PAT H F I N D E R R E P O R T

Making the Case for

Converging Enterprise Mobility
and IoT Digital Initiatives
BR I A N PA RT R I D G E & CH RIS MARSH
F E B RUA RY 20 1 6

C O M M I S S I O N E D BY

© C O PY R I G H T 2 0 1 6 4 5 1 R E S E A R C H . A L L R I G H TS R E S E RV E D.
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Table of Contents
Executive Summary 4
Market and Technology Discussion 5
Introduction 5
Enterprise Mobility and IoT – A Beating Heart of
Enterprise Digital Transformation 6
EM and IoT Market Drivers 7
Enterprise Mobility 7
The Internet of Things 8
Enterprise Mobility and IoT Progression and Convergence 8
Better Together? Time to Converge Mobility with IoT 10
How Should the Future Look? 10

Converged IoT and EM Use Cases 12

Contextualized Data Itself Becomes Critical Inventory 12
Converged Use Case: Facility Management 12
Converging Use Cases Require Converged Infrastructure 13

Conclusion – The Converged Future 13

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Executive Summary
Digital transformation is the umbrella concept describing IT innovation that is aligned with
and driven by a well-planned business strategy, with the goals of transforming the means of
serving customers, employees and partners; supporting continuous improvement in business
operations; disrupting existing businesses and markets; and inventing new businesses and
business models.

Two popular related (but today still distinct) digital initiatives – enterprise mobility (EM) and
the Internet of Things (IoT) – are either at or near the top of the strategic agendas of the
C-suite.

These digital initiatives share benefits, attributes and underlying enablers but have largely
progressed as distinct silos within enterprises due to variables such as technical maturity,
internal ownership and business drivers. In some cases, IoT predates efforts to mobilize, and
sometimes it’s the other way around. The initiatives have been largely supported by propri-
etary do-it -yourself efforts or served by various specialist vendors.

Several factors are driving the need for converged mobility and IoT back-end, application and
middleware platform services. Enterprise IT leaders desire less platform fragmentation, not
more. As the mobile technology ecosystem evolves, the capabilities provided by systems such
as mobile back end as a service (MBaaS), enterprise mobile management (EMM) and API gate-
ways will be required for IoT applications as well.

The move toward greater integration of IoT into enterprise IT, increased use of MBaaS, and
API-driven microservices has created an environment where a common enabling infrastruc-
ture between IoT and enterprise mobility will make good strategic sense for a number of use
cases. Bringing these initiatives under one ‘roof’ will not only create cost efficiencies by le-
veraging common platforms but will also drive the need to cross the internal chasm between
operational and information technology.

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M A R K E T A N D T EC H N O LO GY D I S CU SS I O N
Introduction
As we enter 2016, business leaders face unprecedented opportunities to create stakeholder value through
digital transformation. Most enterprises are still at the beginning of this journey, which we characterize as the
‘silo’ phase – meaning they may deeply or widely experiment with and implement digital initiatives such as IoT
and EM, but limit enterprise exposure to a specific project, region or line of business.
Given the ultimate impact of digital transformation – both positive and negative – the modern C-suite needs
to find a way to unlock the potential by evolving business processes, ecosystems and internal skills so that im-
plementing these digital initiatives meets core business goals (make money/save money/save time), all within
the complex environment of legacy investments and processes.
This Pathfinder report focuses on two digital initiatives largely viewed as discrete but that share high potential:
enterprise mobility and IoT.
Figure 1: Definitions
Source: 451 Research

t DIG ITIA L T RANSFORMAT I ON

Digital transformation is the umbrella concept that describes IT innovation aligned with and driven by a well-
planned business strategy to transform the means of serving customers, employees and partners; to support
continuous improvement in business operations; disrupt existing businesses and markets; and invent new
businesses and business models. 

E N TE RPRISE MOBI L I T Y
The aggregation of smartphones, tablets, ruggedized mobile devices, wearable technology, applications, ap-
plication services, supporting lifecycle tooling, and workspaces – combinations of which can be used to mo-
bilize users, workflows and business processes.
Businesses utilize mobility to increase productivity and user engagement, whether employee, partner or
customer, and monetize their products and services.
The promise of enterprise mobility is to allow companies to take advantage of their users’ location and ‘con-
textual presence’ to provide greater customization in the delivery of a product or service experience.

