Nemertes Impact Analysis:

In shifting from unlimited to capped data plans for devices like iPhones and iPads, AT&T (NYSE:T) is signaling the need to control traffic volume at the edge of the network and highlighting the need for organizations to control application network traffic. Although only 14.8% of organizations reported performance problems in delivering applications to their mobile device users, those applications are by and large currently asynchronous. As the application set becomes more interactive, increased costs for network traffic will sharpen enterprise interest in optimizing application delivery (ADO), guaranteeing performance but reducing data volume.

Impacts:

Enterprises: Begin planning now to make mobile applications stingy with bandwidth, during development or via layered ADO systems or services.

Vendors: Mobile clients will have increasing needs for compression and traffic conditioning, as will mobile service providers; aim development efforts that way.

Investors: Vendors optimizing in the carrier network should have a good opportunity here, including Nokia Siemens Networks (NYSE:NOK, NYSE:SI).

John E. Burke, Principal Research Analyst

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