Looking to join the wireless portal game, Internet infrastructure software firm Inktomi Corp. inked several deals last week with industry players in an effort to collect all the pieces necessary to build wireless portals for carriers and others.
Inktomi provides Internet backbone technology like traffic servers, content delivery suites and portal search, directory and e-commerce engines. It believes the Internet will increasingly go wireless and formed the following partnerships to position itself in this emerging space.
The company formed alliances with AirFlash.com Inc. for location-based Internet services, Cap Gemini and Portal Software for the provisioning and billing of wireless content, Hewlett-Packard Co. for its Mobile E-services solution of wireless hardware and software platforms, Sun Microsystems for iFORCE wireless infrastructure solutions, Spyglass Inc. for its Prism content translation services and GWcom for its byair.com Wireless Internet Platform and Portal Service.
“With today’s announcement, we are firmly planting a marker for the future of Inktomi as the global wireless infrastructure provider,” said David Peterschmidt, president and chief executive officer of Inktomi in a statement. “In the coming years, we will invest significantly in this growth area, leveraging our leadership position in the Internet infrastructure to become the de-facto provider of core technology for the wireless Internet. Today’s news is the first milestone of many to come from Inktomi as we become essential to the Internet.”
Firming its commitment to this space, Inktomi acquired an undisclosed equity stake in AirFlash, which said it will integrate Inktomi’s search, directory and commerce services into a joint solution co-branded as “AirFlash powered by Inktomi.” It is a private-label solution designed to allow wireless carriers and portals to build and brand a customized mobile portal.
Rich Luhr, director of technology strategy at Herschel Shosteck & Associates Ltd., said many traditional Internet infrastructure providers are looking to migrate to the wireless space now, but find that one piece of technology is not enough to do so. They have to either buy or strike strategic alliances with companies representing all pieces of the chain to offer a compelling solution.
Inktomi will have to compete with other software infrastructure providers that are collecting their own sets of allies, including InfoSpace Inc. and Phone.com Inc. InfoSpace Inc. acquired several firms to bolster its ability to offer backbone service for wireless portals, cumulating with the merger of Saraide. Phone.com Inc. also is attempting to collect the needed elements behind its MyPhone portal software, such as its acquisitions of OneBox.com for voice access technology.
“One piece of technology isn’t enough,” Luhr said. “The real value is in integration.”
Inktomi’s announcements last week added needed billing, customer care and location-based technologies it didn’t have before. While praising the breadth of the announcement, Luhr noted Inktomi lags behind InfoSpace in the game.
“They are entering a little bit late,” he said.
However, the company has powerful partners and customers, including America Online, British Telecommunications plc, CNET, Excite@Home, Intel, Merrill Lynch, Microsoft Corp., Sun Microsystems Inc. and Yahoo!.
Of particular interest is Inktomi’s equity stake in AirFlash. The company joins Finnish carrier Sonera and others that have bought an interest in the fast-growing location-based mobile content and services company.
Analysts speculate that the ability to reach consumers wherever they are, with location-specific content, will be the central differentiator of wireless portal services over wireline portals, and the key driver of the entire space.
Inktomi expects to begin offering AirFlash powered by Inktomi services by the third quarter.
