May 2007 Archives

Latest Survey Results Are In

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As the focus of mainstream enterprises begins to shift from the implementation of IP networks to the use of converged applications to improve business performance, Unified Communications (UC) appears potentially poised for wide-spread adoption. Our latest research survey conducted in partnership with IntelliCom Analytics asked TMC subscribers and Web site visitors to describe their plans for deploying UC.

 

The results suggest that UC solution providers still face considerable challenges in persuading businesses of all sizes that Unified Communications should play an important role in their near-term technology deployment plans.

 

To see the results of this latest survey, click here.

 

Wow. Another of those “Your tax dollars at work” stories, this time the beneficiaries are three phone companies serving a Hawaiian land trust.
 
Apparently, by leveraging some provisions within the USF, Sandwich Isles Communications, Nextel, and Mobi are all collecting $765 per month, per customer for extending their wireless services to the Hawaiian Homelands.
 
What are the Hawaiian Homelands? Here’s Wikipedia’s take:
 
In 1921, the federal government of the United States set aside as Hawaiian Homelands approximately 200,000 acres (809 km²) in the Territory of Hawaii as a land trust for homesteading by Native Hawaiians. The law mandating this, passed by the U.S. Congress on July 9, 1921, was called the Hawaiian Homes Commission Act (HHCA) and, with amendments, is still in effect today. The avowed purpose of the Hawaiian Homes Commission Act was to rehabilitate Native Hawaiians, particularly in returning them to the land in order to enable the maintenance traditional ties to the land.
 
The main thrust of the story is this: “By September, the three companies will have received a combined $132 million in subsidies for servicing less than 3,500 residences.”
 
If you still think the USF is being appropriately administered, fine. If you want to hear more of this story, as reported by Sean Hao in The Honolulu Advertiser, read on.

Avaya Up For Sale?

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Looks like Avaya is on the block.
 
The Wall Street Journal is reporting that Avaya has been in talks with private equity firm Silver Lake about a leveraged buyout, and had also held talks with rival Nortel about a possible deal.
 
Meanwhile, The New York Times cited executives close to the deal as saying that Avaya has retained the investment bank Credit Suisse as an adviser. The execs also told the Times that Cisco might also be interested in the Basking Ridge, New Jersey-based company.
 
As of 11:20 am, Avaya stock was up $1.95 or 14.25% to $15.61 per share.

Ongoing Survey Results Are In

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The results are in!
 
The second phase of our ongoing poll has been concluded. We’re conducting these surveys in partnership with our good friends at IntelliCom Analytics, and the most recent question had to do with asking our readers to describe their understanding of the main attributes and benefits of Unified Communications (UC).
 
The results suggest that the vendors have significant work to do in more clearly describing the major capabilities of Unified Communications, as well as in communicating the tangible benefits that businesses can expect when adopting UC applications.
 
Of the 897 business decision makers participating in this survey, 24.4% — the highest single response — indicated that vendors have not yet articulated the capabilities of Unified Communications in a tangible way. This perspective was most strongly held in businesses with more than 1,000 employees. 
 
Cisco’s Parvesh Sethi kicked off the keynote session on Thursday morning with a presentation entitled “Developing Innovative UC Applications.”
 
As vice president, Advanced Services at Cisco, Sethi is responsible for developing and driving professional services competency in key technology areas for both Service Provider and Enterprise market segments.
 
As many of the prior speakers at the event, Sethi believes that communications is indeed an exciting place for developers to be plying their trade. He told the audience that there are many advances taking place within communications space right now, and that there is a tremendous opportunity for developers in today’s application landscape.
 
He cited several examples of how the worlds of modern application development and communications are colliding. He also listed a couple of interesting acquisitions that are illustrative of these merging philosophies:
 
  • Microsoft’s purchase of TellMe, and
  • Cisco’s own acquisition of WebEx.
Sethi discussed how the evolution of applications and the fact that enterprises have gone “boundaryless” mean that more features are moving into the network fabric. Increasingly today’s most successful companies are those that have taken advantage of, and leveraged the power of the network to aid in delivering their solutions. He cited examples such as Flickr, YouTube, and Joost.
 
Sethi also noted that convergence is moving to application layer. First we experienced convergence at the transport layer, as evidenced by the success of VoIP. Next came integration and convergence at the services layer (referring to IP telephony). Now we are on the verge of convergence in the application layer, and thus the huge opportunity to develop applications for the unified communications space.
 
Customers are leveraging the capabilities of today’s IP phones, but there is much more going on, and the potential is tremendous. Increasingly people are leveraging the investments they made in their networks and the investment they have made in their back office business applications.
 
Sethi touched on several development challenges facing today’s application developers. Among those, he cited reduction of complexity, integration of varied development environments and the need to support the application lifecycle.
 
He talked a bit about how Cisco’s own design philosophy is being applied to UC applications.
  • Virtualization: any time, anywhere; any device
  • Security: identity protection viruses, etc…
  • Simplicity: ease of use/installation
  • Openness: everything speaks a common language; open platforms, enabling mashups, other unique value adds.
 
