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Gartner Consulting Says Wireless E-Business Market Soared to $110 Billion in 2001
URL(s): www.gartner.com
STAMFORD, Conn., Feb 28, 2002 - Worldwide wireless e-business revenue totaled $110 billion in
2001, a 46 percent increase over 2000 revenue of $75 billion, according to Gartner Consulting, a unit of Gartner, Inc. (NYSE:
IT and ITB).
According to a study conducted by Gartner Consulting, the services and middleware markets were the most influential in driving
wireless e-business growth.
In 2001, the wireless e-business market was led by business-to-employee (B2E) services. As the market focused on B2E and
began to mature, the market shifted from being dominated by small, specialized vendors to being increasingly dominated by the
large, traditional vendors.
"We found that some vendors have their fingers on the pulse of this market and are set to do well, while some are still struggling
as to how they will play in this market," said Victor Milligan, vice president for Gartner Consulting. "Looking ahead, vendors
must work to provide more holistic solutions to address wireless e-business needs."
According to the study, two major considerations will affect this market -- namely, the future impact of the economy and the
needed focus on the quality of the users' experience.
"We found that the global economic slowdown impacted the growth of this market, especially for services as budgets were
redirected to business continuity needs," said Milligan. "Our view is that in 2002 wireless e-business should fare better than
other solutions because it is so intrinsically linked to efficiencies and return on investment."
Moreover, future consideration for vendors must be to increase the focus on the usability and convenience of wireless
e-business.
"In the past, vendors were focused on the enterprise or business value of wireless e-business," Milligan said. "They did not
sufficiently focus on the specific needs of the user -- particularly the type of user who does not have the skills and patience to
navigate wireless e-business operations. Vendors must focus on these users because they will be a key constituent within the
business lines."
The study revealed some critical success factors in the specific segments that will ultimately determine the growth and growth
rate of the wireless e-business market in 2002.
"In the middleware space, the portal is increasingly becoming the centerpiece for wireless management and provisioning," said
Milligan. "Vendors that can embed wireless application gateway functionality into their portals and support wireless from a
feature and function standpoint are best positioned to succeed in this market."
Success factors for professional services were also a focus of the study. Application development comprised 67 percent of
overall service revenue in 2000 and 2001. In 2002, services vendors will have to focus on new service offerings to maintain the
80 percent level of growth achieved in 2000 and 2001.
"As large independent software vendors begin to spin off or acquire specialized vendors to do the customizing, application
development revenue will begin to decline in 2002," said Milligan. "Our analysis indicates that the extension of pilots, outsourcing
opportunities, and more complex integration will counterbalance the decline in application development revenue, resulting in an
overall growth rate of 100 percent from 2001 to 2002."
The Gartner Consulting study titled "Wireless E-business: The State of the Market in 2000 & 2001" includes analysis of more
than 15 industries and 100 vendors providing products or services into the space, and provides critical success factors for 2002
and beyond. The study also analyzes seven key segments that comprise the wireless e-business market, including
semiconductors and subsystems, devices, operating systems, middleware, applications, infrastructure, and services.
Gartner Consulting's Market and Business Strategy group provides strategic market advice to technology providers, focusing on
developing market strategies and partner strategies, and it conducts competitive analyses. Additional information can be found at
www.gartner.com.
Gartner will provide additional analysis on security during the Gartner Wireless Access, Mobile Business Solutions conference,
being held March 11-13, 2002, at the Sheraton Chicago Hotel in downtown Chicago. Gartner analysts will discuss topics such
as the economic, social and legal trends that will affect enterprise adoption of mobile and wireless technologies; how
applications and systems architectures will evolve to exploit mobile and wireless capabilities; and how security and privacy will
be assured in an anywhere, anytime, "always on" world. For more information on this conference, please go to
www.gartner.com/us/wireless or call 1-800-778-1997.
About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business
growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in
1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and has 4,300 associates, including 1,200 research analysts and
consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenues of $952 million. For more
information, visit www.gartner.com.
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