Good Technology TM Mobility Index Report Q1 2013

Report on Platform and Device Preferences in Q1 2013, from the Leader in Secure Mobility Solutions

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Good TechnologyTM Mobility Index Report Q1 2013 | good.com 2

This report is part of the Good TechnologyTM Mobility Index, an ongoing initiative to track and forecast the impact of mobile platforms and applications. This document presents the details of the GoodTM Mobility Index and the methodology behind it. Executive Summary With a diverse global customer base that includes FORTUNE 100 leaders in commercial banking, insurance, healthcare, retail, government, and aerospace and defense, Good is uniquely positioned to provide insight into the adoption of new mobile platforms and devices. Good Technology analyzed the mobile devices activated by its customers over the first quarter of 2013 to highlight trends in mobility and device preference. Looking ahead to the remainder of 2013, Good expects that the diversity of devices within the enterprise will continue to grow significantly and start to more closely align with consumer trends, as businesses continue to realize the productivity gains as well as top and bottom line increases. With secure mobile computing solutions now available, IT managers are now able to efficiently manage applications, enforce policies and secure data across the variety of cutting-edge devices their employees wish to use. Among Goods customers, Apples iOS platform remains the clear market leader, and once again claimed the top five spots for device activations. However, the companys share of activations dropped by more than five percentage points compared to this time last year. Androids share of activations has increased by nearly the same figure during this period. The Samsung Galaxy SIII, again the most widely used Android smartphone, captured five percent of total device activations overall and more than 20 percent of device activations across the platform. With Androids global market share reaching 75% in Q1, according to IDC, we expect to see significant continued growth in this area over the course of this year. The Apple iPhone 5 reigns as the device of choice among business users. This is followed by the iPhone 4S, highlighting the trend of users wanting the latest and greatest in the palm of their hand. The latest generation of iPad devices (iPad 3 and beyond) now lead as the most widely used tablets among Good customers, and Apple continues to hold a strong grasp on the tablet market with 88.4% of total activations. Total device activations for the quarter rose nearly 30 percent from the same time last year. Holiday season sales have been included in this report as new bring-your-own-device (BYOD) purchases in mid to late December were activated by workers returning to the office in the New Year. This aligns with data from the Consumer Electronics Associations (CEA) Annual CE Purchase Patterns Study that reported consumers planned to spend 11 percent more on holiday shopping in 2012 versus 2011 and that one third of total spend was projected to be on consumer electronics.

Good Technology TM Mobility Index Report Q1 2013 | good.com 3

OS Activation Highlights Total device activations jumped almost 30 percent year over year. 99 percent of activations are on iOS and Android platforms. The iOS platform secured 75 percent of total device activations, down five percentage points compared to Q1 of 2012. Android devices are gaining momentum, securing 25 percent of total activations, up five percentage points from a year ago. Windows Phone has the largest opportunity for growth, with less than 1% of total activations, as it continues to be dwarfed in comparison to the global market leaders. Device Type Activation Highlights On average, one in four device activations is now happening on a tablet, as tablet activations have grown to 27% of total device activations in the workplace. Activations from Android tablets almost doubled during Q1 2013, while Android smartphone activations remained consistent compared to Q4 2012. Smartphones continue to outperform tablets when it comes to Apple iOS users, with more than two-thirds of activations coming from iPhones. Industry Highlights The Financial Services industry continued to lead other industries in total device activations with 24 percent. In addition, this industry reported the highest number of iPad activations with 30 percent. Business and Professional Services and the Insurance industry were next most active in iPad activations and together saw 25 percent. Activations in the Business and Professional Services industry specifically jumped seven percentage points compared to this time last year. The Life Sciences sector saw the biggest growth in iPad activations. This industry doubled the number reported in Q4 2012. There was a two percentage point jump in total device activations across the public sector compared to last quarter. Despite sequestration in the United States, public sector showed sustained growth of one percentage point year over year. Detailed Findings Innovative mobile devices continue to enter the market and offer many new opportunities for enterprise use. From the executive suite to incoming college graduates, all segments of todays highly mobile workforce prefers smartphones and tablets as critical productivity tools. Employees want the ability to choose their own devices; and enterprises, within the boundsof their security and compliance requirements, increasingly want to support whatever devices make end users most productive and content, while maintaining cost controls. As a recognized leader in enterprise mobility management and security across every major industry, including half the FORTUNE 100TM, Good Technology has a clear view into global mobility trends and the adoption of new mobile platforms and device. The more than 5,000 customers represented in this report include bellwether companiesfrom Financial Services, Healthcare, Manufacturing, Energy & Utilities, Legal, Government, and High Techmaking this data report a benchmark for mobility adoption.

