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Executive SummaryThe projected meteoric growth in demand for data services on mobile devices creates an enormousopportunity for mobile operators and device manufacturers. In the wired Internet ecosystem, accessproviders were relegated to second tier status while content providers such as Google, Yahoo!, andeBay reached out directly to subscribers. Today, mobile operators have the opportunity to avoid this andachieve an equivalent level of market leadership. To do so, they need to successfully deliver acompelling subscriber experience. Yet only those mobile players able to provide such a subscriberexperience - effectively deploying and then managing, controlling, and repairing mobile devices oncedeployed - will realize the billions of dollars of annual projected global revenue.Existing standalone approaches to deploying, updating, configuring, and repairing handsets result in anunacceptable overall subscriber experience that jeopardizes carrier revenue. Only integrated MobileDevice Management (MDM) has proven to effectively alleviate this problem.This paper describes the evolution of MDM, the limitations of some current methods, and the businessbenefits of integrated MDM. The paper then provides an overview of the key considerations for selectingan optimal integrated MDM solution and vendor. It concludes with a brief summary of the integratedMDM solution that InnoPath Software offers.Wireless Data Service ChallengesDespite the growth in mobile data services to date, the market is on the brink of a major disruption drivenby rapid technological change. Broadband networks (e.g., 1xEVDO and WCDMA) are now in place, andhandsets have gained increasingly powerful, PC-like functionality. Mobile operators are experimentingwith multiple permutations and combinations of services, hardware, and applications to attractconsumers.Amidst these swirling changes, operators face the following three main challenges:Effectively delivering new data services to increase average revenue per subscriber (ARPU)Lowering support and operations costsIncreasing customer loyalty and reducing churnCorporate HeadquartersInnoPath Software400 E. Caribbean Drive,Sunnyvale, CA 94089-1105USAtel: 1 408.962.9200fax: 1 408.962.9299email: [email protected] for traditional voice service is declining. Yet the data services market provides the opportunity tonot only increase ARPU (see Figure 1), but also lower costs and increase customer loyalty. In short, thisgrowing market allows carriers to establish a sustainable market leadership position. Only by extendingtheir control of the overall subscriber experience can operators strategically defend their "turf" from amyriad of competitors (e.g., Wi-Fi, WiMax, and emerging VOIP).W H I T E PA P E RThe Business Requirements for IntegratedMobile Device Management
ARPU Trends - Voice and Data 140,000 60.00Service Revenues (USD Millions) 120,000 50.00 100,000 40.00 80,000 30.00 60,000 20.00 40,000 10.00 20,000 0 02001A 2002A 2003A 2004A 2005E 2006E 2007E 2008E 2009ESource: Yankee GroupVoice RevenuesData RevenuesVoice ARPUData ARPUFigure 1 — Voice ARPU is declining, while data ARPU and total revenue are risingOne measure of the growth in the data services market is the rise in the number of devices that supportthese services. Virtually all new mobile devices today are data devices (either 2.5G or 3G), and theirnumbers are increasing rapidly. Ovum predicts that worldwide new device shipments will approach 800million per year by 2008 (see Figure 2).800,000Shipments (in 0000200320043G Devices200520062.5G Devices200720082G DevicesSource: OvumFigure 2 — Device shipments by technology (worldwide)Page 2While the number of mobile handsets is increasing, so is their complexity. Many carriers have observedthat the number of data applications per device has tripled in the last 24 months; and InnoPath projectsa continued rise in the future. At the same time, the relative size per application, as measured by bothsoftware code size and number of configurable settings, has increased three to four times. When voicewas the only device application, the mobile world was quite simple, and after-sale customization of thedevice was not needed. But with broadband data network buildouts (e.g., 1xEVDO and WCDMA) andthe introduction of data services, the level of complexity in the mobile market increased virtuallyovernight.W H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
