MobUser

On Jan 1, 2008 mFoundry has now officially turned four years old. As I sit down and reflect on what we’ve seen and accomplished in 2007 I am amazed at how much farther we have come along in the Mobile Industry.

mFoundry Establishes itself as a Mobile Banking Market Leader

Without a doubt the single biggest business achievement in 2007 was the incredible success we achieved in the Mobile Banking sector. When we committed to mBanking as a vertical we were all hopeful that the gamble would pay off and it certainly has indeed. As we move into 2008 we have tremendous support from leading Banks, Operators, and Strategic Partners.

mFoundry Closes its Series C Financing

One of the most significant business events in 2007 was the closing of our Series C. Compared to previous rounds, this was the easiest. Our story was tight and we had a very clear business strategy that resonated with our investors. Aside from the addition of cash, this Series C brings with it a collection of very powerful strategic partners that will no doubt help to shape our future.

Firethorn is Aquired by Qualcomm

In a surprising move by Qualcomm, Firethorn was purchased in the later part of 2007. Firethorn has been considered by many to be our closest competitor in the Mobile Banking space. The acquisition by Qualcomm galvanized the Mobile Banking vertical and has sparked a wildfire of interest in us from Qualcomm’s competitors. This was perhaps the best thing that could happen to mFoundry (short of being purchased ourselves) as it instantly gave credibility to the Mobile Banking and Payments space.

Mojax Reaches 1.0 on J2ME and BREW

This took longer than I expected but I am very please to say that, after a year of development, we have a candidate release for Mojax 1.0 on both J2ME and BREW. This is due entirely to the excellent team of engineers and QA testers that all helped to bring Mojax to life.

Mojax continues to be what I consider the single most effective way to develop mobile applications. Though we have leveraged the power of Mojax in the pursuit of Mobile Banking, it is my continued vision to also see Mojax powering a myriad of other verticals. Our private Beta in 2007 has grown to almost 500 developers from all around the world. I am looking forward to continuing to grow our developer community and provide a simple and effective way for them to create mobile applications.

Apple iPhone and Google Android Introduced to the Market

One of the greatest strengths of Mojax is the fact that it will work on BREW and J2ME, two platforms that are so completely different from each other that developing or porting any application to them requires at least two development teams. Conversely, a Mojax Moblet created once (in a fraction of the time), will immediately run on both BREW and MIDP without ANY additional work. The introduction of the iPhone and soon Android devices into the market only further adds to the overall entropy in the mobile application space. Android, being Java-based, is the “easier” of the two new platforms to support; but iPhone is likely to be Objective-C based which will again require a separate development team to support. I have put the iPhone and Android on the Mojax roadmap for 2008 along with Windows Mobile.

What Does the Future Hold for mFoundry?

From a company perspective, 2008 will see mFoundry transition from 100% product development into a mix of development and product support. Our company size will grow as we add product solutions and support capabilities as well as ramp up our direct sales efforts. We will also continue to add to our list of mBanking channel partners.

Mojax will be ported to Windows Mobile, Android, and iPhone by the middle to end of 2008. Additionally, support for 3rd party Mojax Plug-in development will also be a priority for the early part of 2008.

By the end of 2008 I expect mFoundry’s product stack to be the most pervasive Mobile Banking platform in the US and for Mojax to be used by 3rd parties to create new exciting mobile verticals. 2007 was an exciting year but I expect 2008 to exceed our expectations.

Best wishes to everyone and to all a prosperous New Year!

- Rodney Aiglstorfer

mFoundry has just been selected as one of Bank Technology News’ 10 Tech Companies to Watch. This is a huge honor in the banking space as it is a respected publication. What is even more awesome is that we are the only mobile company on the list!

The real story of Citi Mobile’s launch in April is not in its bill pay or funds transfer features, but how it’s delivered. Citi’s mobile offering is a downloadable mobile application built through a development toolkit from mFoundry that comes from the bank, rather than within the service container of a carrier’s menu. “Citi has taken a longer, harder look at long-term strategy” TowerGroup’s Bob Egan says, “and they’ve made a decision they want to own the infrastructure.” Most of the major m-banking intros in 2007 have centered around the managed services platform offering of Firethorn Holdings, an Atlanta developer that stoked regional deals with BancorpSouth, Regions, Wachovia and SunTrust Banks with an exclusive platform arrangement with AT&T, the wireless carrier with the largest subscriber base.

But mFoundry, with the Citi Mobile experience as the driver, may be better positioned to land forthcoming deals with national institutions focusing on adaptability for long-term shakeout in the mobile banking space. How will payments be handled? Will the database players shake the business model at some point?

mFoundry’s Spotlight provides control of the endpoint look-and-feel, adaptability to a bank’s online authentication, and has a head start in other key payments areas: it is already developing an integrated contactless payments platform with ViVOtech and has a formal relationship with First Data to handle money movement. “I believe you have to have an open ecosystem,” says mFoundry CEO and co-founder Drew Sievers. Some have likened the mFoundry/Firethorn rivalry as a replay of the Corillian/Digital Insight battle: DI with its plug-n-play templates, and Corillian’s customizable platform that large banks coveted. While the future is far from clear on mobile banking, any future will have to include the ability for a mobile solution to work within the lifetime value cycle of a customer. That’s going to take a major shift in the relationship with telcos. “Banks are moving to reengineer a lot of their architecture for things like SOA,” he says. “They’re not going to want to spend the equivalent of $1,000 a user to get mobile banking people developed as another delivery channel.” - GF

Technorati Tags: Banking, Business, mFoundry, mobile, moblet, mojax, Spotlight