A Mobile Showdown

Apple, Microsoft and Palm prepare new releases.

The world of mobile technology changes fast. This year, it will change even faster. Apple, Microsoft and Palm will all be releasing new versions of their mobile operating systems; Google, Nokia and RIM are close behind. With almost every major player preparing for new releases, 2009 will be very interesting.

Apple will be releasing version 3.0 of its iPhone software. Rumored to be featured within this release is the ability to cut and paste text, support calendars from other systems, enhance audio recording and other functions. Microsoft is not standing still. They are planning a release of Windows Mobile 6.5. It will be packed with features in an attempt to close the gap with the iPhone. There are even rumors of an iTunes-like online store to support applications for WM users.

After years of struggle, Palm is planning to replace its aging Palm OS with the Pre. Modeled loosely after the Google approach with Linux underpinnings, Palm hopes that their new operating system will be the remedy for recent market share losses. Look for the Pre OS later this year.

The next nine months of 2009 offer both promise and possibility within the mobile market. As the manufacturers push innovation, look for software company to follow closely behind. As both challenge each other, the results should make 2009 a banner year for mobile users around the world.

Paying for It

The costs to own a handheld.

When companies begin to look at mobile systems for their field service teams, many are surprised by the cost of the hardware. Rugged handheld computers cost more than consumer-grade PDAs. What most IT and purchasing managers do not know is that the total cost of ownership (TCO) for a rugged device is much less than a consumer PDA.

Consumer PDAs break. Drop a Palm Treo a couple of times and you will see what we mean. Each time a PDA breaks, a field user goes offline and has to focus on repairing the unit. Combining downtime, help desk time, shipping, tech time, etc., the average cost per failure can be as high as $250. Add in the replacement cost of the PDA, and now that failure can cost as much as $750. Since consumer-grade devices are fragile, this will happen more often than not, especially with field service workers.

Rugged devices, such as a Motorola MC55, Honeywell 7600, etc. are more durable. They are designed to be abused; they are stronger and last longer. As a result, the more rugged device has a lower TCO over a three-year period than a consumer-grade PDA by about $500 per user. Furthermore, the rugged devices are designed for a useful life in excess of three years, from four to five years to as long as 15 in a few unique cases. Consider refurbished devices and the spread becomes greater.

Total cost of ownership incorporates many factors. Before you make purchasing decisions on price alone, double-check the math. In most cases, the stronger device wins.

Reducing the Cost of Software

DXY's software-as-a-service model.

With the launch of our dxServer last month, we created a system that is unique to the mobile technology space. Rather than require our customers to purchase custom software, we now provide the option to subscribe to a service that provides customized solutions for our clients.

Purchasing software can be expensive; custom software even more so. The typical cost for a custom mobile application, including some pre-built options, can cost $1,100 per user. Multiply that by 25 users and add the cost of the server software, support contract, IT staff time, etc. and you have costs well in excess of $50,000 before any return is achieved. This is a big, upfront capital expense. We saw this as a problem that prohibited many companies from considering mobile solutions for their workforce.

Our goal with the dxServer was to provide a platform that allowed companies to pay for what they need, when they need it. After our systems are configured per the customer’s specifications, installed in our data center and activated, customers pay a flat monthly fee based on usage going forward; the service becomes an expense item.

For the same 25-person operation, their monthly cost may be $49 per user per month. The monthly service fee includes support for the application, system-wide upgrades and management of the computers, storage, routers and bandwidth supporting the dxServer and your mobile users. It is a complete software solution package.

We strived to produce a system that provides an affordable platform to allow their mobile workforce to use our technology without having to incur huge up-front capital expenditures. The dxServer is how we deliver on this goal.