- The MDM market is not just growing, it’s expanding
- Leading vendors had a very good year in 2011
Before talking about market growth, I should make it clear that Current Analysis does not do market sizing. (We aren’t a quant house.) That being said, we look at market numbers just like anyone else, and sometimes with a bit of amusement. A serious difficulty in trying to size the MDM market is that it is a moving target. The question is not so much what is MDM today, but rather what will it be in two or three years? If you don’t scope the market correctly then sizing it is impossible. One of the quantitative analyst firms this summer upwardly revised their MDM forecasts for 2015 from $3.9 billion to $6.6 billion. That is a huge resizing, but it makes sense in light of the expanded scope of the MDM market that the firm now anticipates.
The fundamental shift that is underway is the need for mobility application management and security along with traditional device management and security. The Apple app store currently has more than 500,000 applications. (And Apple sold 37 million iPhones last quarter, by the way.) We have been making this case for a while now here. Traditional MDM will commoditize but leading vendors will expand (are expanding) into broader device security, remote access, and application management and security. This is the bundle of capabilities that vendors should be working toward.
The good news is that leading MDM vendors experienced phenomenal growth in 2011. Two of the most impressive examples are MobileIron and Zenprise. MobileIron claims it grew bookings more than 400% year over year and that it added 435 new enterprise customers in Q4 2011 alone. It also doubled its number of employees, adding 130 new people in 2011. Zenprise also claims to have also grown bookings 400% and to have quadrupled its enterprise MDM customer list. The company tripled its employee headcount and now has more than 200 employees. These are impressive numbers and ones that will attract further investment in these companies and the space in general. As dynamic as the MDM market was last year, 2011 is going to look tame compared to 2012.