Mobile Infrastructure Software Providers: Business and Revenue Models

Infrastructure Software Market Segments
Mobile Software is a very interesting area given the diverse set of players. These players range from:

• Device Side Development Platforms -- J2ME (Sun Microsystems), Mobile Internet Server (Microsoft) and BREW (Qualcomm)
• Mobile Web Services Platforms -- J2EE/SunONE, Microsoft .NET
• Client Side Operating Systems -- Palm OS, Microsoft Windows CE, Psion's Symbian, Microsoft's Stinger OS (phones)
• Micro-Browsers -- SpyGlass
• Mobile Application Gateways (carrier class) -- Openwave (old Phone.com), Seven (messaging), Comverse, InfoSpace
• Mobile Application Gateways (enterprise class) -- 724 Solutions, Everypath
• Mobile Application Integrators -- Aether, Symbol
• Data Synchronization -- Synchrologic, PumaTech
• Mobile Databases -- Sybase
• Mobile Security -- Verisign

For each market segment the business and revenue model is different making strategy very complex but interesting.

Software Revenue Models
The revenue models for enterprise-class software/infrastructure vendors and integration services providers include:

Picking a Mobile Platform Vendor - Some Guidelines
A number of platform companies, such as Abaco, ViaFone, Brience and JP Mobile, are developing mobile application middleware solutions for enterprises.  Why? With corporate data distributed throughout a multitude of E-business and ERP applications, databases, and legacy systems in the typical Global 3000 Enterprise, the functionality of any wireless application could be limited by the time-consuming and  expensive task of many point-to-point integrations.

With such concerns in mind, several companies are creating flexible wireless middleware solutions for enabling enterprise mobility. These packages sit on servers inside the corporate firewall and deliver corporate data, such as email and calendar information, to a range of wireless devices. While near-term these players could see some success as a component of a full installation consisting of an enterprise software player, a device manufacturer, and a wireless carrier.

Long-term, however, appears to be challenging. Being a piece of a larger picture always puts the small footprint firm in danger. One way out is to get acquired.  Palm recently acquired a small player in this arena, ThinAirApps. Could be a sign of things to come in the enterprise mobile software market.

So, given the turmoil in this space, several key points must be considered when comparing competitive technology:

• Offline Capabilities: Does the architecture allow for offline interaction or only online interaction?  How sophisticated is its synchronization engine?
• Business Application Integration: How well does the solution integrate with business applications . Does it support native APIs and security models or does it rely on Web scraping? If the vendor is also an application provider how well is their support for competitive application (e.g. How well will Peoplesoft and Siebel support SAP R/3 access and vice versa)?
• Deployment: How easy is it to install and deploy at customer premises. Is it plug & play or does it require consultants and custom programming? 
• Total Cost of Ownership and Manageability: How well does the solution integrate in the corporate security and management infrastructure? Can it leverage off an existing LDAP directory, or is it a completely separate solution? Does it minimize the administrative nightmare of creating and managing multiple user profiles by seamlessly integrating with user management systems already in use by an enterprise.
• Performance and Stability: How well is the technology supported by the underlying operating system? Does it contain native, fast code or does it require 3rd party run-time engines (i.e. J2ME, .NET Compact)?
• Handset Support: Can the wireless application support multiple mobile handsets? Does it support PDAs, Laptops, and mobile phones? Does it support the different versions of mobile phones?

Killer apps for Wireless Handhelds

Palm's View -- A Combo

PIM Functions + E-mail + Telephony + Messaging + Mission Critical Apps

SAP's View -- Offline + Online

Consider the following example of the field service representative delivering food and beverage goods to retail stores. Using a PDA, the rep can view information about the store from the company’s SAP R/3. He can also place orders through the device, and the orders are automatically sent to the company’s ERP system. The connectivity to the backend systems, the communication to and from the handhelds and the application screens are managed by the mobile platform solution.

How is offline different from online solutions? First, when the user of this application is outside network coverage area, the handheld app automatically stores the orders locally and queues them for later transmission. When the user enters into network range, the orders are automatically synchronized with the backend systems. This synchronization process is completely transparent to the field rep. Most mobile solutions today lack robust offline capability.