Mobile Solutions CI

Cringley calls WM dead

Sci-Tech Today | One Expert Says Windows Mobile Will Die.

Cringley says iPhone sounding death knell for WM. I think his analogy here is sloppy and Symbian is as likely as WM to fall of the shelf in market share, as the smartphone segment grows and blurs and Symbian increasingly gets pushed downmarket.

Microsoft, Manufacturers Announce UC Phones and Devices Tied to OCS

Microsoft announced that nine vendors are creating an initial round of 15 phones that will be certified for use with Microsoft Office Communications Server (formerly LCS) and the Microsoft Office Communicator client, both of which will be released this summer. They are currently in beta. The combination of server, client, and partner-supplied devices is expected to substantially undercut pricing for similar solutions from Avaya and Cisco.

The first round of 15 phones will be made by a variety of vendors including Samsung, LG-Nortel, NEC, Plantronics, Asus, GN, Polycon, Tatung, and Vitelix and will include IP phones, USB phones, wired and wireless headsets, Bluetooth devices, conferencing phones, portable speakerphones, LCD monitors and software-client only phones on laptops. Some of the new phones connect directly to a USB port, so mobile workers can bring the phone with them and use it along with their laptops to access features typically only supported on desk phones, like call forwarding and conferencing. Other new phones include Bluetooth and video capabilities.

By themselves, none of the phones offers as many features as those from Cisco or Avaya. But integrated with OCS they will have capabilities like presence and integration with the Microsoft Office Suite that will connect e-mail, instant messaging, real-time presence information, conferencing, VOIP (voice over IP) and mobile communications.

Microsoft positions their UC as "reaching a person, not a number" by providing partner solutions that are plug and play (messaged as "just works"). Microsoft is creating a qualification program for manufacturers to ensure devices work out of the box with both server and client Office Communicator software.

I didn't notice any coverage mentioning that mobile providers and traditional players Cisco and Avaya already have such solutions in-marke; for example Nokia Intellisync Call Connect solution is already in the market place fully integrated with Cisco and Alcatel on Eseries dual mode devices.

Summary article

Microsoft announces Crossbow ahead of 3GSM

Microsoft is releasing Crossbow (now named Windows Mobile 6) details in advance of 3GSM. Microsoft has made some key gains in this release, notably the on-device encryption and improving policy-driven controls.

It will be interesting to see if this helps drive adoption of the full architecture required or if the premium CAL and Exchange/Office/device solution is too heavy a premium.

Key Crossbow features Microsoft emphasizes:

• IM client (now branded as Office Communicator)
• HTML support
• Encrypt data stored on device
• IT policy control

This article also notes Crossbow supports VoIP. "Microsoft Unveils New Windows Mobile"

CNET: WM flaws could crash phones

These articles suggest mobile middleware and more targeted "point" solutions for enterprise messaging (from RIM's BES to Goodlink and Intellisync) remain a far more robust solution for enteprises to extend solutions to mobile devices:

"A security firm has found a pair of security bugs in Microsoft's Windows Mobile which, if exploited, could crash phones and other devices running the software."

CNET: Windows Mobile flaws could crash phones

The vulnerabilities lie in Windows Mobile Internet Explorer and Windows Mobile Pictures and Video, Trend Micro, a Tokyo-based security vendor, said in a pair of security alerts. Viewing a rigged Web page or malicious JPEG image file on a Windows Mobile device will cause it to fail, according to Trend Micro.

Palm Treos Get Direct Push

Palm announced today that Microsoft Direct Push will become part of VersaMail, Palm's mail client.  Treo 680 and Treo 700p Smartphones will update Palm's VersaMail to include Microsoft Direct Push technology.

Palm can now claim "out of the box" wireless email for Palm Treos whether they use WM5 OS or Palm OS--without middleware.

This extends the life of the Palm OS by enabling user-activated "push" email for Windows Treos being used in Exchange 2003 SP2 or later enterprise environments.

