The tightened economy seems to be pushing the wireless enterprise market in opposite directions. On one hand, big-name technology players are bolstering their wireless enterprise efforts, hoping to entice new business customers looking to use wireless services to cut down on operational expenses. But on the other hand, some of the smaller, pure-play wireless enterprise companies are suffering through a sales drought as businesses shy away from dealing with potentially unstable suppliers.
Fujitsu and GoAmerica Inc. are prime examples of such a dynamic.
For Fujitsu, the company continues to expand its worldwide wireless enterprise effort through its Fujitsu Consulting business. The division sells hardware like wireless laptops, tablet PCs and servers as well as software and integration services, all in an effort to allow workers to connect to corporate information wirelessly. The company has been working the wireless enterprise markets in Europe and Asia-indeed, Fujitsu just last week signed a deal with Nokia Corp. to jointly sell wireless platforms and devices in those areas-and earlier this year expanded its focus into the North American market.
Kevin Mulcahy, vice president of Fujitsu Consulting’s corporate marketing in the United States, said the company has managed to sign up about 80 business customers since late February-an impressive customer roster for such a short time. Fujitsu is focusing on the government, financial and healthcare markets.
“We’ve had a significant increase in our opportunities,” Mulcahy said.
Fujitsu is working to bring together all the necessary elements of a wireless enterprise solution, Mulcahy said. The company offers hardware, software and integration products and services, and has teamed with Verizon Wireless and AT&T Wireless Services Inc. for network services. Fujitsu has also partnered with software companies like River Run Software Inc. to offer specific applications.
“For most of the opportunities we pursue, what appeals to them is the broader value chain we bring to them,” Mulcahy said. “That has been resonating well.”
Mulcahy’s comments also highlight the differences between larger technology companies and smaller, pure-play wireless enterprise providers-companies that in some cases have seen little success.
For example, GoAmerica last week announced it is working to sell its wireless enterprise business, including its Go.Web software and services, but said that the prospects for such a sale look dim. Further, GoAmerica said it expects to refocus its business around its Wynd Communications subsidiary, which provides wireless services to the deaf and hard of hearing.
GoAmerica said it is working to divest its wireless enterprise assets, and is hoping to command a selling price of $1.5 million. However, the company said that such a purchase price could be “substantially lower,” and if no deals are reached the company will simply shut down its Go.Web business. GoAmerica said such a move would include further layoffs.
The announcement comes after GoAmerica said it hired an outside advisor to explore possible business transactions, including a sale or merger. However, it seems there is little interest in the company as GoAmerica suffers under mounting losses and a bleak business outlook.
GoAmerica said that its Wynd subsidiary might still be involved in a “strategic transaction,” but if no such deal occurs the company will “re-focus its energies” around the business. GoAmerica said its Wynd subsidiary continues to do well in the down economy.
Not all wireless enterprise companies are suffering. Wireless e-mail company Visto Corp. just announced $50 million in new funding.
“The integration of lesser-known brands … is a point of pain for IT managers,” said Richard Doherty, director of consulting firm Envisioneering Group.
Doherty said information-technology managers are extremely hesitant to use technology from smaller companies due to the risk that those companies may not be around to continue to support their technology. Indeed, examples of such shut downs are rife within the wireless enterprise industry.
Such considerations usually lead businesses to team with large technology companies like Fujitsu for their wireless needs, corporations that have extensive international resources.
However, Doherty said, Fujitsu won’t likely put much pressure on the lead wireless enterprise providers in the United States, powerhouses like IBM Corp. and Hewlett-Packard Co. Doherty said companies that are already working with Fujitsu will likely also purchase Fujitsu’s wireless services, but that few will seek out Fujitsu as a wireless supplier.
