News
Issue #2002 - 37 (September 2002)
(Updated October 2, 2002)

MARKET OUTLOOK 

75% European Corporations will Implement B2E Enterprise wireless applications Next Year - a major new study reveals today.

Three quarters of European Corporations will provide wireless applications to their employees in the next year - but no single wireless technology stands out as a clear favourite, a major new study reveals today.

Looking forward, companies right across Europe are considering all technology options - from smartphones and PDAs to laptops in the device arena, from GSM, GPRS and UMTS to Public Wireless LAN for wide area network access. Some 60 per cent of companies questioned anticipated that 3G will impact on the way they do business by the end of 2003. 

Challenges facing IT directors today are far less technology-led and more focused on making employees more productive or effective, according to the independent research commissioned by IBM. 

“This research highlights what we have seen for the past two years at IBM - companies have really switched on to the ROI and productivity potential of wireless e-business,” said John Kirby, Vice President, Global, Wireless e-Business Services, IBM. “In this climate, strategic partnerships will prove crucial in delivering the right wireless solution for overall business success. There is a huge opportunity for IT services companies to play a defining role in moving the industry forward.” 

Kirby added: “Wireless data involves implementing infrastructure solutions that support many types of device and different wireless networks. And, going wireless also calls new ideas and skill sets that must, at all times, be aligned with overall business and IT strategies. It is hardly surprising that when first considering wireless solutions, almost 60 per cent will call upon the same trusted integrator, consulting and services partners that helped them in other areas of IT.” 

The research - titled ‘Corporate Wireless Adoption in Europe’ - was conducted by QNB Intelligence on behalf of IBM and involved nearly 500 senior influencers and decision-makers from 11 European countries. 

Dale Vile, QNB Intelligence, highlighted that European mobile operators need to establish beneficial relationships with successful IT partners in order to ensure success. 

He said: “Network operators are still feeling the impact of 3G licence bidding and roll-out delays. They need to reverse negative perceptions about network reliability and security and build management awareness before they can tackle the wireless data market. The research confirms that the IT industry will be the key to unlocking wireless potential. To date the mobile operators have made limited inroads into the wireless data marketplace have lacked the skills and experience to sell the promise of data.” 

The study finds that wireless data has a growing profile in Europe, with 13 per cent of mainstream businesses (excluding telcos) already rolling out their wireless strategies. A further 26 per cent are actively planning and most of the remainder have wireless on their corporate radar. Around three quarters of organisations say they will be providing wireless applications - with the initial emphasis on email - to their employees in a year’s time. B2B and B2C plans are currently running six to 12 months behind. 

Dale Vile, QNB Intelligence, concluded: “Where there is some momentum in deploying wireless applications, the projects are currently mainly limited to mobile email and organiser functions. We are, however, seeing greater interest with increasing prevalence of sales force automation, CRM and field force automation.” 

Further key findings of the report include: 

- Wireless LAN is moving fast into the mainstream - 15 per cent have already implemented; a further 40 per cent are piloting or seriously considering. 
- Wireless data awareness is high with plans both optimistic and business driven -nearly 90 per cent of organisations are planning to exploit wireless. 

• Ownership of wireless communications is 60 per cent owned by IT departments - wireless data is now an evolutionary element within overall IT strategy. 
• B2E is prevalent in these early days - a majority of those active in these early stages are rolling out to small communities of users. 
• More than half of organisations now supply PDAs officially - corporate adoption is an important cornerstone for wireless. 

Source - 3G website from UK - http://www.3g.co.uk/PR/Sept2002/4140.htm and QNB site 

For more information: Qatar National Bank , IBM  and http://www.3g.co.uk and 

MobileInfo Comments and Advisory:  This is well-executed market research that is encouraging. However, are wireless service providers really capable of selling to the enterprise or they purely interested in wishful bonanza in wireless gaming, multi-media picture sharing, and multitude of other services that depend on lot of spare cash among early adopters? We think that it will be left to mobile professional service companies like IBM, EDS, Wireless Knowledge and others to help enterprises implement wireless applications in specific vertical industries. Let us hope that wireless service providers can deliver horizontal applications like messaging, workgroup collaboration, etc..

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.