Of great importance, he said, was the consideration of an open development environment. The benefits of open standards, open source, and the creation and fostering of a developer ecosystem are critical.
 
Developers who want to take advantage of the opportunity to develop for UC need to embrace a holistic view of the UC landscape, paying close attention to all the layers, such as infrastructure, media control, end points, and applications.
 
An open standards framework is transforming business processes, Sethi said, and pointed to the increased proliferation of extensible clients; seamless application integration; and the abstraction of media control as examples.
 
This creates the opportunity to tie communications innovation into business processes to come up with new and innovative productivity-increasing applications.
 
According to Sethi, UC is the ultimate business process enabler, but for all the wonderful things to happen, we as a community, need an effective, flexible, collaborative open platform upon which to build applications.
 
The development community will drive innovative leading edge apps for UC, he told the crowd. Sethi urged the developers to take advantage of the opportunities before them to create applications.
 
“The only limit,” he said, “is your own imagination.”
 
This week at the Communications Developer Conference, I had the opportunity to catch up with Ken Osowski, vice president of marketing and product management at Marlborough, MA-based, Pactolus, Inc.
 
Pactolus is a leading developer of feature-rich, carrier-ready IP voice services for converged TDM/IP and VoIP networks. The company’s suite of SIPware services and SIP-based RapidFLEX service delivery platform are designed to reduce the cost and time-to-market required to launch new subscriber services.
 
Here’s what Osowski had to say regarding the opportunities facing developers today.
 
“When the company launched in 1999, H.323 was still the rage, and we adopted SIP throughout our product line. Those were very early days, and what we’re seeing finally is just an all-out movement to SIP.
 
“Developers are looking for fast robust ways to develop applications around SIP protocol.”
 
Osowski continued, “We have been selling traditionally to service providers and what we are seeing is a channel develop for applications; both as resellers to service providers and also resellers to enterprise and hospitality and a number of other marketplaces, which is actually. This is being borne out by what we are seeing here at the show. It’s the people who have been reselling traditional PBXs or they started reselling IP PBXs, but now they want to own the application as a reseller.
 
“In fact this might be the first opportunity for them to do that.
 
“One fundamental change that developers are recognizing here at the Communications Developer Conference is that the software and the application development environment are totally separate from the hardware. What this allows the developer to do is make choices.”
 
I asked Osowski to explain a bit about what SIPdev.org is and what it means for developers.
 
“SIP dev.org reflects several of the components needed at the application layer. It includes the service creation environment the application server and the media server. There is no real definition in the industry of what a service delivery platform is, although several analysts have tried. Suffice it to say we probably have the most complete set of components that represent that.
 
“In a lot of cases you have service delivery platforms without service creation. You might have application servers without media servers. In some cases you’ll find hardware media servers with application servers mixed in.
 
“So there are all kinds of combinations. We are doing it on a pure software basis, all of which is downloadable from SIP dev.org.
 
I was curious to find out what we might see from Pactolus in the days and weeks and months ahead.
 
Osowski shared the following. “Well definitely you’ll see us augmenting SIP dev.org. I wouldn’t be surprised to see us putting up our software development kit, which allows people to extend the SCE and the application server on their own, with some open source opportunities for our objects that go into that, so that people cold actually write their own protocols in to it or API interfaces for legacy protocols.
 
“This would allow people to add what they need, if there was some special vertical market that they were going after and we didn’t supply that interface in the SCE or the application server.
 
“We’ll also likely see more reference applications.”
Fonality’s Kerry Garrison, senior product manager, trixbox, addressed the assembled crowd of developers at the Communications Developer Conference on Wednesday afternoon.
 
In a speech entitled “Considering Open Source?” Garrison presented an overview of the open source movement and suggested to developers that they need to do their homework and decide whether open source is right for them.
 
Garrison delved into a bit of the history of open source, and it turns out that open source is not new by any means. Garrison gave several examples:
 
  • We have been trading code since the very first computers, he said.
  • There was a time when we would order code from a catalog.
  • Magazines had source code available through barcodes.
  • USENET was a wealth of source code.
 
Of course one of the hallmarks of open source is that once a project reaches a certain critical mass, it can become a disruptive force. Garrison provided several examples of the more well-known disruptive open source projects:
 
  • Linux – Very successful in the operating system wars (ubuntu on the desktop?)
  • mySQL – took on big database installs, and has had success
  • Asterisk/trixbox – big success story in the PBX/telephony space.
 
Garrison pointed out several advantages as well as disadvantages of open source software, and posed the following question: “Where can this go?”
 
He believes that developers will face a choice between commercial and noncommercial opportunities. As a project matures, Garrison feels a commercial angle is usually appropriate to support the user base.
 
As for advice to developers considering an open source project, Garrison told the audience to ask questions, and find out if the project is right for them.
 
  • If you want to work on an OS project, make sure you are comfortable with the team.
  • Is there a project roadmap?
  • Does the project get updated on a regular basis?
  • Is there good code control?
  • Do your homework – stay on top of trends and developments.
 
