ABI: Cloud App Development Platforms to Drive $3.6B in Revenue

If you think mobile device management (MDM) is the hottest topic in the enterprise mobility space, ABI Research is suggesting you take another look. According to the company’s most recent study, MDM solutions no are longer the focus of the big players in the mobile space; rather, companies increasingly are looking to adopt their own mobile application platforms so they can manage and create their own corporate apps without needing a third-party provider.

The study suggests the shift from renting out mobile device solutions to creating them in-house is due largely to the necessity for scalable applications for individual enterprises, especially in light of the widespread shift to BYOD in the workplace.

“Mobile applications allow for greater flexibility when mobilizing content and employees. However, the cost in terms of time and resources is fairly expensive to generate a single app for multiple platforms like iOS, Android and Windows Phone,” said ABI Research senior analyst Jason McNicol in the report. “Fortunately new cloud-based development solutions have evolved and are now gaining traction to reduce the app development time while permitting cross-platform deployment.”

With their own mobile application platforms in hand, enterprises theoretically can develop applications custom-tailored to their individual needs. Until recently, most companies didn't have the wherewithal or skill level necessary to produce their own apps, but, ABI noted, that is changing. Based on its latest findings, cloud deployments are expected to grow faster than on-premise solutions, with the research firm estimating a CAGR of 42.5 percent between 2014 and 2019. The resulting boom is expected to generate $3.6 billion in mobile application revenues, meaning app development could be serious business for those looking to invest.

“We routinely hear about the advantages and increases in worker productivity from mobilizing a workforce,” said McNicol. “Recent gains are driven by new cloud-based tools as enterprises gain more understanding of ‘the cloud,’ thus reducing security fears. North America is driving cloud adoption solutions, but there exists tremendous growth opportunity in other regions seeking to exploit the same productivity gains.”

For companies looking to hop on the app-development bandwagon, there are two main cloud-based solutions that are popular among early adopters. For companies looking to focus their apps on the end user experience, front-facing solutions are the way to go, with applications gearing toward providing a nicer outward appearance and better user interaction. For those looking to develop apps for their employee base, backend integration solutions (also known as mobile backend-as-a-service) are designed to connect the app to the larger enterprise system. ABI noted both solutions can be installed and used on-premise or in the cloud, giving enterprises further choices for customization when it comes to developing their own programs.