Available next week by download from Palm

Press release: 

http://investor.palm.com/pressdetail.cfm?ReleaseID=227084

Article: 

http://www.infoworld.com/article/07/01/25/HNpalm_1.html

Download site:

http://www.palm.com/us/support/downloads/treo/easupdate.html

Palm in mobile messaging: F2Q07 (Qtr End 12/1/06) Earnings Call

Palm reported earnings a few days ago. There are some very interesting comments regarding mobile messaging devices and vendors. Key claims made by Palm:

• RIM has superior execution in operator channel because of its device/platform integration, and this advantage is short-term.
• MOT/Good accounts for 10-12% of all Treo sales, but that number will drop going forward because of Microsoft Exchange Direct Push improvements to device management and security. Exchange Direct Push will soon squeeze out Good.

In other words, Palm is asserting on one hand that the mobile messaging market will squeeze out the middleware vendors and become largely a Microsoft game on the solution end with handset vendors providing only devices.

This contradicts the suggestion that RIM is enjoying a short-term advantage in go-to-market speed becaues of its integration of messaging solution and device, an advantage which will decrease as enteprises reqiure more complete mobilization solutions with broad, cross-platform capabilities.

If  "over time, the more and more people who want to add functionality to these products, businesses who want to add functionality to these products--recognize the open platform advantages" then a MOT/Good, a RIM, or a Nokia/Intellisync become strong players.

If not, if mobile messaging and applications converge on email (not unified communications) and email becomes a commoditized offering dominated by Exchange/Outlook, then you would see Palm, HTC, Samsung, and other pure device players forced into a world very similar to Dell and Gateway with RIM remaining as the Mac-like outlier. This seems a far less likely scenario given the increasing mobilization of enterprise data and applications (For instance, see "In-Stat: Finally, Wireless Data Adoption Accelerates - 75% of US Businesses Have at Least One Data App")

Palm, in defending its inability to get the 750 certified and lack of a widely differentiated device portfolio, is making mutually exclusive claims about how the market is developing.

From the SeekingAlpha transcript:

Mike Abramsky - RBC Capital Markets

Okay. Last question is actually relative to Research in Motion. Obviously they have had very strong performance, some of which significantly has come off their new Pearl product, as well as expectations that is going to continue. Do you think that the market for these devices is strong? Do you think those kinds of growth rates are reflective of -- is it only RIM that can deliver that kind of growth? Is there something unique about the way they are approaching the market than you guys? Is there some difference to the products and strategy that you have that might account for the differences in the current growth rates?

Edward T. Colligan

I do not want to comment on RIM’s business here. I think at the end of the day, the facts are that they shipped that product in front of the holiday season and we were a little late on ours. That is just the reality. I think we could have, if we had been a little further ahead with our, even the 680 product, we would have seen a significant sell-through at this quarter already, relative to that.

To me, a big part of what you are seeing is sell-in, which is what the analysts track and that is a product delivery timing issue. Would we like to have the 750 for the holiday quarter? Of course we would and we are doing everything we can to deliver all those.

One of the things that they have as an advantage, I would say, at this point in time, because it has not been recognized in the other case over time, but I think it will be, is that they have a proprietary platform that they only produce for one platform. It is a little easier to get products to market on that, a set of more narrow applications and more narrow functionality, but you can get the products to market.

We think over time, the more and more people who want to add functionality to these products, businesses who want to add functionality to these products will start to recognize the open platform advantages that we have, and that will be an advantage at that point.

Right now, if it is only about design and form factor, then getting products to market faster makes a difference and they were ahead of us.

James Faucette - Pacific Crest Securities

Firstly, as it relates to Good and the enterprise, it is clear that Good would like to keep it device independent, or company device independent. Motorola said they would do the same, but just from where we can kind of gauge how important Good is to you, could you give us an idea what proportion you believe of devices that are going into the enterprise are ultimately ending up attached to a Good service?

Edward T. Colligan

The numbers we have seen are in the range of 10% to 12% and we, like we said, one of our things is to obviously continue to deliver that business and to grow that business, but we also have a number of options to replace that, should that not be available to us.

We think, and relative to everything that Microsoft has said, they are going to produce a more capable solution, specifically in the area of device management and control out in the field, which is the place where Good and RIM tend to excel relative to that solution today. As those capabilities get delivered on the Microsoft platform, I assume that Microsoft will be a major player in remote e-mail delivery. We are certainly the only company today that has a Windows Mobile and Palm OS push solution for Microsoft, and we intend to take advantage of that position.

