From Servers to Soccer Moms: The Consumerization of Technology Bob Williams Senior Manager, Midmarket Segment Marketing July 23, 2014 Agenda Background Consumerization of Technology Major Trends How Avaya is Responding © 2011 Avaya Inc. All rights reserved. 2 Bob Williams Multiple Roles in the Technology Field Education: Stanford & UC Boalt Hall Law School Lawyer, Venture & Public Fin. – Riordan & McKenzie Investment Banker – Fitger & Co. Startup CEO – Conversive, Inc. Midmarket Segment Strategy – Avaya, Inc. Forrester, Info Workers Will Erase The Boundary Between Enterprise And Consumer Technologies © 2011 Avaya Inc. All rights reserved. 3 Consumerization of Technology The Mega-Trend © 2011 Avaya Inc. All rights reserved. 4 Consumerization of Technology Changing Business Technology Acquisition, Deployment & Use From: To: Single-Purpose Multi-threaded Location-dependent Mobile, virtual Infrastructure dictates experience End user customizes experience IT provisions for all End user buys © 2011 Avaya Inc. All rights reserved. 5 Consumerization of Technology – IT Managers Here’s our midmarket tech buyer, courtesy of a thread in the Spiceworks community… “Myself in particular, I am the sole IT Admin for a medium sized construction contracting business. However, I handle everything from Networking, Security, Help Desk, Application Support , Server Administration dealing with Virtual and non-virtual boxes , Managing exchange servers, Website and FTP development, Print services, pretty much anything you can think of, as-well as Contract work for certain CCTV projects dealing with Juniper switches. I myself, am having trouble putting a label on myself…” Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 6 The Four Major Trends How Consumerization is Taking Place © 2011 Avaya Inc. All rights reserved. 7 Four Important Forces are Changing the Marketplace Access from Everywhere Resource Sharing © 2011 Avaya Inc. All rights reserved. Shared Experiences Mobility Social Cloud Big Data Massive & Predictive 8 Trend 1: Mobility Work, play and communicate in the palm of your hand © 2011 Avaya Inc. All rights reserved. 9 Smart Phones Go Mainstream in 4 Years Over 50% of US Adults as of 2013 © 2011 Avaya Inc. All rights reserved. 10 Mobility is Changing the World Mobile phones will exceed world population in 2014 1 40% identify mobile phone as their primary business device 4 40% of US Information workers regularly work remotely 2 60% of Info worker devices are both business & personal 5 Info workers typically use at least 3 different mobile devices 3 In 2014, sales of smartphones and tablets will exceed PCs by 8:1 6 1. http://www.cable.co.uk/news/gsma-says-mobile-connections-will-match-worldpopulation-by-year-end-801723483/ 2. (Forrsights Workforce Employee Survey, Q2 2012) 3. Avaya Survey of Consumers in US and UK. 4. Frost and Sullivan, Boost the Bottom Line with Mobile UC; © 2011 Avaya Inc. All rights reserved. 5. Forrester, “Info Workers Using Mobile And Personal Devices For Work Will Transform Personal Tech Markets” February 22, 2012: 6. http://techcrunch.com/2014/01/07/gartner-2-5b-pcs-tablets-and-mobiles-will-beshipped-in-2014-1-1b-of-them-on-android/ 11 BYOD Empowers End Users Information workers move into the driver’s seat Using a growing variety and number of devices to get work done. Bringing their own technology to work or using it for work Blending work and personal tasks and devices Embracing vendors new to enterprise IT, such as Apple and Dropbox Empowering themselves to invent new business tactics and strategies Forrester, Info Workers Will Erase The Boundary Between Enterprise And Consumer Technologies © 2011 Avaya Inc. All rights reserved. 12 Trend 2: Social Networks Sharing opinions & experiences © 2011 Avaya Inc. All rights reserved. 13 Social Media not just for Kids © 2011 Avaya Inc. All rights reserved. http://www.smartinsights.com/wp-content/uploads/2013/12/2014-social-media-stats.png 14 Social Media Changing Sales & Service Buyers are now 50% of the way through the decision process before they ever speak to a salesperson By 2017, 80% of Fortune 500 companies will have an active customer community, up from 30% today. 80% of B2B customers follow social media content 32% of B2B customers create social media content, including ratings, reviews, blogs & tweets Social Media drives new service expectations © 2011 Avaya Inc. All rights reserved. 15 Trend 3: Big Data Tracking & Predicting © 2011 Avaya Inc. All rights reserved. 16 Data & Analytics Big Data spending is exploding, growing by 30% in 2014, to $14+ billion. Big Data is focused on further enabling and monetizing social and commercial interactions Google ads are an example Big Data at work on your click-stream Data is now cloudenabled © 2011 Avaya Inc. All rights reserved. 17 Big Data = Transactions + Interactions + Observations http://hortonworks.com/blog/7-key-drivers-for-the-big-data-market/ © 2011 Avaya Inc. All rights reserved. 18 Big Data Powers the Net, Watches You Online Data Powered: Ebay: 650 million items, predictive Firefox Lightbeam Reveals: 30 3d party sites connected to browser when viewing CNN Dropbox: 300 million users eHarmony: 26 million users, predictive © 2011 Avaya Inc. All rights reserved. 19 Trend 4: Cloud Computing & Deployment Strategies © 2011 Avaya Inc. All rights reserved. 20 Where is the Cloud? Personal Data & Applications Privately Hosted Company Data & Applications Publicly-Hosted Data & Applications Corporate cloud spending will exceed $100 billion, growing by 25% in 2014 © 2011 Avaya Inc. All rights reserved. 21 Cloud Adoption is Slow for Small Business (< 100) Email is most popular Data backup, personal productivity are next 10% is maximum rate of adoption Most apps 5% or less adoption rate © 2011 Avaya Inc. All rights reserved. 22 Midsize Businesses Adopt More Cloud MSFT Office 365 top application – 27.1% Median adoption 16% Top 10 apps all over 10% © 2011 Avaya Inc. All rights reserved. 23 Enterprise Businesses Adopt Most Cloud MSFT Office 365 top application – 28% Median adoption 22% Top 10 apps all over 20% © 2011 Avaya Inc. All rights reserved. 24 Who Else Likes Cloud? Growing Vendors Venture Investors Single codebase saves money Lower initial investment Lower up-front expense Validate traction Sell online Invest in brand & marketing, not sales Minimal sales team Many pricing models Easy to adopt Lower risk Analysts Cutting edge Vision statements Bold stands possible © 2011 Avaya Inc. All rights reserved. 25 How Avaya is Responding © 2011 Avaya Inc. All rights reserved. 26 Design Goals: Simplicity, Completeness A Complete Solution for Midsize Companies Contact Center Collaboration UC, Mobility and Voice Security Networking Services Avaya Comprehensive Midmarket Solution Built on IP Office - Power with Simplicity and Value Avaya - Proprietary. Use pursuant to your signed agreement or Avaya policy. 27 THANK YOU Bob Williams bobwilliams@avaya.com © 2011 Avaya Inc. All rights reserved. 28