Finally, Garrison suggested that developers do some soul searching. Should your project be open source? It all depends on your needs, he said. Do you want help? Are there elements you cannot do yourself? Are you comfortable dealing with remote developers
 
Weighing the pros and cons, garrison conclude by telling the audience, that, “Open source can be rewarding. It presents an opportunity to work on larger projects than you could do on your own.”
 
Inter-Tel Inc. shareholders enjoyed watching their stock rise to a 52-week high today, closing up $1.34 at $26.90.
 
According to published reports, Inter-tel said it had received a letter from Vector Capital Corp.  expressing an interest in buying the company in a cash offer of $26.50 per share, which puts the value of the  offer at about $715.8 million.
 
As was reported earlier by TMCnet, Inter-Tel already has an agreement with Mitel Networks Corp. and Arsenal Acquisition Corp., which agreed to buy it for $25.60 per share in cash.
The current reported offer represents a premium of approximately $23 million over the Mitel-led bid.
 
Today, Inter-Tel said its special committee had determined that Vector Capital's bid was reasonably likely to lead to a superior proposal, and that they have notified Mitel of the committee’s decision to engage in talks with Vector Capital.

Rich Tehrani offers his take on the news here.
 
 
 
A last-minute replacement for Vish Nandall, Nortel’s Michael Thomas delivered a keynote presentation titled Wireless Service Providers (WiSPs) and Application Service Providers (ASPs) Partnering for Mobile Internet Applications.
 
Thomas asked the audience, “Why should ASPs partner with Wireless ISPs (WiSPs)?”
 
Developers have been faced with a series of challenges when it comes to creating applications for the wireless space. For one thing, wireless networks traditionally featured lower bandwidth relative to fixed Internet.
 
As bandwidth increases, there is an opportunity to create applications to run over wireless broadband networks.
 
Thomas discussed other historical impediments, including:
 
  • Unfriendly handset ergonomics;
  • Difficulty in obtaining and viewing content
  • A lack of mobile content development guidelines, which hinders usability and deters content development
 
On the positive side, groups such as the W3C are making moves, addressing the mobile device and development space by providing a series of best practices and mobile device descriptions.
 
A fragmented market limits the market scope for developers, by giving them less to shoot at, and as such, reduces the developer’s incentive to create applications.
 
The increasing amount of broadband is a mitigating factor. Thomas also mentioned that he believes that the walled gardens are crumbling as carriers like Sprint announce more openness.
 
So, there is a huge demand being forecast for enterprise mobile applications coupled with communications. But Thomas warned that best effort VoIP is not good enough for mobile customers, and only a WiSP can deliver consistently “quality” of voice.
 
Some of the other trends that are creating opportunities for developers are
  • Increased desire for personalization of user services;
  • Gen “Y” social networking, and Multiplayer Multimedia Online Role Playing Games (MMORPGs) are all looking to take advantage of the latest innovations;
  • Seamless service across all devices with content/application adaptation per device/place/time/role, etc…
 
Thomas reiterated, “Broadband decouples applications from access, and broadband enables the opportunity to create newer richer multimedia applications.”
 
The last trend Thomas touched on was IMS.
 
“This is a whole new opportunity to develop applications,” he said.
 
In the end, WiSPs need ASPs to create innovative applications and in order to compete. Developers need to be cognizant of creating applications designed for handsets and delivered with the goal of expedited time to market. Thomas concluded by stating that collaborating with WiSPs can open market segments for some ASPs and improve market share for others.
 
Ian Colville is product manager at Aculab with responsibility for the company’s SS7 and GroomerII solutions. His key role includes support for the company’s global sales force.
 
Colville addressed the audience on Day 2 of the Communications Developer Conference, with a presentation entitled, Communication Breakdown, the key theme of which was the breakdown of the old order of the communications industry.
 
Accordingly, Colville kicked off his presentation with a clip of the classic Led Zeppelin song of the same title, and promised that he would pepper his presentation with Led Zeppelin references throughout.
 
Addressing the assertion that the network of tomorrow will be a stupid network, Colville had his own take. He agrees that lower-level infrastructure is indeed better off dumb, but he maintained that there still needs to be some intelligence in the network.
 
To support that, Colville spoke about the growing trend where services are increasingly being provided from within the cloud, including desktop business/productivity apps. He referenced the success of Salesforce.com and other software-as-a-service vendors, as well as alternatives to Microsoft Office, such as Google, who recently announced the availability of business productivity applications available from the cloud.
 
The key attribute of course, is the ability for users to be able to access their services from wherever they are, from any computer.
 
Colville gave several examples of applications that are being accessed in this manner, including:
 
  • Conferencing – an increasingly network based offering;
  • Information services – have always been a network-based offering, currently being enhanced with the latest speech solutions such as text to Speech and Automatic Speech recognition.
  • Contact centers – increasingly deploying distributed, remote workforces utilizing hosted technologies.
  • Virtual Office – service offering lots of features, delivered over SIP trunking, accessible from anywhere in the world.
Indeed Colville provided a long list of benefits of network based, intelligent applications that are increasing productivity across a variety of markets and industries.
 