IN TE RN E T OF T HI NGS
Digital transformation is the umbrella concept that describes IT innovation aligned with and driven Use of
sensors and embedded computing technologies, networks and specialized data and connectivity platforms
to virtualize the physical world.
Connecting the physical world to the Internet enables the objects themselves to become ‘smart,’ or allows us
to become smarter about our physical environments.
Armed with this intelligence, we derive benefits in the form of more efficient and reliable systems, new or
enhanced business models supporting connected products, and increased quality of life by tightly integrating
the physical and digital world so they can be logically managed together in a cohesive system.  

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Enterprise Mobility and IoT – A Beating Heart of Enterprise

Digital Transformation
At 451 Research, our entire research practice is focused on helping our clients navigate digital transformation
while putting discrete areas of technology and service-delivery innovation into the proper context of legacy in-
vestments and styles of working. At a high level, digital transformation encompasses the fundamental changes
that enterprise leaders make in terms of technology, people and processes to unlock the potential of the latest
innovations in IT and service delivery, as well as human resources and skills. The digital platforms that under-
pin this evolution are cloud computing, big data and analytics, enterprise mobility and, increasingly, machine
learning, artificial intelligence and IoT.
At the heart of digital transformation in the enterprise is the need to modernize internal and external appli-
cation environments to support an increasingly mobile world where a growing majority of people are using
mobile computing devices such as smartphones and tablets to conduct business.
As the diagram below shows, digital transformation is generally supported by innovations in cloud technology
and economics, tools to support social collaborations and processes, new tools to create insights from big data,
and wide support for mobile computing platforms. One level down are digital initiatives such as IoT and enter-
prise mobility, which tap into these enablers together, along with specialized platforms, skills and processes.
Although these are distinct in the enterprise today, we make the argument that they share a common set of re-
quirements and goals and will be optimized over time by a shared set of platforms, infrastructure, governance
and business policies.
Figure 2: Digital Transformation in Context

DI GI TAL T RANSFORM ATIO N

CLOUD SO C I A L

M OB ILI TY BI G DATA

ENTERPRISE MOBILIT Y T HE I N TE RN E T O F TH I N GS

CLOUD APPLICATION IoT PLATFORMS

SERVICES
RT OS
MAPs / LIFECYCLE TOOLING
EDGE COMPUTING
INFRASTRUCTURE
AUTOMATION

EMM

WORKSPACES

Source: 451 Research, 2016

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EM and IoT Market Drivers

ENTERPRISE MOBILITY
At 451 Research, we use the shorthand descriptor enterprise mobility to describe the sphere of offerings –
i.e., infrastructure, hardware, software and services – that enable mobile deployment strategies. These include
EMM, mobile devices (including wearables), mobile application lifecycle tools, back-end infrastructure, digital
payment services, mobile marketing and customer engagement services, and also includes a focus on mobile
operator strategies for the enterprise.

Figure 3: Enterprise Mobility – Business Drivers, Challenges and Requirements

EN T ERP RISE MO BILITY
ENTERPRISE
STAKEHOLDER FUTURE
DRIVERS RESPONSIBLE CHALLENGES REQUIREMENTS

More capable mobile IT Security management Support for greater scale

computing devices in process mobilization
C-suite Application lifecycle man-
Increasing budgets agement Cloud-based delivery
Lines of business
models
Large installed base of Shadow IT
mobile workers Shared infrastructure and
Integration wtih legacy IT
management with IoT
Customer and employee
Asset ownership – BYOD vs.
demands and the need for Greater replicability in the
employer- owned
competitive differentiation design, management and
Technology fragmentation delivery of application
Better tools to support mo-
components
bility – MBaaS, MAP, EMM Organizational immaturity
and lifecycle management around mobility
Streamlining resources,
digitizing paper-based
processes

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THE INTERNET OF THINGS

IoT is one of the most anticipated technology trends to emerge in the last decade. The basic concept is sim-
ple: virtualizing the physical environment through the use of embedded computing, sensors, networks and
cloud-delivered infrastructure and applications. Done correctly, IoT sets the stage for massive value creation
in the form of cost savings or new revenue for nearly any size and type of enterprise. The corresponding mar-
keting attention that IoT has received from IT suppliers, government bodies, standards consortia, consumers,
financial stakeholders and industries at large has aligned with this long-term potential.

