CTIA Wireless IT and Entertainment 2007:

Microsoft Announces Mobile Device Manager Platform, with the Potential to Alter Market Dynamics

| October 24, 2007 | Enterprise Mobility - U.S. | Show Update

| Analyst: Kitty Weldon

Current Perspective: Positive
Vendor Importance: High
Market Impact: Very High

Event Summary

On October 23th Microsoft launched System Center Mobile Device Manager 2008 (MDM), a server-based device management and security platform for Windows Mobile environments. MDM will be available in H1 2008. Also announced was a strategic partnership with Enterprise Mobile, a new company that intends to help businesses go mobile with custom-made solutions.

Analytical Summary

• Current Perspective: Positive on Microsoft’s new Mobile Device Manager 2008 (MDM) server platform, as it adds significant enhancements to the management and security of Windows Mobile devices, in direct response to both IT and end-user customer demand. These new features will be particularly important to boost the deployment of wireless solutions for line-of-business applications that require more stringent security and more sophisticated device management capabilities than mobile e-mail. Microsoft can soon position Windows Mobile as a robust enterprise-grade OS that ties in with existing Microsoft systems and servers already in use by many customers.

• Vendor Importance: High to Microsoft, because although Windows Mobile has shown impressive (i.e., double digit Y-Y) growth, the middleware-less platform used on the backend (i.e., it is integrated with Microsoft Exchange 2003) has been frustrating to some enterprise customers, many of whom still view RIM’s BlackBerry Enterprise Server or Nokia/Intellisync Mobile Suite as providing better support for IT. By offering a more feature-filled server option, Microsoft can appeal to large enterprise customers that are looking to deploy wide-ranging business process applications securely.

• Market Impact: Very high on the enterprise mobility market, as this move by Microsoft has the chance to alter market dynamics radically, not only to RIM and Nokia’s detriment, but also by squeezing out smaller niche device management and security vendors that have been successful primarily by filling in gaps in mobile middleware platforms. The new server will also provide an overall boost to the EM market, at least to the portion of the market that is already (or likely to become) Microsoft “shops.”

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