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« A Few More Crumbs About MetroFi | Main | Austin Hopes to Remain Wireless Leader »

January 13, 2004

Slightly Off Red Herring Articles

I think this is meant to be sort of a snapshot of important companies in the Wi-Fi space: But the article lists just six, each in a different segment of the market. It also mentions that many of the companies focusing on security have "either been gobbled up or are struggling." It's true that many companies across the Wi-Fi market are struggling but I wouldn't say many have been gobbled up. There hasn't been any kind of frenetic acquisition activity going on.

The story also includes a confusing analysis of Microsoft's position in the industry, noting that its entry into the Wi-Fi market "rattled" the industry. Really? The bit mentions an announcement from Microsoft in October about an update to Windows XP that aims to make it easier for laptop users to log onto public hot spots and support for 802.1X security. It's not available yet so it's difficult to be "rattled" by the upgrade. Also, there's a good chance that Microsoft may offer stripped-down support for easier sign-in but that doesn't preclude other software makers from developing better, more targeted products.

It's unclear if the Red Herring article thinks the industry was "rattled" when Microsoft announced the software upgrade or when Microsoft introduced access points. The article goes on to say that "it is just a matter of time before the company strong-arms its way into a dominant position." Microsoft isn't in the hardware business and isn't known as a networking giant so I'm doubtful it will suddenly dominate the Wi-Fi gear market.

I'm always apprehensive when Microsoft enters a market but in this case I think there's room for Microsoft to be a big player as the supplier of stripped down software support for public hot spot access. But that's just one small component of Wi-Fi so there's plenty of room for a thriving industry of other companies.

Red Herring does a somewhat equally shakey job of looking at the service provider sector.