Tag: biztalk

  • INTERVIEW: PC's Problems Will Come To Mobiles


    The BBC was recently criticised for scaremongering about the threat mobile viruses posed to smartphones, particularly those operating on the Symbian platform.

    F-Secure was one of two anti-virus software companies quoted by the BBC – the other was Adaptive Mobile.

    So it was interesting for smartphone.biz-news to speak with Samu Konttinen, vice president of mobile solutions at F-Secure, to hear his views on the danger of viruses to smartphones.

    To put things in context, he began by saying it was inevitable that some of the PC’s problems would come to mobiles.

    This is made ever more likely as increasing numbers of people use powerful multimedia handsets, particularly for mobile browsing.

    "When the mobile phone is used to browse the Internet, then users get exposed to the same Internet problems as PCs," he said.

    "It is relatively naive to think that threats will suddenly disappear when you access the Internet with a mobile browser," he said. "It’s the very same Internet."

    PC or Mobile – The Internet Is Risky

    With that in mind, Konttinen described the Internet as a relatively dangerous place – and said the threat is growing.

    Between 1986 and 2007, there were an estimated 500,000 viruses on the Internet.

    He said that figure has doubled in the past year.

    "A lot of things are happening. Before it was mostly students trying to hack into databases to show they could do it," he said.

    "The ‘industry’ has changed. Now it’s mostly criminals building viruses to make money."

    When it comes to cell phones, Konttinen said the picture is also shifting.

    Previously, the problems centred around phones and SMS.

    So far only around 400 mobile viruses have been detected – a tiny sum compared to the Internet.

    Konttinen said that for this reason it is important not to "hype up" the threat.

    But even though the risk isn’t as severe as on the Internet it doesn’t mean people should be complacent.

    Earlier this month F-Secure launched a new version of its smartphone security solution, introducing an anti-theft feature that includes easy remote locking and wiping of confidential data if the phone is lost or stolen.

    "We think that certain elements, the key foundation of cyber crime in the PC world, will work in mobiles as well," he said.

    Konttinen said that convergence made it more likely that security risks found in PCs would be replicated in mobiles.

    "It would be foolish to think that the mobile ecosystem will be entirely the same as the PC one, but many of the security issues will be relatively similar," he said.

    Bigger Targets, Bigger Risk

    The explosion in mobile penetration means it is inevitable that malware writers will gravitate towards them.

    "If there are volumes, there is motivation," said Konttinen.

    Gartner, the industry analyst, forecasts that there will be four billion mobiles compared with 1.3 billion computers by 2010.

    However, Cloudmark, a messaging security company, recently estimated that penetration of smartphones needs to reach 20 per cent to 30 per cent before it becomes worthwhile for hackers to spread viruses.

    Another barrier to deter virus writers is the fragmented nature of the mobile industry.

    However, with the mobile industry moving towards open operating systems and more harmonisation, such as in the case of Symbian, this could change.

    Konttinen said the shift towards open source is likely to create a more "interesting" platform for malware writers.

    "The reason why there are only 400 viruses rather than millions is because the industry is so fragmented," he said. "Fragmentation is a security mechanism."

    Whatever the current level of risk, Konttinen said the mobile industry – both hardware and software – took the security issue very seriously.

    Not least because they recognise the criminals behind the viruses are "worthy opponents", he said.

    "The PC has proved that whatever security measures you take, the bad guys find a way around it.

    "Some of our analysts and researchers think that cyber crime is the fastest growing part of the IT industry."

    Enterprise Preparing For Problems

    It’s not just the industry that is addressing anticipated security issues.

    Konttinen said many companies were taking the threat seriously, especially now that high-end handsets were becoming an increasingly important tool for everyday work.
    He said IT departments have a love/hate relationship with Internet and mobile anti-virus companies.

    "They see us as being necessary," he said. "Companies now treat smartphones as part of IT and need similar security for their mobile users as they have for laptop users.

    "So already there is a real policy-based demand for this type of security.

    "Companies don’t want to be seen as entities that don’t take security seriously."

    Good to hear. But as mobile computing does become more mainstream the risk of malware will undoubtedly rise.

