In the last thirty years technology has become a forefront strategy and cost for businesses. However, businesses add technology in pieces as adoption occurs, piecemeal and scattered.
Telecommunications is no different. Businesses are replacing desk phones with mobile devices, and enterprises have approached mobility management with a disaggregated strategy. In fact, strategy is non-existent until the CFO begins searching for money.
So, what is the cost of not having a mobility strategy? And how can Managed Mobility Services (MMS) help?
True Business Costs of Mobility Management
When an enterprise is looking at their mobility management, they need to take a deep dive in all categories in which mobility affects the business. Deep diving categories include:
- Finance: includes usage management, contract negotiations, device sourcing, and invoice reviews.
- Technology: includes the devices themselves, business apps, helpdesk support, and email structure.
- Logistics: involves device ordering, deployment, replacement, and repair service orders.
- Strategy: includes looking forward, IoT, remote work availability, and growth and business needs.
Unfortunately, things can go wrong in all categories causing the business to bleed money. Inefficiencies, unnecessary costs, and pressure on IT departments can add up to a significant injury to the bottom line. Often without an enterprise realizing money is flowing out the door.
In a report from Blue Hill research, the overall costs of ignoring mobility management or choosing in-house management are burdensome. The cost of ignoring includes an average of $80- $100 a month per user for direct mobile costs, plus an average of 1% of total cost in late fees/overages (approx. $3 million/year for F500 companies). This is in addition to the cost of about one employee per 1,000 devices.
One employee that costs your business $84k/year.
In comparison, recreating in-house management can save money in some areas but costs more in others. Direct mobile costs are about $4 – $10 less than unmanaged, and time spent reviewing invoices affects late fees and overages. However, employee cost is much higher with 2 – 3 employees per 1,000 devices.
Does $164k – 246k a year in salary and burden sound like an expense your business can swallow?
In addition to the hard costs listed above, both options have increased soft costs of down time due to replacing devices, deployment of updates, and support costs. In-house management costs upwards of $20+ per device per month in support costs. While ignoring mobility management causes support costs to be unknown and haphazardly managed by employees.
Case for Managed Mobility Services
Both ignoring mobility management and having in-house management can drain money from a business. While the costs of unmanaged mobility will go unnoticed, direct mobility costs can be 20% overweight.
A total of $5 – $10 million in annual telecom/mobility spend that can be saved.
In comparison, partnering with an MMS can save in multiple areas. There is no employee cost, as the IT manager is now able to handle unlimited devices in a fully managed environment. Direct mobile savings run $15 - $20. Dedicated staff review usage in real time, resulting in no late fees or overages.
Real time data analytics that you can use to prevent employee misuse, as well as increasing security on all IoT devices.
Also, soft costs stop draining the bank. Namely, deployment and repairs are automated with little to no employee downtime. Support costs are low, with average costs $5 - $10 per device.
In addition, partnering with an MMS ensures all four categories are addressed and reviewed. Data and statistics provide budget answers about if an enterprise is meeting metrics for mobility cost.
At the end of the day, it's easy to say I have employees, they can do the work. So what do you get from an MMS partner? According to Blue Hill Research, you get a three-year ROI of 184%.
The first year brings the most savings, with carrier savings at about $21,220 per 1,000 devices per month. In addition to the 50% IT support savings of $8,540. Doing the math, that's actually an ROI of 325% in the first year.
Savings decrease in year two and three as costs are brought into alignment, but the per 1,000 devices per month savings is still $3k over the estimated MMS cost.
At the end of the day, no business can stay alive without taking mobility costs seriously. MobileWare is the partner you need to keep staffing requirements low, create smart mobility strategy, and save yourself from unnecessary hemorrhaging.
Click here to read how MobileWare can save you money in your mobility and security needs.