Do You Budget For the 'Hidden Cost' of Enterprise Mobility?

Contributor: Zarina de Ruiter
Posted: 02/04/2016
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Do You Budget For the ‘Hidden Cost’ of Enterprise Mobility?
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New research reveals that US enterprises spend $1,840 per employee mobile device each year and many organisations don’t take ‘hidden’ costs such as IT resources and security into consideration.

The total cost of ownership (TCO) of mobile devices is made up of carrier charges (48 per cent), hardware (21 per cent), IT resources (15 per cent), additional services (10 per cent) and security (6 per cent). However, new research by mobile security firm Wandera has found that many US enterprises don’t take a number of these costs – such as services, security and IT – into account.

The survey of 500 US IT decision makers with material control over their company's mobility, undertaken with independent market research partner Redshift Research, shows that the true cost of mobility for these enterprises is 116 per cent more than commonly expected, equating to $51.9 billion in total spend for American businesses.

Eldar Tuvey, CEO of Wandera, said: "This is the new normal, and enterprise IT teams need to take note. For years, most enterprises have considered TCO to be comprised of the cost of the device plus the carrier charges, but this is an antiquated and naðve viewpoint.

"In fact, in the US 'real' TCO is 116 per cent more than expected. Approximately $1,000 per device of annual costs for services, security and IT are not being taken into account when calculating the TCO of enterprise mobility."

While the costs associated with enterprise mobility are higher than many businesses think, the security firm highlights that there is good news. Through improved mobile data management, policy setting and security threat prevention, 58 percent of the TCO, which equates to $479 per device annually, can be controlled, and, therefore, reduced.

The survey also revealed that, globally, companies spend up to twice as much cleaning up mobile security breaches than on mobile security software itself. Of the 28 percent of respondents who reported a mobile security breach in the last 12 months, nearly half indicated that the breach had cost their companies between $40,000 and $400,000.

"As the number of mobile devices grows, so, too, will the associated costs and the breadth of security threats," Tuvey continued. "In our increasingly mobile world, enterprises need to gain complete visibility in order to retain control of their mobile data, ensure compliance and prevent mobile security threats."

Zarina de Ruiter
Contributor: Zarina de Ruiter