Enterprise Mobile Devices

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Enterprise Mobile Devices

From Famine to Feast

Jorge Fuenzalida, VP & GM, Strategy and Technology Group US Wireless Technology Forum

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Technology and Strategy

Services

Integration

Services EngineeringServices

The Business of inCode

Business

Technology

Business-Driven

Wireless

Technology

Solutions

inCode services are provided to wireless and wireline carriers, OEMs, and technology companies, cable

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A Growing Global Presence

Investors Management

Experienced Team and Strong Investors

inCode’s Momentum

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The First Enterprise Mobile Device

On-site at client location

We

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$6,409 $3,193 $5,577 $12,307 $21,012 $4,553 2005 2009 $ M ill io ns

Mobile Devices Professional Services Mobile Software

Market Overview 2005-2009

Enterprise mobility growth outlook

Key factors driving growth • Wireless email adoption • Technology standardization • Wireless maturity

• Third party software

development (application; management; security; etc.)

Enterprise mobility deployments are shifting from islands of connectivity to more integrated enterprise solutions

Source: VDC

Steady growth in the Enterprise mobility market warrants more focus on the delivery of Enterprise-specific mobile capabilities

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Field Sales 22% Specialty 18% Field Services 15% Mobile/ White Collar 45%

The challenge lies in managing the need for customized capabilities while still realizing economies of scale

The mobile workforce is diverse, and each user type desires a customized device to fit their particular purpose and lifestyle

Different Strokes for Different Folks

“Brick” Devices High High Low Low Conventional “Smart Phones” A pp lic at io ns /P er ip he ra ls Ruggedization/Price Blackberries Wireless PDAs Basic Phones Durable PDAs Feature Phones MRM Devices Mobile Office Devices Rugged Laptops Source: VDC

Mobile workers by type

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34.6% 32.9% 26.7% 17.1% 15.0% 13.2% 42.1% Smartphone Rugged PDA Notebook PDA Rugged notebook Tablet Rugged Tablet

Mobile Device Platform

Source: 2005 Mobile Developer Survey; N: 956

Mobile Device Development Platform Breakdown

Demand for the SmartPhone is increasing among white collar users as it allows them to leave their laptops at home, while ruggedized

PDA/notebook/tablets still rule for the blue collar and gray collar market

As its capabilities near those of laptop computers, the SmartPhone is emerging as a critical platform to support enterprise mobility applications

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Both WLAN & WWAN 45% Wireless LAN only 39% Wireless WAN only 16%

Enterprise devices, particularly ruggedized models used in blue collar applications, tie to multiple networks to function both inside and outside the "four walls”

Wireless Connectivity Requirements

Wireless Connection Types

in

Ruggedized

Mobile Devices

Source: VDC

Support for multiple networks may not be required for white and gray collar users in the future as high speed WWAN solutions become more ubiquitous

Challenges to integrating networks • Interoperability between old and new

networks

• Higher solution complexity

• Preserving legacy investments

Network transparency is critical

•Enables continuous use

•Seamless handoffs and roaming

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Enterprise Wireless/Mobility – Continuum of Devices

There will be a sweet spot in the $500-$700 device that meets the needs for both vertical applications and mobile professional/white collar

Approximate

Target Price for Mass Adoption in Enterprises (~ $500/unit) Symbol MC-50 Enterprise Digital Assistant (~$900) Symbol MC-70 (~$1,800) $5,000/unit $100/unit Panasonic Toughbook (~$4,000) Kyocera KX440 (~$200) Blackberry 8700 (~$300) $3,300 $3,000 $3,000 $3,000 $2,800 $2,600 $2,400 $2,000 $1,800 $1,500 $1,100 $450 $400 $350 $200 Intermec CK61 Symbol 909x Panasonic CF-P1 HHP Dolphin Itronix Q200 Intermec CN30 Symbol MC70 Intermec 700 Series Intermec CK31 Intermec CN2 Symbol MC 50 BlackBerry 8700R Treo 650 HP iPAQ hw6515 Audivox 5600 Approximate Price Reference Device ESTIMATE ESTIMATE

Examples of currently available devices

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US Intelligent Devices OS Forecast

Symbian’s share of the intelligent device market will decrease slightly by 2010, likely due to the growing popularity of Linux, while Microsoft’s share is expected to decrease

slightly as PDAs are replaced by SmartPhones

Linux can be a formidable force as Motorola works in a Linux alliance with Vodafone and NTT DoCoMo to challenge the Symbian/Nokia dominance in the

Smartphone market

Sources: Ovum 2005, RCR Wireless News: “Smart-phone OS market set for change as entrants contest Symbian” July 3, 2006

Symbian 35% Microsoft 40% Other (Linux, RIM, Palm) 25%

2005 US Market Share

Intelligent Devices

Symbian 31% Microsoft 35% Other (Linux, RIM, Palm) 34%

2010 US Market Share

Intelligent Devices

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Top Five Reasons Why SmartPhones are on the Rise

As SmartPhones become more popular, many people keep the same device for both business and personal use

Source: InStat 2005

Smartphones -- devices with a "real" operating system -- are popular due to the demand for multi-function capabilties and the opportunity to consolidate devices

55% 34% 31% 21% 57% 1% Combines a number of devices

The available applications

Impressive capabilities

The phone has the most potential

Company sponsored application

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There are a myriad of issue of issue to consider, and the answers are becoming clearer

Issues and Considerations

Emerging solutions Issue

There is clear need to manage data at rest (HW encryption) and kill the device

Security

Imaging for some applications (claims adjusters, security)

Cameras

Market is finding the midpoint for gray collar at more attractive price points

Durability

Blue collar has always been CL; white collar is also moving to CL thanks to data needs

Funding – Corporate Liability (CL) or Individual Liability (IL)

Primary driver is COO – as efficiency gains are demanded by the business. CIO is gatekeeper. Who is the Decision Maker?

Yes but specific to some markets that work indoors and outdoors

Dual Mode

Overall, enterprise devices are leveraging common platforms, and their ability to perform multiple functions allows for “configurable” solutions

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