June/July 2007

Managed service providers can take all the hassle out of going mobile, but nowadays you can buy in the resources to do it in-house instead. Sharon Clancy explores the merits of the two approaches

A few years ago, managed services were seen as an ideal solution for businesses dipping their toe in the water of mobility. Developing and deploying a mobile solution is, after all, a complex exercise, with decisions on numerous suppliers to be made: network, application, device, data management and so on.

Managed services experts provided the glue that held everything together, particularly when it came to ensuring mobile data was sent and received. They were seen as particularly good for smaller service companies that might lack an in-house IT department and the skills to do it themselves.

Now the mobile scenario has changed. Some companies are on their second- or even third-generation mobile deployment, so the experience levels have increased. However, there has been no clear trend away from managed services. What is noticeable is that while the debate over whether companies should choose a managed service over an in-house mobile deployment is still lively, the ground has shifted.

 

"It is no longer about mobile data management, but about managing all aspects of a mobile worker's activities," says Steve Alderson of Cognito. "Historically there were suppliers specialising in mobile data, tracking, resource or job scheduling and in integration. Now customers demand an integrated solution from their supplier that answers all of these needs."

At the same time as the managed service providers' role is changing, suppliers of in-house applications have been refining their products to suit a more mature and knowledgeable customer base. Essentially, the mobile application market divides into three sectors: out-of-the-box solutions of varying complexity; a bespoke mobile application; and a combination of the two.

"Implementation of a mobile solution is often seen by users as a key differentiator that sets them apart from their competition, and one that requires a more bespoke solution," points out Alison Henderson, operations director of Sybase iAnywhere. "Building on a core proven platform can guarantee reliability and scalability, but still allow the application layer to be individual, while remaining cost-effective."

The core platform, explains Henderson, can take care of complex issues such as synchronisation of data between multiple back office and mobile users. "Being able to use proven, packaged solutions for these tasks potentially saves months of development and testing time."

Graham Whistance, managing director of mobile application services company Momote, says he can't understand why outsourcing the mobile service is considered best practice. "For companies with complex mobile requirements, an in-house approach can typically save tens of thousands of pounds. Managed services are easy to do, but corporate responsibility means you should evaluate the alternatives."

Dexterra takes what it calls an "outside-in" view of mobile applications. "Lots of companies look on mobile solutions as extending the enterprise beyond the company walls," says Dave Shroup, one of the co-founders of the company. "We try and look at it from the mobile workers' viewpoint. Any mobile application middleware has to be agile enough to manage a number of scenarios."

"Where-do-we-start" is the most difficult part of the process, he admits. "Use hosted options if you want help with the decision-making process. You can put a toe in the water and move forward at a pace that suits you. A twelve-month or two-year contract means you're not trapped into a solution that doesn't suit the business, and you can extend it department by department."

Whether you're talking about managed or in-house services, the buzzword in the mobile application sector is integration. User-companies want a mobile workforce management solution where all the elements fit seamlessly together.

At the same time, needs have diverged, in that each company will have some quite specific requirements. The focus of the market has broadened from mobile data alone to encompass other mobile applications such as tracking and job scheduling. Cognito's Steve Alderson says the three core technologies that underpin all mobile applications - mobile data management, vehicle tracking and resource or job scheduling - are converging. "Most of our customers are using a combination of at least two of these technologies.

"Customer expectations are higher. Functions such as signature capture, managing data and forms are taken for granted. What user-companies do want is to add functionality that suits the subtleties of their own organisation. For that, many need a managed service. "

Graham Whistance of Momote disagrees. "The more complex your requirements are, the less a managed service can help. An in-house solution can also provide seamless integration."

"Data integration and mobile middleware are essential in connecting the mobile worker to the enterprise," points out Dexterra's Dave Shroup. "Mobile application middleware has to be agile enough to manage a number of scenarios."

Dave Upton, managing director of DA Systems, points out that the phraseology used in mobile computing often doesn't help. "The term 'integrated solution' is widely used but broadly interpreted. The most literal interpretation is a single-supplier scenario - where that company is offering a totally outsourced, integrated package - encompassing all elements of the solution, hardware and software."

In reality, he points out, there are very few companies that offer this. He suggests that a more realistic interpretation assumes a dual-supplier scenario, in which software and hardware providers each deliver expertise with their distinct skill-sets.

One of the benefits often cited for managed services is that they offer scaleability and the ability to adapt as the business needs change. However, today's in-house mobile management suites are also adaptable and scaleable.

"Packaged solutions can be restrictive if refinements or major changes are made to an organisation's business processes," Alison Henderson acknowledges. "A software application is only valuable if it helps drive and speed up a company's defined business processes, so if the application is not able to support certain elements it becomes an inhibitor."

Henderson says that a mobile application package must be able to cope with changing business needs, but adds that today's in-house software suites can accommodate those needs. "They may include the need to integrate with additional back-office systems to access reference data from other applications; or the need to run on a different device or operating system in the field; or even the need to mobilise a completely different section of the workforce with different application requirements, while avoiding multiple mobile platforms."

User-companies themselves are better at knowing their own business than a third party, says Momote's Whistance. "You know what differentiates your business from your competitors', so you know what the key data and applications are and the major cost areas. Yes, putting in your own mobile system solution can be complicated, but with the right technology, you really can implement and manage it yourself."

