Strategy Analytics: Wireless Enterprise Ecosystem to Generate $115 Billion by 2009

BOSTON & LONDON--April 15, 2004--

Wireless will capture up to 8 Percent of total IT expenditures

The latest report from Strategy Analytics, "Wireless Enterprise Ecosystem Outlook (2004-2009)," projects a tripling of wireless-related IT ecosystem revenues over the next five years in North America, Western Europe and Asia/Pacific. The report also predicts dramatic swings in the revenues flowing to various value chain constituencies, catalyzed by better handling of wireless and mobility in core business applications and the increasing importance of service-driven business models. While anticipated cost declines in devices, services, software and transport all point to a more clearly demonstrable ROI statement for wireless, just who will assume these roles in an immature market still rife with uncertainty is still very much open to debate.

"The overall prognosis for enterprise wireless is excellent. Not only will mobile worker penetration expand at a healthy rate, but mobility will equate to a wireless connection in 80 percent of the mobile clients deployed five years down the road, up significantly from around 50 today," states Cliff Raskind, Director, Wireless Enterprise Strategies. "While this means operators will enjoy a near-50 percent CAGR over the next five years on the enterprise traffic they carry, the real story is the changing composition of the higher value Software and Services segments. While Software and Services overall will continue to account for two-thirds of ecosystem value, revenues flowing to the purveyors of core business software applications - where real business value is created - will approach a fifth of wireless ecosystem revenues as middleware and device OS-level costs retreat. We also expect an inversion within the Services category where system integration's classic dominance will take a back seat to emerging service-driven models characterized by outsourcing, ASP, utility computing and managed services," Raskind adds.

David Kerr, Vice President, Strategy Analytics' Global Wireless Practice, also issued a call-to-action for network operators in offering services to the underserved SME segment. "Today there exists a vast yet amorphous ecosystem of vendors all offering alternative solutions for implementing wireless data into the enterprise. However, there are few truly end-to-end solutions tailored to the needs of the small to medium business. Mobile operators with aspirations beyond basic transport must surround themselves with the best partners as a critical base of competition."

For a detailed look at how the wireless enterprise ecosystem will break down in 2009, please see http://www.strategyanalytics/press/pr00117.htm.

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.