October 2004 Archives

In my position, I’m privileged to meet new companies a wee bit before they make their big splash into the VoIP market. One such “relative” newcomer is SX Design. While this Oslo Norway-based developer has been around since 2000, they will be wading deeper into the US market in the coming days. (I've also been told to keep an eye on their Web site as it promises to evolve shortly.)

SX Design develops and markets software and development tools designed to enable cost effective VoIP devices and solutions. The company’s flagship offering is their SIP Software Development Kit, a flexible, fast and compact platform facilitating development of applications for SIP. SX Design has taken a “Saturn” approach in that the SDK is available for one price, all options included, no haggling.

SX Design also develops customizable VoIP products like IP Phones and terminal adapters (ATA) for the fast-growing consumer VoIP space. I get the sense that this company’s timing is perfect, for as much as the consumer space has grown in the past 6-12 months, it’s not really begun to explode.

Some of the ideas I discussed with the company were using their IP Phones in settings where cost versus practical features is an issue. No one needs a fully featured 3Com or Cisco or Nortel phone at absolutely every point in their enterprise. SX Design referenced a study where it was found that 15%-17% of a large enterprise installation of IP Phones was so-called entry/exit points, guard stations, and the like. There’s no need to purchase $200 phones for these locations. And let’s face it, 15% of a 50,000 phone installation is some serious cash.

Likewise, through manufacturing contracts and advanced designs, SX Design's ATAs cost a fraction of the price when compared to the traditional competition. This creates an opportunity for service providers to buy and re-brand the SX Design devices for resale to consumers. AT&T branded all those black phones for years, and when you made a call, you knew whose device – and network service – you were using. Marketers take heed.

All in all, I look forward to tracking this “new” company as they wade further into VoIP market.

This morning's presentation by Niklas Zennstrom of Skype was well received by the capacity crowd at the Los Angeles Millennium Biltmore Hotel.

Zennstrom addressed the audience via videoconferencing technology that was provided by Polycom. Among the highlights of the presentation:

Skype is planning to expand its service by introducing Skype IN, a service that will allow users to have their own phone number and accept inbound calls from the PSTN. The company also plans to release an API that will enable third-party developers to build innovative application add-ins to the Skype service.

Also Zennstrom reiterated the company's intention to partner with Siemens on a Skype-ready handset.

As far as users, Skype has over 28 million downloads, which resulted in over 889,000 concurrent users during a snapshot of the service last night, according to Zennstrom. He also added that in the 2 months since Skype launched their SkypeOut service, they have signed over 200,000 customers.

Zennstrom also went on to discuss several plans to enable businesses with Skype services. Based on feedback from business users, Skype means to offer the following:
* Grouping mulitple Skype accounts on one single bill.
* A Web GUI for call accounting
* The advent of call hunt groups
* A variety of Call forwarding and Call control options, and more.

Zennstrom pointed out that Skype was not targeting enteprises per se, but rather work groups within those businesses.

It was a very exciting and compelling beginning to what prmises to be another successful day here at Internet Telephony Conference & EXPO.

Avaya has announced its intention to acquire Tenovis, a major European provider of enterprise communications systems and services for $370 million in cash and the assumption of $265 million in debt.

Tenovis, headquartered in Frankfurt, Germany, provides communications solutions, including telephony, call and contact centers, customer relationship management, messaging, networking and services to companies and public authorities across Europe. The company has more than 5,400 employees and has offices in Austria, Belgium, France, Germany, Italy, Spain, Switzerland and The Netherlands.

Avaya is calling the acquisition a major step in its plans to grow its business globally.

Susan Bailey, vice president of Avaya's Americas Sales Gllobal Accounts, Channels & Alliances is set to deliver a keynote address this afternoon to the attendees of Internet Telephony Conference & EXPO.

In fact Ms. Bailey anchors a tremendous lineup of keynoters today at the event. Starting with this morning's Grand Opening Session, featuring Bernd Kuhlin, President of Siemens Enterprise Networks and Katherine Bagin, IP Communications Product Management & Marketing Vice President at AT&T and culminating with keynote addresses from Inter-Tel's Founder and Chairman of the Board Steven Mihaylo and Avaya's Bailey, today promises to be a fantastic day to attend the conference.

Well, breakfast is being served, and I am in need of caffeine, so.... I'm off. Check back later for an update from the show.

As I sit here in the Registration area at Internet Telephony Conference & EXPO, I am happy to report that the doors have just opened, and a steady flow of conference attendees has streamed in to pick up their badges and to deal with the final details of their registration.

I've been really looking forward to this event. This is our largest Internet Telephony show ever, and all the hard work of the past several months is coming to fruition today.

The Millennium Biltmore Hotel is a beautiful location, a Grand Old Dame hotel, replete with gold-leaf and marble, long flowing hallways, and ambience befitting the first home of the Oscars. And speaking of awards, tonight I will be attending the first-ever Internet Telephony magazine VoIP Service Providers Awards dinner.

I'll be chiming in with reports on the how things are going here in Los Angeles throughout the week. Hopefully I'll see you here at the show.