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MobileIron, Good get set for IPOs amid competition from BlackBerry, VMware

  • Leading mobile device management (MDM) software firm MobileIron (MOBL) has set an $8-$10 IPO price range. At the midpoiint, the range spells a valuation of $672M, or 6.4x 2013 sales.
  • MobileIron, which originally filed in April, is looking to raise $89M-$111M by selling 11.1M. shares. Though still growing at a healthy clip, the company's latest S-1 points to a growth slowdown: Billings rose 34% Y/Y in Q1 to $30.3M, notably slower than 2013's 48% clip. Revenue, pressured by a shift to subscription sales from perpetual licenses, only rose 9% to $28.2M.
  • Good Technology, another high-profile MDM player, is also getting set to go public ... and its numbers are more worrying. Billings actually fell 2% Y/Y in Q1 to $47.4M, and 1% in 2013 to $194.3M. Revenue still rose 35% in Q1 to $46.6M. Good hasn't yet disclosed a symbol or offering terms. (S-1)
  • Each company, along with its peers, faces two big challenges. One is that the MDM market has become intensely competitive, with SAP, IBM, BlackBerry, VMware, Citrix, and (most recently) Microsoft all looking for a piece of it.
  • VMware (VMW) made a $1.54B bet on the space in January by acquiring MDM vendor AirWatch. BlackBerry (BBRY), which has added iOS/Android support to its offerings, has made MDM a key part of its enterprise-focused turnaround strategy.
  • The other issue, which also affects larger firms, is that many MDM installations haven't gone as planned. GigaOm's talks with CIOs using a "well-known" offering found (among other things) MDM was often "limited to password enforcement and remote wipe," and that e-mail was "the only widely-supported secure app."
  • The site adds that while "enterprises have spent millions" on mobile management solutions, most of the software "sits unused because making the pieces work together still proves difficult."
Comments (47)
  • leamago
    , contributor
    Comments (84) | Send Message
     
    The Gartner Magic Quadrant is due out very soon. Very curious to see where each of them stand as compared to 2013's report.
    31 May, 02:46 PM Reply Like
  • SecChu
    , contributor
    Comments (12) | Send Message
     
    The magic quadrant came out last week. Little doubt after this one that Gartner's opinions are available to the highest bidders. Thier conclusions are so far out of sync with the data they present that it should leave no doubt as to what they have been accused.

     

    No, I don't work for any of the companies who were included in the MDM/EMM analysis. I am a consultant specializing in MDM.
    10 Jun, 09:51 AM Reply Like
  • ELLAS
    , contributor
    Comments (1489) | Send Message
     
    I find this Quote rather interesting.

     

    """most of the software "sits unused because making the pieces work together still proves difficult."""

     

    BlackBerry offers all you would need for a seamless and superior management tools that all work together flawlessly.

     

    BlackBerry CEO says Good is not good enough when it comes to security
    http://bit.ly/1hKpt7c
    31 May, 04:30 PM Reply Like
  • contrarianwise
    , contributor
    Comments (1017) | Send Message
     
    Ellas,
    didn't blackberry cross the 1 million mark on installations?
    don't look like a slowdown here for blackberry.
    31 May, 04:35 PM Reply Like
  • DAOLDBUICK
    , contributor
    Comments (161) | Send Message
     
    @Ellis I like this one even better.
    "The other issue, which also affects larger firms, is that many MDM installations haven't gone as planned. GigaOm's talks with CIOs using a "well-known" offering found (among other things) MDM was often "limited to password enforcement and remote wipe," and that e-mail was "the only widely-supported secure app."
    A fast talking salesperson from one of these companies goes on and on about how BBRY is going out of business (sort of like MC or MKIA) and there's is the best solution available. Then when it's installed the CIO learns it's only good for password enforcement, remote wipe, and e-mail. "We'll have more features soon" He says.
    The CIO's next stop - the unemployment line.
    Should have stayed with the best, BBRY.
    31 May, 04:56 PM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1000) | Send Message
     
    Doald, Contrarian and Ellas:

     

    All right on the money. The fancy plans of the also-rans are far less useful and secure than many of the innovators claim. Not because they don't have a 'good idea' it is that the good idea is stand-alone.