Addressing the developers directly, Colville said that there are many new ways of developing applications, and there are myriad new opportunities, however, there is still money to be made transitioning old services to new architectures.
 
The real existing opportunity is the potential to deliver more cost effective and increasingly feature rich services.
 
“All developers,” said Colville, “will have the opportunity to deliver services to users at one point in the network from service delivery platforms from another point in the network.”
 
So it appears the network might not necessarily be as stupid as once previously thought.
 
Now a quick return to the Led Zeppelin references. I’m sure Ian will correct me if I missed any, but my colleague and I were paying close attention for mentions of rock classics and this is the list we came up with:
 
  1. Communications Breakdown
  2. In Through The Out Door
  3. Houses Of The Holy
  4. Fool In The Rain
  5. Over The Hills And Far Away
  6. Good Times Bad Times
  7. Ten Years Gone
  8. Gallows Pole
  9. Dazed And Confused
  10. Presence
  11. Trampled Under Foot
  12. That’s The Way
  13. Rock And Roll
  14. Celebration Day
  15. How Many More Times
  16. Bring it on Home
  17. The Song Remains the Same
  18. Ramble On
I would just like to say that I’m pretty sure I heard #19, when Ian, as he was leaving the stage, simply said, “Thank You.”
UPDATE:
 
I caught up with Ian Colville this evening, who told me that my attempt at catching all his Led Zeppelin references was a valiant effort, I managed to fall short.
 
Here are the references I missed:
 
In the Evening
Nobody’s Fault but Mine
Heartbreaker
 
I also missed the secondary references of:
 
Presence
Thank You
Communications Breakdown
 
And the lyrical references:
 
“We’ve done four already…” (intro to The Ocean)
“And if you listen very hard…” (from Stairway to Heaven)
“There are two paths you can go by…” (from Stairway to Heaven)
 
I also want to thank Joe Fabiano for helping me out with the Led Zep references.
Without him, I would have found myself on a Black Mountain Side, alone, Down By The Seaside, (or The Ocean, as it were) walking around like a Fool in the Rain, with nothing but Four Sticks and a Tangerine, feeling as if I was literally In My Time Of Dying.
But Hey, Hey... What Can I Do?
Paul Amery, director of the Skype Developer Program delivered a keynote at today’s Communications Developer Conference, and he used this platform, and this venue to officially announced Skype’s new Game Developer Program and the introduction of a brand-new Skype Game Channel.
 
The Skype Game Developer Program is designed to give third-party game developers access to the nearly 200 million registered Skype users through the just-announced Skype Game Channel.
 
The Game Channel is located within the Skype Extras Manager, which provides a quick and easy way for developers to promote their software to users. EasyBits Software is the creator and operator of the Skype Game Channel, and they will work closely with the Skype Game Developer program team to ensure the best possible user experience and the efficient delivery of games to consumers.
 
Last month, Skype announced that there have been more than 18 million downloads of Skype Extras since the Extras Manager in Skype 3.0 for Windows was launched in late December 2006. Of that number, users have downloaded approximately five million games.
 
Amery went into greater depth about the developer program in a recent interview.
 
Addressing the assembled audience at the Communications Developer Conference, Amery told the crowd, “Skype users are doing more than just placing voice calls, and we are constantly looking for new ways to enhance their overall Internet communications experience.”
 
Amery continued, “The tremendous size of Skype’s user-base makes it an ideal environment for multi-player and community-based games in which people can play against or collaborate with one another.”
 

Keynote Room Filling Up

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I'm sitting here in the Keynote room at Communications Developer Conference, eagerly awaiting this morning's presentations from Aculab's ian Colville and Skype's Paul Amery.

Should be some good content.

After lunch, there will be presentations from Nortel's  Vish Nandall and Fonality's Kerry Garrison.

Stay tuned!

 

Avaya’s Lawrence Byrd, a frequent speaker at TMC events, has a new title. He is Director of Communications Enabled Business Processes at Avaya, and he is helping drive the definition and communication of Avaya’s solution strategy. A co-founder of Quintus Corporation, which was acquired by Avaya in 2001 Lawrence has over twelve years of telephony, CRM and contact center experience and over twenty-five years of advanced software and Internet experience.
 
Byrd recalled a previous talk he made to developers where he suggested two ways to fame and fortune. The low road, which was to develop a must-have application and get it to market before Microsoft (or anyone else) and enjoy the resulting financial fortune.
 
Of course not too many people are fortunate enough to develop products like the iPhone, and not too many people are fortunate enough to be Steve Jobs.
 
The high road, Byrd explained, is how we drive business transformation through new applications targeting business processes while incorporating real time communications.
 
Also developers need to have a firm grasp of SOA and Web services.
 
The combination of these three skills is not necessarily easy to come by, but whoever masters these three areas will win.
 
The opportunity, Byrd explained, is being driven by an ever more challenging environment in which we all live, work, and communicate.
 
It’s tougher than ever – we are all more virtual, flatter, we’re everywhere.
 
  • Branch offices: 68% work in a different location than their manager.
  • Home working: 40 million us worker s telecommute on occasion.
  • Mobility: by 2008 72% of workforce will be mobile and remote.
 