Good Technology TM Mobility Index Report Q1 2013 | good.com 4

Top Devices As Figure 1 indicates, iPhone 5 was the most popular enterprise device in Q1 2013, representing 24.8% percent of total activations for the quarter. Despite a three percentage point decline in activations compared to Q4 2012, the iPhone 5 continues to be the leading device for enterprise activations of any iOS, Android or Windows Phone model. The device, which was originally released in September of 2012, quickly rose to the top of this list and has retained its position since. Similar to Q4 2012 activity, Apples iOS platform drove the majority of activations from January to March 2013, with five iOS devices holding the top five activated positions on the list. The iPhone 4S was the second most widely used device with 16 percent of the activations, followed by the latest generation iPad with 13 percent. Samsungs Galaxy SIII brought in five percent of total device activations, down slightly from six percent in Q4 2012. The DROID XYBOARD tablet recorded five percent of total Android activations.

Top 10 Devices Top 10 Devices Q1 2013: January through March Q1 2013: January through March
30%

25%

Jan 2013

Feb2013
20%

Mar2013 Q12013

15%

10%

5%

0% iPhone 5 iPhone 4S Latest Gen iPads iPad 2 iPhone 3GS Samsung Galaxy S3 iPad DROID XYBOARD Samsung Galaxy Samsung Galaxy S2 Note S2

Figure 1 Figure 1

Good Technology TM Mobility Index Report Q1 2013 | good.com 5

Net Activations by Platform Figure 2 shows that iOS continues to be the dominant platform within the enterprise; however, the percentage of total device activations on the iOS platform has dropped by more than five percentage points compared to this time last year. At 74.8 percent of all activations - down from 80 percent (Q1 2012) and 77 percent (Q4 2012) - the results for iOS are still three times greater than the results of its nearest rival. We can infer that Android manufacturers took advantage of the opportunity to attract new users as the increase of activations across the platform matched the iOS decline. At 24.5 percent, activations on Androids are up from 20 percent this time last year, and from 22.7 percent in Q4 2012. In a distant third place, activations on the Windows Phone platform actually dropped during this quarter from 0.5 percent (Q4 2012) to 0.3 percent during January, February and March of this year.

Device by Platform TabletActivations Activation by Platform Q1 2013: January through March Q1 2013: January through March

80% 70% 60% 50% 40% 30% 20% 10% 0% Jan

iOS

Feb
ANDROID
Figure Figure 22

Mar
WINDOWS PHONE SYMBIAN

Q1

Good Technology TM Mobility Index Report Q1 2013 | good.com 6

Net Activations by Type of Device Figure 3 shows activations over the quarter segmented by device type. Tablet use has gained momentum with 27 percent of total device activations, and more specifically, iOS tablets represented 24 percent of total activations. However, over two-thirds, or 68 percent, of Apples iOS users activated smartphones versus iPads. The difference was even more significant across Android devices, where 87 percent of activations were for smartphones and only 13 percent via tablets.

Activations By Type Activations by Device Device Type Q1 2013: 2013: January January through Q1 through March March

60% 50% 40% 30% 20% 10% 0% ANDROID TABLET ANDROID SMARTPHONE IOS SMARTPHONE IOS TABLET

JAN 2013

FEB 2013

MAR 2013

Q1 2013

Figure Figure 3 3

Good TechnologyTM Mobility Index Report Q1 2013 | good.com 7

Net Activations by Industry As Figure 4 indicates, the Financial Services industry once again led enterprise mobile device activations with 24% percent of all activations in Q1 2013, though this shows a decline of 10 percentage points from Q4 2012. Business and Professional Services represented the second highest percentage of activations in Q1 2013, with 19 percent of all device activations for the quarter, remaining consistent with Q4 2012. The sectors with the next largest number of activations in this quarter were the Insurance sector at nine percent, and Public Sector/Government where activations almost doubled in just three months, from four percent in Q4 2012 to nearly seven percent this quarter. The Wholesale & Retail sector maintained its impressive performance during Q4 2012, where activations increased significantly to six percent. The Life Sciences and Healthcare sectors remained consistent in activations quarter to quarter. The High Tech industry saw the most significant decline in activations, down two percentage points compared to last quarter. This quarter was the first time activations were reported across a few industries, including Education, Hospitality, and Real Estate.
Device Activations by Industry Q12013: 2013:January January through March Q1 through March

Device Activations by Industry

Industry
Business and Professional Communications Education Energy and Utilities Entertainment and Media Financial Services Healthcare High Tech Hospitality Insurance Legal Life Sciences Manufacturing Other Public Sector/Government Real Estate Transportation and Logistics Wholesale and Retail

Jan 2013
20% 3% 0.20% 3.70% 1.30% 24% 4% 3.30% 0.20% 9.70% 2.70% 2.50% 4.30% 8.10% 5.50% 0.30% 1.10% 6.10%

Feb 2013
19.00% 2.80% 0.20% 4.10% 1.20% 24.20% 4.80% 2.90% 0.20% 8.90% 2.60% 2.10% 4.00% 8.20% 6.70% 0.50% 1.00% 6.60%