    How real a threat are viruses to smartphone users? Please send us your comments.

  • INTERVIEW: Ten Criteria For Enterprise Business Continuity Software

    Jerome Wendt, president and lead analyst of DCIG Inc, an independent storage analyst and consulting firm, outlines 10 criteria for selecting the right enterprise business continuity software

    The pressures to implement business continuity software that can span the enterprise and recover application servers grow with each passing day.

    Disasters come in every form and shape from regional disasters (earthquakes, floods, lightning strikes) to terrorist attacks to brown-outs to someone accidently unplugging the wrong server.

    Adding to the complexity, the number of application servers and virtual machines are on the rise and IT headcounts are flat or shrinking.

    Despite these real-world situations, companies often still buy business continuity software that is based on centralized or stand-alone computing models that everyone started abandoning over a decade ago.

    Distributed computing is now almost universally used for hosting mission critical applications in all companies.

    However business continuity software that can easily recover and restore data in distributed environments is still based on 10 year old models.

    This puts businesses in a situation when they end up purchasing business continuity software that can only recover a subset of their application data.

    Organizations now need a new set of criteria that accounts for the complexities of distributed systems environments.

    Today’s business continuity software must be truly enterprise and distributed in its design.

    Here are 10 features that companies now need to identify when selecting business continuity software so it meets the needs of their enterprise distributed environment:

    • Heterogeneous server and storage support.
    • Accounts for differences in performance.
    • Manages replication over WAN links.
    • Multiple ways to replicate data.
    • Application integration.
    • Provides multiple recovery points.
    • Introduces little or no overhead on the host server.
    • Replicates data at different points in the network (host, network or storage system).
    • Centrally managed.
    • Scales to manage replication for tens, hundreds or even thousands of servers.

    The requirements for providing higher, faster and easier means of enterprise business continuity have escalated dramatically in the last decade while the criteria for selecting the software remains rooted in yesterday’s premises and assumptions.

    Today’s corporations not only need to re-evaluate what software they are using to perform these tasks but even what criteria on which they should base these decisions.

    The 10 criteria listed here should provide you with a solid starting point for picking backup continuity software that meets the requirements of today’s enterprise distributed environments while still providing companies the central control and enterprise wise recoverability that they need to recover their business.

    To read the full criteria please go to DCIG Inc.

  • Scalado Promises Next Generation Of Mobile Photography


    Shutter lag is one of the biggest gripes about taking photos on a camera phone – especially on higher resolution handsets.

    So it was interesting to hear first hand Scalado’s take on a solution to that particular problem.

    Appropriately called the Scalado Camera Solution, it enables zero-shutter lag, burst capturing and instant zoom/pan in the camera.

    The new technology also promises to improve JPEG image handling performance by effectively managing the large files produced by high-resolution images.

    Smartphone.biz-news was given a glimpse of the product by Mats Jacobson and Sami Niemi, respectively CEO and CTO of Scalado, at the recent Smartphone Show in London.

    Niemi demonstrated the possibilities the technology offers, including snapping three images in a row with no shutter lag and a speedy shot-to-shot time.

    As well as ensuring users don’t miss that "moment", his demo showed the product’s ability to instantly zoom into the resulting JPEG image to review the details of the photo in real-time.

    He said manufacturers would now be able to offer real-time viewing and capturing of high-resolution images, totally eliminating shutter lag.

    "This is the kind of user experience we want – where everything is instant," he said. "You can see all the details and have the shot you wanted. This is the next generation of imaging."

    This is all good news for phone manufactuers especially following research from Strategy Analytics showing that a quality camera is the primary mobile phone add-on for which consumers in the US and Western Europe would be willing to pay – and willing to pay the most – compared to other mobile device features.

    The Scalado Camera Solution is based on two products: the SpeedTags IP and the Scalado Camera Engine.

    The former is a minimal modification to the HW JPEG encoder that enables the encoder to produce modified JPEG images, referred to as SpeedTagged JPEGs.

    Several camera sensors and camera modules for camera phones are already embedding the SpeedTags IP, such as sensors from both Aptina, OmniVision Samsung and MtekVision.