     

    Mobile Iron, which has a good idea, is NOT a complete MDM solution and what about all the other things that are needed in a cloud-based international company that wants security for all its systems?

     

    The lead BRY has it formidable. Selling the "BBRY is going out of business" does not travel far in the real world of high end IT. Without secure NOC's the rest are wailing in the woods about how they have a good idea.

     

    I won't explain how NOC's work here, but that is the reason people use BBRY solutions - they actually protect you from a whole raft of things.

     

    With remote office and cloud computing, the BES10 and 12 offerings will keep BBRY in the forefront of this sector for at least several years, even if they stopped development now which is clearly not the case.
    31 May, 05:19 PM Reply Like
  • contrarianwise
    , contributor
    Comments (1017) | Send Message
     
    Let's see, they started in March with EZ Pass--got 1 million companies on it--
    wonder what would happen if the rate kept up and they had 3 million by December?
    31 May, 10:50 PM Reply Like
  • Yasch22
    , contributor
    Comments (278) | Send Message
     
    @contrarianwise: Careful, BB is not announcing 1 million new companies, but 1 million new licenses. E.g., one organization (a law firm) might need 500 licenses for 500 lawyers and administrators, whereas another company might not need any more than 100. On average, my guess is that each BB "customer" represents 200 licenses. The one million new licenses means that BB has signed up approximately another 5,000 companies/organizations.
    1 Jun, 01:17 AM Reply Like
  • SecChu
    , contributor
    Comments (12) | Send Message
     
    I would agree that much MDM goes unused. There's a huge amount of churn in the industry right now. MDM requires cross functional support from HR, finance, IT, IT security & line operations. IT is typically ill equipped to organize & gain support from all those departments for a successful deployment.

     

    My company has developed a process for coordinating all the complex issues that arise from an MDM deployment. Even then, the expectations for what MDM/EMM should deliver are often over extended.
    10 Jun, 09:50 AM Reply Like
  • SecChu
    , contributor
    Comments (12) | Send Message
     
    I suppose if generalizations & over statements are your thing, then the issues you raise could be considered valid. A CIO losing their job because an MDM installation didn't deliver what the vendor promised? Come on. CIO's lose their jobs because of failed ERP or CRM deployments. But blame the vendor is the approach for a failed MDM deployment. And often, what was learned in the first deployment gets fixed in round two.

     

    It's not rocket science, but most IT departments think MDM deployments are a technological challenge, not a process, workflow, & user acceptance challenge.
    10 Jun, 10:52 AM Reply Like
  • jjtom
    , contributor
    Comments (323) | Send Message
     
    The irony of the situation is that while the other MDM suppliers are telling prospective customers that Blackberry is going out of business, its quite possible that they them selves will be out of business soon!
    31 May, 06:55 PM Reply Like
  • Zack 800
    , contributor
    Comments (590) | Send Message
     
    @jjtom

     

    "What goes around comes around " comes to mind and then there's "karma", both seem appropriate.

     

    Competition is going to be fierce...especially with survival probably relying on the fittest...

     

    http://bit.ly/1gbJ6tr
    31 May, 08:09 PM Reply Like
  • LYogi
    , contributor
    Comments (1991) | Send Message
     
    Translation: Blackberry is eating Good and MobileIron's lunch and the companies are throwing a lifeline to the market to try and save themselves.
    31 May, 07:35 PM Reply Like
  • kherman
    , contributor
    Comments (754) | Send Message
     
    Yup, and any company that chose good or mobile iron over Bbry is in deep doodoo if they fail to go public.
    1 Jun, 09:07 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1429) | Send Message
     
    Your right LYogi, if Good does not get the ipo done, they have a few months of cash left. Going with Good is not such a good idea.

     

    I wonder which one of the MDM companies would Mr. Knowitall, Marcap, and Andreas Hopf would go with if they had to protect their respective companies data and communications?
    31 May, 07:51 PM Reply Like
  • ATI nsider
    , contributor
    Comments (198) | Send Message
     
    Cliff
    "I wonder which one of the MDM companies would Mr. Knowitall, Marcap, and Andreas Hopf would go with if they had to protect their respective companies data and communications?"

