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ApplianX

March 9, 2007
Aculab Launches ApplianX Product Line
 
Aculab has just announced a new line of appliances and the product line is so different from any products previously supplied by the company I decided to ask some questions about the new ApplianX product line from Alan Pound, MD and CTO of Aculab. Here is the Q&A with Aculab about this exciting new initiative.
 
Aculab has been a strong player in boards and interfaces for some years, why the new product line?

The strategy behind ApplianX was set against the backdrop of a dramatically changing the market for hardware and software-based enabling technologies. A growing pool of solution providers are looking to take advantage of leading enabling technology but, for a number of reasons, do not wish to incur the associated development costs and time taken to integrate enabling technology or write C-based applications. In addition IT managers, may not know (or wish to know) about such low level detail. Instead they are concerned about deploying reliable, proven technology that they find easy to install and manage.
 
The ApplianX range has been designed with this trend in mind, offering deployment-ready products based on Aculab’s award winning Prosody X IP media processing cards. Each ApplianX product plays an infrastructure role in the converged networks of enterprises and service providers, so can address a number of service provision needs.
 
So, in short we are extending the reach of our technology to a broader set of solution providers and end users.

How did you come up with the name ApplianX?

The name ApplianX embodies two key elements of the ApplianX range. Firstly it does exactly what it says on the tin, it is a range of ‘plug and play’ devices or appliances, ready to serve its specific network task. Secondly, it is built on Aculab’s award wining Prosody X media processing technology – the X reflects this.

Who is the primary customer for these new appliances?

Anyone who needs to fill a particular network communications gap but does not want to undertake any development work – it’s a simple as that!

What pain do these devices take away for customers?

  1. They don’t need to source and integrate different hardware and software components from multiple vendors
  2. They don’t have to manage relations/support issues with multiple vendors
  3. They don’t need to know anything about low level enabling technology, C APIs, etc
  4. They don’t have to go through an extensive set up and configuration process
  5. They can enjoy new services aided/based upon ApplianX products quickly

What will pricing be like? Most expensive?

The ApplianX range will include a diverse mix of products from an IP gateway through to video gateways and transcoders. Because of the diverse functions of each product the pricing with vary, depending on the complexities of the task the ApplianX product is set on satisfying. The aim is to be competitive within each sector we compete within, and where possible offer the most cost effective alternative.

Where can the devices be purchased?

ApplianX products are available through a network of distribution partners. Distribution partners can be found on the ApplianX website. If you are interested in becoming an ApplianX reseller please email info@applianx.com

Which will be your best selling ApplianX?

That’s very hard to gauge this early on – we are expecting ApplianX IP Gateway to enjoy early success because it supports features such as an extensive portfolio of global PSTN protocols, which no other gateway currently offers. We also have a good feeling about ApplianX 3G Video Gateway and ApplianX Video Transcoder when released, because of the opportunity video presents.
 
Do you have any of these deployed yet? If not, when will you?

No not yet, but ApplianX IP Gateway is to be tested by some very big prospects – there will be some positive announcements made in the not too distant future.

Where will the competition come from for ApplianX?

It’s difficult to say, for in many ways the different ApplianX products are providing features that are currently unsupported within competitive products, ApplianX IP Gateway’s support of DPNSS and Q.SIG for example. Additionally the features and functionality of the ApplianX product simply aren’t available in a ‘plug and play’ device format.

Is this move for Aculab more important from a corporate strategy perspective than the move to HMP? IP?

No – but it is as important. Developing and providing enabling technology will remain Aculab’s primary focus but as mentioned earlier we recognize the changing marketplace and that there is a sizable gap in the market for leading edge technology within an easy to deploy wrapper.

Where would you like the ApplianX line to be in five years?

Most importantly it will be hitting the spot. Enterprise and service providers will be benefiting from being able to take advantage of easy to deploy products.
 
So there you have it. Aculab is rolling out a new line of products or appliances which allow the benefits of Aculab enabling technology with a minimal of muss and fuss. It will be great to see how successful this line becomes and whether it sparks more interest in the market to purchase fixed function devices which are powerful and easy to operate.

Packet8 and SunRocket Speak on VoIP

March 9, 2007
I just moderated a panel here at the VPF in Miami and the topic was voice 3.0 and when we will get there and what it would entail. My panelists were from 8x8 and SunRocket and in both cases the technical people within the organizations.
 
One of my goals as a moderator was to try to figure out from panelists just when VoIP 2.0 or even 3.0 will arrive and the answer seems – according to my panelists -- to be no time soon. The challenge here as discussed by Andrew Newton the Development Manager of the VoIP Platform Group at SunRocket is that consumers do not want advanced applications.
 
Andrew says consumers want some phone control on their PCs but not much. They are comfortable with the phone handset as the device controlling the phone.
 
Specifically the consumers the company targets do not want these services. I asked about generation Y or Z or whatever it is called and I discussed how web savvy this group is. Andrew answered that the goal is to not only launch services but profitable services. The implication is these kids will use advanced apps that exist on the market today but will never pay for them.
 
The concern among panelists seems to be finding the latest killer application which gets customers to open their pocketbooks. Neither panelist seems to have the answer about what that app would be.
 
Garth Judge the VP of Research and Development at 8x8 the parent company of Packet8 phone service discussed an application where skiers could use the phone to instantly conference each other as they are going downhill. He mentioned it was a niche play but at least it is a somewhat new idea and that gave me hope.
 
Other that this glimmer of hope for new apps there wasn’t much discussion of what the future looks like. SunRocket seems to be very happy to push its WiFi phone as something unique and innovative and while I was on the panel I kept thinking this is not such an interesting technology.
 
But as I write I realize the penetration of WiFi phones in the US is probably 0.1% of all consumers so perhaps there is a much bigger opportunity here than I realize. Perhaps as I have suggested before, really good WiFi phones will allow consumers to send SMS messages and this could be a killer application.
 
The audience asked a number of questions about how SunRocket and Packet8 will differentiate themselves in the next few years. The answer was that SunRocket is not so sure but they hope to have new features customers want as time goes on. In fact Andrew mentioned SunRocket is adding new features all the time.
 
Garth mentioned the company is transitioning form a consumer to small business services and this transition should be very positive for the company.
 
On a separate note I asked about the Verizon patent lawsuit against Vonage and the two company representatives said they both think they are not in the same position as Vonage and these patents do not apply to them. They also said there are likely other providers who are going to be liable. The audience members seemed to think that many service providers will have to raise prices to compensate for the “Verizon tax.”
 
Both companies feel the future of VoIP service will be in open APIs and building ecosystems around their services. They also feel they will both have more and more features we are familiar with from software only VoIP providers.
 
So what is the future of voice 3.0? The panelists seem to think this is too far off to give it tremendous amount of thought but at the same time are focusing on services and features they believe will develop immediate revenue.
 
So if the PSTN replacement companies are not looking five years out the question becomes who will? I would imagine the software only companies and ecosystem partners will be where the innovation comes from. After all these players have lower fixed costs as they aren’t providing PSTN replacement infrastructure such as call centers to take support calls. They can afford to be more creative and to experiment more.
 
Just as new versions of operating systems have absorbed innovative software applications we will likely see VoIP providers with open APIs integrating the best of breed ecosystem partners into their future offerings. Skype has already done this with their recent Skype Pro offering. It seems that as VoIP providers operate on thinner and thinner margins the opening up of APIs is the smartest way to generate revenue from new services. By sharing the risk of development, providers will also be shielded from failed ideas and can reap shared rewards from the successful ones.