Figure 4: IoT – Business Drivers, Challenges and Requirements

The market drivers are slightly different for enterprise mobility
I N T ERNET OFand IoT:
THINGS
TYPICAL FUTURE
DRIVERS DECISION-MAKER CHALLENGES REQUIREMENTS
Decreasing costs Operational technologies/ Security management Support for greater scale
engineering
Market education and Business process changes Cloud-based PaaS delivery
awareness IT models
Cultural challenges
New revenue and service Line of business owners Shared infrastructure and
Technology and standards
models management with EM
Facilities management fragmentation
Competitive pressure API management and
Organizational immaturity
microservices
around IoT
Developer support and
Internal skills
tooling

The market drivers are slightly different for enterprise mobility and IoT:
ƒƒ Employees were the driver for enterprise mobility; because they were using their own devices for work, they
drove enterprise IT to support a wider range of mobile computing platforms to take advantage of powerful
smartphone and tablets.
ƒƒ Drastically decreasing costs associated with IoT in conjunction with increased awareness have created an
environment where IoT is now viable for a vast array of customers and application scenarios.
ƒƒ The popularity and utility of mobile applications have driven a need for legacy and new business applications
to be ‘mobilized’ and secured in a way that allows employees to be productive wherever they are. For this rea-
son, enterprises are more mature in their acceptance and adoption of enterprise mobility than they are of IoT.

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ENTERPRISE MOBILITY AND IOT PROGRESSION AND CONVERGENCE

The fact that IoT and EM have largely evolved in siloes is not a surprise given their relative levels of technical
maturity, cultural impacts and challenges in making the translation from investment to ROI.
Figure 5 below shows the relative time-series progression of enterprise mobility and IoT.
ƒƒ In 2010, saturated mobile device penetration drove the need for a new crop of EMM services, and M2M was
relatively mature. In 2010, both were characterized by proprietary offerings, often utilizing do-it-yourself de-
velopment that lacked wide integration with legacy IT systems, applications and processes.
ƒƒ By 2015, IoT started to gain momentum with the larger opportunity to reuse connectivity, middleware and
application platforms. Several new vendors rushed into the market with the value proposition of ‘removing
the need to reinvent the wheel.’ They offered capabilities such as IoT protocol support, system security, appli-
cation development and back-end IT integration.
ƒƒ In early 2016, the number of vendors selling EMM and mobile application development platform products
has exploded. These vendors primarily emerged to solve the BYOD problem of cross-platform proliferation.
More recently, mobile application platforms and MBaaS have come online to support the explosion of mo-
bile app demand and the complexity of integration with legacy systems and applications. In 2017 and be-
yond, IoT and EM digital initiatives will mature as it becomes clear that the vast number of common platform
requirements and goals creates an opportunity for convergence.
Convergence is necessary from an organizational management perspective, but also in terms of enabling in-
frastructure to take advantage of enterprise IT architecture evolution toward API-driven microservices, use
of open source technologies, cloud and PaaS delivery models, cloud execution, big data and analytics, and
increasing focus on system-wide security. Perhaps not surprisingly, the requirements facing enterprise mobility
are clearly similar in scope and requirements to those anticipated by IoT. These similarities bring about excel-
lent opportunities for largely yet unrealized synergies in areas such as common management and application
platforms.

Figure 5: EM and IoT Have Progressed on Different Timelines

Source: 451 Research, 2016

2010 2015-2016 2017-2020

Smartphone penetration IoT enters mainstream IoT and enterprise
reaches maturity Enterprise mobility mobility achieve
M2M enters mainstream matures wide-scale maturity
in enterprise Siloed back-end Common/converged
Do-it-yourself/proprietary commercial platforms back-end/app platforms
back-end systems

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BETTER TOGETHER? TIME TO CONVERGE MOBILITY WITH IOT

Figure 6: Common Elements – IOT Platforms and Mobile Application Platforms

M O B IL E AP P PLAT FOR MS MOBI L E A P P P L ATFO RMS

Application development
Back-end-as-a-Service/ Connectivity management
integration middleware Application development
App testing Middleware/integration
Performance monitoring Data/analytics and visualization
App distribution Device management
Deliver infrastructure automation SIM management
Mobile app management API management
Mobile device management Delivery infrastructure automation
API management

