Algunas aplicaciones.

A brief overview of players offering mobile enterprise application platforms

For us, mobility is a logical extension of the earlier waves of enterprise computing (mainframe, client-server and internet) that will, like its predecessors, lead to a larger penetration of the customer base with enterprise applications. However, we see it as an evolution rather than a revolution. Mobile enterprise applications emerged as a new trend of the sector with the launch and highly successful market adoption of the iPhone in 2007 as well as the launch of the iPad in 2010. There are several smaller companies active in the mobile enterprise applications platform (MEAP) market: 1. Antenna Software (founded in 1998) with its Antenna Mobile Platform (AMP); 2. Syclo (founded in 1995) with its Agentry Mobile Platform; 3. Spring Wireless (founded in 2001) with its Mobile Enterprise Application Platform (MEAP); 4. Pyxis Mobile (founded in 1998) with its Pyxis Mobile Platform. These small shops, often with revenues significantly below USD 100mn, compete with the traditional large software players, e.g. SAP/Sybase with the Sybase Unwired Platform; Apple, with a greater focus on the enterprise segment since the introduction of iOS 4; IBM offering mobile development with an Eclipse plug-in and Lotus Expeditor and RIM with BlackBerry Enterprise Solution (BES). From the large software players, SAP is the most active in the mobility space, whereas, e.g. at Oracle, the mobility topic seems not to be a major focus of the senior management – at least currently.

What market are

we talking about? Gartner stopped estimating the market size for MEAPs as a stand alone market in 2011.

However, on an individual vendor basis, Gartner forecasts revenues associated with MEAP- based projects to grow annually at a rate of 15%-20% (CAGR) through to 2014. In previous reports (e.g. magic quadrant for MEAPs in 2009), Gartner estimated the overall size of the MEAP and packaged mobile application platform market to be around USD 675-800mn during the last 12 months, with a growth rate of 5% since the company's 2008 update. Gartner included in its market estimate the following segments: server licensing, tool suite licensing and client software licensing, including device management, built-in security, databases, prebuilt applications and connectors. The expected CAGR through to 2013 back in 2009 was the same as the one the company forecasts in 2011.

A closer look at

mobile apps today MEAPs are the infrastructure on which the companies can develop and deliver mobile

applications. The first mobile app for enterprises was the e-mail, followed by CRM applications like e.g. Sales Force Automation (SFA). Mobile applications are often split into two categories: applications for employees and applications for consumers, with the majority of the applications currently focusing on consumers. In addition, pricing differs depending on the type of user groups, which include, e.g. developers (Apple charges USD 99 per year to join its iOS developer program for individuals and/or companies creating free and commercial iOS apps for distribution via the App Store and USD 299 per year for companies creating proprietary, in-house iOS apps) and the operational users of the applications. However, Apple currently keeps around 30% of the revenues generated from the applications sold via its App Store. Pricing models are often based on a subscription-style model with average price levels currently in the range of USD 20-30/user/month, equaling USD 240-360/user/year. While there is a huge number of potential users, we estimate that the majority of mobile applications are used today on average by only several hundreds of users in the enterprise segment. This implies ASPs for the vendors of mobile apps corresponding to license ranges of traditional SMEs (small and medium-sized enterprises) vendors in the ERP market that range from USD 150,000-250,000.

Competitive advantage of the established (extended) ERP vendors

At its trade fair SAPPHIRE NOW, SAP introduced several new mobile applications like SAP Field Service mobile app, SAP Retail Execution mobile app, SAP EAM Work Order mobile app and new employee productivity mobile apps. In addition, 16 further apps covering the

However, little information regarding the monetization of these apps was disclosed. We see a natural advantage of the (extended) ERP and SaaS players, because they have control over the business data and can provide de-centralized/mobile access to this data.

Mobile apps are already a

billion-dollar business… In terms of revenues, Apple's iTunes App Store is by far the most successful store for mobile

apps globally. The store generated revenues of around USD 1.8bn in 2010 and had a market share of 83%, of the four major app stores. Apple, BlackBerry, Nokia and Google generated total revenues of around USD 2.2bn in 2010 with their respective app stores.