Byrd told the crowd of developers that they need to take advantage of SOA and Web to create applications that allow customers to:
 
  1. Optimize the connections between their people, customers and processes (IP Telephony)
  2. Optimize their people across interfaces and devices (unified communications)
  3. Optimize customer relationships globally across all points of contact (Contact Center)
  4. Optimize business by embedding communications in the fabric of business processes. (CEBP)
 
Byrd, leaned on several analysts to help define Communications Enabled Business Processes:
 
According to Nick Lippis, CEBP means “Creating a business application enabled by communications, for situational context is at the heart of IP telephony’s third phase
 
And Robin Bloor of the Hurwitz Group believes CEBP will have “A profound impact!” calling CEBP “The missing link.”
 
Developers have an incredible opportunity with CEBP.
 
CEBP builds a bridge between the stuff we know and love (SIP-based) and the customer’s business processes.
 
The promise of CEBP is that it leads to intelligent communications, by taking data and turning it into information, and then turning that into action
 
 
Byrd reiterated the following core message, that developers:
 
  • Need to understand SOA and Web services
  • Need to understand their target business processes
  • Need to understand real-time communications
Day 1 of Communications Developer concluded with keynotes from two industry heavyweights, AudioCodes and Avaya.
 
Sharone Ben-Levi spoke first. Ben-Levi is vice president of marketing enterprise, enhanced services at AudioCodes Inc. He is responsible for setting strategic direction and marketing execution for enabling technology solutions.
 
He began his speech by saying he thinks that the attendees at the event were here because they want to win, and they want to win by developing the best solutions in the market.
 
Ben-Levi titled his speech Survival Of The Fittest, and he delved into his discussion about application architectures for the future of IP-based application development. Developers today must adapt to the maxim, ‘Adapt or Perish’ and that those who know how to design for change will win the game in the long run.
 
Ben-Levi pointed out the development opportunities that are driven by the industry-wide adoption of IP, citing three key factors:
 
  • IP drives acceleration of app development;
  • IP opens the door for new creative solutions to meet customer need; and
  • IP allows renewed differentiation by offering new and specific capabilities to target markets.
 
Legacy architecture is lousy with proprietary elements and APIs, Ben-Levi explained, and added that “Even with the move to SIP, the proprietary architecture is still closed, and that means limitations.”
 
He listed a number of limitations, including:
 
  • The slow pace of change;
  • Every change you make to OS, you’re still beholden to your hardware manufacturer
  • Multisite = multiple systems;
  • Scalability means adding systems;
  • Updating and maintenance often means forklift changes or the need to deploy an engineer onsite.
 
He told the assembled developers, “It’s time to break free from the limitations.”
 
Ben-Levi spoke of the future as being characterized by a distributed architecture of IP software-based applications in standard servers controlling hardware through SIP.
 
And, he outlined the benefits to the developers:
 
  • Speeds development time – easier to develop when using standards no need to reinvent the wheel;
  • Improvement to the application are less tightly coupled to the hardware;
  • Can change the server if the new features demand it;
  • Choose servers based on performance, not ports.
 
Ben-Levi’s speech resonated with the audience, as evidenced by the fact that a number of questions were asked of the keynoter before he could leave the stage.
 
Well, the Communications Developer Conference officially kicked off today at noon, here in Santa Clara. The well-attended conference sessions ranged in subject matter from IMS development to Hardware and Software development, to a brand-new offering, new to the 2007 event: The Open Source Workshop, presented by Pactolus.
 
Within those tracks, attendees gathered to learn about the state of IMS, semiconductor design solutions, integrating voice capabilities into .net; echo cancellation, designing for high-availability, and more.
 
I’m set to speak with an executive from Pactolus in a little while, and I will report on that before the day is out.
 
Also, I’m looking forward to hearing keynotes from Sharone Ben-Levi of AudioCodes and Lawrence Byrd of Avaya later today.

Survey Results Are In

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Last week, in partnership with our friends at Intellicom Analytics, TMC ran a survey on our site. Well the results of last week’s survey are in, and you can see an overview here.
 
This was the first of a series of surveys that we’ll be running weekly for about a month or so.
 
Keep checking back on TMCnet for the opportunity to be part of the next survey, which will be available on Wednesday.

Avaya Developer Day Kicks Off

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This afternoon, Avaya’s vice president of developer relations and technology alliances, Eric Rossman welcomed a packed room to Avaya Developer day at this year’s Communications Developer Conference.
 
Rossman previewed a packed agenda that included a keynote presentation from renowned author and analyst Nick Lippis, and laid out the roadmap for the rest of the day’s sessions including an overview of the Avaya DevConnect Program as well as platform specific observations on the following topics:
  • Avaya APIs and Web Services
  • Avaya & Ubiquity – SIP Development Opportunities
  • Developing Speech Enabled Self Service Applications
  • Developing IP Phone Applications
Rossman finished his introduction and left the developer with this thought:
 
“Real estate in San Jose and Basking Ridge is expensive. But ask yourselves this: “How expensive is the real estate on the CIO or CEOs desk?” That’s the development opportunity.
 
