Embracing and Empowering the Connected Enterprise

Embracing and Empowering the Connected EnterpriseA Tangoe e-Book

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Embracing and Empowering the Connected Enterprise

©Tangoe Inc. | tangoe.com

Thanks to rapid technological developments

and evolving global business trends, companies

have become virtual communication hubs, where

employees and data link together seamlessly

to drive commerce through the collaboration

and sharing of information. Organizations have

essentially become “connected enterprises,”

where the quantity and quality of their

Executive Summary

The connected enterprise is not just a concept; it is a way of running an

organization that involves improving efficiencies across the globe,

maximizing assets, and attaining the greatest value out of each and

every resource and relationship.

connections have a direct impact on efficiency

and progress. As important as it is to acknowledge

the rise of connected enterprises, it’s also crucial

to understand the challenges they face and the

solutions and strategies available.

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What is the Connected Enterprise?

The connected enterprise is not just a concept; it is a way of running an organization

that involves improving efficiencies across the globe, maximizing assets, and attaining

the greatest value out of each and every resource and relationship. Historically, we

would consider a company “connected” if it simply had a few phone lines. In the

last few decades however, the definition of “connected” has changed considerably

as companies have quickly implemented email and Internet protocols to increase

productivity and enhance their connectivity. Today, we have more ways to connect

than ever before, and the quantity and types of connections have experienced

exponential growth and vast improvements in accessibility.

The meteoric rise of mobility has rapidly ushered in accelerating rates of introduction,

adoption, productivity, responsibility, risk, and complexity within enterprises

worldwide. This enhanced mobility has prompted a shift towards introducing and

leveraging more types of connections among platforms such as social, cloud, IT,

and machine. While these new technologies and connection points are entering the

workplace with the promise of increased productivity, they can also pose challenges.

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Mobility Creates Opportunities and Challenges

Evolving mobile technology creates opportunities

in efficiency and commerce for employees and

the connected enterprise alike. When it comes

to choosing their personal devices, users want

options in regards to hardware manufacturers

and operating systems. Increased productivity

and efficiency flow logically from an elevated

comfort level of device usage. That is, the more

comfortable a user is with a device, the more

they will accomplish at a faster pace within the

connected enterprise; but each individual has

unique needs and preferences.

Analyst firms like Gartner have stated that, “the rise

of bring your own device (BYOD) programs is the

single most radical shift in the economics of client

computing for business since PCs invaded the

workplace.”1 These unique needs and preferences

not only make a BYOD policy an attractive option,

but also give rise to the notion of BYOC – bring

your own connection. This growing prevalence of

BYOC sparked a landmark ruling in 2014, where

a California court established that companies

are required to reimburse any work calls placed

on any employee’s personal phone or device.

(Labor Code section 2802). Ken Lienemann,

Tangoe’s SVP of Marketing, asserts that smart

companies will regularly have to evaluate their

business objectives and adjust their blend of

corporate and individually liable devices and

connections; “It’s really more than just BYOD now.

1 David A. Willis, “Bring Your Own Device: New Opportunities, New Challenges,” (Gartner), August 2012.

As of 2014, at least 51% of mobile users

connect to unsecured wireless networks

with their smartphone

Cisco

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According to networking giant Cisco, as of 2014,

at least 51% of mobile users connect to unse-

cured wireless networks with their smartphone.2

Another point to consider is the fact that carriers

are now moving towards data-only plans in

response to the overwhelming use of over-the-

top voice applications (OTT) instead of traditional

voice and SMS. As a result, enterprises will want

to understand how data is being consumed in

order to limit or promote consumption, enforce

chargeback, control and monitor users, and

negotiate better deals with their suppliers.

2 “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update,” (Cisco), 2013–2018.

We are seeing a lot of employees bringing their

own connections as well as devices. This invites

another level of complexity and set of challenges

in regards to personal and corporate liability.”

What used to be a simple scenario of enterprises

managing company issued devices operating

on a company controlled network has erupted

into a communication free-for-all. This new set

of challenges can potentially cause headaches

for enterprises as they are forced to re-evaluate

certain aspects of connection security, stipends,

reimbursements, allowances, and associated

taxes and payments. Enterprises need to create

and implement policies that adapt and evolve in

the face of these realities.

