Good Technology Device Activations Report Q4 2012

Report on Platform and Device Preferences in Q4 2012, from the Leader in Enterprise Mobility

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Good Technology Device Activations Report Q4 2012 | good.com 2

Executive Summary As the leader in enterprise mobility, Good Technology provides mobile device, app, and data security to some of the worlds largest banks, healthcare organizations, governments, and retailers. With over 4000 customers across every major industry, including half the Fortune 100, Good has a clear view into global mobility trends and the adoption of new mobile platforms and devices. In an effort to extract trends among mobile device usage and preference in the enterprise, Good Technology analyzed the mobile devices activated by its corporate customers over the final quarter of 2012. The results showed Apple as the clear winner among enterprise users, claiming the top five spots for device activations, and more than 90 percent of all tablet activations. The iPhone 5, released at the end of September 2012, was the most popular device among enterprise users, followed by the iPhone 4 and 4S, both of which also showed a surge in activations over the quarter. Good attributes this spike in activations to the price drop that systematically occurs whenever a new iPhone is released into the market. Similarly, the iPad 4, released in October 2012, came in behind its two most recent predecessors in overall device rankings. The number of iPad models currently available in the market is leading to increased fragmentation and suggests that consumers and corporate buyers are often willing to adopt older generations of device hardware in order to save money. Samsung continues to reign supreme in the AndroidTM market with the Galaxy SIII smartphone ranking as the sixth most popular device in Q4, at six percent of all device activations. Samsungs Galaxy Tab was the most popular Android tablet in our survey with roughly three percent of all tablet activations for the quarter. Holiday season sales are not reflected in this report, as new BYOD purchases in mid-to-late December most likely would not be activated until workers returned to the office in the New Year, and will therefore be captured in the Q1 2013 report. Other Key Findings in the report include: The iOS platform secured nearly 77 percent of total device activations, up from 71 percent in Q4 of 2011. The iPhone 5 was the most popular device in Q4 of 2012, representing 32 percent of all activations for the quarter. Android tablets are gaining momentum. Between Q1 and the end of Q4 2012, Android tablet activations jumped from 2.7 percent to nearly 7 percent of total activations. Good attributes this spike in part to the rise of hybrid phone-tablet devices such as the Samsung Galaxy Note. The Samsung Galaxy SIII was the most popular Android device, capturing 6 percent of total device activations for the quarter. Windows device activations represented only 0.5 percent of activations in Q4 2012, still a distant third to Android and iOS. When looking at types of devices, Android smartphones slightly outpaced iPads in October and finished the quarter only a fraction behind the iPad at 21 percent of all activations in Q4 2012. Similar to past quarters, the Financial Services industry led enterprise device activations in Q4 2012, followed by Business and Professional Services. Together, these two industries make up more than half of the activations reported in Q4. Wholesale & Retail, Manufacturing, and Energy & Utilities all moved up in ranking for overall activations, as well as iPad activations for the quarter.

Good Technology Device Activations Report Q4 2012 | good.com 3

Introduction Innovative mobile devices continue to enter the market and offer many new opportunities for enterprise use. From customer-facing workers to C-level executives, todays highly mobile workforce prefers smartphones and tablets as critical productivity tools. Employees want the ability to choose their own devices; and enterprises, within the bounds of their security and compliance requirements, increasingly want to support whatever devices make end users most productive and happy while maintaining cost controls. As a recognized leader in enterprise mobility management and security with over 4000 customers across every major industry, including half the FORTUNE 100, Good Technology has a clear view into global mobility trends and the adoption of new mobile platforms and devices. The more than 4000 customers represented in this report include bellwether companiesfrom Financial Services, Healthcare, Manufacturing, Energy & Utilities, Legal, Government, and High Techmaking this data report a benchmark for enterprise mobility adoption.

Methodology The metrics cited in this report are generated directly from Goods internal data, as aggregated from all devices activated across Goods worldwide customer base. Good analyzed activations by month among its enterprise and government customers that had at least five activated devices over the quarter, to draw conclusions on the overall trends for net new activations across iOS, Android and Windows PhoneTM platforms, as well as determine the Top 10 most frequently activated devices in the enterprise. Analyzing both the Top 10 devices and the long tail of net new device activations by platform provides unique insight into not only the popularity of individual devices and form factors, but also the platforms that enterprises prefer for enabling employees to access business data and applications. Due to the fact that RIM devices use only the BlackBerry Enterprise Server for corporate email access, Good does not have insight into BlackBerry handset activation trends and they are not reflected in this report.