     

    It wouldn't be BlackBerry, because in there mind the company is as good as dead. And in return, they would have there own company go under and/or be attacked for not having the best mobile security and management software in the world, BlackBerry's.
    1 Jun, 12:01 AM Reply Like
  • ContraPlays
    , contributor
    Comment (1) | Send Message
     
    @Cliff, I'm more interested if the trio mentioned are interested in buying the $8-10 Mobile Iron IPO or Goods IPO.
    1 Jun, 07:16 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1429) | Send Message
     
    @ContaPlays,

     

    "Cliff, I'm more interested if the trio mentioned are interested in buying the $8-10 Mobile Iron IPO or Goods IPO."

     

    That trio may care nothing for BlackBerry and enjoy rubbing Longs the wrong way, but none will drop a dime on either company. I have to admit, the trio mentioned aren't stupid.

     

    Good is in worst shape than MobileIron and still has no track record.
    1 Jun, 08:10 AM Reply Like
  • jjtom
    , contributor
    Comments (323) | Send Message
     
    The Gartner magic Quadrant, what a joke! they advised corporations to dump Blackberry in favor of those other MDM providers. Now that some of these so called MDM providers are on the brink of bankruptcy, and a lot of IT managers that bought into this BS are facing the prospect of Unemployment. Good on them. Oh we were told that Blackberry was going out of business and they are just as secure if not more than Blackberry Duuhhhh! As far as I'm concerned Gartner did great disservice to publish that report bashing Blackberry, very unprofessional to say the least. Hey Marcap if you predict mobile iron will be out of business by next quarter this time you will be right.
    31 May, 08:35 PM Reply Like
  • Yasch22
    , contributor
    Comments (278) | Send Message
     
    jjtom: I agree that a part of that one Gartner analyst's advice to the enterprise to consider abandoning BES stank to high heaven. A considerable ameliorating factor, however, was that he made it right in the midst of BB's attempt to sell itself. If the sale fell through, or if a company bought BB and decided to sell off BES, there could have been years of turmoil which no CEO or CIO would care to deal with. Notice that, as soon as Chen took down the For Sale sign, and began to aggressively address every issue within BES (from tech issues to sales teams), the bleeding stopped. BB has apparently suffered no customer losses in the past 6 months, which is in itself a huge win.
    1 Jun, 01:37 AM Reply Like
  • jjtom
    , contributor
    Comments (323) | Send Message
     
    Blackberry and VMware should merge and create a high powered MDM solution provider. It would be a great benefit to both companies.
    31 May, 08:37 PM Reply Like
  • leamago
    , contributor
    Comments (84) | Send Message
     
    jjtom, a more likely merger would be SAP and Blackberry since most of the senior staff at BBRY came from SAP. VMware is an American company and would take away the advantage of being foreign... (Snowden effect)
    31 May, 10:25 PM Reply Like
  • ATI nsider
    , contributor
    Comments (198) | Send Message
     
    jjtom, good point. That would greatly benefit both companies. A strategic partnership or a merger.
    1 Jun, 12:04 AM Reply Like
  • Superfly_FR
    , contributor
    Comments (321) | Send Message
     
    @leamago : I'll applause both hands (expecting it for ages now).
    Not sure about the "American problem" though. Yet I see a great opportunity here.
    2 Jun, 04:41 AM Reply Like
  • hz06
    , contributor
    Comments (691) | Send Message
     
    but if Good or IronMountain is not enough for their corporate IT's needs, they can always find another product like Better, or SteelMountain to add onto it. still not enough? then find another product like Best, or HardenSteelMoutain to add onto it, still not enough....

     

    then they end up with 4, 5 products to run and support for their security needs, and they need to figure out how to get them work together, and upgrade them, and the upgrades to work together, ... talk about cost effectiveness and getting things done the right way...
    31 May, 08:47 PM Reply Like
  • ATI nsider
    , contributor
    Comments (198) | Send Message
     
    hz06
    You make a great point. All these companies needing each other is pretty much the worst solution for any company. Yet they make it look and sound quite sexy with colorful graphics and pictures.

