L.M. Ericsson and Microsoft Corp. took the next solid step in their alliance by launching a new company, called Ericsson Microsoft Mobile Venture AB, designed to develop and market mobile e-mail solutions to wireless operators worldwide.
Ulf Avrin of Ericsson was named president of the new company, which will begin operations immediately and already is in discussions with several carriers.
The two companies announced their intent to form this new company last December when they first joined in an alliance designed to strengthen their respective weaknesses in the wireless industry.
“We believe we have come very far in this venture,” Avrin said. “Our goal is to make mobile e-mail as easy to use as talking on a mobile phone. … It’s crucial to take it from a market where the early adopters are using it and make it a mass market service.”
As promised, Ericsson owns the majority stake in the company with 70 percent, while Microsoft holds the remainder. Its headquarters are located in Stockholm, Sweden.
All solutions coming from Ericsson Microsoft Mobile will use combined Ericsson and Microsoft products, Avrin said. This includes integrating Ericsson’s WAP technology with Microsoft’s Windows 2000 Server and Microsoft Exchange platforms. Ericsson also will incorporate Microsoft’s Mobile Explorer browser in phones. Future teamwork is expected for Bluetooth connectivity and universal plug and play capabilities, they said.
Besides e-mail, the venture will wirelessly enable other Microsoft-based personal information management functions. Avrin said he expects to offer the first commercial applications from the venture by the end of the year.
“This is a technology dream team,” he said. “The mobile Internet market today is characterized by new players and niche offerings. It’s a very fragmented market.”
The two hope to leverage their global brands to overcome this, he said, by building end-to-end solutions from recognized players in both the wireless and Internet software industries.
“We believe the complete solution needs to come together in a coherent way to make it easy for end users,” Avrin said. “We have very high expectations for the results of this company.”
Both firms expect the joint venture to bolster their wireless Internet efforts. Microsoft in particular has made significant moves in recent months to reposition itself in the wireless Internet market. The company pointed to its recent strategy shift away from PCs to software and Internet applications as proof of its commitment.
Paul Gross, Microsoft senior vice president of the Collaboration and Mobility Group, said Microsoft’s strategy is to be very carrier-centric and create software for wireless carriers to offer compelling services to end users. He said Microsoft believes messaging is the entry to the wireless Internet market and will leverage its Outlook and Express products to play.
“Microsoft’s vision is to work together with mobile operators to provide knowledge to workers and consumers with faster and easier access to mobile e-mail and other mobile data services,” he said, “by realizing the promise of information anytime on any device.”
Analyst say Microsoft also is looking to protect its enterprise customer base by ensuring its enterprise applications are available on wireless devices.
