Application management to drive mobile phone innovation in 2009

The iPhone. Blackberry. T-Mobile G1.

Ready or not, the mobile device marketplace continues to evolve and 2009 promises to change the mobile application landscape in ways no one imagined just a year ago.

With the much-anticipated introduction of T-Mobile USA Inc.’s G1 smartphone in October, the market definitely got more interesting, with mobile applications experts calling it a “game-changer,” a device that will offer the Apple Inc. iPhone a run for its money, providing real competition not only for the hearts of consumers, but for the attention of application developers as well.

What caused much of the anticipation was the introduction of Google Inc.’s Android, a completely open source cell phone operating system, developed in partnership with the Open Handset Alliance.

Unlike Apple, which fiercely controls every aspect of its product development process and its proprietary iPhone operating system, Google encouraged third-party application development for the G1. Android joins a growing list of mobile device operating systems that includes Symbian, Brew and Windows Mobile, to name just a few. Therein lies a problem: Many of today’s most popular devices feature their own operating systems and a host of applications specific to both the operating system and the device, and sold through each company’s online market. For example, if you own a Nokia handset and want to download an application that wasn’t developed specifically for your phone, you’re out of luck. To make matters worse, consumers often are forced to search for an application online, buy it, download it, and make sure they keep it updated.

That’s why 2009 is shaping up to be the “Year of Mobile Device Management.” Developers say that the real story for 2009 is not new applications for mobile devices, but the ability to buy, use, and update them easily, regardless of device or operating system.

Lori Sylvia, executive vice president of marketing for Waltham-based Red Bend Software Inc., which specializes in firmware that manages mobile device applications, said, “The dynamics of the mobile phone industry are changing because operating systems are opening up. It’s going to be all about streamlining the purchase and upgrade of applications so the consumer will have a richer, more efficient experience.” According to Sylvia, consumers soon won’t have to worry about whether a particular application will work with their phone and service, while manufacturers and operators won’t have to worry about compatibility and user upgrade issues.

At the Mobile Business Expo held in New York in September, a panel of mobile application developers discussed open operating systems and the consumer desire for a richer experience that in the past meant device-installed applications, but now includes more web-based applications. What might some of those applications be? Mobile financial services for one, if initiatives launched by both Sprint Nextel Corp. and AT&T Inc. are any indication. Both carriers are looking to promote mobile banking through mobile devices, though that might be more of an uphill battle than one would think. According to Forrester Research Inc., while 85 percent of the U.S. population owns a cell phone, only 11 percent access the mobile web more than once a month. Industry analysts agree that mobile banking will grow slowly but steadily over the next few years.

For Killer Mobile Software LLC’s Josh Alner, 2009 will see increasing interest in security apps. “I see security applications gaining a lot of ground,” states Alner, whose company is based in Oregon. “These apps will include anti-theft and device recovery features via GPS. We’re seeing a lot of interest from business users who want remote data locking and wiping of their employee’s devices. This type of application will certainly gain some traction in the next couple of years, especially as employees put more and more sensitive data on their devices.”

Julian Bourne, CEO and founder of Weston-based Proxpro, which develops location-based, just-in-time mobile applications, says that security has been a development area for mobile applications because of identity theft and privacy issues. “Privacy concerns have all been hashed out by the carriers,” states Bourne. “Social networking applications are now possible on mobile devices that couldn’t even be considered a year or two ago.”

For Bourne, the development situation is “a hundred times better than it was three years ago — the carriers had complete control then.” Bourne sees rapid growth in the high-end smartphone business, growing to be as much as 50 percent of the market within two years.

For consumers interested in add-on applications for their smartphones, Jim Levinger, CEO of Nextcode Corp., a Concord-based developer of mobile applications using barcode scanning technology, the iPhone and new G1 smartphone represent the “tip of the spear” for how applications, web access and service will be provided in the future. “Carrier revenue is going to come from data service, not voice, and the iPhone and G1 are setting expectation levels for consumers,” observes Levinger.