Menu
2013 prediction: BYOD on the decline?

2013 prediction: BYOD on the decline?

The thinking goes that BYOD was at the height of the hype cycle this year, and it's due for a reality check next year.

Nearly everyone assumes that the "Bring Your Own Device" trend will heat up next year - that is, everyone except Nucleus Research. Nucleus just put out a research note with this stunning prediction: BYOD will decline as enterprise mobility grows up.

The thinking goes that BYOD was in the height of the hype cycle this year, and it's due for a reality check next year.

With BYOD, CIOs salivate at the idea of employees shouldering the cost of smartphones and, to a lesser degree, tablets. Employees are also largely responsible for supporting their personally owned devices. BYOD promises to make employees more productive by merging personal and work lives into a single device-an idea that appeals to Millenials.

Large companies such as Ingram Micro, Cisco and VMware went "all-in" with BYOD smartphone mandates. VMWare expects to save seven figures this year through its BYOD program. Cisco even believes BYOD can help repair the rocky relationship between business and IT.

In direct contrast to Nucleus, Gartner predicts BYOD will become the top technology trend for 2013, with mobile devices surpassing PCs as the most common Web access tool. The consumer-driven iPad is pouring into the enterprise at breakneck speeds, says Forrester Research, with 81 percent of firms having tablet plans and 250 million tablets expected to be in employees hands by 2016.

But are these BYOD benefits real? Nucleus doesn't think so.

"The reality is that the support costs, compliance risks, and usage reimbursement typically lead to a higher total cost of ownership with no discernible return on investment or productivity gains," Nucleus says. "As enterprise CFOs take a closer look at the true pros and cons of BYOD in 2013, they will seek to pursue the most fiscally responsible option: corporate-based accounts."

Slideshow: 10 Coolest Tech Devices to Bring to Work

Nucleus may be on to something. Concerns about BYOD's cost savings cropped up last spring when Aberdeen Group released a widely criticized report, which found that a company with 1,000 BYOD smartphones spends an extra $170,000 per year, on average.

Aberdeen cites one of BYOD's big hidden costs: processing all those additional expense reports.

Another reason BYOD may stumble next year is that the cost of ownership for company-owned PCs is going down. Barclays Capital analyst Ben Reitzes predicts that the PC replacement cycle will be a year or two longer a few years from now.

Tom Kaneshige covers Apple and Consumerization of IT forÃ'Â CIO.com. Follow Tom on Twitter @kaneshige. Follow everything from CIO.com on Twitter @CIOonline and on Facebook. Email Tom at tkaneshige@cio.com

Read more about consumer it in CIO's Consumer IT Drilldown.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags nucleusIngram Microhardware systemsIT OrganizationIT Organization | Consumer ITCIOVMwareNucleus ResearchBYODGartner

Slideshows

IN PICTURES: Mitel A/NZ Channel event Sydney (+23 photos)

IN PICTURES: Mitel A/NZ Channel event Sydney (+23 photos)

Unified communications company, Mitel, invited its top 30 partners in A/NZ to the Intercontinental Hotel in Sydney’s Double Bay. This is the first time the broader A/NZ Mitel channel community have been together since the company re-branding back in October 2014, post Aastra acquisition. ARN received an invite to join attendees for drinks and canapés on the hotel rooftop as Mitel and its partners toasted their recent success.

IN PICTURES: Mitel A/NZ Channel event Sydney (+23 photos)
IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

Twenty-one industry leaders came together with ARN staff for an Emerging Leaders Think Tank, held at The Bottle Shop in Sydney​. The aim of the planning session was to develop a compelling program for high potential leaders in the Australian ICT industry.​ Over two hours of strong debate a core line of thought evolved which will form the basis of the Emerging Leaders Forum to be held on May 17 in Sydney. Photos by MARIA STEFINA.

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments