With software vendor-mobile operator relationships still at an early stage, the systems integrator (SI) is currently the prevailing route to market. Very few mobile applications implementations are being sold directly by mobile operators.
At the same time, large software vendors have pursued both independent routes to market and partnerships with SIs. Pure-play vendors have, however, inevitably entered into partnerships to reach the market. The market is set to undergo consolidation as large enterprise application software vendors move to acquire pure-play mobile software vendors for their technological expertise. Siebel Systems, Inc., currently leads the European mobile applications software market. However, its lead is expected to diminish as other applications are introduced into the market.
Locally focused mobile operators and operators that have penetrated new geographical markets are performing strongly. With a projected 19 per cent market share in terms of number of business data subscribers, Vodafone Group is set to lead in 2004 followed by T-Mobile with an estimated 16 per cent and Orange with 14 per cent. Operators that can merge a robust local business presence with a strong presence in key market verticals are expected to consolidate their market position.
In 2003, the highest levels of mobile applications penetration were in utilities, manufacturing and transport and communications verticals. "The surprising vertical market take-up is being driven as much by the existing market focus of SIs and vendors as by inherent need," says Mr. Tanner-Smith. "As the market begins to grow, this is likely to change as bigger opportunities and economies of scale allow SIs and others to target specific verticals."
Competing technologies such as W-LAN, are expected to create a major challenge to the adoption of mobile applications software. Indeed, the high penetration of notebook PCs and demand for flexible access to network services have made the enterprise the key market for WLAN.
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