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PRIVATE AND CONFIDENTIAL TECHNOLOGY FOCUS. BROAD REACH. OPTIMAL RESULTS.
Enterprise Mobility Overview
Peter Falvey
Managing Director
[email protected]
P. 1.617.598.0437
Jason Myler
Managing Director
[email protected]
P. 1.617.598.0438
Jeffrey Cook
Vice President
[email protected]
P. 1.617.598.0439
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Enterprise Mobility Will Continue to be an Active Sector in 2013
Strong growth outlook: Enterprise mobility continues to be a major area of focus for enterprises
and the underlying macro drivers are undeniable
Enterprises are demanding unified solution sets: The requirements of enterprise mobility
continue to evolve in lockstep with the industry: what started with a need for basic MDM / end-
point security has quickly spread to MAM, data security and deeper mobile security
Large players will need to acquire to build solution sets: The exploding demand from
enterprises for a unified mobility solution will translate to consolidation and investment activity in
the industry
- We believe that the consolidation seen in the second half of 2012 will accelerate into 2013
as the larger players in the space and tech consolidators continue to place their bets
- Many of the tech consolidators have fallen behind more acquisitive competitors and will
need to acquire to keep pace
We expect the level of investment and transaction activity in enterprise mobility to
accelerate in the coming year
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Market Divided Between Large Players and Point Solutions
Device Focus Application / Data Focus
= Acquired / Operating Subsidiary
Sc
ale
S
ma
lle
r L
arg
er
Market Solution
Scale based on available revenue figures and amount of funding raised
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Attractive Growth Prospects Show no Sign of Receding
Strong growth potential and underlying growth drivers will continue to attract
investment and transaction activity in enterprise mobility
EMM MARKET SIZE
GLOBAL MOBILE DEVICE GROWTH
2x Growth
• The market is currently ~$500M and
expected to grow 38% annually
• The trends fueling growth are well-
publicized:
- Smartphone and tablet shipments are
expected to double in the coming years
- Less than 30% of enterprises have an
EMM solution which is expected to
increase to 65% by 2015
- Nearly 70% of employees are using
their own device at work, a percentage
which is expected to increase
- Diversity among mobile OS is expected
to persist for the coming years
KEY DRIVERS
Source: Gartner, IDC
$300
$500
$1,800
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2010 2012 2016
29% CAGR
38% CAGR
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Fragmented Market with Ample Opportunity
Market share is highly fragmented and excludes many of the typical enterprise
software vendors, creating opportunity for independents and consolidators alike
SAP, 16.4%
Microsoft, 6.7%
MobileIron, 6.6%Good, 6.4%
Airwatch, 4.5%
Symantec, 4.1%
HP, 4.0%
SOTI, 3.2%
Boxtone, 3.0%IBM, 2.7%
ENTERPRISE MOBILITY VENDORS, TOP 10 MARKET SHARE CONSOLIDATORS NOT IN TOP 10
Source: Gartner, IDC
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Market Moving Towards Comprehensive Solution Sets…
Corporate mobility demands have grown well beyond basic device management and
forcing convergence of MDM and MAM into a unified platform
• Basic MDM
• Focus on endpoint security and management
• Sold primarily to large-enterprise
• On-premise
• Need for device and app management
• Ability to develop, deploy and manage apps across multiple OS and devices
• Enterprise app stores
• Integration with enterprise data
• Solutions begin to move down-market from enterprise level
• Full suite of solutions seamlessly addressing MDM, MAM and content management
• Robust tools for app development, particularly write-once, deploy all solutions
• Cloud / SaaS deployment
• Increasing number of SMBs deploying solutions
EVOLUTION OF ENTERPRISE MOBILITY MANAGEMENT
Device Management
App & Data Management
Unified Mobile Management
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… Forcing Larger Players to Assemble Portfolios thru Acquisition
Source: Public filings
Acquirer
Larger players in the space have been responding to the demand for unified
management by augmenting solution portfolios through acquisition
Target Date Market Solution
WorkLight