    Jacobson said that as well as addressing the missed shots problem, the Camera Solution dealt with other !! usability problems !! including:

    • slow image browsing
    • slow zooming
    • inability to edit mpx images in full resolution
    • long shot-to-shot times
  • Forget Megapixels – Most Camera Phones Not Up To The Job


    When it comes to cameras – and that includes camera phones – many consumers are fixated by the megapixel count.

    Yet John Turner, product manager for multi-media at Symbian, said higher resolution was definitely no guarantee of quality.

    He said this was especially true since the majority of camera phone photos are taken in the darkened environs of bars and nightclubs.

    "There is a four to six megapixel sweet spot for camera phones," he said. "But customers have in their minds the idea that resolution equals quality, so they are always going to want more resolution.

    "The majority of pictures are taken in a pub or nightclub but only a quarter of all phones have in-built flash.

    "So camera phones are not catering for that primary use. That will change over the year to come and improve things a great deal."

    Camera Phone Sales Outstrip Cameras

    Camera phones have increased so rapidly in popularity since the first snap-on versions were introduced in Japan in 1999 that they now threaten the market for traditional digital cameras.

    So much so, that by 2009, more camera phones will have shipped cumulatively than "normal" cameras have shipped in the entire history of photography.

    Turner said the camera fitted well with the trend towards a convergence of digital devices, allowing it to be integrated with the cell phone, Internet and GPS.

    He said this was to the consumers’ benefit – with just one device to carry and charge, while allowing users to connect with social networking sites, tag photos with locations and so on.

    But this has also created a few challenges, according to Turner, because consumers now expect camera phones to function as well as cameras.

    So it’s now taken for granted that "standard" features, such as higher resolution, better storage performance, better battery life, smile detection and image editing, will also be on the camera phone.

    Megapixel Fixation

    The fact that consumers regard megapixels as a headline indicator of performance is something that retailers and manufacturers haven’t been quick to discourage.

    Indeed the megapixels count continues to climb rapidly, with 12 mpx expected to be offered on some handsets next year and 16 mpx the year after – putting them firmly in amongst the mid-range digital camera market.

    Ericsson AB of Sweden recently announced that through technologies such as “HSPA Evolution” and” LTE” (long term evolution), by the year 2012, they would develop mobile phones with cameras from 12-20 megapixel and Full HD video shooting capabilities.

    The future might also bring an XGA resolution display (1024×768 pixels) with a digital camera and new camcorder technologies to mobile phones.

    Turner said this striving for greater resolution didn’t necessarily translate into better photos, since issues such as shutter lag were making a "hard problem even harder".

    He said Symbian was working closely with partners such as Scalado to address these challenges.

    Symbian is also spending money on improving multi-media in general and making it easier for its partners to introduce new features, such as accelerometers and HD multi-media processing.

    Turner said this would be seen in big changes that were going to be made to the operating system by the end of the first half of 2009.

    So no more blurry, out-of-shot party pics then. What camera phones features do you regard as the most essential for developers to concentrate on?

  • Zoran's New Processors Spell Thinner HDTVs


    HDTVs may seem wafer thin already but don’t expect the drive for even slimmer models to stop anytime soon.

    The Zoran Corporation has just announced a pair of new HDTV processors that should help set manufacturers shave a tad more off their future sets.

    Its new SupraHD processors eliminate multiple components from the DTV system design by integrating the TV microcontroller, 8VSB demodulator, audio codec, audio multiplexer, analog video multiplexer and a stack of other functions, including advanced audio processing and color management capabilities, into the single-chip solution.

    If that wasn’t enough, Zoran said its high integration enables a more energy-efficient design, which allows DTV manufacturers to meet the federal Energy Star requirements.

    Jun Kawaguchi, director of the HDTV product line in Zoran’s Home Entertainment division, said the continued integration of DTV functionality into one SoC had many advantages for both TV manufacturers and end users.

    As well as reduced costs and power consumption, he told hdtv.biz-news.com that another benefit of the new SupraHD-785 and SupraHD-775 processors was that they enabled improvements to set design.