Upton points out that in-house scaleability is not just about adding devices and applications. "An in-house deployment might incur capital outlay on additional servers and hardware. Managed service providers can provide these things almost at the touch of a button."

It seems the key is to have a flexible middleware platform to build on. Codegate's mobile services, for example, are built on its Adaptive Technology operating platform, which connects mobile workers, devices and applications with company systems. Codegate offers some core applications designed for logistics and workforce management, and adds mobile management suites. "The modular approach allows us to customise packages to suit individual company needs," says technical director Rafe Aldridge.

Of course, an in-house solution does allow the company to add just those parts of mobile deployment it needs. For many, this will lead to the realisation that once a mobile solution has been deployed, there will also be a need for some means of managing devices and applications.

Device repair specialist Ryzex has teamed up with B2M Solutions to offer such a service. "People forget about life-cycle costs of the hardware," says director Adrian Lawson. "Life-cycle costs are all buckets of costs that managers have to bear in mind when deploying a mobile solution, especially for PDAs and smart phones."

He adds: "We return as many as 2,500 devices a month with a 'no fault found' diagnosis. Many companies blame the device when often it is the software and settings that stop the device working in the field. We realised that companies needed some help with managing devices."

One example of the way the integrated approach is gaining ground is the acquisition by tracking specialist Masternaut of GE Mobile Solutions, the General Electric company that specialised in dynamic job allocation to mobile workers. Martin Port, Masternaut managing director, comments: "By integrating both product ranges we will be able to offer the most comprehensive range of mobile solutions currently available, helping businesses streamline and automate their processes, eliminate inefficiencies, and most importantly save money." Sounds logical enough.

The biggest challenge for developing and managing a mobile data application in-house is finding the right resources in terms of availability, skills and cost. As Steve Upton points out: "It takes a diverse range of skills to get a mobile application up and running, not only in terms of sourcing and implementation, but in also infrastructure, technology and communications, as well as in dedicating staff to support and maintain the mobile application around the clock."

That may be why one noticeable trend is that some companies with internal IT departments are choosing a managed service. Dexterra's Dave Shroup sums up the logic: "Some medium and large companies that are perfectly capable of developing and deploying their own mobile solution might be in a situation where they want the benefits of mobility immediately, but don't have the internal resources in the short- term to deliver it."

Dexterra, by the way, is in the happy position of being able to offer its mobility platform either as a managed service or as an in-house solution. "A managed service can resolve the issue of getting the solution up and running, then responsibility for running it can migrate back to the company when it is comfortable it can handle the task."

DA Systems says that IT departments comfortable with wired networks can find mobile technology complex. "There is a big difference between understanding the jargon and actually making the system work," Dave Upton warns. "Going mobile also introduces the possibility of becoming a real-time information organisation, and this will have knock-on effects on other internal systems and networks that need to be managed."

Momote's Graham Whistance argues that IT departments are perfectly capable of developing and deploying a mobile application, and simply need the right tools to do it. "Medium-sized companies with mobile workforces of between a hundred and a thousand don't have back-end ERP system providers who can help mobilise applications and data," he argues. "However, all you need is the right technology and we can provide it. That might include a developer kit, a deployment kit, and tools for managing workers in the field and the devices over their whole life.

On the basis of a thousand-user system that is "self-managed" by the user-company, Momote says it would charge £4 per user per month, or £4,000 per month, for the mobile operation. A managed service provider might charge £20 to £30 per user per month, Whistance says, which equates to £20,000 to £30,000 per month for the mobile operation.

So on the evidence of this very simple comparison, doing it in-house could save between £16,000 and £26,000 per month, which on a thousand-user basis could mean saving of up to quarter of a million pounds per year. "You do need to bear in mind, though, that in-house support costs would have to be covered by that sum.

Momote is so convinced that many IT departments are overestimating what it takes to manage mobile operations that it offers a try-it-and-see service. Momote will help companies deploy and manage its MP mobile platform and run it initially as a managed service, with the IT department taking over after three or six months. "We can do a managed service with an annual review, but we will always try and encourage companies to do it themselves. That's what our MP platform is designed for."

Dave Shroup of Dexterra comments that within large companies, the issue is often one of available resource. "IT departments are often focused on internal IT, CRM, ERP and financial applications."

Sometimes, he says, the choice is a financial or a cultural one. "The company has to decide if it wants to treat the mobile solution as expenditure or as an operating expense. With the Dexterra platform there is no difference in the capability of the product, and security is not an issue because the platform operates behind the company firewall."

Cognito's Alderson agrees that the culture of the company plays a part. "Some companies believe in outsourcing everything they consider not core to their business, including the entire IT function."

An intriguing development is that mobile network operators now have their sights set on managed or hosted services that users pay for when they need them. Vodafone is the trailblazer. It has already bought managed service company Aspective, and has partnerships in place with several application service providers.

"Mobile voice and data have become commodities, so network companies are using middleware to extend the capabilities of their network," explains David Perry, Dexterra's European marketing director. "For multinational companies, a service that is hosted by the network operator simplifies the deployment because there is only one supplier of voice and data communications. For small business, a network-hosted service brings price-prohibitive technology within reach by offering per-per-use contracts."