     

    The king of device management and security is BlackBerry, and under John Chen, its been growing despite the negativity surrounding the company. BlackBerry finally has proven strong leadership, and these fly by companies fear BlackBerry quite a bit. Just think about all the bad BlackBerry press we've been reading and hearing about. There is a hidden agenda at play here. Now to keep my mouth shut. Do your own DD, and see for yourselves.
    1 Jun, 12:08 AM Reply Like
  • BBwetrust
    , contributor
    Comments (1042) | Send Message
     
    @hz06
    I'll give their managements credit for foresight.

     

    Good for now, but Better is coming, and staying for the Best.

     

    IronMountain for now to fight the bronze age, but SteelMountain will keep the enemy at bay, and HardenSteelMountain will take you to space.
    1 Jun, 11:11 AM Reply Like
  • hz06
    , contributor
    Comments (691) | Send Message
     
    @BB - corporate IT and security is not an one trick pony (software) will solve it all. it's a nightmare for the IT staff and managers to have to use many different tools to work together to do one same thing, keeping things in order. the seasoned ones have learned the lessons and address the challenge at a systematical level. that's why those overall solutions were developed in the first place.

     

    the BYOD thing is actually good for blackberry once it turns to selling software and services because this is something hard for a 200 people startup to keep up with.
    1 Jun, 11:34 AM Reply Like
  • BBwetrust
    , contributor
    Comments (1042) | Send Message
     
    @hz06
    Thanks for explaining stuff like this to a naïve like me who used to wear hard hat so his head won't get banged by the piping overhead.
    1 Jun, 11:41 AM Reply Like
  • hz06
    , contributor
    Comments (691) | Send Message
     
    you are not that naïve bro...:)
    1 Jun, 12:05 PM Reply Like
  • Ron Myers
    , contributor
    Comments (254) | Send Message
     
    The irony of all this was that enterprises only moved to Good and some of these others because employees demanded to be able to use e-mail on iphones, which were demanded because blackberries sucked. If blackberry had offered an iphone solution two years ago, or offered a phone four years ago that was anywhere near as good as an iphone, they would still be an untouched market leader in this area, as Good is bad.
    1 Jun, 12:35 AM Reply Like
  • Zack 800
    , contributor
    Comments (590) | Send Message
     
    @RM

     

    And here's more irony about BYOD...

     

    http://bit.ly/SnhRRA
    1 Jun, 04:00 PM Reply Like
  • aveolo2
    , contributor
    Comment (1) | Send Message
     
    An associate of mine spent an entire, beautiful weekend dealing with M2M and MDM problems. I suggested she investigate QNX platform to help solve her problems. She stared at me like I had three heads. Oh, well. Not my circus, not my monkeys.
    1 Jun, 07:33 AM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1000) | Send Message
     
    All these alternatives are basically firewalls with bells and whistles. Ask an IT techie. They are not at all the same level of security or device management. I won't be putting a penny into any of them. After a few big hacks the company will go to or back to BES.
    1 Jun, 09:00 AM Reply Like
  • Bobberry1
    , contributor
    Comments (68) | Send Message
     
    Once BES12 is released in November, these wannabes will be done.
    BES12 will support Windows phones (so will BBM by then) and it will support legacy BB phones running on BB5/6/7 OS.

     

    Imo, there would be no reason not to have BES12. It's cheaper and far more secure and far more stable.

     

    The wannabes will be toast, but not before they try and steal money from Investors during their IPO's. I wouldn't touch either IPO with a 100 ft pole!!
    1 Jun, 10:14 AM Reply Like
  • BBwetrust
    , contributor
    Comments (1042) | Send Message
     
    Present to watch the pre-IPO show.
    1 Jun, 10:59 AM Reply Like
  • jjtom
    , contributor
    Comments (323) | Send Message
     
    Leamago now a day it doesn't matter if your a Canadian, American or some European Corporation, they have no nationality. They will close up shop at the drop of a hat to move to where it's most advantageous for them. Look at Apple they are an American company however they don't pay hardly any taxes in USA, and that's a fact. I love how these government idiots think that corporate tax cuts help create jobs. The fact is if the company is doing well they just bank roll the money or pass it on to share holders. So the bottom line is VMWare and Blackberry can merge and it will be business as usual!
    1 Jun, 12:27 PM Reply Like
  • Superfly_FR
    , contributor
    Comments (321) | Send Message
     
    $6-$10 range for the IPO, with 6.4 X sales for MDM alone ?
    Wondering how to transpose this to BlackBerry BES10 > 1million CALs ... [BTW, if one should be pointed out as a leader, it's BES (5-10), so far above MI and Good combined !]

