Breaking Down the ROI of Mobile Device Management
Posted by David Dewhirst on October 4, 2018 7:54 am
Whether companies have a BYOD, COPE, or hybrid mobile device management policy, telecom management for these devices always represents a significant cost. Hardware needs to be purchased, maintained, and repaired, and security must be assured across a diverse array of enterprise devices.
Some business leaders can bristle at the prospect of paying for managed mobility services, and see it as an additional cost that comes on top of an already expensive enterprise mobile environment. While the cost of managed mobile services does represent a short-term increase, the enormous long-term cost savings that deliver ROI for managed mobility more than makes up for it -- and in the end, most companies find that these services pay for themselves.
Trimming the Mobile Device Fat
One misconception among reluctant business leaders is the idea that managed mobility is only additive in terms of business expenses -- but according to research on managed mobility services from Blue Hill Research, unmanaged mobility can be 20 percent more costly than a managed system. Why? The costs of unmanaged environments can be traced back to overage charges, device downtime, service support, and other strategic shortcomings that inhibit productivity and efficiency.
The study notes that a well-managed enterprise mobile environment can reduce the overall cost of each device to around $60 per month, as a general number. Divide your total mobility costs by the number of devices in your network. If the resulting number is greater than 60, you’re likely suffering from poor or absent management that is creating unnecessary cost increases.
Mobile Device IT Cost Reduction
Blue Hill further notes that the use of managed mobile services can generate a strong return in the form of IT cost savings. The study found that based on managed mobility’s ability to lower IT resource costs and carrier service expenses, a business can conservatively forecast a three-year ROI of 184 percent from its mobility management spending.
The ROI breakdown is estimated to follow these proportions:
-20 percent savings on carrier expenses in the first year
-50 percent IT overhead savings
-40 percent long-term savings on carrier expenses (after the first year)
-100 percent savings on in-house IT mobility support, due to the elimination of this IT responsibility
Improved Efficiency Over Time
While the first year of managed mobility services presents the most significant reduction of costs, business leaders should also understand that this cost savings isn’t fixed. Over time, improved management can help continue to lower costs and improve management efficiency. While Blue Hill estimates that the average company can save $21,220 in mobile management per every 1,000 devices, those companies could cut an additional $10,610 in savings in the second year, and $2,120 the third year.
These annual savings are on top of the cost reductions that take place in the same year. By the end of the third year, a company can reduce this management cost by a total of $33,950 from where it began when mobility management was implemented. This is a cost savings that companies can count on every year, as long as they continue to support their mobility management.
Mobility is a massive, enterprise-spanning asset for companies, but without proper management it can quickly become a liability. Want to keep costs under control while using mobility to accelerate your business? A mobility management solution is the way to go.