As of 2014, at least 51% of mobile users

connect to unsecured wireless networks

with their smartphone

Cisco

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Connecting to the Cloud

The combination of an unremitting demand for

immediate access to everything and a seemingly

omnipresent connectivity has created a need

for more cloud services than ever before. Cloud

technology has been around for quite some

time under various nomenclatures, but in the

past few years we’ve embraced “cloud” as the

umbrella term for numerous types of remote and

decentralized computing and storage options.

Cloud applications and services represent some

of the greatest benefits but also create seemingly

intractable challenges for IT teams due to their

ease of adoptability and capacity to spread

systemically without IT’s knowledge or control.

Cloud services, including Software-as-a-service

(SaaS), Platform-as-a-Service (PaaS), and

Infrastructure-as-a-Service, are well-suited to

mobile working practices, allowing users to gain

access to countless services from any device with

a connection. In addition, cloud services offers

speed, ease of deployment, fast patching, and

updating. Enterprises using cloud services benefit

from not having to maintain their own datacenter

and servers.

As such, the use of cloud is on the rise.

According to analyst firm, IHS, “Enterprises

will spend more than $235 billion on cloud

architecture and services by 2017.”3 The most

rapid growth in cloud comes from SaaS.

3 “Enterprise Cloud Spending to Soar to New Heights in Quest to Drive Greater Business Success,” (IHS Pressroom), April, 2014.

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Forbes magazine predicts that end-user spending

on cloud services could exceed $180 billion by

the end of 2015.4 But this considerable increase

in SaaS spend conjures up various challenges

such as on-boarding as part of a broader process

that tethers the user to the license, expense,

and usage in accordance with policy to minimize

wastage. Enterprises utilizing SaaS will want to

monitor on-going usage to determine if licenses

are underutilized in order to create an opportunity

for savings. This includes verifying expense

according to contract rates and accurately

charging back departments.

4 TJ McCue, “Cloud Computing: United States Businesses Will Spend $13 Billion On It,” (Forbes), 2014.

Enterprises’ growing reliance on cloud services

is pushing the issue of negotiating better rates

to the forefront. To date, cloud service providers

have commanded pricing power, but as their fees

start digging in to the bottom line, we expect this

to change. Currently, enterprises do not always

negotiate rates, and the ones that do, often lack

the correct methods and appropriate service level

agreements. Armed with powerful management

technology such as Tangoe’s MatrixCloud,

companies can begin taking control of the cloud

chaos and utilize pertinent data to effectively

negotiate beneficial rates and cost savings.

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Another aspect of the connected enterprise is the

use of machine-to-machine (M2M) connections.

M2M falls under the umbrella term for connected

devices, or the “Internet of Things,” (IoT). This

refers to technologies that enable wireless and

wired systems to communicate with other devices,

systems, and people. M2M has been in use for

decades, but has only recently been embraced

in a more mainstream manner. Decades ago,

banks rolled out ATMs and logistics companies

leveraged RFIDs, but these connections remained

limited in scope and access. But M2M has gained

momentum because of pervasive connectivity,

cheap hardware, and easily developed mobile

apps.

Experts at Cisco predict that approximately 50

billion devices will be connected by 2020, while

Morgan Stanley expects that number to be as

high as 75 billion5. Although M2M or IoT will

revolutionize a number of industries by slashing

costs and bolstering profits, enterprises will

experience severe growing pains if they do not

have the proper tools to track, manage, secure, and

support the infrastructure of these connections.

IoT keeps vital devices connected such as heart

monitors, fire alarm systems, and built-in sensors

in automobiles; if we cannot properly manage

them, productivity and precious lives could be lost.

5 Tony Danova, “Morgan Stanley: 75 Billion Devices Will Be Connected To The Internet Of Things By 2020,” (Business Insider), 2013.

Rise of the Machines - M2M

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Whether discussing consumer products or

organizing community collaboration, people

around the world constantly use social media

platforms to find and share information. According

to analyst Heidi Cohen, more than 70% of U.S.

online adults use some form of social media

networking6. In spite of this staggering statistic,

few businesses take full advantage of the potential

benefits of social media within the organization.