Today, operators (and through them, content providers) and device manufacturers feel the pressure torapidly bring products and services to the market. Yet there is a "services gap"; many operators areunable to effectively manage and control new mobile devices once they are deployed (see Figure 3).While driving data services on these new devices is important, operators are also challenged with howto best deliver new data services on existing deployed feature phones; the operators do not want todepend on the sale of new handsets to current subscribers to drive data services revenue.New DeviceIntroductionMobileCarrier/ContentLaunch NewServicesDeviceManufacturerMon13:50Mon xperienceFigure 3 — The introduction of data services increased the level of complexity in the mobile ecosystemRecent data illustrates the magnitude of this services gap. Market Insight found that 29 percent ofrespondents required a phone repair at least once in the six months prior to the survey. This results ina veritable flood of subscribers to mobile device retail outlets, or costly and time consuming calls tocustomer support organizations. If a device recall is required, the costs can be staggering. StrategyAnalytics estimates a recall cost per handset of 56 for the hardware alone - not accounting for thecustomer service cost, revenue loss from devices out of service, and potential churn. Clearly, thesemethods of updating and configuring handsets after they are deployed in the field are flawed - resultingin an unacceptable subscriber experience.The financial risks for carriers are significant. According to the Yankee Group, the mobile data(non-SMS) market in Japan, North America, and Western Europe will reach 64 billion in 2009. Muchof this revenue depends on the adoption of new data offerings such as multi-media services,location-based services, customization/branding, and VOIP. Tapping this enormous source of potentialrevenue relies on fast, trouble-free deployments, activations, updates, and repairs.The Definition of MDMMobile device management (MDM) is the transparent "glue" that ties the operator, device, andsubscriber together in a kind of wireless ecosystem. MDM can be defined as a unified solution thatenables carriers to securely provision, install, activate, manage, support, and update services andapplications on mobile devices remotely using over-the-air technology, resulting in a hassle-freeexperience for subscribers. A complete, unified and integrated MDM solution includes three coreapplications: firmware management, configuration management, and diagnostics management (seeFigure 4).Page 3W H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
Three essential capabilities for sucess todayReliable and secure over-theair upgrades to firmware andsoftwareFirmwareTrouble-free over-the-airactivation of new devices andservicesConfigurationDiagnose and repair handsetsremotelyDiagnosticsIntegrated MDMFirmwareConfigurationDiagnosticsIntegration - More than just the sum of the partsFigure 4 — Integrated Mobile Device Management provides the synergy of three essential capabilities- firmware upgrades, configuration updates, and diagnostics managementFirmware management supports over-the-air (OTA) upgrades, which enable mobile devicemanufacturers and network operators to remotely upgrade the firmware and software that controlshandset functionality. Firmware management applies the model for automated software updatessuccessfully used in the PC industry to the mobile device. This technology is being deployed today.Using firmware over-the-air (FOTA) upgrades, a Tier 1 Japanese operator has upgraded millions ofhandsets in the field, avoiding costly device recalls. And analysts predict that it will soon become themethod of choice. Strategy Analytics predicts that 69 percent of all devices will use OTA technology by2009.Configuration management allows carriers to not only activate handsets, but more importantly toprovision new and existing data services. Using a systemized process, configuration managementautomatically establishes the settings on a handset necessary to support a new application, service, ornetwork configuration. These settings can be quite complex and vary from device to device. Thismeans that managing these settings is beyond the capabilities of a subscriber. Imagine activating a newdata service that requires each subscriber to complete a ten-step process - how many subscribers willbe successful? Some business plans require that millions of subscribers adopt a service to ensuremarket success. At one North American operator alone over the last 12 months, 72 million handsetconfigurations were performed (an average of four per data device). To further increase customerPage 4W H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
adoption of these new services (and reduce support costs), configuration management can also be usedto correct settings on an improperly configured mobile device. Clearly, configuration management iscritical to widespread, efficient adoption of new data services.Diagnostics management allows operators to gather information OTA from devices for remote diagnosisof problems and repair. Customer care agents can query handsets while speaking with subscribers toidentify and resolve problems remotely and in real-time. Devices can also remotely executeself-diagnostic functions to identify and log hardware and software problems for analysis and action.The operator can then use this data, either automatically or through a customer care agent, to initiatefirmware or configuration updates. This data also helps operators identify trends