GLOBAL MOBILE APPLICATIONS STORE RANKING BY REVENUE IN USD MN (2009-2010)

Rank Store 2009 2010 yoy (%)

1 Apple App Store 769 1,782 131.9

Market share (%) 92.8 82.7

2 BlackBerry App World 36 165 360.3

Market share (%) 4.3 7.7

3 Nokia Ovi Store 13 105 719.4

Market share (%) 1.5 4.9

4 Google Android Market 11 102 861.5

Market share (%) 1.3 4.7

Total 828 2,155 160.2

Source: HIS Screen Digest (February 2011), UniCredit Research

…however, average revenues per paid app are still relatively small

While there is no information regarding the median revenue per app publicly available, a simple analysis regarding the average revenue per app is possible. With 275,000 apps available from its store in 2010, Apple had the most comprehensive applications offering from the four leading players in the industry. For many stores the ratio of free apps is around 30%. In terms of average revenue per paid app, RIM generated with around USD 12,000 the highest revenue, followed by Apple with around USD 10,000. One reason for the higher average revenues of RIM relative to Apple could be that RIM targets enterprise customers, while Apple has only just started to focus on the enterprise segment with the launch of iOS 4 in June 2010.

AVERAGE REVENUE PER PAID APP IN 2010

USD Store Revenues Average no. of apps Free ratio (%) USD per paid app

Apple iTunes App Store 1,782 275,000 34 9,818 RIM BlackBerry App World 165 18,000 26 12,387

Nokia Ovi Store 105 16,000 26 8,868

Google Android Market 102 85,000 66 3,529 Source: http://bacononthego.com/2011/02/28/blackberry-app-world-generates-highest-revenue-per-app; UniCredit Research

Summary: not a multi- billion-dollar market in the enterprise segment yet

While we see mobile apps as a logical expansion of the core (extended) enterprise applications and believe the potential for a larger penetration of the vendors' existing customer bases (today, the penetration of the employee base of an SAP customer is less than 25% with SAP solutions), we struggle at this point in time to quantify a possible market volume in the corporate segment. There is currently only limited information available regarding pricing and the budgets that enterprises are willing to commit to the new breed of apps. In addition, it remains to be seen to what extent mobile apps will be bundled with the core offering of the respective vendors. Based on current pricing models and the likely number of users on average, the impact on the operating numbers of the vendors seems to be limited, at least in the short term (this is also reflected in one of the viability criteria that Gartner applies for inclusion in its magic quadrant, i.e. minimum revenues of USD 22mn per year). The scenario would change if achievable ASPs increased as well as the possible number of users within the enterprises. However, SAP's acquisition of Sybase in 2010 and Software AG's acquisition of Metismo in 2011 indicate that the established software players are seeing a market opportunity.

A brief scenario analysis _{We estimate that the majority of mobile apps in the corporate world today are several}

hundreds of users per enterprise. This view was confirmed in several discussions with industry participants. In addition, ASPs for the currently available apps are on average likely to be in the range of USD 20-30, suggesting overall ASPs per customer comparable to a mid- market ERP deal as of today. Depending on the number of customers, the revenue potential scales for a software company. However, for a large software company like SAP the revenues are of minor importance in comparison to total revenues as of today. In the medium-term, things could look differently if 1. ASPs for mobile apps move up (e.g. availability of more mission critical apps) in sync with 2. the number of users. Given the early days of the market, it remains to be seen, which platform will achieve the same dominance as Apple's iTunes App Store in the corporate world.

MOBILITY IS A BUSINESS OF SCALE

No. of enterprises No. of users ASP/user/month Revenues per enterprise Total revenues per year

500 100 25 30,000 15,000,000

500 500 25 150,000 75,000,000

500 1,000 25 300,000 150,000,000

500 2,500 25 750,000 375,000,000

No. of enterprises No. of users ASP/user/month Revenues per enterprise Total revenues per year

500 100 70 84,000 42,000,000

500 500 70 420,000 210,000,000

500 1,000 70 840,000 420,000,000

500 2,500 70 2,100,000 1,050,000,000

Source: UniCredit Research