Insignia Solutions PLC (Nasdaq: INSG)
Zeus,
<< could this be a Gorilla? or a chimp? looks like it has a lot of potential.
It's not anywhere close to either yet.
I probably should state that I personally wouldn't consider an investment in Insignia (INSG), simply because I seldom invest in companies large or small which have never demonstrated profitability, although I admit to making a long trade of short duration in them from time to time and I notice that INSG is up 197.6% last 3 months, 281.3% last 6 months, and 149.0% last 12 months which is not too shabby.
Having said that, I happen to be very interested in the application arena they are recently focused on (to the exclusion of other applications they formerly pursued) because I truly think that generically it is a "killer app." in mobile wireless.
The application area happens to be deep chasm, and if you have read "The Gorilla Game," you know what Geoff Moore thinks about timing into post chasm crossers in application software.
"If the category is application software, buy in the bowling alley.
Two of Insignia's competitors who I mentioned previously might be taking the application out of the chasm shortly (see the article below) and that could be good for Insignia.
One of the competitors is Japan's DoOnGo Technologies, funded by NTT Group, and evidently NEC and Panasonic are installing DoOnGo's software onto their terminals.
The other competitor is Bitfone Corp. who is funded by both Nokia Ventures and Motorola Ventures (whose parents supply over 50% of the worlds handsets as well as backend software and infrastructure) and KDDI, which controls the au Group in Japan is looking at adopting either the Bitfone solution, or a solution either by DoOnGo's. Bitfone Corporation - bitfone.com - is also collaborating with Openwave Systems which is a company I've watched for some time and on which I pocketed a nice 3 bagger on one of those short term long trades a year ago.
openwave.com
I'll add some other comments later.
>> Mobile Phone Bugs to be Fixed via Wireless Networks, NTT DoCoMo Says
Yasukazu Sugiyama
Nikkei Communications
Tokyo
September 16, 2003
NTT DoCoMo Inc of Japan will embark on taking a radical measure toward solving the ever increasing faults or bugs as a result of the advanced functions in mobile phone handsets.
In 2004, the company will adopt a system, in which patch data is sent via mobile phone networks, so that users can easily fix problems. In fact, NTT DoCoMo's new products released this year are already equipped with a system for fixing software bugs via a network.
Also, Au by KDDI Corp of Japan is preparing a similar system.
Users to Fix Bugs Themselves via Networks
Though not as bad as PC's operating systems or application software, the frequency of bugs occurring in mobile phones is increasing rapidly. For example, bugs were found in most of NTT DoCoMo's new releases this year. Worse still, fixing such bugs is more complicated than those in PCs. Basically, a user needs to bring it to a retail store or send it over. In some cases, users must suffer the inconvenience of using a substitute phone for a number of days.
Behind the scenes, mobile phone carriers and terminal manufacturers are making steady progress in preparation for solving such problems. Already, NTT DoCoMo has taken a measure so that bugs in terminals brought into "DoCoMo shop" direct retail stores can be fixed by the staff. In case bugs are in the software of the terminals that are brought in, a bug-fixing program is downloaded using a cable network.
In early 2004, a similar system will be released also for general users. In this case, NTT DoCoMo will send mail to terminals in which a bug is detected via mobile phone networks. By following the directions on the mail text and pressing buttons, a program is downloaded, and the bug is fixed automatically.
Advanced Functions Bring an Increase in Bugs
Behind NTT DoCoMo adopting the bug-fixing system, the frequency of bugs occurring is on the rise as a result of mobile phones making rapid advances in functionality. Fortunately, most of the bugs found thus far have to do with malfunctions in some specified functionality, and are not as serious as those, for example, that might lead to a leak or loss of a mobile phone owner's personal data. However, it would not be surprising if bugs with some serious consequences occurred in the near future.
Until now, carriers and terminal manufacturers have spent a large amount of time attempting to avoid bugs from occurring before launching a new product. As for NTT DoCoMo, it is believed that it uses about 100 people for a period of a month or so detecting bugs prior to a product launch. Also, manufacturers perform a number of tests before delivering products to NTT DoCoMo. Despite such efforts, the number of telephone bugs is still increasing. This is largely due to the limitations in time and costs that can be allocated to development.
The price of a terminal has a limit of up to the 30,000-yen level, and if the price is raised beyond that level, consumers are likely to turn away.
When the competition with the rival carriers is taken into consideration, they cannot afford to spend many months from development to launching a product. On the other hand, additional functions, such as various mail functions featuring still images and movies, are on the rise, and the items that need to be verified are also increasing rapidly. From every point of view, it is likely that this situation will allow more bugs to emerge.
Systems by Venture Businesses Adopted
Realizing such a situation, venture businesses of the United States are proactive in marketing to mobile phone carriers and manufacturers of Japan. Two such companies are: DoOnGo Technologies Inc and Bitfone Corp.
Both companies offer solution systems for fixing bugs in mobile phones via mobile phone networks that have narrow transmission bandwidths. The systems consist of a central system, from which bug-fixing programs are compressed and distributed efficiently to mobile phones, and original software installed in mobile phones.
A fund company of the NTT Group has financed DoOnGo. Also, last year, NEC Corp of Japan, and Panasonic Mobile Communications Co, Ltd of Japan, agreed on installing DoOnGo's software onto their terminals. Based on these facts, although no announcement has been made, it seems that DoOnGo's solutions have been adopted for DoCoMo's bug-fixing system.
On the other hand, Bitfone is financed by the world's leading manufacturers, such as Nokia Corp of Finland and Motorola Inc of the US. Furthermore, KDDI, which controls the au Group, "started looking into adopting a solution either by Bitfone or by DoOnGo," said a KDDI official.
Bitfone CEO Gene Wang also said that, "although the details cannot be revealed as the negotiations are underway, solutions have been introduced to carriers and manufacturers in several countries including Japan, and are being well received."
Latest Functions Offered Progressively Using Same System
By utilizing this system, various kinds of application software functions can be strengthened. When this is realized, the latest functions can be obtained without switching to a new phone.
On the other hand, there is also a source of concern; when such a system becomes popular, mobile phone carriers and manufacturers might adopt a "loose" attitude that "bugs are always expected, and may be corrected later."
Mobile phones have a wider variety than PCs. If bug fixing is required as frequently as is in Microsoft's operating systems, many users will be confused.
The carriers are also aware of such danger. An NTT DoCoMo terminal developer said, "it is unlikely that a fixing program would be broadly announced. Even after the launch of the system, every effort is made in order to avert any bugs."
This year's new products by NTT DoCoMo's are already compliant with a bug-correction system. <<
- Eric - |
