VDC study shows rugged mobile solutions purchasers need reassurance its a worthy investment
Natick, MA — July 8, 2003 — Although many users surveyed by VDC, a technology market research and consulting firm, recognize the environmental needs for a rugged mobile computing solution, an increasing number are demanding tangible total cost of ownership (TCO) and return on investment (ROI) from vendors seeking to gain their business.
VDC's "Global Markets for Rugged Mobile Computers, Applications Software and Systems Integration Services: Second Edition" study found that the environment in which their mobile devices are being used was the biggest driving factor in users purchasing rugged mobile computers.
The consulting firm cited the top five reasons survey participants listed for using higher priced larger and smaller form factor rugged mobile computers. (The rank is based on the percent of user respondents citing specific factors, according to VDC.)
Larger Form Factors
- 1. Ruggedness/Environment is too harsh (dust, water, etc.) for commercial-grade unit
- 2. Reliability-cannot afford downtime
- 3. Unit lasts longer; lower TCO/saves on maintenance costs
- 4. Increases productivity/improves customer satisfaction
- 5. Wide temperature range capability
Smaller Form Factors
- 1. Ruggedness/Environment is too harsh (dust, water, etc.) for commercial-grade unit
- 2. Unit lasts longer; lower TCO/saves on maintenance costs
- 3. Increases productivity/improves customer satisfaction
- 4. Users are not careful, drop products
- 5. Reliability; cannot afford downtime
According to Shea, "We are increasingly finding that as rugged mobile computer vendors try and leverage the concepts of TCO and ROI in marketing their products, end users are becoming more aware of the concepts and are demanding that suppliers provide them with tangible ROI and TCO analyses that will enable them to justify their deployments, typically with senior management. With budgets increasingly being squeezed, more customers are facing a more daunting challenge to show positive ROI and attractive TCO models in order to justify deployments of rugged mobile computing solutions."
Shea conceded that many of these users are companies that possess such dilemmas that are typically on the cusp of having applications that require a rugged mobile device to solve their application needs. "A company that operates in an environment that is harsh or un-friendly to computing devices, such as those found in warehouses, railroads and various outdoor field service activities, almost has no choice but to purchase a rugged unit." VDC believes it is those customers that are in emerging markets such as field sales, healthcare, retail, hospitality and finance/insurance, among others that are most demanding a tangible ROI or TCO analysis in order to deploy a rugged solution in their operations.
VDC said it believes the issue of TCO and ROI analyses are such important issues, it is planning on conducting an extensive and comprehensive analysis into determining what are the critical factors end users consider if, and when, conducting a TCO analysis as to what are the true costs of downtime, resources and time caused when a mobile computing device fails in the field. VDC anticipates that this blockbuster market study will provide immeasurable value to both vendors and end users of mobile computing devices alike.
For more information on ROI and ROI calculators, see " Solid Numbers for a Solid ROI ," the My Turn column in the April/May 2002 issue of iSource Business.