With that Rossman introduced Nick Lippis, who launched into his presentation titled “Communications Enabled Business Processes — A Status Report”
 
“The Communications space couldn’t be any more exciting than it is right now,” he began.
 
Lippis laid out his agenda, which included new opportunities for developers and his key theme, Communications Enabled Business Opportunities or CEBP for short.
 
The three main takeaways of his speech were:
  
  1. The maturing of IP telephony;
  2. Current application integration difficulties; and
  3. The new world of Unified Communications (UC) and CEBP
We’re in the midst of a transition from TDM to IP telephony,” Lippis said. He cited three distinct phases of IP telephony and he believes we find ourselves in the latter stages of Phase 2.
 
Phase 1: Experimentation Lippis referred the audience back to the 1995-96 timeframe and noted the strategic acquisitions by Cisco and others of early VoIP visionaries. This early phase was characterized by using VoIP for transport; proprietary signaling; and a very small scale product/solution set.
 
Phase 2: Replacement phase: Lippis believes this is where we as an industry find ourselves today, in a market displaying the following characteristics:
 
  • Performance
  • Reliability
  • Availability
  • Security
  • Mobility
  • Linux Based,
  • Open Protocols (SIP)
He said that economics are starting to play a major role here as well, as customers are focused on things like acquisition cost, lower TCO (total cost of ownership) and other such questions.

Phase 3: And lastly, Lippis believe we are headed towards a ‘Strategic Value’ phase, where communications will increasingly be linked into a company’s business processes. The IT and communications arenas are converging at application layer, he said, and this integration will be enabled by advances in SIP, UC, Web Services and SOA. The IT departments are now taking control over communications.
 
The reasons are many Lippis explained, but companies are looking for competitive differentiators and advantages beyond their back end applications. They are looking to link the front and back ends like never before in order to increase their employees’ productivity, with an eye towards providing increased levels of customer service with the hope of generating customer loyalty. These are the differentiators that a customer facing organization needs to embrace, and C-level executives are finding themselves asking the following question: “Are all the systems in my company working together to deliver value to the customer?”
 
As we enter Phase 3, Lippis implored the crowd, “much work needs to be done. There is a tremendous opportunity for developers.”
 
CEBP is a change agent, Lippis said, and he illustrated a whole series of changes that are taking place today. 
  • IP telephony providers are becoming application delivery platforms.
  • Hardware-based value is shifting to business value based on software and services.
  • Specialized communications software is moving to general purpose IT applications.
  • Legacy, communications-specific programming interfaces (i.e., TAPI, TSAPI, etc…) are yielding to general purpose web services programming interfaces.
  • And, siloed communications applications are turning into unified communications applications acting as a portal into CEBP.
Lippis went on to talk about how our industry has no organizing principle for communications application development. Not yet. He also reiterated that there is a huge wall in between communications and back office business applications.
 
The solution lies in CEBP. New approaches are injecting communications into business processes; wrapping communications around business processes to increase profit/revenue. And of course, these new solutions promise to reduce human and system delay in workflow, and lead us into a new more agile economy that will have the following distinct characteristics:
 
1.)    improved knowledge worker productivity;
2.)    business communications activity monitoring;
3.)    businesses will have the ability to respond in near real-time to situations; and
4.)    situational context and event triggering will equal a dynamic/adaptive enterprise.
 
Lippis gave an example of how Communication Enabled Business Processes might work in a healthcare scenario, and to prove his point, he cited John Halamka MD, CIO Harvard Medical School.
 
“Every year,” Lippis quoted Halamka, “98,000 patients die due to preventable medical errors in the business process of care. That’s like a 747 crashing every day. If hospitals were airlines, would you fly?”
 
The point is that even a minor improvement in business process communications can be meaningful in critical scenarios. Just a 10 percent improvement in Hamalka’s health care example would yield a savings of nearly 10,000 lives. That’s a huge impact.
 
Of course we still face myriad challenges, but the development opportunity is definitely there. Developers will see an ever-increasing role in maintaining strategic relationships with customers. They will have a massive opportunity to link front-end (communications) and backend (business processes) systems.
 
Lippis closed by pointing out some of the vertical markets or industry sectors that might be considered low-hanging fruit, such as financial services, healthcare and even transportation and education.
 
“Decoding which processes to integrate first will be a challenge,” he said, “but in the end, integration will rule the day.”
 
 

GENBAND Spins Out Taqua

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As was widely reported, GENBAND recently acquired Tekelec’s Switching Solutions Group, part of which was the Tekelec 7000 product line, which itself was originally a product line launched at Taqua.
 
Does everyone remember Taqua?
 
Taqua was founded in 1998 and the company developed a fully integrated next-generation Class 5 switch: the Taqua 7000 Switching System (T7000), a product that now enjoys over 250 deployments at carriers in North America.
 
In an effort to provide the optimum long-term sales, marketing, R&D and support to existing and prospective T7000 customers, GENBAND is spinning out the T7000 business to the new Taqua. Many of the new management and employees have been affiliated with Taqua since its inception in 1999.
 