Source: 451 Research

H O W S H O U L D T H E F U T U R E L O O K?
The time has come to look at these two technologies for what they really are: foundational elements of digital
transformation. When we take a step back and look at the forest instead of the trees, it becomes clear that these
are digital initiatives that share common business objectives, underlying technology requirements and challeng-
es, as well as a common purpose.
As we move through 2016, business leaders will have the opportunity to bring IoT and EM digital initiatives
together as they face the same challenges and create opportunities to leverage experience and learning in one
to apply to the other.
Common Requirements
SCALABILITY Both IoT and EM introduce unprecedented scalability requirements, with vast
numbers of devices and objects generating massive amounts of data. An indi-
vidual system might gather and analyze billions of data objects from millions of
distinct endpoints presenting unparalleled data collection, processing, storage
and networking challenges.
DIVERSE ENDPOINT SUPPORT A common framework for IoT and EM will require support for an increasingly di-
verse set of endpoint capabilities. Adding IoT to the mix introduces significant
fragmentation because the choice of operating systems reflects the level of over-
all market immaturity, a mixture of vendor-driven and open source alternatives.
RELIABILITY IoT and EM-based applications and business processes impose higher system
availability demands. Some of these systems will be used for mission-critical
applications where system downtime can result in diminished productivity, dis-
satisfied customers and lost revenue. IoT applications for emergency, medical
and surveillance services will be used in critical safety situations where system
downtime can lead to loss of life or property or cause significant environmental
or health hazards.

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SECURITY Both IoT and EM present myriad security challenges. Both systems rely on the
open Internet for connectivity or use cloud-based compute or storage resources.
Security systems and practices must be extended in a scalable manner to protect
against data loss, service theft and increasingly sophisticated denial-of-service
attacks. The common platform will be required to support certificate services,
DNSSEC, VPNs, NAT, etc.
IDENTITY MANAGEMENT Both IoT and EM require cohesive authentication, authorization and auditing ca-
pabilities to establish trust, govern access to resources, and ensure compliance
with governmental regulations and corporate policies. They must also support
strong encryption schemes to safeguard data confidentiality and protect intel-
lectual property.
SUPPORT FOR CLOUD/PAAS The use of PaaS alternatives supports the need for rapid service introductions,
greater scalability and security.
REPORTING AND ANALYTICS IoT and EM applications need to provide up-to-the minute information on app
and user activity and gain insights into customer behaviors.
API AND MICROSERVICES Both IoT and EM need easy replicability in terms of technical methods and doc-
umentation around the integration of applications with back-end data sources,
and the monitoring and maintenance of application services. APIs should be cre-
ated and managed centrally in the platform and provide reports on usage and
performance, and have built-in troubleshooting tools.
DEVELOPER SUPPORT Varying stacks, protocols and standards reduce developer productivity, elongat-
ing the lifecycle and making the automation of application and infrastructure de-
livery more complicated. Developers, operations teams and application owners
need consistency in underlying technologies so they can spend more time and
budget on the post-production understanding of the data cycling in and out of
their applications. Strong developer tools support innovation by reducing the
number of channels and cumbersome processes needed to create and launch
applications.
CONSISTENT USER EXPERIENCE A consistent user experience is a critical success factor for any digital initiative
that involves a user interface. Getting the user experience right is complicated
in part by mobile-specific considerations associated with small screens (or no
screens for IoT), variations in device features, constraints in usage and connectiv-
ity, and usage context.
OPEN SOURCE TECHNOLOGIES Selective use of open source technologies provides significant benefits in terms
of reduced costs and increased system interoperability, but more important, use
of open source has delivered key innovations (i.e., big data and analytics, op-
erating systems and IoT frameworks) for digital initiatives. The freedom to
see the code, to learn from it, to ask questions and offer improvement has
revolutionized enterprise software.

