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MShift Opens Platform To Open Doors

Feature article - CT Wireless - Nov. 13, 2000
(c) 2000 Phillips Business Information, Inc.


Wireless application technology developer MShift is shifting its business focus from hosting services to allowing other wireless technology developers to build applications on its platform.

San Jose, Calif.-based MShift began operating as an application service provider, but determined it could generate more business by offering its platform as a basis for application development, CEO Scott Moeller told CT Wireless.

The company will continue hosting services while emphasizing application development on its platform. Not only will MShift receive licensing and royalty fees from companies that develop applications on its platform, but it also will receive fees from companies that use those applications, he said.

"This is a sustainable business," Moeller said.

In addition to marketing its platform to technology developers, MShift is pitching the technology to wireless carriers. Service providers have a particular interest in controlling the source of applications their customers access, Moeller said.

"They want to own the customers," he said. "This is the way to own the customers rather than giving them away to all the application service providers out there."

MShift today announced application service provider IWAPI will use its MobileShift™ Toolkit to create mobile applications in vertical markets, including financial services, banking, insurance, education, entertainment and gaming.

MShift also today made public three new customers that will deploy wireless applications built on its platform: securities brokerage JB Oxford & Company, San Francisco-based Patelco Credit Union and Hewlett-Packard's [HWP] Korean affiliate.

MShift has conducted two rounds of private financing and plans to conduct an IPO in the third quarter next year - if it is not acquired by another company before then, Moeller said.

MShift's strategy for building its customer base appears strong, said Frank Gillett, Forrester Research's senior analyst for e-commerce infrastructure.

"It makes sense that anybody with good technology for building applications for WAP phones would offer their technology to other developers," Gillett said.

And there is no wireless application Mshift's platform won't connect to Internet-enabled mobile telecom devices, said Awele Ndili, MShift's chief technology officer. "Anything you can think of," Ndili added.

MShift appears to be ahead of other wireless application players in enabling mobile connectivity, Gillett said. Other companies in the space are offering platforms that work only with applications already being used by their customers.

"They also give you the capability to build new applications on their platform, rather than just extend an existing one," Gillett said. "That sets them apart from a number of companies that are out there."

MShift's existing platform works only with Microsoft Windows 2000- based Web servers. MShift is developing versions to work with UNIX and Sun Microsystems servers.

 

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