Survey: Enterprises Want to Own, Control App Licenses

By Jessica Binns, Contributing Editor
Partnerpedia, a provider of enterprise application store and marketplace solutions, released findings from its Corporate Mobile App Strategy Survey. Respondents included executives in IT, sales, and marketing, and offered insight into the various approaches and opportunities to procure mobile apps.

Responses to the survey showcased why consumer-focused app stores do not meet the essential needs of most businesses. Top reasons include a lack of business focus at 57.5 percent, inability to own/control app licenses at 43.4 percent, and security/exposure to viruses at 42.5 percent. Additional responses stated that the lack of support options from vendors, as well as limited purchasing ability, such as no PO or volume purchases, also make consumer app stores ineffective for business use.

Responses were grouped into large enterprises with 500 or more employees, and small enterprises with less than 500 employees, which presented marked differences in approach. The majority of large companies surveyed, 90.2 percent, are likely to procure mobile apps for employees versus their smaller counterparts at only 45.8 percent. On the other hand, 72.2 percent of small companies are focused on apps for customers compared to only 43.9 percent of large companies.

The desire to purchase apps was reflected in 78 percent of large companies and in 61 percent of small businesses. Ownership and control over app licenses is a necessity for 56 percent of large companies surveyed, versus 36 percent of smaller companies. Employee turnover or role changes may happen more frequently in companies with a larger workforce, which likely explains their need for tighter control over app licenses.

A leading analyst firm, VDC Research also noted this trend. "As mobile device proliferation continues in the enterprise, so too will app enablement – this is challenging CIO’s and IT organizations to figure out the best way to manage, procure and secure apps,” said Eric Klein, a Sr. Analyst in VDC’s Mobile and Wireless Practice.

Additional highlights of the Corporate Mobile App Strategy Survey revealed the following:

• Top Sources for App Purchases: Apple App Store/iTunes at 69.9 percent, direct from Independent Software Vendors at 53.1 percent, and Google Play at 39.8 percent.
• Apps for Third Parties: In addition to customers and employees, 35.4 percent of respondents need apps for partner engagement and 22 percent are procuring apps for contractors.
• Build, Buy or Both: Nearly half of the companies surveyed plan to both build and purchase mobile apps as part of their procurement strategy, with the remaining half split between build versus buy.
• Outsourced Development: Of the companies that intend to build apps, 63.7 percent will depend on outsourced development. When selecting an outsourced development service, the top criteria are design expertise 74.3 percent, followed by systems integration 68.1 percent, and customization 64.6 percent.
• Types of Apps: For those building apps internally, the top three app priorities are for operations at 48.7 percent, customer service at 46.9 percent, and sales automation at 44.2 percent.