service solution ensures your

company is set to better serve your customers, but make no

mistake—to optimize you need to approach the transition smartly and with a plan”

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Two Main Device Types -Consumer and Enterprise Grade Devices

Most TCO analysis places greatest emphasis on upfront system acquisition, deployment and training costs-in other words, hard costs. However….

VDC’s research reveals that the soft costs associated with mobile computing solutions – device failure and downtime, productivity loss and maintenance/support costs- represent the most significant contribution to overall TCO. VDC Research

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Increased Dependency of Mobile Applications/Devices

The impact of a non-working device in the field means lost revenue opportunities.

Mobile device end users lost an average of 75 minutes of productivity each time the device failed.

With the average device failing as much as 20 times per year, that can translate into as much as $4,000 in lost revenues per employee per yearVDC Research

Nearly 50% of mobile computing operating costs are associated with worker productivity downtime when the device fails.

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64%

24%18%

12% 10% 10% 8% 8%

Water/liquidexposure

Excessiveheat/cold

temperatureexposure

EMI exposure Droppingdevice

Dustparticulates

exposure

Excessivevibrationexposure

Excessivevibrationexposure

Intentionaldamage

Primary Causes of Device Failure

Water/liquid, excessive temperatures and EMI exposures were cited as the primary causes of device failure.

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3.5 3.64.0 3.9

2.5 2.4

Overall Fully Rugged Rugged Durable ConsumerGrade

Smartphone

Typical Replacement Timeframe

While consumer grade initial cost is lower, the overall total cost of ownership is higher

Q: “On average, what is the typical timeframe that your organization replaces its mobile devices?”

(Yea

rs)

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Source: 2009 VDC Research Group, Inc.Mobile and Wireless Practice

Annual & Five Year TCO (in USD)

• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:

• Small Form Factor: 34% savings

• Large Form Factor: 59% savings

• Productivity loss represents a significant portion of TCO – especially for non-rugged devices

• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.

• For the applications evaluated – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors

TCO – Rugged vs. Commercial Grade

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ABI Blackberry White Paper against Rugged released 2009

In 2009 ABI Research released a white paper “Mobilizing Field Forces on Smartphones Sponsored by RIM

Primary argument was:• Smartphones cost as much as 8x less than rugged devices,• Claimed this was primary driver for lower TCO• Are always connected vs rugged (old argument since we have all WWAN• Device management tools (weak and false argument - which Motorola uses MSP and

similar products)• Replaceable at local retail location• Water damage usually not covered any time

Failed To Consider• They fail to mention that full replacement cost on 2nd units and beyond• Failed to calculate for IT management time, imaging, redeploying, and full

replacement cost for device if damaged before contract expires• Difficulties of model changes changing apps and images adjusting for new screens,

buttons, OS upgrades

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Blackberry Arguments• Always Connected• Low Initial Costs $5-600

subsidized costs• Low Replacement Costs• Retail replacement model,

spares• Form Factor, smaller, more

likely to carry all the time• Add on peripherals• Put in a case and it

ruggedizes the phone

Motorola Arguments Yes, all carriers, and LWAN,

PAN ES400 and MC55 address this Not so, usually pay full price

for replacements, water damage not

Advanced Services, exchange in air

ES400 addresses with size Source of failure, batteries,

charges to support Most damage is with water

damage and screen, BodyGlove type cases do not address

Blackberry Arguments Against Durable Devices

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Select the right mobile devices

Environmental Conditions

• Know your environment and user culture before you choose a device

• Rugged vs Non-Rugged

• Integrated Bar Code Scanners

• Screen - durability and brightness

• Keyboard - Numeric, QWERTY, Soft keyboard

• Downtime and Maintenance

Prioritize real-time data vs. non-real-time data

• WWAN/WLAN - Wireless Wide Area/ Local Area Network

• Location Based Services, GPS

Mobile Payment Needed?

Support and Operations

• IT support – help desk

• Platform Life span Roadmap

• Hardware and accessories, RFID, Video,

• Software OS and APP and Device Mgmt

ScanningCredit Card Swipe

•Durable• Multiple Cell Carrier• Long Life Support

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Converging “Consumer Style” with Enterprise-Class Performance: ES400

True enterprise-class device offers all the features mobile workers need to act right on the spot:

• Mobile computer for rich application access

• 3.5G world cell phone, User Programmable Carrier Choice

• High resolution 3.2 MP color camera to capture:

- Photos/videos

- 1D/2D bar codes

- Signatures

- Documents

• GPS for geo-stamping, navigation, geo-fencing and more

Turns ‘action item’ into ‘action taken’.

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Additional Resources

•Motorola White Paper: Look Beyond Acquisition

•Motorola White Paper Survival Guide Implementing A Mobile Field Service Solution with Mobile Payment

•VDC Research 12-2009 update

•John Pomerleau’s compass site, Industry Updates Click here for addl info on Moto Field Service Stuff!

•http://compass.mot.com/go/237912063

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“A mobile field service solution ensures your company is set to better serve your

customers, but make no mistake —to optimize you need to approach the transition smartly

and with a plan”

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Questions

?