    "Lower power, smaller PC boards allow design flexibility that permit thinner, smaller and lighter TVs," he said.

    Kawaguchi said that by integrating multiple components into one chip, the PCB dimension can be reduced and production costs minimized.

    He said reduced costs to manufacturers usually meant lower costs to consumers as well.

    Other factors included improved engineering cost and schedule, which meant TV manufacturers had less engineering development burden, as multiple functionalities can be addressed by one product.

    This reduces the engineering workload for manufacturer, and also accelerates engineering schedules, according to Kawaguchi.

    The SupraHD® 775 and SupraHD® 785 processors integrated functions include the following:

    • TV Microcontroller and unified memory design
    • Market-proven Cascade® ATSC / NTSC / QAM demodulator
    • Audio analog-to-digital converter with 6 stereo pair inputs
    • Audio digital-to-analog converter
    • Three HDMI v.1.3 inputs
    • Advanced audio processing including virtual surround sound and audio expansion capabilities
    • Advanced color management
    • Two 1080P YPbPr analog video inputs
    • WUXGA PC analog video input
    • Three S-video inputs and four composite video inputs with 3D comb filter
    • Integrated dual channel LVDS transmitters with xvYCC Wide Color Gamut support
    • Content adaptive 1080i deinterlacer for interlaced analog video inputs
    • Six stereo pair analog audio inputs
    • Two stereo pair analog audio outputs
    • Picture-in-Picture function
    • USB 2.0 input
    • MPEG noise reduction provides block-free reception of digital transmission
  • Boinx Launches Mac-based Live Recording Studio


    Boinx Software has launched a new tool for video podcasters that turns a Mac into a live video recording studio.

    Called BoinxTV, it’s an audiovisual mixing application that allows one person to edit high quality recordings live.

    Aimed at video podcasters or for providing coverage of events, it works with up to three cameras and allows for on-the-fly camera switching, transitions, lower thirds, graphics, logos, crawlers, graphs, title, and so on.

    Created jointly with The Coding Monkeys, the beauty of BoinxTV for video podcasters is that once filming is finished they have a QuickTime movie that requires no post production.

    Oliver Breidenbach, CEO and co-founder of Boinx Software, said the application was going to give more people access to high quality production software that allowed them to create video content.

    He told hdtv-biz-news BoinxTV was a "game changer" because it made it easy to create professional ‘TV style’ recordings – at an affordable price.

    "It’s going to be much more fun and much more appealing to do videos on a regular basis," he said. "But the price is also making this technology available to a much broader audience than before.

    "We are not going to replace the million dollar equipment used in the broadcasting industry but BoinxTV gives people the ability to make professional-looking shows."

    Breidenbach said they had already received very positive feedback from professionals in the US that provided local content to affiliate TV stations.

    He said Boinx’s software meant, for example, a football game could be coverered using three cameras and edited live from the stadium using a MacBook Pro rather than undergoing a lengthy post-match production process.

    Breidenbach said HD content was an important aspect of BoinxTV and there was no limit to the resolution that could be used in projects.

    However, he said there were still streaming and bandwidth issues to be resolved.

    "My feeling is that many people are looking at HD but no-one really knows where it is going," he said.

    "At the moment they are perfectly content with lower resolution, that is 720p, which is still thought of as advanced.

    "HD is very important for us as a future direction but we made a decision that we did not want to delay shipping BoinxTV.

    "In the meantime, we will keep working on whatever we can do to optimise the code."

    Another HD issue was hardware limitations but that required action from Apple.

    "I would expect improvements to the operating system will help in that direction as well," said Breidenbach.

    "In about 6-9 months we will be able to do full HD and ultimately there will be even higher resolution."

    Another future upgrade to BoinxTV will be live streaming, a feature that Breidenbach said was already possible but not in the most convenient form.

    Currently, it is possible to stream content live using an encoding box or using software.

    "In the future we will provide live streaming from the application," he said. "For now we provide a live streaming solution that’s workable but not very convenient."

    BoinxTV can be downloaded at boinx.com/download for USD $499.

    The BoinxTV Sponsored Edition costs USD $199 (single license) and requires a credit for BoinxTV in every video created with BoinxTV.

