Worldwide Mobile Enterprise Application Market Will Experience Double-Digit Growth and Reach $3.5 Billion by 2010, IDC Reveals

FRAMINGHAM, MA – DECEMBER 14, 2006 – The mobile employee is mandating more solutions to answer a broader set of needs, spurring the strong growth of the worldwide mobile enterprise application (MEA) market. According to a new IDC study, the mobile enterprise application market reached $1.2 billion in 2005 and IDC forecasts that this market will grow to $3.5 billion in 2010, representing a compound annual growth rate (CAGR) of 23%.

"Vendors and organizations alike must recognize that MEA's are not just about mobilizing a particular application, but rather delivering a set of composite applications based on the mobile workers business processes," said Stephen Drake, program director of IDC's Mobile Enterprise research. "Recognizing this, the underlying platform infrastructure plays a critical role in the delivery of such MEA's. Vendors must continue to enhance their platform or otherwise look to support other existing platforms. Organizations should seek out suppliers that offer a robust underlying infrastructure to support the applications and provide enterprise-grade scalability for future expansion."

"The worldwide growth of cellular networks, the proliferation of handheld devices, and a general level of 'connection' in individuals' personal lives are quickly finding their way into the enterprise," said Mary Wardley, vice president of IDC's CRM applications research. "The current trend in enterprise applications is to 'mobilize' the application by giving employees access to salient portions of the application's content while working in an 'always available' mode with various levels of connectivity."

IDC believes the following factors are driving and impacting this emerging market:

— Varying requirements for application functionality and data based on employee role and time criticality;

— Ability for carriers, device manufacturers, ISVs, and systems integrators to provide packaged solutions to end-user organizations;

— Sophistication of organizations as it relates to mobility, and;

— Horizontal deployments across organizations that drive collaborative, customer relationship management (CRM) applications.

This study also indicates that the entry into mobile enterprise applications is one that all enterprise applications vendors must consider and include in their applications portfolio to a greater or lesser extent. In order to be successful, IDC recommends that vendors realign their understanding of the user experience in the context of mobile enterprise applications. The value to the user will be increased by what is not visible to them by virtue of the behind-the-scenes automation.

This IDC study, Worldwide Mobile Enterprise Applications 2006-2010 Forecast and Analysis (IDC #204115) defines and quantifies the market for mobile enterprise applications. It presents a discussion of the usage models and the taxonomy of a mobile enterprise application solution. Also included is a quantification of the market and a five-year forecast for 2006-2010 with a companion view based on the subjective valuation of mobility by enterprise application segment. Profiles of pure-play mobile enterprise applications providers as well as independent software vendors are included.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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