Good Technology Device Activations Report Q4 2012 | good.com 4

Results Top 10 Devices As Figure 1 indicates, the iPhone 5 was the most popular device in Q4, representing 32 percent of all activations for the quarter and making it the leading device for enterprise activations of any iOS, Android or Windows Phone model. The device, which was originally released at the end of Q3 2012, quickly rose to the top of the list, not unlike the iPhone 4S after its October launch in 2011. Also, similar to Q4 2011 activity, Apples iOS platform drove the majority of activations from October to December 2012, with five iOS devices holding the top five activated positions and eight iOS devices on the top 10 list overall. The iPhone 4S was the number two device for enterprise activations in Q4 2012, representing 20 percent of activations in Q4, down from its top spot at 31 percent in Q4 2011. The iPhone 4S was followed by the iPhone 4, with 14 percent of enterprise activations. The surge of the iPhone 4 and 4S activations is likely a result of price drops that were applied to those models when the iPhone 5 was released. The third-generation iPad followed, capturing the fourth spot with 11.7 percent of all activations, followed by the iPad 2 in fifth place at 7.7 percent. Android devices showed their best performance vis--vis other devices in December 2012, likely due to many phones being purchased as gifts for the holidays. Similar to the popularity of the Galaxy SII in Q4 2011, the Samsung Galaxy SIII was the sixth most popular device on the list, but unlike its predecessor, the SIII occupied a much larger share of activations in Q4 2012 capturing six percent of total activations. Rounding out the Q4 2012 top ten device activations list was the Droid RAZR, with one percent of all enterprise activations. It was surprising to see that the Samsung Galaxy SII did not even make the top 10 list this year, considering it was the top-performing Android device in 2011.

Top 10 Devices Top 10 Devices Q4 2012: October through December Q4 2012: October through December
40% 35% 30% 25% 20% 15% 10% 5% 0%

OCT 2012 NOV 2012 DEC 2012 Q4 2012

iPhone iPhone 4s iPhone 4 5

iPad 3

iPad 2

Samsung iPad 4 Galaxy S III

iPad 1

iPhone 3GS

Droid Razr

Samsung Galaxy SII

Figure 1

Good Technology Device Activations Report Q4 2012 | good.com 5

Results Net Activations by Platform Figure 2 shows that although Android devices made gains on iOS in Q3 2011, the last quarter of that year proved a resurgence of Apples dominance within the enterprise. Q4 2012 is no different, with the iOS platform garnering nearly 77 percent of total device activations, up from 71 percent in Q4 of 2011. Androids share of activations actually decreased from Q4 2011 to Q4 2012, dropping from 29 percent in 2011, to 22.7 percent in 2012. This decrease in Android activations made room for small gains to be made by the Windows Phone platform, which represented 0.5 percent of total activations. Given the availability of Apples newest smartphone and tablet hardware, Good predicted that a surge in multiple generations of iPhones and iPads activations would take place in Q4 2012.

Tablet Activations by Platform Q4 2012: October through December

Tablet Activations by Platform

Q4 2012: October through December

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% OCT 2012 NOV 2012 iOS
Figure 2

DEC 2012 ANDROID

Q4 2012 TOTAL

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Results Net Activations by Type of Device Figure 3 shows activations over the quarter broken down by device type. Apples iOS smartphones once again led the pack in total activations by device type, representing 55 percent of activations in Q4 2012, up from 53 percent at the same time last year. iOS tablets also continued to hold a larger percentage of the share at 21.1 percent of activations, though Android smartphones slightly outpaced iPads in October and finished the quarter only a fraction behind at 21 percent of all activations in Q4 2012, a decline of nearly 10 percent from Q4 of 2011. Android tablets were unable to close the gap with iOS tablets in Q4, coming in at only 1.5 percent of total activations. Windows Phone activations for the quarter came in at a nominal 0.4 percent. iPads remain the top tablet: With four iPad models in the market, its easy to see how the iPad remains to be the go-to tablet for mobile enterprise workers. While Android tablet models such as the Samsung Galaxy Tablet and Kindle FireTM are driving a few activations, overall, Android tablets are not yet gaining widespread adoption within the enterprise.

Activations by Device Type Q4 2012: October through December Q4 2012: October through

Activations by Device Type

December

60% 50% 40% 30% 20% 10% 0% OCT 2012 NOV 2012 DEC 2012
Figure 3

ANDROID TABLET ANDROID SMARTPHONE iOS SMARTPHONE iOS TABLET SYMBIAN SMARTPHONE WINDOWS MOBILE SMARTPHONE WINDOWS MOBILE TABLET
Q4 2012 TOTAL

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Results Net Activations by Industry As Figure 4 indicates, the Financial Services industry once again led enterprise mobile device activations, averaging 35 percent of all activations in Q4 2012, which is consistent with the results of our Q4 2011 report. Business and Professional Services represented the second highest percentage of activations in Q4 2012, with 19 percent of all device activations for the quarter, an increase of three percent year over year. Together, these two industries make up more than half of the activations reported in Q4. The next closest, Wholesale & Retail, made a significant jump in the fourth quarter of 2012, moving into third place (up from eighth place in Q4 2011) among industry rankings, capturing six percent of all activations. The High Tech industry dropped down to number four from its third place position in 2011, but gained slightly more activations in 2012, growing from 4.7 to 5 percent of total activations for the quarter. The Healthcare industry, which took the fourth spot in Q4 2011 with 7.2 percent of all device activations, dropped to this years eighth position, with an average of 4 percent enterprise activations in Q4 2012.