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CONVERGED IOT AND EM USE CASES

C O N T E X T U A L I Z E D D ATA I T S E L F B E C O M E S C R I T I C A L I N V E N T O RY
In the pre-mobile era, there was little variation in the end-user computing environment. The physical context
was not an issue because employees worked in offices with office equipment. The way that most companies
are structured and operate, how they engage with customers and how they monetize their products and ser-
vices has largely been defined by the limitations of the IT infrastructure.
In the mobile era, the physical context of users, their devices and applications, and the ‘intelligent’ physical ob-
jects within the IoT serve to flip this relationship from ‘push’ to ‘pull.’ Businesses have the potential to manipulate
data across the breadth of their endpoints in converged and connected use cases. For some businesses, data
will actually become core inventory that can be monetized; for others, that data will determine the value of
their physical inventory. Perpetually recycled, enriched and managed in and out of applications, data’s contex-
tual relevance will shape a new generation of business operations that adapt to the requirements of users and
machines, rather than the other way around.
The promise of enterprise mobility and IoT to business’ digital transformation is, therefore, largely the same,
despite their having progressed in different silos. It makes little sense to consider mobile and IoT programs as
separate initiatives. Below is an example of where the joining of the underlying infrastructures can converge
mobile and IoT use cases, address pain points specific to each where they remain in silos, and create new op-
portunities.

C O N V E R G E D U S E C A S E : FA C I L I T Y M A N A G E M E N T
Construction, manufacturing and general plant environments share several requirements that make them ex-
cellent candidates for convergence of mobile and IoT. These include the need to manage multiple human and
machine assets, to continuously look for ways to optimize supply-chain processes, to act quickly on operational
intelligence, and the importance of governance for health and safety, quality assurance and auditing.
Because of the complexities involved in managing these dynamic environments, there is already early-adopter
precedent for converged mobile and IoT deployments in facility and plant management. Proximity and geo-
location sensors have been deployed on machinery to track location and prevent collision, and embedded
software can inform engineers of mechanical problems. RFID tags are used to track goods arriving and leaving
facilities, and temperature sensors help maintain the quality of perishable items on the plant floor.
At the same time, plant workers are often dedicated mobile workers. Monitoring assets and managing work
orders and inventory using the information from these machine and physical assets requires integration of in-
dustrial data workflows with enterprise systems such as CRM and ERP applications, as well as mobile access to
that data. Collaborating these process workflows between plant managers, maintenance professionals, health
and safety teams, and business process experts is more efficient with mobile devices.
In short, some of the associated decision-making around the data that IoT applications generate can be auto-
mated with embedded business logic, but much will only have value if it’s interpreted in real time by workers
accessing it through mobile devices.

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CONVERGING USE CASES REQUIRE CONVERGED INFRASTRUCTURE

The IoT and mobile use cases across various scenarios are best thought of as part of integrated workflows
where many of the requirements are the same: secure data, business intelligence, and end-to-end governance.
For many companies, flat or decreasing budgets and the complexity of new and separate mobile and IoT
stacks – each with its own developer and lifecycle management tools, protocols and middleware – are barriers
to entry. However, several trends are reducing some of these pain points: converging infrastructure of virtual-
ization and cloud; the evolution of data platforms, allowing companies lower-cost ways to store, process and
analyze previously underutilized data; the converging of business application functionality across increasingly
integrated demand chains; and growing automation in application and infrastructure delivery. These will help
lower barriers and bring the worlds of mobile and IoT closer together.

CONCLUSION – THE CONVERGED FUTURE

Several factors are driving the need for converged mobility and IoT back-end, application and middleware
platform services. Enterprises need less fragmentation, not more. As the mobile technology ecosystem evolves,
the capabilities provided by an MBaaS platform are becoming relevant to other mobile platforms such as EMM
and API gateways. These subsystems are required for IoT applications as well.
The move toward greater integration of IoT into enterprise IT, increased use of MBaaS and API-enabled micro-
services have created an environment where a common support infrastructure between IoT and enterprise
mobility will make good strategic sense for a number of strategic use cases.
As we move through 2016, business leaders will have the opportunity to integrate IoT and EM digital initiatives
as they face the same challenges and create opportunities to leverage experience and learning in one to ap-
ply to the other. Bringing these initiatives under one ‘roof’ and leveraging common platforms will create cost
efficiencies and will also drive the need to cross the internal chasm between operational and information tech-
nology. Vertical industries such as construction and manufacturing share several requirements that make them
excellent candidates for mobile and IoT convergence. These include the need to manage multiple human and
machine assets, a need to continuously look for ways to optimize supply-chain process, a requirement to act
quickly on operational intelligence, and the importance of governance for health and safety, quality assurance
and auditing.

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