Digital networking company Plaxo Inc. stepped onto the wireless playground last week, inking a deal to allow Verizon Wireless subscribers to update contact information on their handsets over the air.
The software developer unveiled Plaxo Mobile Plus, a service that takes information from popular e-mail systems from Microsoft Corp., Yahoo Inc. and America Online, and synchronizes the data with mobile phones. The offering, which is powered by mobile software developer Zingy, works on about 30 handsets, and Plaxo plans to launch with fellow BREW-based carriers Alltel Corp. and U.S. Cellular Corp. in coming weeks.
Significant questions remain regarding Plaxo’s business model: The 5-year-old company has gained substantial ground with its “smart office book” service, which is free, but it’s unclear how successful Plaxo has been with its premium offerings, which include customer support features and assisted data recovery. And the company has an army of detractors who object to the service’s contact information updating system, which allows one user to receive new information about another user without the second party even knowing of the request.
The firm claims 15 million users-up from 10 million just six months ago-and is funded by well-known investors including Sequoia Capital, DAG Ventures and Cisco Systems. Competitors in the digital networking space include LinkedIn-Plaxo’s prime competitor-as well as Jigsaw and SalesGenius.
Wireless could be particularly fertile ground for Plaxo, which hopes to serve as a “locker” for contact information and other content, eliminating the need to manually enter data when upgrading a phone or replacing a lost handset. Verizon Wireless and other carriers offer services that allow users to back-up contact information in case they lose their phones; several gadget vendors offer cables and software that can transfer information between handsets. And Oasys Mobile targets younger wireless users with a subscription-based “content locker” where users can store ringtones and other mobile goodies, effectively allowing buyers to re-download content after the initial purchase.
Verizon Wireless is offering Plaxo’s service at $4.50 a month.