% of Activations by Industry Q4 Q4 2012: October through December

Industry
Financial Services Business and Professional Wholesale and Retail High Tech Manufacturing Public Sector/Government Energy and Utilities Healthcare Communications Legal Life Sciences Entertainment and Media Transportation and Logistics Other

Oct
32.7% 20.1% 5.8% 4.5% 4.4% 4.2% 4.0% 3.8% 2.8% 2.7% 2.4% 1.3% 1.1% 10.3%

Nov
35.9% 18.8% 5.3% 4.6% 4.8% 3.7% 4.3% 3.7% 3.0% 2.5% 2.2% 1.3% 1.0% 8.8%

Dec
35.9% 19.2% 5.6% 5.0% 4.1% 4.5% 3.8% 4.1% 2.4% 2.4% 2.0% 1.2% 1.2% 8.5%

Q4-2012
34.8% 19.4% 5.6% 4.7% 4.4% 4.1% 4.0% 3.9% 2.8% 2.5% 2.2% 1.3% 1.1% 9.2%

Figure 4

Good Technology Device Activations Report Q4 2012 | good.com 8

Results iPad Activations by Industry The percent of net monthly iPad activations for Goods chief industries is shown in Figure 5. Financial Services showed the most growth this quarter. In October, it accounted for 27 percent of activations, and jumped to 37 percent in November, finishing out the quarter with an average of 33.8 percent as the leading industry for iPad adoption. This increase makes sense following Goods recent 2012 State of BYOD report, which found the Financial Services industry (which includes the Insurance industry) to be one of the biggest supporters of BYOD. It also shows that the introduction of the iPad 4 in October 2012 led to more new device activations the following month. While Financial Services continued to own the highest percentage of activations in Q4 2012, its percentage of activations dipped slightly from Q4 2011, when Financial Services accounted for 41.7 percent of all iPad activations. That dip is likely attributable to the fact that Business and Professional Services gained momentum this year, netting 24.7 percent of all activations, which is a 15 percent increase from Q4 2011, wherein it accounted for 10.2 percent of activations. Wholesale & Retail, Manufacturing and Energy & Utilities all moved up in the ranking for iPad activations in Q4 2012 vs. last year. Wholesale & Retail increased from 8th place last year to 4th place this year, netting 5.1 percent of total activations; Manufacturing moved up from 9th place to 6th place, with 3.3 percent of activations; and Energy & Utilities climbed from 11th place to 8th place, with 3.1 percent of total iPad activations for the quarter.

Net Activations By Industry

Q1 2012: January through March Net Activations by Industry
Q4 2012: January through March

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Results Activations by Tablet 2012 Figure 6 shows that iPads continue to dominate the enterprise for tablet use. iPads accounted for 93.2 percent of tablet activations in Q4 2012, while Android tablets captured 6.8 percent. In October, iPads accounted for 94.5 percent of tablet activations, but that number dropped back down to 91.7 percent in December. Although iPad continues to lead tablet activations, Android tablets are gaining momentum. Android has jumped from 2.7 percent to 6.8 percent of all tablet activations over the course of 2012. The most popular Android tablets amongst Goods enterprise customers included the Samsung Galaxy Tab, followed by the Motorola Droid XyboardTM, Samsung Galaxy Note, Asus TransformerTM, Kindle Fire and Motorola XoomTM. Looking ahead to Q1 of 2013, Good expects that the diversity of devices within the enterprise will continue to grow as the consumerization of IT goes on, and as more enterprise IT departments around the globe begin to embrace BYOD. As demonstrated by Goods most recent State of BYOD report, the number of organizations who have no plans to support BYOD is rapidly shrinking, and even the largest, most security conscious and highly regulated companies are moving toward BYOD. With this in mind, the number and diversity of devices that corporations enable for use at work will grow as IT organizations look to reduce costs and increase employee productivity by allowing employees to use the mobile devices and applications they prefer in order to work smarter.

Tablet Activations by Platform

Q4 2012: October through December

Tablet Activations by Platform Q4 2012: October through December

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% OCT 2012 NOV 2012 iOS
Figure 6

DEC 2012 ANDROID

Q4 2012 TOTAL

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About Good Technology Good Technology transforms enterprises by mobilizing employees through secure, collaborative workflows. We also empower IT to protect and manage mobile apps, devices, and enterprise data. Goods Secure Collaboration solutions include Goods applications for email, PIM, browser, file sharing, instant messaging, as well as a broad ecosystem of third party applications. Goods Enterprise Mobility Management Platform allows enterprises and ISVs to build, manage, analyze and secure mobile applications. Good Technologys customers include more than 4,000 organizations worldwide, including half of the FORTUNE 100, eight of the top 10 financial services, five of the top 10 healthcare firms, and leaders in retail, telecommunications, manufacturing, legal, and government. Learn more at www.good. com.

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