Cast Iron Systems
February 2012
April 2010
Mobile app development
Application integration
CREDANT Technologies
Wyse Technology
December 2012
May 2012
Data / device security
Mobile cloud computing
Zenprise December 2012 Mobile device management
Syclo
Sybase
June 2012
July 2010
Mobile enterprise applications
Mobile data management
AppCentral
Partnership with BoxTone
October 2012
November 2012
Mobile enterprise applications
Enterprise mobility management
Nukona
Odyssey Software
April 2012
March 2012
Mobile application management
Mobile device management
WaveLink June 2012 Mobile device management
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Solution Landscape Among Large Strategics
Current EMM product portfolios are being assembled through partnerships and
acquisition. Consolidation activity will accelerate as companies bring capabilities in-house
Potential Buyer Deployment Products Customer Strength Major Partners
Cloud On-Premise MDM MAM Security App Dev. Analytics Content Enterprise SMB
Large, Diversified Enterprise Software Vendors
CA Technologies X X
Dell X Microsoft
EMC X X X
HP P A R T N ER X F5 Networks
IBM X X
Microsoft
Oracle X X
SAP X P A R T N ER X Appcelerator, Phonegap (Adobe), Sencha
Salesforce X
Infrastructure / Network Management
Aruba Networks P A R T N ER SOTI, MobileIron, JAMF Software
BMC Software P A R T N ER P A R T N ER P A R T N ER P A R T N ER X AirWatch
Cisco P A R T N ER P A R T N ER P A R T N ER X AirWatch, Good Technology, MobileIron, Zenprise
Citrix
F5 Networks P A R T N ER AirWatch, MobileIron, Silverback MDM, Zenprise
Juniper Networks X
LANDesk X P A R T N ER Kaspersky Labs
Palo Alto Networks P A R T N ER P A R T N ER P A R T N ER MobileIron, Zenprise
Research in Motion X
VMware X P A R T N ER P A R T N ER P A R T N ER P A R T N ER P A R T N ER X Cisco, Dell, F5 Networks, Symantec, McAfee
Security / Support Software
Absolute Software X P A R T N ER P A R T N ER P A R T N ER P A R T N ER Intel, McAfee, Microsoft, Qualcomm, Verizon
BeyondTrust X P A R T N ER IBM, Microsoft, Oracle, HP, McAfee, VMware
Kaseya
LogMeIn X X X
McAfee
Symantec X
Stronger Offering Acceptable Offering No Offering
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Interest Levels for Mobile From PE & VC Firms Remain High
Target Date Market Investors Amt. Raised
January 2013 Mobile device and app management Undisclosed
December 2012 Mobile application management $8.7M
December 2012 Mobile security software $20M
November 2012 Application development platform $15M
October 2012 BYOD enablement Undisclosed $17.3M
October 2012 Mobile app development tools $27M
August 2012 Mobile app development platform $5.5M
August 2012 Mobile device and app management Undisclosed
August 2012 Containerization and MAM $3M
August 2012 BYOD / Mobile Security $25M
May 2012 Application monitoring software $6.3M
May 2012 Mobile app development platform $15M
Source: SEC Filings, Company Press Releases, Wall Street Research, 451 Research, CapitalIQ
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Falvey Partners Overview
FOCUS SELECT TRANSACTION EXPERIENCE
December 2011
Has acquired
July 2012
Has been
acquired by
September 2011
Series D
Convertible
Preferred Stock
Led by
September 2012
Has been
acquired by
A portfolio company of
July 2011
Has been acquired
by a portfolio
company of
April 2011
Has been
acquired by
July 2011
Has been
acquired by
February 2011
Growth equity
investment from
July 2011
Has been
acquired by
March 2011
Has divested
its diagnostic
solutions unit
November 2010
Has received an
investment from
A portfolio company of
October 2010
PGI Notify and Send
platforms acquired by
August 2010
Two divisions have been
acquired by a portfolio
company of
April 2010
Has been
acquired by
August 2010
Series C
Convertible
Preferred Stock
Led by
SERVICES
Sell-side or buy-side M&A
Growth capital raising
Board and corporate advisory
SECTOR
Software / SaaS
Tech-enabled business services
IT services
Internet / digital media
COMPANY TYPE
$50M - $250M in enterprise value
Growing, with established scale
Profitable or near-term path to profitability
Falvey Partners is a leading advisory firm serving
mid-market clients across technology sectors
Founded in 2012 by Peter Falvey and key members of the Morgan Keegan / Revolution Partners team
Falvey Partners professionals have closed dozens of software transactions representing billions of
dollars in transaction value