Microsoft releases Exchange 2007 and new LCS version

Microsoft has released two major server upgrades, Exchange 2007 Server and Office Live Communications Server. These releases are in many ways more impactful than Vista because they integrate core functionality in messaging, communications, and security previously supplied by partners.

Leveraging these new server features will require comprehensive upgrades. Enterprises will be forced to choose between becoming "Microsoft shops" or integrating best-of-breed solutions to accommodate heterogeneous environments.

At a business model level, Microsoft has incorporated SaaS revenue streams into two main product areas which formerly depended entirely upon server and CAL fees.

• Free content and services which generate revenue to Microsoft through ad-on premium services and partner revenue sharing
• Bundled with other related server-based software targeting small business, such as Small Business Server (accounting software) 

At a solution level, these two servers take key partner competencies in communications and security (Cisco, Nortel, Avaya, IBM, Doubletake) and compete directly with them as bundled offers which are "free" add-on server features.

The new Exchange 2007 Server has transitioned from a messaging to a unified communications solution with rich integrated voice and calendaring features.

• Exchange 2007 interoperates natively with both traditional and IP-PBX systems.
• Exchange can now be used as a native voicemail server, with policy rules for internal or outbound e-mail, voicemail and fax messages
• Answers calls using a speech-enabled automated operator and delivers voicemail and fax messages to the Exchange inbox, where they can be accessed by Outlook, Outlook Web Access, mobile devices, and from a standard phone.
• Exchange also allows users to issue instructions to the e-mail application over the telephone, allowing them to cancel meetings and send notifications to other meeting participants.
• Improved mobile messaging and mobile device management through Vista Windows Mobile Device Center (WMDC)

Review

Feature List

Office Communicator (formerly Live Communication Server) is a web-based service targeting small businesses. Key feature areas are:

• Free web site generation, hosting and basic management including free ad serving
• Free collaboration (PBX to PSTN integration, meeting software, IM, Video), accounting, and customer relationship management (CRM) capabilities

Feature list here

Windows Mobile security gap continues to make news

“Microsoft has refused to deny that the most recent version of Windows Mobile leaves data poorly secured on handsets.”

Microsoft doesn't deny Windows Mobile flaw

David Meyer ZDNet UK

Jack Gold’s report, which I mentioned last week, continues to get media play. In a response I think is remarkable, Jupiter analyst Michael Gartenberg says that we shouldn't care about a security gap in mobile devices because...many people don't secure their laptops.

Check out Jason Landridge's response to this to understand Microsoft's stance:

http://blogs.msdn.com/jasonlan/archive/2006/11/05/direct-push-security-fud.aspx

BES vs Direct Push White Paper

Rysavy Research published a study comparing RIM's email solution to Microsoft's Exchange Direct Push.

The main conclusions:

• In all cases Blackberry was significantly more efficient for operator, enterprise, and end user.
• In nearly all instances, Direct Push consumed more network resources than the original file size. In some cases it used twice the original file size.

Microsoft Security Flaw Reported

I forgot to post this last week: Analyst Jack Gold released a study criticizing Direct Push security. It's been getting increasing media play.

“The report states that the underlying "AirSync" code that is used to wirelessly update data between Exchange and the Pocket Outlook client can leave data on the device itself insecure.”

"The current version of ActiveSync (and AirSync) can only do a file synch of specifically formatted datasets that meet certain Microsoft data requirements," says the report. "This means that any transfer of data, from Exchange Server to Pocket Outlook, for example, must be done in an unencrypted file state."

The report also points out: “The current version of ActiveSync (and AirSync) can only do a file synch of specifically formatted datasets that meet certain Microsoft data requirements” as an example of the limitations an enterprise faces when “locking in” to an all-Microsoft solution for mobilizing an enterprise.

Jack Gold, former Meta analyst, was a staunch defender of RIM during the NTP case coverage. As a response to Gartner’s suggestion to pick an alternate email solution as protection against a RIM shutdown Gold released a study (Wireless Email: The High Cost of Change) claiming switching mobile email solutions would cost over $800 per user.

Coverage of Gold’s Microsoft report: