NXTcomm08

NextPoint Assembles the Troops to Attack Mobility Market

| Jun 19, 2008 | IP Services Infrastructure | Show Update

| Analyst: Joe McGarvey

Current Perspective: Positive/Neutral Vendor Importance: High Market Impact: Moderate/High

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Event Summary

June 17, 2008 – NextPoint announced that it has named product development services specialist GlobalLogic to drive the software development effort for its newly launched Mobility Development Center. The award, which represents an expansion of the companies’ four-year joint development relationship, includes a five-year, multimillion dollar managed services agreement. The GlobalLogic technology partnership and the establishment of the Mobility Development Center is designed to enable NextPoint to build and deliver next generation network interoperability solutions more rapidly, including enhancement of the company’s mobility-enabling security gateway and session management platforms.

Analytical Summary

• Current Perspective: Slightly positive on NextPoint’s partnering with GlobalLogic to drive the development of software behind NextPoint’s Mobility Development Center, as the extension of an existing relationship will help to accelerate the company’s development of products aimed at mobile and converged operators. The new contract with GlobalLogic provides NextPoint with instant access to hundreds of mobility software experts that are employed by GlobalLogic in several regions around the world. Though the practice of exporting software development to third-parties is common place in the telecommunications industry, NextPoint’s move is likely to be portrayed by competitors as a cost-cutting exercise that puts the company’s future product development activities into the hands of outsiders.

• Vendor Importance: High to very high to NextPoint, as the company is making a major commitment to shifting its product focus to the mobile market. The announcement can be interpreted as an acknowledgement by NextPoint that the session management market is shifting toward the mobile domain and that the company – second to Acme Packet in the mostly-fixed SBC market – believes that its best chance of commanding a market is to accelerate product development in the mobility space. Much of NextPoint’s future prospects, therefore, hinge on the success of its strategic shift toward mobility-based session management.

• Market Impact: Moderate to high on competitors in the SBC and fixed mobile convergence (FMC) markets, as NextPoint is sending a signal that the mobile and FMC session management and security market is up for grabs to the first company that can assemble compelling products that will address the needs of carriers. By accelerating its development efforts, NextPoint is putting pressure on competitors to match the resources and the commitment Nextpoint is applying to this market.

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