DecisionPoint is in the Mobile Apps Sweet Spot
By Ken Nagy, CFA
In January 2013,
DecisionPoint Systems, Inc. (OTC BB:
DPSI
)
, the enterprise mobility and RFID systems integrator, announced
that it launched a new sales and marketing initiative and
dedicated a team to accelerate the Company's expansion into
enterprise mobile software, software subscriptions and
professional services.
The newly created Enterprise Solutions Group will lead the new
effort by expanding the sales and marketing of APEXWare™ software
throughout the United States.
Recently DecisionPoint made three acquisitions (CMAC, Apex and
Illume Mobile) which have broadened the Company's software
products and professional services capabilities, opened new
markets and deepened relationships with customers by allowing the
Company to offer the full range of mobile solutions to meet the
requirements of any enterprise mobility strategy as well as
generate higher margins than other divisions in the Company,
which in turn should lead to improved corporate gross margins.
DecisionPoint acquired the Burlington, Ontario, Canada based
supplier of wireless mobile work force solutions, Apex Systems
Integrators Inc., in June 2012.
The Company's APEXWare™ suite of products provides mobile
productivity solutions in the areas of merchandizing, sales and
delivery, field service, logistics and transportation, and
warehouse management that serve multiple vertical industries in
the mid-market.
With premium mobile data applications estimated to have generated
carrier revenues of over $2.3 billion in 2008 and expected to
grow at a CAGR of 35 percent or to as much as $10.3 billion in
2013, Apex's presence in this important growing market will help
DecisionPoint grow its revenues and margins and to drive
increasing shareholder value.
Market research firm Gartner in a press release found here. (
http://www.gartner.com/newsroom/id/2324917
) predicts more than 50% of mobile Apps deployed by 2016 will be
hybrid.
With enterprises under extreme pressure from management and
employees to develop and deploy mobile applications to
accommodate mobile work styles and increase customer engagement,
Gartner, Inc. predicts that more than 50 percent of mobile apps
deployed by 2016 will be hybrid.
"Mobility has always been a separate topic for IT
professionals, but it is now influencing mainstream strategies
and tactics in the wider areas of technology enablement and
enterprise architectures," said Ken Dulaney, vice president and
distinguished analyst at Gartner. "Increasingly, enterprises are
finding that they need to support multiple platforms, especially
as the [bring your own device] BYOD trend gains momentum."
To address the need for mobile applications, enterprises are
looking to leverage applications across multiple platforms. The
advantages of the hybrid architecture, which combines the
portability of HTML5 Web apps with a native container that
facilitates access to native device features, will appeal to many
enterprises.
The need for context awareness in mobile applications has
increased with the capabilities of mobile devices, causing
developers to consider both hybrid and native architectures. For
applications to leverage location information, notification
systems, mapping capabilities and even on-device hardware such as
the camera, the applications need to be developed using either
hybrid or native architectures. This has caused enterprise
developers to consider alternatives to Web application
development.
"Our advice would be to assume the enterprise will have to
manage a large and diverse set of mobile applications that will
span all major architectures," said Van Baker, research vice
president at Gartner. "Enterprises should consider how
applications can be enriched or improved by the addition of
native device capabilities and evaluate development frameworks
that offer the ability to develop native, hybrid and Web
applications using the same code base. Where possible,
development activities should be consolidated via cross-platform
frameworks."
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