“We are confident that the Taqua management team and its employees have the sufficient depth to effectively operate and grow the Taqua business, which has been our primary focus for this transaction,” said Charles Vogt, president and CEO of GENBAND.
 

Arrived in Santa Clara

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I’m sitting in the lobby lounge of the Hyatt Regency Santa Clara, eagerly awaiting the start of Communications Developer Conference. The show kicksoff tomorrow with the Avaya Developer Day Innovation Forum
 
Avaya is looking for hardware and software application developers, systems integrators, service providers and end customers to partner with them through the Avaya DeveloperConnection Program.
 
Attendance to the Avaya Developer Day Innovation Forum is free, so just visit the site for more information, including a complete agenda, or simply come by the Hyatt Regency and register onsite. The Avaya program runs Monday May 14 from 12:00 - 6:00pm.
 
And be sure to check out the rest of the Communications Developer conference details. I look forward to seeing you at the show this week!
 
 

Joost Programs $45M Funding

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I want my J-TV!
 
So say some wealthy investors, including CBS, Viacom, Li Ka-shing (through a charitable fund), Sequoia Capital, and Index Ventures.
 
Joost — the Internet television service launched by Skype co-founders Janus Friis and Niklas Zennstrom — today announced that five selected parties have collectively invested approximately $45 million in the company. Each party invested in a minority percentage of the company.
 
Unfortunately I feel I don’t have enough time to spend with the service, but I have to admit, I’m impressed with the quality when I do spend a few minutes watching (usually when I’m showing the service off to one of my colleagues).
 
Joost recently announced it had landed content deals with some major players, including Viacom and Warner Bros (WBTV).
 
Of note to most techies, one of the two WB channels that will appear on Joost is SCI-FI FIX. The channel will feature programs including Adventures of Briscoe County, Aquaman, Babylon 5, Crusade, Max Headroom, My Favorite Martian, and V.
 
 
U.S. Senator John D. Rockefeller IV has introduced a resolution calling for the creation of a National Broadband Policy with the goal of becoming a “100 Megabit Nation” by 2015.
 
Rockefeller believes that, “A national broadband policy is critical to the future of our country,” and, “would provide a tremendous social and economic benefit,” to all Americans.
 
He cited popular video and social networking sites such as YouTube and MySpace and how they have become such integral parts of society.
 
Rockefeller stressed that those popular sites are just scratching the surface when it comes to the transformational power of broadband.
 
“Expanded connectivity,” he said, “would allow doctors to diagnose remotely medical conditions, music students to study with an instructor hundreds of miles away, and scientists to monitor ocean floor vents from their offices on shore.
 
“As we all recognize,” he continued, “creating next generation broadband networks is crucial to our international competitiveness.”
 
Rockefeller proposed a roadmap towards establishing a set of goals. “The first step in going somewhere is to know where you are going, and the same is true in public policy. By the end of 2007, we should establish a national goal and pass a series of policy actions designed to achieve our national goal. There will likely be multiple parts to the plan, and we will likely need to modify those parts over time. But if we do not have a plan, we cannot expect to accomplish our goal.”
 
Rockefeller suggests policy actions such as tax incentives to spur the private sector to act more aggressively in pursuit of this goal. He believes that Government should offer low-interest loans, and he calls for reform of the Universal Service Fund to encourage broadband deployment.
 
Rockefeller added, “We should free municipalities to deploy as they see fit, we should ensure the wise use of wireless spectrum, and the list goes on.”
 
I, for one, applaud Senator Rockefeller for pushing the vision of the United States becoming a “100 Megabit Nation.”
 
Joe Savage, president of the Fiber to the Home (FTTH) Council, agrees. “In calling for America to be a ‘100 Megabit Nation,’ Senator Rockefeller’s resolution helps put us on the right track toward policies that will help get America wired with next-generation broadband and thereby preserve American competitiveness in the Information Age,” he said.
 
Charlie Reed at Atlantic ACM has written an interesting report on VoIP adoption and the growth of Cable companies w.r.t VoIP market share.
 
Atlantic ACM’s analysis (se below; I’ve highlighted some key points in bold) suggests 23 million cable VoIP subscribers within five years.
 
 
 
Cablecos are logging rapid VoIP growth. The following is an update to our ongoing tracking of these providers:
 
Cablevision, the first provider out the gate with a VoIP offering, continues to gain significant market traction, The company added 109,000 subscribers in the first quarter of this year from its small footprint of just 4.5 million homes around the Metro New York and Long Island areas. One key metric that ATLANITC-ACM focuses on in cable research and projections is the percentage of high-speed data (HSD) subscribers that have VoIP lines. Cablevision currently sits at 62 percent and rising.
 
Given Cablevision’s significant penetration rate, it is not surprising that Comcast, which entered the market later and passes ten times as many homes as Cablevision, logged more than half a million subscribers in the first quarter. Hence, even though Comcast serves 2.4 million subscribers, its HSD penetration of 20 percent, when VoIP is available to 73 percent of its subscribers (85 percent by year-end), points to significant continued growth for the cable giant. If Comcast is able to match Cablevision’s current penetration rate, and continues growth in HSD subs, it could ultimately rack up more than 10 million VoIP subscribers.
 