  • Wow-factor Converting New Fans To Mobile Gaming


    Show most non-gamers an iPhone running the 3D fighting game Kroll and the reaction is usually some variation of "wow".

    What surprises them is that a game of such quality and with such stunning graphics is on a handheld device.

    That’s an experience Xavier Carrillo, CEO and founder of Digital Legends Entertaiment (DLE), the games and technology developers that created Kroll, is getting used to.

    He told smartphone.biz-news.com that the technology available on today’s handsets means sophisticated games previously only possible on consoles are now feasible on smartphones.

    The proof of that has been people’s reaction to Kroll ever since it was announced at the Worldwide Developer Conference by Apple earlier this year.

    "People are not aware what you can do on a mobile – what’s possible and how capable it is," he said. "It’s an eye-opener and it will attract a lot of people."

    Head-quartered in Barcelona, Spain, DLE has served as a Nokia N-Gage First Party Developer since 2004 and began publishing games for Apple’s this year.

    Kroll was specifically designed for the iPhone and iPod Touch.

    Content Is King


    With the latest smartphones now capable of running such advanced games, Carrillo said having excellent content was essential.

    He believes this will drive the sale of handsets as consumers seek out everything from games and music to maps.

    "People will buy a handset because of the game in much the same way as someone will buy a laptop for gaming," he said.

    In the case of the iPhone, Carrillo said the big publishers were now treating it as a console-standard gaming device.

    This means they can cross-market big movie releases – as they did with Indiana Jones – along with games for the PS3, the Xbox 360 and mobile devices.

    "We believe it’s going to be a huge opportunity," he said.

    Interestingly, smartphones have become such attractive platforms for gaming almost as a by-product of the drive to create multi-media handsets.

    The demand for more megapixels on cameras led to more RAM, the popularity of mobiles as music players required more storage capacity and the addition of TV functionality led to improved hardware accelerators.

    For gamers, Carrillo said it means someone playing a game on a smartphone on the train to work can now expect a quality similar to that on their PS3 at home.

    And while he doesn’t believe mobile gaming will replace consoles such as the PS3, it’s opening the whole gaming world up to a new market.

    "The mobile consumer audience is much wider – and it’s a different consumer," he said. "People that have never played games are discovering them now."

    The appeal to the mainstream was borne out in a recent Newsweek article.

    It compared the quality of games from Apple’s App Store more than favorably to desktop PC or console games and claimed the iPhone and iPod Touch were well on their way to becoming important forces in handheld gaming.

    Price A Factor

    That success will possibly owe a great deal to the price of games as well as their quality, according to Carrillo.

    He said experience in the PC gaming market had shown that several "micro" payments are a better pricing strategy than a higher one-off purchase price.

    Charging just a few dollars a time to download games from the Apple app store ensures people aren’t put off and make them more likely to take a chance on a game.

    Where developers can increase revenue is by offering extra content – often in the form of additional characters, weapons or scenarios – that players can buy separately.

    "People prefer games with less content that they can then add to," he said. "They can play the game and if they like it, they can pay more. If they don’t, then they don’t have to.

    "So it’s much better for them to spend a small amount several times than one large amount."

    Carrillo said mobile gaming will evolve in tandem with technological advances. So features such as touchscreens, accelerators and GPSs are being incorporated in developing location-based and community-oriented games as well as music and head-to-head games.

    But he said games developed for consoles can not just be copied over to a mobile platform.

    Aside from the hardware differences, PC games are played in very different settings to mobile games and that requires the content and controls to be adapted to that environment.

    DLE seem have got that right with the graphically-stunning Kroll – so expect to see a lot more people glued to their handsets.

  • Nokia Bets On Smartphone Openness Versus "Dictator"


    So who exactly was Nokia’s Kai Öistämö referring to as a "dictator" when he addressed the recent Symbian Smartphone Show in London?

    No names were named by the executive vice president of devices but his speech made it clear the Finnish giant isn’t resting on its laurels.

    With the iPhone shaking up the smartphone industry and Google’s Android Open Handset Alliance project making good progress, Nokia appears up for the challenge.