Mar 2013
18.30% 2.50% 0.20% 5.10% 1.20% 23.40% 4.00% 3.00% 0.20% 8.90% 2.00% 2.30% 4.40% 9.70% 7.30% 0.40% 0.90% 6.20%

Q1-2013
19.10% 2.70% 0.20% 4.30% 1.20% 23.90% 4.30% 3.10% 0.20% 9.20% 2.40% 2.30% 4.30% 8.60% 6.50% 0.40% 1.00% 6.30%

Figure 4

Good TechnologyTM Mobility Index Report Q1 2013 | good.com 8

iPad Activations by Industry The percentage of net monthly iPad activations for key industries is shown in Figure 5. Financial Services (FS) again leads the way with 30 percent of all activations. This is very nearly double the amount of the next biggest sector, which is the Business and Professional Services sector at 16 percent. The dominance of the Financial Services industry, however, is on the decline as the use of iPads in other sectors increases. The Wholesale & Retail and Energy & Utilities sectors increased their share of activations compared to the end of last year. Wholesale & Retail increased from 5.1 percent in Q4 2012 to 6.3 percent in Q1 2013 with Energy & Utilities going up from 3.1 percent to 3.3 percent in the same timeframe.
iPad Activations by Industry Q1 2013: January through March iPad Activations by Industry Q1 2013: January through March

Industry
Business and Professional Communications Education Energy and Utilities Entertainment and Media Financial Services Healthcare High Tech Hospitality Insurance Legal Life Sciences Manufacturing Other Public Sector/Government Real Estate Transportation and Logistics Wholesale and Retail

Jan 2013
15.80% 1.20% 0.10% 2.90% 1.80% 28.90% 4.10% 2.60% 0.10% 11.50% 3.20% 4.50% 2.60% 5.60% 7.10% 0.20% 1.50% 6.30%

Feb 2013
15.70% 1.00% 0.10% 3.20% 1.20% 30.40% 7.40% 1.80% 0.10% 10.40% 2.30% 3.90% 2.30% 5.00% 6.50% 0.40% 1.40% 6.90%

Mar 2013
15.90% 1.00% 0.20% 3.60% 1.20% 31.50% 4.20% 1.50% 0.10% 10.40% 2.30% 4.50% 3.60% 6.30% 6.60% 0.30% 1.20% 5.60%

Q1-2013
15.80% 1.10% 0.10% 3.20% 1.40% 30.20% 5.20% 2.00% 0.10% 10.80% 2.70% 4.30% 2.70% 5.70% 6.80% 0.30% 1.30% 6.30%

Figure 5

Figure 4

Good TechnologyTM Mobility Index Report Q1 2013 | good.com 9

Activations by Tablet Figure 6 shows that iPads continue to dominate the enterprise for tablet use, accounting for 88 percent of tablet activations in Q1 2013 while Android tablets captured 12 percent. These latest results, however, show that the gap is closing. In Q4 2012, 93 percent of tablet activations were accounted for by iPads, which marks a five percentage point drop in a single quarter. Usage of Android tablets jumped from 2.7 percent to 6.8 percent of all tablet activations over the course of 2012. That growth momentum has continued with activations on Android tablets now at 12 percent for the first quarter of 2013.

Tablet Activations by Platform

Tablet Activations by Platform Tablet Activations by Platform Q1 2013: January through March Q1 2013: January through March

Q4 2012: October through December

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% JAN 2013 FEB 2013 iOS
Figure 6 Figure 6

MAR 2013 ANDROID

Q1 2013 TOTAL

Good Technology TM Mobility Index Report Q1 2013 | good.com 10

Overview of GoodTM Mobility Index Methodology The metrics cited in this report have been directly generated from Goods internal data, as aggregated from all devices activated across Goods worldwide customer base in Q1 2013. GoodTM analyzed activations, by month, among its enterprise and government customers that had at least five activated devices over the quarter, to draw conclusions on the overall trends for net new activations across iOS, Android and Windows PhoneTM platforms, as well as determine the Top 10 most frequently activated devices in the enterprise. Analyzing both the Top 10 devices and the long tail of net new device activations by platform provides unique insight into not only the popularity of individual devices and form factors, but also the platforms that enterprises prefer for enabling employees to access business data and applications. Due to the fact that RIM devices use only the BlackBerry Enterprise Server for corporate email access, GoodTM does not have insight into BlackBerry handset activation trends; and they are not reflected in this report. About Good TechnologyTM Good Technology is the innovation leader in secure mobile computing solutions enabling business to work freely. Goods comprehensive solution consists of a secure mobile computing platform, a suite of collaboration applications, and a broad third-party application and partner ecosystem that empowers businesses to unlock their mobile potential. More than 5,000 organizations in 150 countries use Good TechnologyTM solutions, including FORTUNE 100 leaders in commercial banking, insurance, healthcare, retail, government, and aerospace and defense. Learn more at www.good.com.

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