Notebooks: A Rugged Business

from more than $2.97 billion last year to nearly $4.81 billion in 2007. That's a huge amount of potential for the ruggedized space. Long considered a fringe segment of the notebook sector, ruggedized products have always had a certain "coolness" factor. They have great rubberized features, are largely waterproof, and just look like its owner must lead a very interesting life. MacGyver probably owned ruggedized equipment. Even those of us who only dream of the secret-agent lifestyle have certainly wished for a ruggedized notebook while traveling (or, for that matter, while trying to work at home with an overly curious toddler running around).

Clearly, then, the appeal of these computers ranges from those who truly need them (fire departments, police squads, military units) to those who merely want them. And that is terrific for VARs. For example, field workers at utility companies could certainly benefit from,but don't truly need,ruggedized products. In fact, it looks like the civilian world is taking the cue from the military: According to VDC, the percentage growth in unit shipments of ruggedized PDA and wearable computers will outpace conventional form factors. A big reason for that growth is the demand from users for ruggedized mobile solutions as tools for increasing productivity, and improving customer service and profitability.

The rugged market, as it's called, has a subset: "fully rugged." That's what local customers,the police and fire departments and the military,are really interested in. VDC forecasts that worldwide shipments for fully rugged mobile computers will grow from last year's more than $701 million to in excess of $972 million in 2007. While that growth is slightly slower than for the overall rugged sector, bear in mind that the products are more expensive and more specialized.

In addition, the report notes that "products with integrated wireless communications as the primary tool to enhance operations will drive growth." Panasonic is a leader in this space. The company has semi-rugged models with pricing starting at $2,000, but it also offers $4,000 units that are fully rugged with such lucrative options as integrated wireless and Global Positioning System. In "Roughing It," page 10, Jan O'Hara, director of federal sales for Panasonic, talks to contributing editor Dennis McCafferty about this growing market segment. She provides insight and commentary on what is mission-critical now, and what will be in years to come.

Another issue that's on the minds of all VARs,especially those in government,is Internet security. The Department of Justice last month announced the arrests of more than 130 individuals and the seizure of more than $17 million in a coordinated nationwide initiative called "Operation E-Con," which is focused on reducing Internet fraud and abuse. Online crimes can include multimillion-dollar swindles, online auction scams, identity theft, business-opportunity frauds, and piracy of software and other copyrighted material. According to Federal Trade Commission statistics, three years ago, 31 percent of fraud complaints filed with the FTC involved the Internet. Last year, 47 percent of 218,000 complaints were Internet-related. The number of complaints is only likely to increase, so it's good to hear something is being done about it.

What's your solution aimed at reducing Internet-related crime? I'd love to hear it. Contact me at [email protected].

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