    While Apple has been accused of operating an unclear and seemingly arbitrary approvals policy for third party applications submitted for the iPhone, Öistämö said Nokia is firmly in favor of openness.

    Kai Öistämö, executive vice president of devices, Nokia

    His company’s purchase of Symbian – and the formation of the open source Symbian Foundation sometime soon to enable a standardized Symbian smartphone operating systems – is testament to that.

    According to Öistämö, that is where future smartphone success lies.

    "These things are computers and it’s about the wealth of applications," he said. "It’s the consumer who has to make the choice, not us. I strongly believe an open eco-system always wins over one that is run by a captain, or should I say, dictator."

    It was the theme of smartphones as mobile computers that dominated Öistämö’s presentation.

    Mobile Computes NOT Smartphones

    He kicked off by saying that instead of his topic being the ‘future of smartphones’ it should actually have been titled the ‘future of computers’.

    Smartphones today had the processing power, onboard memory, display resolution and always on-line broadband access of computers, he said, adding: "I think they have entered the day when they are fully fledged mobile computers.

    "They are enabling you to use all your internet applications, even those you are used to using in a PC environment."

    Mobile computers were quickly becoming the main source for both consuming and creating media on the internet, Öistämö told delegates.

    He said this in turn was making them the innovation hot spot for the whole internet and made the smartphone industry an exciting place in which to be involved.

    The way people communicated had evolved beyond person-to-person to person-to-many – essentially communicating to communities

    This made it important for people to be part of a community, according to Öistämö, whether that was Facebook, Flickr, MySpace or whatever.

    He said this made the mobile computer a better tool for participating in these communities than the laptop or PC.

    Equally, the context in which the next generation of web services and applications was being created offered unlimited opportunities for innovation and adding new value.

    "It’s about ‘in what place am I today?’, ‘what time is it?’, ‘what people are here?’," he said.

    But Öistämö warned that just adding more and more functionality to drive up prices and sales was an easy trap to fall into.

    He cited the example of VCRs, which he believed ended up having functions that nobody was interested in using.

    "At Nokia, we have the consumer at the heart of our strategy," he said.

    This entailed looking ahead to see what the "next big thing" would be as mobile computers evolved.

    "We are entering an era when we can overlay the digital world with the physical world," he said.

    Öistämö gave the example of him standing outside Madison Square Gardens pointing his smartphone at it and being told who was performing there and how much the tickets cost.

    "If you think about the possibilities this type of technology merging has, this will revolutionise the whole internet," he said.

    Revolutions can either topple dictators or leave them in a stronger position. Is open source the only route to success in tomorrow’s smartphone market?

    Please send us your comments.

  • CEOs Must Take Responsibility For Data Breaches


    A rapid rise in losses from giant databases highlights the need for tougher sanctions to deter such security breaches, according to a privacy watchdog.

    The UK’s Information Commissioner’s Office (ICO) is also calling on chief executives to take responsibility for the personal information their organisations hold.

    The number of data breaches reported to the ICO has soared to 277 in the past year.

    New figures, released today by the ICO, include 80 reported breaches by the private sector, 75 within the National Health Service and other health bodies, 28 reported by central government, 26 by local authorities and 47 by the rest of the public sector.

    The ICO is investigating 30 of the most serious cases.

    Richard Thomas, the Information Commissioner, said information can be a toxic liability and that accountability rests at the top.

    He said CEOs must make sure their organisations have the right policies and procedures in place.

    "It is alarming that despite high profile data losses, the threat of enforcement action, a plethora of reports on data handling and clear ICO guidance, the flow of data breaches and sloppy information handling continues," he said.

    "We have already seen examples where data loss or abuse has led to fake credit card transactions, witnesses at risk of physical harm or intimidation, offenders at risk from vigilantes, fake applications for tax credits, falsified Land Registry records and mortgage fraud.

    "Addresses of service personnel, police and prison officers and battered women have also been exposed. Sometimes lives may be at risk."

    Describing these breaches as "serious and worrying", Thomas said this was especially so because personal information is now the lifeblood of government and business.

    He said that as a result data protection has never been more important.

