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Converging Forces are Driving Unprecedented Demand for Mobile Data Communications that will Crush Enterprise Budgets

Converging Forces are Driving Unprecedented Demand for Mobile Data Communications that will Crush Enterprise Budgets

Converging Forces are Driving Unprecedented Demand for Mobile Data Communications that will Crush Enterprise Budgets

Optimization of Data Communications Plans is Imperative for Mobile Success

A perfect storm of market conditions is rapidly developing and will result in added pressure on enterprise IT and communications budgets.

Growing Trend of Tablet Low Costs

When Apple first launched the iPad, the lowest performance Wi-Fi only version was priced at $500. Now with the introduction of tablets from Google, Amazon and a host of other manufacturers that are priced at $200 or less, tablets are now accessible to a larger group of enterprise consumers. In addition, the 10 inch form factor is being challenged for market dominance by the 7 inch form factor which has experienced tremendous growth. Not only are the 7 inch tablets lower cost but they’re also easier to hold with one hand and still have enough screen real estate to effectively utilize applications and consume critical content.The introduction of lower priced tablets is driving device proliferation in the enterprise because line-of-business managers can now afford to leverage mobility for key initiatives and capture a competitive advantage. In addition, lower priced tablets are adding to the growth of BYOD requests. When Apple’s iPad mini was introduced, the lower cost tablet sold an estimated 8 million units in the first two months.

Mobile Device Proliferation Driving Exponential Growth in Mobile Data Consumption

In 2009, the corporate standard for a mobile connected employee was a laptop and a Blackberry.According to AT Kearney’s report,”The Mobile Economy 2013,” the typical remote worker was equipped with 2 or less mobile devices and consumed on average 100 Mb per month in mobile data. As enterprise mobility evolved to 2012, the average mobile connected worker saw the number of devices they were equipped with, almost double on average to 3+.Now mobile workers are often equipped with a laptop, tablet, Smartphone and more resulting in 600% growth in mobile data consumption per month.

In October of 2013, Gartner issued a correction to its original prediction of 2013 tablet growth from 42.7% to 53.4%.The smaller, lower cost form factors will drive an estimated 184 million units shipped in 2013.

More and more enterprises are mobilizing legacy applications and business processes in order to drive growth.With 45% of the respondents to the Citrix Mobility in Business Report indicated that mobility is their top priority it is evident that enterprise mobile data consumption is not slowing down.

Demand Outpacing Spectrum and the Extinction of the Unlimited Data Plan

With the strong demand for mobile data in the enterprise, wireless carriers are capitalizing on this trend by maximizing the profitability of wireless data and their limited spectrum.According to the FCC, the current spectrum surplus of 225 MHz will become a deficit of 275 MHz by 2014.As a result, back in 2010 AT&T and Verizon Wireless eliminated data plans that offered unlimited data use and transitioned to plans that offer unlimited talk with data limits and sharing options.The data limits across all the major carrier plans range from .5 GB to 50 GB per month with pricing ranging from $20 per month to as much as $335 per month.

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For an enterprise that has a mobile connected workforce of 1000 employees, data overage fees could easily exceed $20,000 in a given month.

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The Fast Rising Cost of Mobile Data in the Enterprise

What happens when mobile data users in the enterprise exceed their allotted bandwidth? Mobile data overage fees range from $15 per GB to as much as $51 per GB. In addition, some of the wireless carriers will throttle back your access and dramatically reduce the throughput and performance that the user will experience by shifting the user from 4G to EDGE. For an enterprise that has a mobile connected workforce of 1000 employees, data overage fees could easily exceed $20,000 in a given month and the end-user could become less productive as a result of the limited throughput.

Mobile connected workers are also consuming more rich media and video files which rapidly consume the data allocation in their plan.

The growth of data, increase in wireless data costs and increased consumption of rich media has made mobile data optimization a necessity in the enterprise in order to prevent huge data overage fees breaking the IT bank.

Data Optimization Maximizes Mobile Data Efficiencies and
Eliminates Data Overage Fees

Wireless data optimization is now an enterprise imperative in order to drive efficiencies and deliver on the promise of a return-on-investment for enterprise mobile data initiatives.In order to mitigate data overage charges, enterprises need to utilize data optimization that combines sophisticated wireless optimization software in addition to data optimization analysts to deliver a granular alignment of rate plans to user needs.Telecom expense management software alone does not achieve an optimal spend profile alone.

OVATION Wireless Management is the leader in enterprise mobile data optimization which results in a reduction in excess wireless data expense by as much as 45 %.

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OVATION Wireless Management is the leader in enterprise mobile data optimization which results in a reduction in excess wireless data expense by as much as 45 %.

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As enterprise mobile data consumption continues to rise and wireless carriers experience a spectrum deficit, enterprises will experience a exponential increase in wireless data costs unless they manage it effectively with the help of a company like OVATION Wireless Management.