and quantitativeinformation to proactively address issues.The synergy (i.e., integration) of these three core applications creates a powerful solution. IntegratedMDM enables mobile carriers to access detailed information about each of the mobile devices in theirnetwork, including the firmware levels of the devices, the applications used, the versions of theseapplications, and the subscribers who are using them. At the same time, carriers can use MDM tosystematically make changes, perform updates, and introduce new services and applications. All of thiscan be accomplished at lower cost and without disruptions in service to customers.Imagine the scenario of enabling a new video service to an existing subscriber. Using integrated MDM,self-care diagnostics would automatically determine the specific hardware and software configuration ofthe device and then systematically kickoff an upgrade to the appropriate firmware. Diagnostics wouldre-examine the device, determine that a number of configuration changes are needed, and automaticallyinitiate the changes. The result is a newly enabled service - trouble free and ready to go. Clearly, thisintegration of MDM capabilities drives a superior subscriber experience. Carriers that successfullyimplement integrated MDM are likely to increase market share, gain mindshare, and achieve marketleadership.The Benefits of Integrated MDMMDM is a must-have for mobile carriers for the following reasons:MDM drives new service adoption - MDM manages mobile device complexity. By systemizingprovisioning of new data service roll-outs, MDM helps carriers efficiently and reliably bring newhigh-value data services to market. A positive, trouble-free subscriber experience facilitatesactivation of new services, boosts customer satisfaction, increases revenue, and provides acompetitive edge.MDM reduces operations and support costs - MDM provides an effective method of maintainingand updating software and firmware across millions of mobile devices in a network. With customerservice calls costing an average of more than 40 per incident, the business risk of rolling out newdata services can be immense. Automating customer service representative (CSR) functionsprovides a compelling incentive for carriers to implement MDM and return cost savings to the bottomline.MDM increases customer loyalty and reduces churn - MDM can be used to not only find and fixhandset problems, but also to set a service level baseline that avoids and eliminates handset-relatedproblems. This is a major factor in maintaining high levels of customer satisfaction and loyalty toreduce customer churn - particularly as subscribers are becoming familiar with newer data services.Page 5W H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
MDM Technology ApproachesUnfortunately, MDM offerings from most vendors to date have used piecemeal approaches. Forexample, many vendors have offered standalone configuration management capabilities or firmwareOTA technology. Similarly, offerings have typically been either server-based or client-based solutions,but not both in an integrated form. Hence, these vendors are not providing an integrated, end-to-endsolution for MDM. Instead, the patchwork quilt approach poses complications. Each individualapplication must be linked to critical backend systems separately, reporting across applications isproblematic, and incorporating new applications is onerous. Worst of all, the applications do not worktogether - the value of integrated MDM is that the sum of the parts far exceeds the value of eachindividual component.Another limitation is that many solution providers' MDM offerings have been proprietary and highlycustomized. In many cases, this limits the ability of these solutions to accommodate a broad range ofapplications and to interoperate with a wide variety of handset models. With the establishment of theOpen Mobile Alliance (OMA) and approval of OMA device management (OMA-DM) standards, solutionproviders now have an opportunity to offer standards-based solutions that will accommodate allOMA-DM compliant applications and enable interoperability with compliant handset models.In short, implementing MDM in proprietary pieces severely limits its value. Conversely, implementing anintegrated, standards-compliant MDM solution promises much greater value.Selecting the Right SolutionThe most beneficial MDM solution has the following attributes:A complete solution.The optimal solution offers firmware management, configurationmanagement, and diagnostics management on a common platform, while providing the option of fullend-to-end capabilities (i.e., server and device/client).Compliance with emerging standards. Any viable solution today must be fully compliant with allOMA-DM standards to ensure interoperability with applications and devices. But the optimalsolution would be offered by a vendor that not only supports emerging standards, but helps shapethem. Further, the solution must be independent of networks (e.g., GSM and CDMA).Incorporation of innovative