The very nature of our social communication

makes it difficult to reap the potential rewards.

This is because our way of communicating today is

finicky, volatile, and every-changing. An enterprise

may feel that it has a firm grasp on a social media

concept, only to watch that concept morph into an

unrecognizable trend.

6 Heidi Cohen, “Social Media Marketing 2014: Where Your Audience Is,” (heidicohen.com), 2014

Millennials make up the largest part of today’s work

force, and their influence on other age groups has

caused a ripple effect across all industries and

markets. In general, these employees exhibit an

air of disdain towards email because it represents

the “old paradigm.” They expect immediate

gratification, are highly self-oriented, and expect

tools in the workplace similar to in the ones they

use in their personal lives. They rely heavily on

chat, text, online collaboration, expiring messages,

and video exchanges. It is this same socialized

and mobile work force that has powered the shift

to social media within a business context and

has also discarded antiquated systems like the

corporate managed directory.

Social Communication and Collaboration – The Millennial Effect

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Millennials and other groups make static

connections irrelevant and have consequently

spearheaded the widespread adoption of BYOD;

usurping many configuration powers from IT

teams and creating a world in which each of us

must manage and share our own contacts and

preferences. This shift in paradigm has enterprises

scrambling for control and visibility into their own

specialized workforces.

To harness the potential of these specialized

workforces, enterprises need to utilize

applications that allow users to identify an

individual’s preferred contact method. One such

application is MatrixSocial, which empowers

employees to seize moments of inspiration and

to express ideas by creating an environment in

which everyone can be reached at any time based

on their communication preferences. This facilities

the exchange of information and enhances

collaboration throughout the entire enterprise.

The Shifting Landscape of IT Services

The connected enterprise puts enormous pressure

on IT leaders to reduce spending and tighten

control over the connected landscape, while also

increasing expectations on value and service.

Many IT teams are responding by leveraging

third parties to do the work they previously did,

and redirecting their efforts towards higher value

tasks such as delivering analytics and cross

departmental support associated with these

third party services. In many ways, IT becomes a

steward of the vital data that can positively impact

a company’s performance.

Additionally, the consumerization of technology is

re-orientating the way we think about IT assets.

The connected enterprise leans toward requiring

IT shops to leverage best practices from other

areas to improve their tools for managing the

assets, expense, and usage of these new IT

services and consumerized technologies.

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The Future of the Enterprise

While you may not be thinking about this now, you

soon will be. When asked about their technology

spending priorities, 2,339 CIOs responding to the

Gartner 2014 CIO Agenda Survey indicated that

business intelligence and analytics, infrastructure

and data center, mobile, ERP, and cloud were their

top five imperatives. At the top of the list is the

intention to exploit new digital trends, especially

the ability to mine a greater volume, velocity, and

variety of information (big data)7.

Clearly, IT leaders are finding innovative, novel

ways to reduce costs with their limited resources.

They are redirecting and reinvesting the savings

from their traditional TEM engagements into more

strategic areas, such as big data analytics, to

help drive enterprise growth and improve overall

IT performance levels. In discussing this trend,

Tom Eagle, a leading Gartner analyst covering

communication services and TEM, asserts “TEM

is a specific, but challenging function within IT

7 “Taming the Digital Dragon: The 2014 CIO Agenda,” (Gartner), 2014.

and cost management, and is widening in scope

as most enterprises’ range of fixed services and

mobile devices grows and diverges.”

“Whether you lead an IT or a marketing

organization, it’s time to expand your focus beyond

the rapidly changing world of devices and the apps

that run on them. You need a mobile strategy that

encompasses this entire chain of connections.”8

8 Tom Eagle, Geoff Spick, “Critical Capabilities for Telecom Expense Management,” (Gartner), November 2013

“Whether you lead an IT or a marketing

organization, it’s time to expand your focus

beyond the rapidly changing world of devices

and the apps that run on them. You need a

mobile strategy that encompasses this entire

chain of connections.”

