Sunday, November 12, 2006

End of Mobile email Consolidation?

Motorola on Friday announced that it is acquiring Good Technologies for undisclosed amount. Good Technology a Santa Clara based company which provides primarily email solution for enterprise customers. Though the amount is not disclosed I can make an educated guess that it should be around same amount as that paid by Nokia to acquire Intel sync (450 million dollars).In Mobile email segment RIM (makers of Blackberry Devices) has around 59 % market share followed by Intellisync with 9% and then Good technologies with 8% . This post tries to analyze wider implication of this deal on mobile email segment.

Mobile email or Push email (i.e. technology that enables access of email in your wireless devices like mobile phone PDA etc) is pioneered by blackberry devices (RIM).As the technology matured the other mainstream Mobile device vendors like Nokia, Motorola etc started offering similar services in there portfolio and even started producing devices similar in form factor to blackberry (Nokia E61 and E62, Motorola’s Q).around same time there started popping up device independent pure wireless email SW solution vendors like Intellisync,Good Technology,Visto,Seven to name a few noted vendors .Device vendors like Nokia ,Motorola typically provide support to many email solutions in their devices .But at the same time both Nokia and Motorola started to diversify into Enterprise Solution business in which email solution is first and import segment which enterprises are embracing now So they had to develop or buy companies with this technology .So Nokia acquired intellisynch and Motorola on Friday bought Good technology. Now life for independent Mobile email solution vendors like Visto and seven is tougher of course right now they are concentrating on Mobile operators to reach customers but as this technology matures and it becomes as integral part of devices the chances for independent companies to survive narrows down. My guess is that companies like Visto would be acquired by big companies like IBM, HP etc who are big Enterprise SW vendors who might be interested so that they can expand their offering to enterprise Mobility Space.


MobileThoughts said...

You raise some excellent points. However, the majority of these companies, both software and hardware are focused on the business market which is currently dominated by RIM. The bigger opportunity is the mass consumer market where companies like Movamail ( are providing a mobile email service specifically for the needs of mainstream consumers. Push is over rated and over hyped, and something that the majority of consumers simply do not want or need. They want fast email access that is cost effective and works on the phone of their choice... either the on the one they have or the one they might buy. So yes there is consolidation, but the market will support more entries, and perhaps further consolidation.

BANUDK said...

I agree with your comments .But my posting concentrated on Enterprise Email segment where i think big margins are for vendors.But when it comes to consumer space I agree market has not even started to grow forget about consolidation .My thoughts in that segment is that already existing big email providers like yahoo,MSN would roll out mobile email solution on device agnostic basis like for example recent Gmail app for mobile.I dont expect consumer s to shift email service just for mobiles what they want is free internet based email solution delivered on phones.