    "It is time for the penny to drop. The more databases that are set up and the more information exchanged from one place to another, the greater the risk of things going wrong," he said.

    "The more you centralise data collection, the greater the risk of multiple records going missing or wrong decisions about real people being made.

    "The more you lose the trust and confidence of customers and the public, the more your prosperity and standing will suffer.

    "Put simply, holding huge collections of personal data brings significant risks."

    Earlier this year, the UK Parliament decided that the ICO should have the power to impose substantial penalties for deliberate or reckless breaches.

    The ICO is working with the government to ensure this measure is implemented as soon as possible.

    It hopes that the threat and reality of substantial penalties will concentrate minds and act as a real deterrent.

  • Will Smartphones Be The Death of PNDs?

    With the market for personal navigation devices (PNDs) getting tougher and many smartphones now equipped with GPS, what does the future hold for the likes of TomTom and Garmin?


    Smartphone.biz-news.com asked Chris Jones, VP and principal analyst with Canalys, what direction mobile navigation was taking.

    Blackberry makers RIM recently predicted that GPS navigation solutions on smartphones meant death for sat-nav devices.

    The argument was that there is no need for specific devices for navigation when your mobile can do it for you.

    This received further credence from research by Strategy Analytics showing mobile navigation to be the primary service for which consumers in the US and Western Europe would be willing to pay a relatively high fee per month compared to other mobile services.

    With third quarter results out from both TomTom and Garmin this week – and forecasts being downgraded – the future is looking far from rosy.

    Chris Jones, VP and principal analyst with Canalys, said despite continued growth the PND market was tough and profitability was being squeezed as margins became increasingly tight.

    Both TomTom and Garmin are expected to benefit from aggressive price promotions to hold – and even increase – their market share at the expense of smaller competitors.

    But he said the trend was towards more sales at the lower end of the market than was the case 12 months ago.

    Chris Jones, VP and principal analyst, Canalys

    This was going to force down margins as big volume sales slipped to lower tier devices.

    As well as reducing profitability, Jones said the downside to this was that consumer perception becomes accustomed to GPS prices being lower.

    Buyers then become unwilling to pay extra for higher end products.

    "The big threat is to the margins and profitability of the PND market," he said. "Some vendors have exited the market and we will see others leave in the future."

    Smartphones Challenge PNDs

    To add to the PND industry’s woes there was increasing availability of navigation solutions on smartphones and mobile phones.

    Apple and Nokia have both done much to promote navigation services, with the Finnish giant leading the charge in Europe.

    Nokia expects to sell an estimated 35 million GPS smartphones this year, all equipped with maps and the upgrade option of navigation.

    Jones said the challenge for Nokia was to increase the activation rate.

    "Nokia has the ability to try and accelerate these rates by making it easier to do," he said. "Prices will come down and the free periods offered will lengthen."

    Hope Remains For PNDs

    However, Jones said despite the rise of smartphone navigation options, PNDs still had a future.

    He believes form is still likely to favor PND’s as the navigation device of choice in cars.

    "With smartphones you are looking at a small screen, you can’t touch the device, in many cases there’s no touchscreen or voice activation," he said. "The user interface is not ideal when you are driving.

    "The PND is better in the car but the smartphone is one device that is always with you."

    Work To Be Done With Smartphones

    Out of the car, Jones said more had to be done to inform users about when best to use GPS on smartphones.

    He said there wasn’t any great additional cost to add the technology but it had to be well implemented.

    "People need to understand when GPS will work and where they are not likely to get a fix," he said. "I think that has a lot to do with education and integrating technology into handsets – more sensitive GPS devices that work deeper indoors because invariably the fix is too long."

    Taking five minutes to get a fix – as was the case with some handsets – would do nothing to endear consumers to the technology.

    "It’s not good enough to just put GPS in a handset," he said. "It has to work well in small spaces, with the components that are in there."

    Jones said he expected all smartphones to come with GPS within three years and it would also begin to appear in more lower spec cell phones.

    Whether this, and the continued evolution of smartphone technology, will signal the death of PNDs remains to be seen.

    Please let us know your comments on where the mobile navigation market is going.