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Snapshot: QUALCOMM’s Eudora2go

Vendor Name: QUALCOMM
Date of Publication: March 3, 2005
Author: David Ferris
Source of Information: Bill Ganon, VP, Eudora Products Group, QUALCOMM
Summary of Offering. Eudora makes desktop email clients, and mail server software. Here we focus on its new email software for mobile devices

Company Statistics

· # Full-Time Staff: 7,600 in the whole of QUALCOMM.
· # Full-Time Product Development Staff. 10 people across several groups in partner companies have developed and maintain Eudora2go
· Stock Market Status: Public, QCOM
· Revenues: Qualcomm overall has revenues as follows: FYE 9/26/04: $4.9B; FYE 9/28/03: $4.0B; FYE 9/28/02: $3.0B.
· # Live Paying Customer Seats: Product being launched March23, so no current customers.

Eudora2Go

Product Name: Eudora2go
Product Functionality:
· Email client software running on various cellphones
· Initially available through Verizon
· Aimed at individual consumers, SOHO, and small business users
· Eudora2go easily downloaded over the air
· Email package with address book
· User has email address like david.ferris@eudora2go.net. Ie, user picks the left hand side of address, no choice of right hand side
· Anti-spam and anti-virus built-in
· Email normally pushed to mobile device. Push can be configured for all messages, selected messages, or for no messages.
· 100MB quota on message store
· Message store can also be accessed using IMAP, eg, via Eudora desktop or Outlook.
· SSL encrypted communications between server and handheld, and also to desktop if appropriate.
· You can forward email to this email.
Platforms: BREW platforms. Handsets include LG VX-8000, LG VX-7000, LG VX-6100, LG VX-6000, Samsung A890, Audiovox CDM8940
Competition: Main competition is the RIM Blackberry, and carriers’ own proprietary email offerings. Other competitors are other BREW clients, notably Email Executive, SodaPop Mail, and Remo; and the mobile phone access options of AOL and MSN.
Release Date: March 23, 2005.
Pricing: The initial offering is through Verizon. Here, users may pay $6/month (actual price confidential until commercial launch)
Main Plans–Next 12 Months:
· Eudora2go will be sold via additional carriers. As noted above, initially it’s sold through Verizon
· It will be made to work with Eudora Worldmail, Eudora’s mail server software for Windows-based mail servers.
· The following enhancements are being considered: placing on additional development platforms, such as Java; better filtering intelligence and more flexible definition of a preferred sender; improved attachment management.
Special Characteristics Claimed by Vendor:
· Eudora2go is a wireless push system suitable for the mass-market. This is unlike the RIM Blackberry which is hard to set up, proprietary, and expensive.
· It’s much easier to configure than other wireless handhelds. Configuration can be done by ordinary consumers.
For Further Information. http://www.eudora.com/eudora2go/.

Ferris Research Comments

· Hitherto, the use of email on cellphones has been limited, despite plenty of publicity. This has been mainly due to configuration problems, unwieldy user interfaces, and slow data rates. Eudora2Go appears to be one of the first really practical implementations. It should do well, assuming it performs more or less as represented.
· All in all, we think email on mobile phones is about to go mainstream, in the sense that a significant number of users will start to adopt the technology. We think Eudora2go tends to validate this notion.
· Data rates on cellphones today are typically around 1-2KB/sec. Much higher speed data rates are now becoming available, eg with UMTS in GSM countries, and EVDO in North America. UMTS is delivering effective data transfer rates of around 20-25KB/sec, and Verizon’s is typically 30-40KB/sec. With EVDO, data rates increase to 1 Mb/sec on the forward link and 1.8 Mb/sec on the reverse link. The faster data rates will help email take off for cellphones.
· Eudora2go’s ease of setup is extremely important. Most email-on-cellphones is too hard to set up for ordinary consumers. The way it works with Verizon illustrates its ease of setup. The user selects the "GetItNow" service. They can then choose from various email applications, of which Eudora2go is one. This is then automatically downloaded over the air and stored on the cellphone. It’s a 500KB download. In the first screen, the user defines their username and password. Done.
· This offering will mainly appeal to consumers, small businesses, and SOHO users. Larger businesses will usually be prepared to pay for a higher level of higher level of integration with their internal email systems, and invest the higher level of technical resources necessary.
· Carriers’ own proprietary email offerings have been very poorly received and few people use them. Email implementations in WAP are simply awful.
· Many users will want to connect their pre-existing email account, eg davidferris1234@hotmail.com, to their Eudora2go account, eg david.ferris@eudora2go.net. For example, people will want to have email sent to their main email address, forwarded to their Eudora2go address. One way and another, this type of connection will probably be messier than one might hope.
· Eudora2go is a collaborative effort between several vendors. Rockliffe provides the server code, and hosts the server. Intellisync provides the handset code.
· The BREW platform is a layer of software by QUALCOMM that lets applications run on many handsets. It also has back end billing, a porting kit for OEM integration, and the ability to customize the carrier UI.
· The way revenues are divided is as follows. The developer writes its application, and enters into a distribution agreement with BREW. The application is then posted to a secure extranet, and BREW-enabled wireless carriers can select an application to put on their user catalog. Meantime, the developer and the carrier negotiate a wholesale price (the "DAP", or developer application price). The developer gets 80% of the DAP. The remaining 20% is split between BREW and the carrier. The carrier can also add a further margin if it wishes. Eg, if Eudora2go sells for $7/month, then a DAP might be something like $5-6. Of that amount, $4-$4.80 goes back to the developer and the remaining $1-$1.20 is split between BREW and the carrier.

Ferris Research Consulting

Ferris Research offers consulting on this product. Specifically, we can assist with product competitive evaluation, pricing negotiation, and best practices. For further information, contact sales@ferris.com.

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