Beyond the App Market: Android Business Models 03/31/11
Android Business Models
PRODUCT TRANSACTIONAL
SERVICE CONTINUING
Typical App
•
App sold for small fee or Free App with Ads
•
Android Account Free App + ongoing service/account
•
•
One time Small $ x Mn. Customers Hit or Miss
Subscription Small $ x Mn. Customers Customer stickiness
Android Business Models CONSUMER
INSTITUTIONS
• PRODUCT TRANSACTIONAL
Custom App Typical App
Customized app for an enterprise, which distributes it
“Android +“ SERVICE CONTINUING
Android Account
Service beyond the app, but for which app is core
One time ‘000$ x 1- few Customers
“Android +” business model • Offering = App +(Android Device) + Service • Offering focuses on providing benefits in ways previously not possible • App is not entire solution, but core to it • Typically addresses professional requirements of field users • Open source nature of Android appeals to sectors like education, hospitals and government • Ongoing revenue through subscription and value added services • Example – Kineo from Brainchild
What it takes to build successful “Android +” • Deep knowledge of customers • Innovative – brings the benefit of mobility to field users • Requires greater investment
• More Sustainable
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