A new market takes flight
Wireless providers such as Aether, of Owings Mills, Md., represent the latest wrinkle in the ASP model. While ASPs' offerings vary, most wireless ASP services revolve around hosted applications that transform Web and legacy system content and data into formats such as Wireless Markup Language and Handheld Device Markup Language that can be accessed by customers using a variety of wireless devices, everything from WAP (Wireless Application Protocol) phones, Palm Inc. PDAs (personal digital assistants) and Microsoft Corp.'s Pocket PCs to two-way pagers such as Research in Motion Ltd.'s BlackBerry.
Some, like Aether, also help e-businesses build and host wireless applications and even bundle those with wireless devices that can be sold by e-businesses to their online customers. They also offer support for wireless customers.
The field of wireless ASPs today is small but growing rapidly. It includes startups such as ViaFone.com Inc. and 2Roam Inc., both of Redwood City, Calif., and Air2Web Inc., of Atlanta. Some wireless ASPs, such as Aether, and competitors such as Toronto-based 724 Solutions Inc. and New York-based w-Technologies Inc. have targeted the financial services industry. Aether is also working in transportation, government and health care (see story, "Service providers ease the way to wireless for e-business"). All of those providers are chasing a market for wireless ASP services that is expected to grow rapidly over the next few years, from about US$14 million in 1999 to US$732 million by 2004, according to IDC.
In addition to the ASPs that have been launched to provide hosted wireless Web applications, some existing ASPs are beginning to add wireless capabilities on top of applications they were already hosting. They include UpShot Inc., of Mountain View, Calif., and Done.com Inc., of Belmont, Calif. (see story, "ASPs tie wireless into the package").
Using Aether so far has paid off for NDB. The broker was able to quickly dip its toe into the wireless market, launching its initial service targeted at its more affluent, high-net-worth customers in 10 months.
The service, called Mobility, was launched in September. For US$49.99 a month, customers get a Palm V handheld with an Omni Sky Corp. modem and access from the device to NDB stock quotes, news and trading, plus e-mail. Aether handles customer service and fulfills orders for the service and the devices along with hosting its middleware, which provides wireless access to NDB's Web applications and trading system.
Now that it has used Aether to get some wireless experience, NDB plans to expand its wireless Web offering. One thing the company has learned: Customers want to use a wide range of wireless devices, not just Palm handhelds. In the first quarter of next year, NDB plans to launch services for a full array of devices, including WAP phones, Pocket PCs and two-way pagers. The expanded service will be made available to NDB's overall customer base.
Shah, who selected Aether after reviewing bids from five wireless ASPs, declined to say how much he's paying for the Aether service.
