Managed Mobility Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Managed Mobility Services Category Overview

The managed mobility services (MMS) category is anticipated to grow at a CAGR of 23.8% from 2023 to 2030. In 2022, the North American region dominated the category with a share of 37%. An organization's MMS includes a variety of IT and workflow management services that are needed for purchasing, allocating, and maintaining tablets, smartphones, and other associated gadgets/devices. According to Microsoft, more than 52% of employees preferred shifting to remote work by the end of 2022. The increasing number of employees operating remotely, the rise in IoT-connected devices, the increasing use of BYOD owing to hybrid work models, and the growing requirement for tight security measures are some of the factors driving the growth of the MMS category. By function, in 2022, the device management segment accounted for the largest share, between 50% - 60% of the overall share.

Another factor aiding growth is the increasing telecom expense management (TEM). TEM companies have become a crucial asset in this hybrid working model. 2021 saw this hybrid mode become a norm rather than an exception. According to Gartner's 2022 report, TEM companies have evolved their offerings since 2021 to meet the increased demand and handle the complex network of mobile and fixed assets. In 2022, enterprises have partnered with TEM companies that offer complete lifecycle support - from procurement to invoicing, vendor, and inventory management.

One of the trends in this category is the rising use and deployment of 5G networks in emerging countries such as Brazil, Mexico, India, Malaysia, etc. For instance, in Q1 2022, Telcel launched 5G services in Mexico using a 3.5g spectrum. Similarly, in Q4 2022, Jio and Airtel launched 5G networks in India. This has, in turn, forced many MMS companies to evolve their offerings in these regions to meet the demand.

The global managed mobility service industry is fragmented overall. It has been found that for accessibility to company applications, 87% of organizations rely on their employees to utilize their individual mobile devices. In recent times, more than 70% of companies have BYOD-to-work policies. Hence, a multitude of MMS providers has emerged over the last two to three years to assist businesses in handling the proliferation of mobile devices that access private networks and company-sensitive information. Vendors in this category are trying to provide end-to-end unified solutions, full support for BYOD and cross-device integration, device compatibility, and sophisticated security tools and services. This is to ensure that a high level of data integrity is maintained while protecting the company’s (clients) full device portfolio. Telecom network operators, device developers, MMS service and platform vendors (pure play or combined), and cloud service providers (or, CSPs) are a few instances of the major types of suppliers in this category. The bargaining power of suppliers is reduced due to increased fragmentation.

For instance, in June 2023, Cisco has partnered with AT&T to provide “SD-WAN Connectivity” with additional services such as 5G and broadband to businesses. The deal aimed to enhance the connectivity of employees working in a hybrid model. Cisco’s “Webex Calling” would be integrated into AT&T’s mobile network to offer a robust unified solution from a single company number.

The key cost components associated with the MMS category are hardware and software costs, the salaries of developers and consultants, facilities and network costs, marketing and advertising, training staff, upgrades, repairs, and maintenance costs, and other operational costs. Other costs can include administrative expenses, depreciation, tax, etc. A few common pricing models are bundled pricing, user-based pricing, or contract-based pricing. The bundled pricing model can depend on the type of service opted for such as lifecycle management, WAN optimization, endpoint managed services, etc. Depending on the add-on features, integrations, and complexity type the prices may increase.

According to the Dataprise Company 2023 report, unmanaged mobility can be 20% more expensive than a managed one. It has also been found that a well-managed mobile workplace environment can bring down the monthly cost of each device to about USD 60. The adoption of managed mobile services might result in significant savings on IT costs for companies. For instance, over a span of three years, the forecast showed almost 50% savings on IT overheads. Then, there is a 40% long-term savings on carrier expenditures (after the first year). According to Blue Hill 2023 estimates, for every 1,000 devices, companies can achieve cost savings of USD 21,200 on mobility management. In the second and third years, the same companies can save an additional USD 10,610 and USD 2,120 respectively in costs.

In terms of sourcing intelligence, outsourcing is the most preferred engagement model under managed mobility services. Businesses can access more IT resources through the outsourcing of mobility services without having to pay for employee recruitment, hiring, and training. This is because it can be difficult to find workers with experience in mobility technology, and cumbersome to upskill current employees. Outsourcing ensures all compliance requirements are met in tandem with immediate support and advanced technology.

Companies, when selecting an MMS provider, must thoroughly assess if the MMS will fit the company’s existing landscape and requirements, if the vendor has appropriate integrations and can combine smoothly with, for instance, directory services, reporting systems, content management platforms, email and mobile app managers, security applications, cloud services, etc., and check for customizations and whether the MMS is built for scalability. Companies also seek MMS vendors with good track records and reviews. 

Managed Mobility Services Procurement Intelligence Report Scope