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October 20, 2009
Mobile Devices Labeled "Money Pit"
By Doug Mohney, Contributing Editor
Large enterprises are overspending on wireless services by millions of dollars a year, according to an analysis run by Compass, a global management consulting firm specializing in business and IT operational improvement.
The biggest problem is an ad hoc, decentralized approach to managing mobile communication, resulting in hidden and wasted dollars.
Problems arise because mobile devices are generally contracted at an individual level and paid for through individual expense accounts – not a centralized buying authority that can leverage economies of scale. Add in the lack of corporate oversight and centralized management into device functionality along with variable contract terms and costs and there are big headaches for accountants and corporate IT managers.
Some companies are even funding the equivalent of mobile double dippers, asserts Compass (News - Alert), providing funds for both smart phone/PDA usage and additional accounts for basic cell phones. On a per user basis, mobile phone costs are significantly higher than they are for traditional land line communications.
Organizations that centralize mobile device contracts and administration and eliminate mobile double dippers can save anywhere from 25 percent to 40 percent on telecom bills, with larger organizations reaping greater savings. If a company can get things centralized, it can also implement more effective security for mobile devices and better support the apps that run on them.
However, getting to centralization requires a change in mindset and organizational culture, one that treats mobile devices as corporate assets rather than personalized accessories.
“Given their role in the global enterprise, Smart Phones and PDAs require the same level of management scrutiny as established service towers such as networks, storage systems, and mainframe and midrange server environments,” said Compass Senior Consultant John Lytle.
A company tightening up on mobile devices needs to define both terms and categories, closing loopholes for employees to get multiple devices on the corporate dime.
These findings are no big secret to enterprises and the carriers that serve them. Last month, Verizon (News - Alert) rolled out Managed Mobility Solutions to help enterprises manage mobile devices, usage plans and applications across multiple carriers around the globe; the company also rolled in mobility security functionality. Enterprises can subscribe to one or more modules focused on inventory and expense management, logistics, mobile device management, security, and applications management.
My bet is that many enterprises wresting with phone chaos and looking at Verizon’s solutions will select expense management first, then roll the savings they find into the other areas. Currently, four of the Managed Mobility Solution modules are already available in the United States and many locations in Europe, with applications management slated for a launch in 2010.
Doug Mohney is a contributing editor for TMCnet and a 20-year veteran of the ICT space. To read more of his articles, please visit columnist page.
Edited by Michael Dinan
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