The mobile resource management sector, which provides real-time location status of truck and trailers, is contracting according to a ARC Advisory Group study, "Mobile Resource Management Worldwide Outlook Through 2009".
Viewing revenue sources such as hosting, software and services, ARC, a Ma. -based consulting firm, concludes that falling prices is the reason that this market which had been growing quickly is now contracting. The past two years saw 20 consolidation events. The historic structure of On Demand solutions requiring a centralized vendor hosting system is now giving way to inexpensive hardware enabled by GPS systems. For example, a company can now use a Nextel network that uses GPS phones costing only $50 instead of having to install expensive in-cab equipment. These new "unbundled" arrangements can cost as low as $10 per month per vehicle providing a huge benefit to small businesses.
ARC Advisory Group
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