Wireless data network optimization: The next hot area?

Stan Schatt

Last June Giga suggested that wireless data network optimization would be the next hot area for wireless. This market is very hot now with several competing vendors including BlueKite, Speedwise, Flash Networks, ByteMobile and Inktomi. The compression techniques these vendors use make it possible to achieve 56Kbps performance with 2.5G wireless equipment. One reason these vendors have enjoyed brisk sales is that 3G is taking a lot longer to roll out than forecast and users really want more speed than 2.5G can deliver.

Since these vendors sell to carriers, the question is what is the business proposition to attract them? One selling point is that they will have a high-speed data product they can sell with a premium monthly charge. A second benefit from this technology is that carriers are able to optimize their limited bandwidth. With data compression, clearly more data can flow over the same spectrum. That’s particularly attractive in the US where bandwidth is limited. One problem with the US market, though, is that there are few roaming agreements. A salesperson is bound to be upset if the 56Kbps performance found last night at one location falls back to 14.4Kbps or 19.2Kbps at the next destination. Still vendors have enjoyed some limited success in the US with Flash Networks pointing to its deal with AT&T Wireless, Speedwise pointing to its deal with

VoiceStream Wireless, while BlueKite can point to its deal with Sprint PCS.

Right now, the playing field seems to be relatively equal for the vendors in this emerging market. BlueKite appears to enjoy a technology advantage with its ability to provide quality of service functionality while Inktomi might have an advantage in its sales channels since it already has contacts with most carriers due to its content delivery networks business.

Third-generation cellular service is still on the horizon. In the meantime, vendors will continue to jockey for leadership of this nescient wireless data network optimization market. Enterprises can expect to see more wireless carriers offering services similar to Sprint PCS’ Clear Wireless Workplace.