When it comes to wireless data, perhaps 2004 should be called “The year of the untapped enterprise market.”
Even as a small army of software developers and device manufacturers rushes to put mobile devices in the hands of on-the-go workers, businesses around the world are slow to invest in any application other than voice. According to a study released last month by the Yankee Group, the “minimal addressable market” for wireless e-mail in the United States is 35 million workers, about 10 times the number of mobile professionals who use these services today.
The benefits of mobile e-mail and other enterprise applications are obvious. A study by The Radicati Group estimates wireless e-mail users put in an extra 60 minutes of work every day. And most analysts see the market for such services increasing drastically in the next four years.
But while handsets and systems become more affordable, businesses are still slow to embrace mobile data.
Their reticence can be summed up in one word: fear.
It’s everything IT staffers can do to keep desktop computers and servers clean of viruses and away from hackers. Every wireless data device just adds one more link in an already vulnerable communications chain.
“The more access you have on a wireless basis, the more you open yourself up,” said Richard March, technology senior vice president for market research group NOP World. “No business wants to be on the front page because they were hacked into.”
March led a recent study that found 44 percent of U.S. companies cited data security issues as their top concern in deploying wireless data services. The barrier was greatest for companies with more than 1,000 employees, nearly half of which put security at the top of their list of concerns.
Of course, such fears are not unfounded. Many companies are learning the hard way that a less-than-secure mobile communication system can be worse than no system at all.
As has been demonstrated several times in recent weeks, virus writers and other miscreants are actively targeting devices like smart phones and Pocket PCs. Every time there’s an outbreak of a virus like “Skulls,” which targeted some Nokia smart-phone models, there’s a chilling effect on businesses considering deploying a mobile data system.
While nearly every worm targeted at handhelds has thus far been relatively innocuous, new variants of the Cabir virus posed a more serious threat late last week. The variants have new features that cause the worm to spread more quickly, providing evidence that virus-writers are going after handheld devices more aggressively than ever.
“Security is the No. 1 concern that keeps IT managers awake at night,” said Abdel Missa, director of market research and strategic planning of Go Remote Internet Communications Inc., a California-based provider of secure remote access software for larger companies. “I can’t tell you how much companies are losing” due to vulnerable wireless systems.
Mobile sales people and field technicians may be clamoring for upgraded systems that can increase efficiency, but it’s IT departments that are usually charged with buying new systems. Vendors must address the techies if they’re going to sell to businesses.
“It comes down to a fear vs. greed conversation; IT decision-makers fall into one of those two camps,” said Rip Gerber, chief marketing officer for Intellisync Corp., a developer and marketer of mobile software for businesses. “Greed is competitiveness, but it’s really the fear side that is driving the buying”-or lack of it.
For many companies, security has never been a bigger issue. Federal legislation like the Sarbanes-Oxley Act of 2002 and the Health Insurance Portability and Accountability Act of 1996 are forcing financial services and health-care companies to closely protect sensitive data. Those that fail to safeguard such information face strict penalties.
“Increasingly, security policies are being mandated at companies of all sizes,” said March. A few years ago, only larger organizations were subject to such legislation; today, companies of all sizes face “a slew of government requirements,” he said.
Two-thirds of security workers feel the government regulations are successfully helping protect IT networks, according to a study released last week by security services company RedSiren. But 62 percent of those surveyed said they spend more time complying with regulations than addressing other security concerns, and 38 percent said the federal guidelines have caused them to scale back other security projects.
Also, as newer technologies provide more efficient ways to send, receive and store information, they offer new gateways for viruses to access data networks. Hackers are finding vulnerabilities in RFID-related technologies like Near Field Communications, Bluetooth and ZigBee that allow close-range access to devices and information.
“Bluetooth is just like IR (infrared); it creates an opportunity for data to be easily shared,” explained Michael S. Riemer of Trust Digital, a developer of mobile security and management software. “Whenever things are easily sharable, there is some level of security risk that accompanies that.”
State-of-the-art enterprise systems feature several ways to protect sensitive company data. System administrators can remotely freeze a device, or even remotely destroy information on a handset. And newer offerings give IT personnel more control than ever in deploying and controlling wireless systems.
For vendors, then, selling their wares has as much to do with educating businesses as it does with marketing. To truly tap the market, mobile communications providers must address the risks involved and how IT departments can deploy and manage communications systems effectively and securely.
“The biggest vulnerability is what (companies) don’t know,” Riemer said. “They see all this and say, `I don’t want to make my employees mad at me, but I’ve really got to get my arms around what I’ve got. Help me understand what my risk is.”
As they’ve proven with wireless networks, hackers and virus-writers are a constantly moving target. As the proliferation of wireless enterprise systems increases over the next several years, so too will its attractiveness for those looking to illicitly access information or damage networks. “Now that we’re all mobile,” said Intellisync’s Gerber, “everything is fair game for smart hacker kids.”