     

    Finance is a weird world, with its own "evaluation standards" ... tell me about about "experts", "word of mouth", "perception" and media coverage ... ;)
    2 Jun, 04:35 AM Reply Like
  • deehooo
    , contributor
    Comments (7) | Send Message
     
    Too many BBRY zealots in this comment pool.

     

    Is you competition BBRY really other device manufacturers, not these little security plays?

     

    Is there a large enterprise out there that doesn't have a BBRY replacement program?

     

    Don't blame Good and MI for BBRY s failure, they are just filling a void.
    2 Jun, 09:02 AM Reply Like
  • Superfly_FR
    , contributor
    Comments (321) | Send Message
     
    Others are BlackBerry competitors in EMM/MDM market. Not the other way :)
    2 Jun, 10:06 AM Reply Like
  • deehooo
    , contributor
    Comments (7) | Send Message
     
    yeah, that's like saying trains compete with airplanes. yes they do, kind of. but the reinvention of BES to EMM is a bit of a stretch, since the oppty for Good and MI formed based on the limitations of BBRY only supporting BBRY.
    2 Jun, 10:41 AM Reply Like
  • ELLAS
    , contributor
    Comments (1489) | Send Message
     
    Both Mobile Iron and Good should have there IPO's rejected. They are burning cash at an alarming rate. And I estimate that they've been cutting there fees right down the bare bone to stay somewhat relevant.

     

    They are not filling a void, they are causing confusion and eventual mass headaches for customers that believed there hype. Requiring multiple ventures and companies to do what one single company does MUCH BETTER - BES10, these Good/Mobile Iron solutions is a joke.
    2 Jun, 12:25 PM Reply Like
  • john_k123
    , contributor
    Comment (1) | Send Message
     
    There are new comers in this space such as Codeproof gaining more traction lately.
    2 Jun, 10:39 PM Reply Like
  • ELLAS
    , contributor
    Comments (1489) | Send Message
     
    Customers are dumping Mobile Iron and Good for BES. Good News...
    http://bit.ly/1orMb8j
    3 Jun, 07:25 AM Reply Like
  • ozcutty
    , contributor
    Comments (324) | Send Message
     
    Strange comments. My government department put in mobile iron 12 months ago and hasn't looked back. Old blackberry server has just been decommissioned. The blackberry tablet was really the death nell as after evaluating it and realising it was not useful as it didn't synchronise with BES, we went and bought hundreds of iPads, put mobile iron in the manage them and haven't looked back. P.s. I will be investing in ipo
    5 Jun, 08:10 AM Reply Like
  • BBwetrust
    , contributor
    Comments (1042) | Send Message
     
    @oz

     

    Good comment. Let's see how the BB regulars are going to say about this?
    5 Jun, 08:37 AM Reply Like
  • Yasch22
    , contributor
    Comments (278) | Send Message
     
    Glad to hear that MobileIron is doing a great job in your department. BES was no doubt a 2nd-rate manager of iOS at the time you made your switch, and MI was best in class or close to it for iOS.

     

    Questions: Is your dept. a BYOD environment? What kind of a job is MI doing for Samsung, WP, BlackBerry devices? Is security a top priority?

     

    As for investing in the IPO, here's an interesting summary of MI's financials: http://bit.ly/SgDO4y . "MobileIron reported revenue of $13.8 million in 2011, $41.1 million in 2013, and $105.6 million in 2013, and reported net losses of $25.7 million, $46.5 million, and $32.5 million, respectively. As for the first quarter of 2014, things are not looking that good.... Growth has stalled compared to the same period a year ago. The company reported total revenue of $28.2 million in the first quarter of 2014 compared to $25.8 million in the first quarter of 2013, or a 9.3% increase in total revenue. At the same time, it reported a net loss of $14 million. At these levels, the run-loss rate is much higher than 2013."

     

    My concern looking ahead with MI is whether or not it can add new customers and sell new services at a fast enough pace to get into the black.
    6 Jun, 01:45 PM Reply Like
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