Who really pays the cost for BYOD?

What kinds of new costs and responsibilities does implementing a BYOD program entail?

What kinds of new costs and responsibilities does implementing a BYOD program entail?

What kinds of new costs and responsibilities does implementing a Bring Your Own Device (BYOD) program  entail? And who bears the brunt of those costs and responsibilities?

The answer is unclear.

Some analysts believe that users pay most of the costs in exchange for the privilege and convenience of working with the device of their choice.

One of the key findings in Good Technology’s 2nd Annual State of BYOD Report was that “50 percent of companies supporting BYOD require that all costs be covered by employees…The other 50 percent provide a mix of options to their employees, such as a stipend or ‘expense back’ options to help subsidize the cost of their mobile device or service plan.”

The Financial Impact of BYOD report issued by Cisco showed the average out-of-pocket spending to date per BYOD user in the US is $809 for their devices and $1,234 yearly for data plans.

However, in Nucleus Research’s Understanding the Hard ROI of BYOD,between the cost of BYOD and the challenges of BYOD risk management, companies rarely get the cost savings and ROI they expected.”

The report goes on to state, “One hidden financial challenge with BYOD lies in reimbursing employees for monthly voice and data costs, a direct cost that can often be at least 10 times greater than the device cost. CFOs and controllers must carefully consider these costs before supporting a BYOD strategy.” The study indicates “any voice and data reimbursement above $40 per month implies a company is deliberately giving up money to support BYOD.”

CIOs A Visual Guide to Identifying the Hidden Costs of BYOD offers an infographic to help companies identify potential unintended financial consequences of employee mobility.

The premise is to make companies aware of the pitfalls and hidden costs in order to help them put appropriate policies in place to forestall unnecessary expenses, including “unapproved apps, ringtones and premium services” or “employees expensing entire family plans.”

Companies will do well to implement a strategic BYOD plan. A proactive BYOD policy will enable employees to access corporate tools and data, yet help the enterprise keep better security on corporate data, as well as tracking and controlling expenses.

Enterprise Mobility 2013: BYOD, MDM, Big Data and Application Management is a must-read for anyone involved in enterprise mobility strategy as well as business and operations planning.

Additional resources: Bring Your Own Device (BYOD) vs. Corporate Owned-Personally Enabled (COPE) Strategy for Enterprise Mobility

This entry was posted in BYOD, Enterprise, Uncategorized and tagged , . Bookmark the permalink.

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