DvDand Solutions, LLC

This week at CTIA, Verizon announced plans to provide mobile payment options for enterprise customers in partnership with  Charge Anywhere, LLC. This by itself is not big news. After all, mobile carriers in Asia and Europe have been providing this service for years now. AT&T too has similar options available.

There are scores of startups that are addressing this space including Obopay, mFoundry, MPayment, to name a few. Even established companies like PayPal, Sybase and Google have ventured into this arena. But where are the banks? Why aren’t any of them providing these options or partnering with the carriers to provide this service.

There is a common belief that carriers and banks are at loggerheads about mobile payments. There is a reason for that. Banks and carriers cannot agree on who owns the transaction. Carriers say they own the transaction as it happens on their network and they bill the customers. But the bank say they own the customers as the banks have the customers’ money and they provide the secure transaction processing. Neither wants to encroach on the other’s turf especially since regulatory oversight for carriers and technology investments for the banks would be killer. So, they are at an impasse and until it is resolved, banks will be shut out of a market that is forecasted to be worth $25.2 billion in 2013 by Research & Markets.

Banks  are not giving up easy. They are introducing m-wallets and other options to garner a share of this market. But those efforts are not going to take off in the face of a simple solution like charging to the cell phone. Clearly, banks need to change their tactics in order to get a larger piece of the pie. They need to take a back seat to the carriers by letting them own the customers and bill them, while the banks provide solutions to process the transaction and get a cut. Banks will have to think “Powered by Intel” model for them to be successful otherwise they are going to miss the boat.

Recently I came across a blog post by Phillipe Winthrop discussing whether carriers can make inroads in the Enterprise Mobility market using consumer-centric devices like iPhone and Android-based devices. This got me thinking about what are some of the things that are needed for enterprises to adopt these consumer-centric devices.

This is first in a series of posts discussing the mobility needs of an enterprise. In this post, we will discuss some of the requirements as they relate to the devices. In future posts, we will talk about the network requirements and enterprise readiness.

Let’s talk about devices. Smartphones are becoming ubiquitous in the consumer market and have been for a while in the enterprise market thanks to RIM’s Blackberry devices and also Windows Mobile based devices. However, Apple’s iPhone and Google’s Android platforms have opened up new avenues in both the consumer and enterprise market. Both these companies entered the mobile market with consumer centric devices. Hence their consumer offerings are strong, especially in the case of Apple. Android is also catching up thanks to the many partners Google has signed up in the Open Handset Alliance, who are offering several devices on that platform.

In the enterprise market both these device platforms have been slow in gaining traction. Here is what I believe needs to happen in order for these platforms to crack the enterprise market:

- Dual Profiles – The enterprise end users would like to use a single device for both personal and business purpose. They are loathe to carrying multiple devices if they don’t have to. Devices that can support dual profiles to segragate the personal and business use would find a welcoming market. Android seems to have taken a step in that direction by allowing different home screens based on the profile selected, whether it is work related, social, fun, etc. Howerver, this is very superficial in that it only customizes the apps available on the home screen. What is needed is true segregation whereby the data is also protected and also some specific features are enabled based on the profile.

- Data Security – Enterprises are leary about allowing users access to its data while they are away from office or not on a secure network. Devices need to support not only  data encryption, but also ability to connect securely to the enterprise network. Part of this connectivity is network and enterprise dependent and I will talk about this in future posts. However, from the device perspective, data encryption is absolute must.

- Remote Device Management – This goes hand-in-hand with Data Security. Enterprises want the ability to manage devices remotely so that they can push updates to the devices to ensure data security and also be able to remotely wipe the device in case it is lost or stolen. A lot of companies are working on this for both the Apple and Android platforms, however, they are still in early stages and have not gained enough traction yet.

- Private Application Market – Enterprises would like to control what applications users can install on devices owned by the enterprises. Currently, Apple controls the iPhone App Store and only it can decide which applications can go into the store. Google too has its own Android Market, however, so far it has been relaxed in its control over the applications and also lets developers host applications on their own servers. Apple will have to allow for private app stores if it wants to crack the enterprise market. Both will also have to rethink their pricing strategies for the private app stores because enterprises would not want to pay 30% to Apple or Google for every application a user downloads.

While this is not a complete list, I believe these are the top priorities for consumer devices manufactures like Apple or HTC or others to penetrate the enterprise market.

InStat today put out a report on the worldwide smartphones trends. According to this report, smartphones of future will have a different user experience than today’s smartphones. InStat expects that this new user experience driven smartphones will increase competition and shipments will increase to 412 million in 2014.

One key feature that InStat survey respondents would like in their future smartphones is accelerometer. According to InStat, of the 412 million shipped in 2014, 340 million smartphones will have accelerometer in them.

Another observation in the report is that 52% of the cost of building a smartphone goes towards the display, baseband and app processors, and software & licensing. Though one pecularity about this observation is that InStat feels it is unjustified. However, to me, that is the cost of developing a smartphone, in other words, that is the cost of putting “smart” in the smartphone.

Self-Promo Alert! Here is an article I wrote for Mobile Marketing in which I talk about the challenges companies face in launching mobile campaigns in this tough economic climate. Justifying the investment is just the first hurdle. If you can successfully get past that, you have to consider other issues which I talk about in the article. So, click on the link to read it and then come back and let me know what your take is.