Both the tech and finance world are awaiting the announcement of Good Technology’s IPO, which is hotly anticipated. The EMM firm filed its S-1 with the SEC in May of this year, following the successful IPO of rival MobileIron in April. Good’s IPO would mark the third public offering of a pure-play enterprise mobility firm since the IPO of Tangoe in 2011. While MobileIron’s IPO raised $100 million, selling 11 million shares and setting a strong precedent for Good Technology, there are nevertheless strong headwinds that face Good as it prepares to go public.

Less than good numbers in a competitive market

Among the chief concerns are Good’s earnings: the S-1 filing notes net losses of $41 million, $90.4 million and $118.4 million in 2011, 2012, and 2013 respectively, while billings dropped 2% year on year in Q1 to $47.4 million and 1% to $194.3 million in 2013. In a sector that is becoming fiercely competitive as more companies are looking to add advanced mobility services, this could present a considerable risk factor for Good.

While the number of pure-play EMM providers in the market is winnowing, there is nevertheless strong competition from companies like BlackBerry, MobileIron, and SOTI as well as from management and virtualization vendors like Citrix, Symantec, and VMware/AirWatch. Within its S-1, Good also lists competition from IBM, Microsoft and SAP, who have increasingly broadened their portfolios to offer advanced mobility solutions and have the ability to layer enhanced security capabilities through partners. As a result, it is becoming increasingly difficult to differentiate a distinct competitive advantage, particularly when considering that many firms limit their device management to password enforcement and remote wipes. A recent (April 2014) VDC survey confirms this trend.

 However, VDC anticipates that more sophisticated application and data management solutions will be required as mobile enablement initiatives continue to expand in enterprise deployment environments.

 

A cautiously optimistic market awaits Good’s IPO

Good is well positioned to capitalize on these market trends from its ability to evolve its enterprise mobility solutions through the integration of very strategic technologies it has gained through acquisitions. We see these capabilities augmenting the company’s position in the EMM ecosystem. Copiun, AppCentral, BoxTone and Fixmo each filled notable holes in the company’s solution portfolio. While minor acquisitions, they all have provided Good with strong capabilities that complement its mobility solutions. While the company appears to be a long way off from profitability, MobileIron has proved that the market is amenable, given its confidence in the firm’s technology, roadmap, and pace of customer acquisition. As a result of this, as well as current market dynamics, VDC anticipates a successful IPO from Good in the coming weeks.

(with contributions from Eric Klein, Senior Analyst)