Smartphone Competition Heats Up with Richer Content

Research in Motion, Ltd. (RIM) detailed its upcoming BlackBerry Enterprise Server 5.0 earlier this week, which includes numerous upgrades that ease management tasks and application control. Elsewhere, the company also announced that its new BlackBerry Bold handheld device will be available worldwide this summer, and will feature enhanced Web browsing and overall performance. Lastly, Nokia Corp. and Microsoft Corp. released some details of upcoming products and market aspirations.

Focal Points:

• BlackBerry Enterprise Server (BES) version 5.0 is currently running at ten early adopter customer sites, as the company hopes to identify performance issues and finalize the code. The new BES will feature a new management interface called BlackBerry Administration Service (BAS) which is Web-based rather than a Windows-based desktop application. Improvements enabled through BAS include improved device management and monitoring and a more fine-grained security model. A new Unified Application Management framework aids the deployment and management model by allowing administrators to package applications together based on user types to aid with distribution. The new BES also aims at better managing software dependencies and ensuring that applications are correctly installed in sequence, to address common problems that arise in many user situations. Other improvements are being addressed in the BlackBerry Monitoring System, device activation and diagnostics, and reliability using improved failover technology. RIM hopes to make the upgrade generally available by the end of the year.
• The new BlackBerry Bold smartphone features a newly designed keyboard, fast 624 megahertz (MHz) processor, larger 480x320 resolution screen, and integrated Global Positioning System (GPS) and Wireless Fidelity (Wi-Fi). A new Web browsing experience allows for more of a desktop interface, including full presentation or mobile presentation options. Attachments can be downloaded within the browser, and new Wi-Fi setup capabilities make it easier to enter sign-on credentials when connecting to secure access points. Users will be able to surf the Web using the Bold's High-Speed Downlink Packet Access (HSDPA) network connection while also speaking on the phone. A removable battery provides up to 5 hours of talk time, and availability should begin in July. Pricing has not yet been announced.
• Nokia is working hard to leverage its investments in mapping technologies by launching its Ovi.com Web site, wherein users can mark up and share maps from their cell phones. While the first iteration of Ovi.com will be limited to Nokia phones, the company aims to make the application hardware independent, as the company plans on being profitable in its mapping and related businesses. Users will be able to share routes based on GPS activity, markup sites of interest, and share information with friends via the Web. Elsewhere, Microsoft set a target of capturing 40 percent of the smartphone market with Windows Mobile by the year 2012. Microsoft currently has the second largest share of the smartphone market at 13 percent, lagging far behind Symbian Ltd.'s 67 percent share.

Experton Group believes BES 5.0 will be a very welcome product launch when it finally hits the streets. While RIM is certainly a top favorite among enterprise executives and has a well-integrated security and management model, limitations in BES 4.0 have plagued IT departments trying to more easily manage setups, deployments, and application updates. Moreover, corporations are increasingly pressuring RIM to provide better failover and redundancy capabilities to address the shortcoming of recent outages that shutdown entire portions of the BlackBerry network. The company has still been silent on its intention to open up more of the infrastructure to provide non-RIM controlled redundancy. This remains a point of contention. BlackBerry's new Bold looks to be the most attractive upgrade to the mainstream BlackBerry device line since the first color models burst onto the scene. The larger screen and improved attachment handling serve to greatly enhance the user experience, and Experton Group expects the bold to be one of the most sought after corporate handheld devices this year. IT executives should pilot these devices and determine if cost/productivity benefits justify adding the Bold to the list of supported devices.

Mapping will quickly become one of the most heated competitive applications for handheld devices, and Experton Group believes that Web 2.0 technologies that encourage sharing and insight will help determine leadership positioning. Nokia spent significant sums to purchase mapping vendors including Navteq, Inc., and intends for the business to become very profitable for it by including applications in all forms of mobile device sets. Lastly, Microsoft's target of owning 40 percent of the mobile handset market is very ambitious considering the rapid moves in the market and competitive pressures from the likes of Apple, Inc. and Google, Inc.'s Android platform. Nonetheless, the company's ability to incentivize vendors and provide connectivity to Microsoft backend systems and integrate easily with Microsoft Office desktop applications offer the company a compelling jumping off point. Experton Group expects that the battle for handheld dominance will be heated, and that open and collaborative standards will lead to compelling applications. It is these applications that will decide operating system winners, not the operating system environment itself.