technology. While standards are important, offering an effective,reliable, integrated MDM solution virtually requires the incorporation of innovative technology, notsimply a culling together of existing solutions. MDM will continue to evolve, with ever increasingcapabilities, and selecting a vendor with a comprehensive vision is essential.Proven functionality via deployment experience. However, all of the above capabilities are mootwithout real-world experience in large networks that proves the solution is viable and reliable, whiledelivering tangible benefits. Real world deployments on a Tier 1 carrier scale - tens of millions ofsubscribers - are the best barometer of the likely success of a specific vendor's MDM solution.Page 6W H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
86 10 8518 1058InnoPath SolutionInnoPath Software offers an end-to-end, integrated MDM solution - embodied in its iMDM Carrier andDevice Solution Suites - that is fully standards compliant and proven in extensive deployments acrossthe globe. Tens of millions of active subscribers are experiencing the value of InnoPath solutionsthrough leading carriers (e.g., Cingular, KDDI, NTT DoCoMo, and Sprint), and device manufacturers(e.g., LG, NEC, Panasonic, Sanyo, Sharp, and Toshiba). InnoPath iMDM solutions incorporate thefollowing:Offices:US HeadquartersInnoPath Software400 Caribbean DriveSunnyvale, CA 94089-1105Tel: 1.408.962.9200AtlantaInnoPath Software12600 Deerfield Parkway, Suite 100Alpharetta, Ga. 30004Tel: 1 678.566.3560JapanInnoPath Software, Inc.Sanbancho KS Bldg, 2nd floor2 banchi Sanban-cho Chiyoda-kuTokyo 102-0075 [email protected]: 81 3.3510.2050ChinaInnoPath Software, Ltd.1106, Tower W3, Oriental Plaza,No.1 East Chang An Avenue,ch[email protected]: 86 10.8518.1058KoreaInnoPath Software, Inc.Suite 402, Urban Light Bldg249-4 Nonhyun-DongSeoul 135-832, [email protected]: 822 514.0437United KingdomInnoPath Software Ltd.Suite 305A Building 3,Chiswick Park566 Chiswick High RoadLondon, UKW4 [email protected]: 44 208.849.8100Comprehensive Solution - Only InnoPath offers an integrated end-to-end server/client MDMsolution. Its iMDM Carrier Suite is a secure, scalable common platform for quickly and costeffectively rolling out current and future applications. Integrated capabilities include remotelyconfiguring settings, diagnosing and fixing device problems, and updating software and firmwareOTA - all in real time. Combining this with InnoPath's companion solution, the iMDM Device Suite,results in an end-to-end solution that provides a high quality subscriber experience via managementof the entire MDM process from both the carrier and device perspectives. Of course, the iMDMCarrier Suite will also support all OMA compliant handset devices.Deployment leadership - Tier 1 carriers and device manufacturers worldwide rely on InnoPathiMDM solutions. InnoPath was the first OTA mobile device management company actively updatinghandset software in commercial deployments. Its best-of-breed firmware and configurationsolutions have successfully updated millions of devices in the hands of subscribers.Technology leadership - InnoPath's patented technology performs updates of mobile hand-setfirmware quickly and reliably. Its technology is supported by more than 10 issued and 34 pendingpatents.Standards compliance and interoperability - InnoPath is actively participating in all of the OMAstandards developments, and plays a leading role in key standards committees. InnoPath productsare fully compliant with OMA-DM standards, based on several successful interoperability trials.InnoPath's iMDM Solutions Suite are network-agnostic, working on both CDMA and GSM networks.The services have been widely deployed on both CDMA and GSM 2.5/3G networks. InnoPath hascertified more than a 100 mobile handsets models on its iMDM solutions from leading manufacturersworldwide.Breadth of Vision - InnoPath anticipates future subscriber and operator needs and maintains aclear product development roadmap. New modules are under development that will not only enablewireless operators to control subscriber experiences with handsets, but also their serviceexperiences.MobileCarrier/ContentDrive ARPU with new servicesadoptionLower support costsIncrease loyalty, reduce churnDeviceManufacturerIntegrated ienceFaster time to marketReduce warranty / customerservice costs, avoid recallsIncrease customer satisfaction /loyaltyReady access to new applicationsBest service / device experienceFigure 5 — InnoPath's Integrated MDM Solution enables benefits for mobile carriers, devicemanufacturers, and subscribersW H I T E PA P E RThe Business Requirements for Integrated Mobile Device Management
MDM is a must-have for mobile carriers for the following reasons: MDM drives new service adoption - MDM manages mobile device complexity. By systemizing provisioning of new data service roll-outs, MDM helps carriers efficiently and reliably bring new high-value data services to market. A positive, troubl
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