PDAs hit by the wireless wait

The number of handheld devices shipped in Europe fell in the first quarter of 2002 as IT departments shied away from investment in wireless networking and mobility, according to analyst firm IDC.

IDC analyst Tim Mui explained that concerns over wireless security had contributed to reduced handheld sales. "Security is still a big issue in the wireless local area network [Lan] market, and GPRS [tariffs are] holding back mobile working," he said.

Jeremy Fish, IT director at software developer Misys IFA Services, confirmed this assessment and agreed that cost was also an issue.

"We are not using [wireless networks)] at all because it's too expensive and it's not tried and tested to the level of detail we want," he said, adding that he was particularly concerned by security problems with the 802.11b wireless standard.

The Misys touch

Fish pointed out that Misys is getting more benefit by investing in new applications and software, rather than wireless technology. "There is a big downturn and my board is looking at ways to reduce transaction costs. A wireless Lan would not do this," he maintained.

IDC's research showed that shipments of handheld devices fell by 26 per cent in the first quarter of 2002: 593,000 units compared with 800,000 in the same period last year.

Mui explained that mobile, handheld and wireless were all at the bottom of corporate priorities. "Security, storage and data backup are seen as more important. There still isn't a really good wireless solution and there has been a lack of confidence," he said.

The analyst indicated that the technology will take off when GPRS matures and new devices arrive. He predicted that companies dedicated to mobile technology development will drive the market forward.

Voice and data convergence

One such company is Data2Hand, a software developer integrating applications with handheld devices. Sales and marketing director Keith Yaxley said: "Businesses have already invested in wireless-enabled devices but [they have] not had voice and data converged.

"It will be very interesting to see how the market develops. People must understand that now we have gone through the hype there are real quick returns on investment available."

Mui suggested that GPRS charging structures are still unclear to IT managers. "There have not been any discussions in IT management and they do not understand how [GPRS] will be paid for," he said.

Palm OS is still the dominant operating system for handheld devices with 47 per cent of the market. But Microsoft is closing the gap. Following the release of devices using its Pocket PC software from Hewlett Packard and Compaq, it now has 39 per cent of the market.