Wireless Data Market Shifting Back to Verticals

SCOTTSDALE, Ariz., June 16, 2003 - A recently completed study by In-Stat/MDR finds that wireless data adoption is growing in the business environment -just not with the "hockey-stick" growth curve that continually has been projected. The high-tech market research firm's study, which was based on more than 1,500 surveys with IT decision-makers in the United States representing seven vertical markets, illustrates that implementation of wireless data in corporations is, in fact, likely greater than many people might expect. However, the extent and complexity of actual solutions within each organization vary significantly.

"Many companies have simple "point" solutions (one device, one service, one application) in place today, while other deployments are far more intricate," says Becky Diercks, a Director with In-Stat/MDR. "It is heartening to see the majority of current wireless data users plan expansion within the next few years, so growth will come not just from new installations, but also organically-from a greater number of subscribers within existing user companies." For vendors and service providers to experience the most success in this market today will require hard work as the wireless data market has shifted back to focus on vertical markets rather than horizontal applications such as e-mail, and their needs are varied, diverse and often complex. Some of the earliest adopter industries-transportation and utilities as well as finance, insurance and real estate (FIRE)-have put wireless data to broad use and have been able to realize the benefits from using the technology. The health care industry has a strong desire to do big things with the technology, and yet its current implementation is rather limited today. Solutions must be tailored to meet each individual market's requirements.

"The healthcare industry has a strong desire to do big things with the technology, and yet its current implementation is rather limited today."

The study also found that:

- While it might be easy to summarily discount industries such as manufacturing in favor of the more aggressive adopters such as transportation, In-Stat/MDR believes vendors must not make this mistake. The sheer size of companies in vertical markets such as manufacturing means that, although overall penetration within the industry is lower compared to others, the actual number of wireless WAN data subscribers is still actually higher than other vertical market segments.

- Most current wireless data implementations rely on the cellular network, and often on private company networks, with lesser use of messaging and other technologies. The study also showed high implementation of wireless LANs in these companies, and it seems likely that these companies also will be excellent prospects for public wireless LAN services in the future.

- While the research shows high usage of cellular phones as the wireless access devices of choice today, end user companies are focusing more attention on notebooks and PDAs with wireless modems in the future.

© PDA cortex. All Rights Reserved
IT's Cutting Edge