Cloud-based Smartphone application stores will likely become a $12 billion market by 2014, according to a report from Juniper Research, a telecommunication analysis firm based in the UK.

The overall improvement in the functionality of smartphones due to cloud computing advances is the primary factor driving the application market. As SaaS solutions have become more capable of handling high volume, they have become more popular for both commercial and personal use.

Juniper also believes that companies will soon begin offering mobile stores as applications. Developing these programs will allow companies to slice marketing and advertising budgets, while reaching the same amount of people.

"Location-based applications are extremely interesting for brands and retailers in that they allow those companies to direct consumers to outlets in their vicinity while simultaneously providing information about the products on offer," Dr. Windsor Holden said in the report.

Juniper believes that the only hurdle remaining for smartphones is security. Innovative Security Solutions announced recently that it has developed a security system specifically for smartphones. Mobile phone security has become a market of its own, according to ISS, as use has increased.ADNFCR-2553-ID-19632742-ADNFCR