Time Warner Cable had a much earlier entry into VoIP than Comcast and has logged 30-percent penetration to date, with 234,000 additional subscribers in the first quarter. System upgrades are required in key areas in order to offer VoIP, as is the case with Comcast, but here again a simple matching of Cablevision’s penetration rates to date, if upgrades are completed and HSD subscriber growth continues, would equate to between six and seven million subscribers.
 
Charter, Insight and others are laggards on the adoption front, with less than 20-percent HSD combined penetration, but network upgrades would allow them to move more toward the penetration rates of market leaders.
 
The Bottom Line:
Using HSD penetration as a forecasting metric does not reveal the entire picture. There are fundamental differences that could keep others from achieving Cablevision’s position, including the fact that the company began a few years earlier, when there was less competition from bring-your-own-broadband (BYOB) providers, wireless substitution was less prevalent, and it serves a more clustered market, which is better for marketing purposes. Nonetheless, the Cablevision model provides insight into the potential for cablecos on the VoIP front using the power of bundling, and it makes clear that significant growth is on the horizon for these providers even if they do not approach Cablevision’s extraordinary penetration rates.
 
Considering VoIP penetration of cable modem subscribers, as well as a number of market and company-specific factors, ATLANTIC-ACM forecasts that US VoIP cable subscribers will reach nearly 23 million by 2012.
 

I Am An Omnivore

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I am an Omnivore.
 
And, apparently I am among a group of technology users that make up just 8% of the American public.
 
No wonder my friends look at me funny when I want to Google everything, mashup more than my potatoes, and take a perverse pride in having blogged some obscure technology related news before they heard about (usually weeks later) on the Evening news. (I believe that Walter Cronkite and/or Katie Couric have something to do with that source of information.)
 
The Pew Internet and American Life Project have released the results of a survey entitled A Typology of Information and Communication Technology Users.
 
The survey was designed to classify Americans into different groups of technology users so as to determine which groups were most inclined to take advantage of information technology as might be presented under the umbrella of Web 2.0.
 
The report authors position Web 2.0 as:
 
“…the ability of people to use a range of information and communication technology as a platform to express themselves online and participate in the commons of cyberspace.”
 
 
The report breaks down respondents into several major “subspecies,” including Elite Tech Users (31% of adult population); Middle of the Road Tech Users (21%); and those classified as Few Tech Assets (49%).
 
Perhaps most surprising to me was the fact that nearly half of the adult population does not seem to be in the throes of the technology that pervades our every day life. Even among the “Few Tech Assets,” fully 26% classify themselves as “indifferent” or “off the net” altogether. What are they all doing with their time? ;)
 
So getting back to my classification, Omnivore, here’s how the Pew folks describe me:
 
Members of this group use their extensive suite of technology tools to do an enormous range of things online, on the go, and with their cell phones. Omnivores are highly engaged with video online and digital content. Between blogging, maintaining their Web pages, remixing digital content, or posting their creations to their websites, they are creative participants in cyberspace.
 
Defining Characteristics
You might see them watching video on an iPod. They might talk about their video games or their participation in virtual worlds the way their parents talked about their favorite TV episode a generation ago. Much of this chatter will take place via instant messages, texting on a cell phone, or on personal blogs. Omnivores are particularly active in dealing with video content. Most have video or digital cameras, and most have tried watching TV on a non-television device, such as a laptop or a cell phone.
 
Omnivores embrace all this connectivity, feeling confident in how they manage information and their many devices. This puts information technology at the center of how they express themselves, do their jobs, and connect to their friends.
 
Who They Are
They are young, ethnically diverse, and mostly male (70%). The median age is 28; just more than half of them are under age 30, versus one in five in the general population. Over half are white (64%) and 11% are black (compared to 12% in the general population). English-speaking Hispanics make up 18% of this group. Perhaps unsurprisingly, many (42% versus the 13% average) of Omnivores are students.
 
 
Chances are, if you read my blog, you won’t find yourself listed anywhere near the bottom of this Web 2.0 hierarchy. But just to be sure — and to see how your friends and family might rate — check out the Pew Internet Quiz. It takes just a few minutes and it might shed some insight into your Web 2.0 character.
 
 
Note: Even among my “Omnivore peers” I admit I feel like a Luddite among the Technological daVincis I come in contact with daily. This is perhaps why even though I know where a lot of the “turn off the phone and unplug the e-mail” crowd is coming from, I can’t fathom that 49% of the adult population is on the cusp of entering a phase where they will have less in common with their children than any prior generation. I mean, this goes way beyond Elvis…
 
What do you think? Feel free to leave a comment below and share your thoughts.
Network General is one of the leaders in the enterprise application and network performance analysis space. The company’s portfolio consists of software solutions and intelligent appliances that span the full spectrum of application performance management.
 
Taking full advantage of the trend of using video sites such as YouTube to aid in their marketing efforts, Network General has relea