Ted Schadler, Forrester “Mobile Is About More Than Apps and

Devices,” (Forrester), 2014

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Expert Innovators Fill the Void

The connected enterprise constantly strives

to improve efficiencies on a global scale by

maximizing assets and achieving the ultimate value

from available resources and relationships. The

inherent challenges of multiple connection points

and unrestrained mobility force organizations

to re-evaluate their policies and methodologies

within their business framework. An aspect of this

re-evaluation must take into consideration the

growing millennial push for BYOD and the need

for instant access to everything. This aspect of

the workforce looks to the superior functionality

of cloud and SaaS applications. Moreover, the

connected enterprise workforce looks more and

more to M2M and social media to quench its thirst

for connections.

Harnessing the Potential of the Connected Enterprise

Enterprises need tools, strategies, and

methodologies to gain control and visibility of

their assets, expense, and usage associated with

the entirety of their connections. The ability to

do this creates virtually limitless possibilities for

improving efficiencies, costs savings, employee

and client satisfaction, and streamlining the on-

boarding processes for all enterprise connections.

Few qualified organizations have endeavored to

provide tools with the power and scope to address

the pressing issues of the connected enterprise

such as:

Eliminate cost by outsourcing the provisioning

and fulfillment

Eliminate waste through accurate and timely

inventory management for assets and licenses

Leverage buying power with suppliers

Ensure security of your assets and information

Deliver support to keep end users productive

Deploy innovative approaches to drive

revenue

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Mobile – Smartphones, tablets, ruggedized

devices

Fixed – Traditional voice and data

M2M – Data from devices supporting business

goals

Cloud – SaaS, backbone services, limitless

storage

IT – Equipment, data systems, enterprise

software, IT services

Social – Collaborative communication tools

Today, the connected enterprise rules the

landscape with its insatiable appetite for all types

of connections and mobile tools. Fortunately,

Matrix was designed to enable organizations to

turn-on, manage, secure, and support various

connections, while more effectively managing the

strategy, risks, expense, productivity, visibility, and

expand potential of connections throughout the

connected enterprise ecosystem.

The opportunity to harness the potential of the

connected enterprise now seems clear. But

powerful tools and knowledge form the foundation

of this ambition endeavor. Luckily, Tangoe

predicted the rise of the connected enterprise

many years ago and anticipated the current

market’s shift to a heightened state of connected

mobility.

To address the issues and challenges that

enterprises face, Tangoe created the Matrix

Solution Suite, a comprehensive set of software

tools and services designed to help enterprises

harness the power of these new connections.

Available whole or in part, the Matrix Solution lines

come as pre-configured packages or a-la-carte,

providing support for the critical connections

driving business communications such as:

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Summary

The vast amounts of new connections, platforms, services, and communication

channels are re-shaping the very fabric of today’s business world and transforming

traditionally structured companies into connected enterprises. As we embrace the

new reality of pervasive connectivity, we must also address the inherent challenges

and opportunities that come with it. The shifting landscape of IT devices, cloud

computing, and mobile concepts are just some of these issues. Companies such as

Tangoe remain at the forefront of these developing trends and technologies to help

keep the connected enterprise safe, secure, and streamlined through innovative

methodologies, strategies, and software.

Next Steps

Interested in learning more about Tangoe’s capabilities? Visit www.tangoe.com to find

out more about how Tangoe can help your organization outperform your competitors.

http://www.tangoe.com

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About Tangoe

Tangoe (NASDAQ: TNGO) is a leading global

provider of Connection Lifecycle Management

software and services to a wide range of global

enterprises and service providers. The company’s

Connection Lifecycle Management technology,

Matrix is an on-demand suite of software and

services designed to turn on, manage, secure,

and support various connections in an enterprise’s

communications lifecycle, including mobile, fixed,

machine, cloud, social, and IT.

©2015 Tangoe Inc. | Powering the Connected Enterprise

Additional information about Tangoe can be

found at www.tangoe.com. Tangoe is a registered

trademark of Tangoe, Inc.

Tangoe, Inc.

35 Executive Blvd., Orange, CT 06477

203.859.9300 | www.tangoe.com

http://www.tangoe.com

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Embracing and Empowering the Connected Enterprise