Application compatibility will be the key to Android’s success
Beyond the issue of mobile operators’ own services, the other major challenge that Google faces with Android is building and maintaining momentum for innovative third-party applications within a horizontal ecosystem. As Apple has demonstrated with the App Store, building developer momentum is the key to success, driving device usage and adoption by consumers and operators.

However, the iPhone, unlike Android, is part of a tightly managed environment with device and services vertically integrated. If Android is to become a credible platform in its own right (achieving volumes beyond HTC and the G1) it needs to be used in multiple handsets by a variety of phone manufactures. Android will need to be modified for different hardware platforms but crucially it must maintain compatibility for the third-party applications that run on top.

This is not a trivial exercise, as demonstrated by Sun Microsystems with its mobile Java platform, a technology that is not dissimilar to the application environment used within Android. Failure to maintain compatibility between Android-based devices will severely inhibit demand and innovation for the platform.