October 2007 Archives

Paetec Buys Allworx

October 12, 2007 10:00 AM | 0 Comments

I am at the train station heading to Manhattan and just learned Paetec is buying Allworx. Two things come to mind. Paetec has become a major communications company this past year with their interesting acquisition strategy.

The second thought is that Allworx is on a tear and the communications market is abuzz with how well they are doing. This move allows Paetec access to a larger reseller channel which is likely over 500 strong by now and it also gives the company better access to SMB customers.

Allworx benefits from having deeper pockets to draw on when courting international customers.



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Going to New York

October 12, 2007 8:49 AM | 2 Comments
I've got some meetings in New York today. Yesterday was the rainiest day in recent memory. I wonder if the city is still flooded. A friend was traveling on a bus in Connecticut last night ands the bus encountered a flood in the street. The water entered the bus and came up to the knees of the passengers!

Strategic Technologies for 2008

October 11, 2007 8:08 AM | 0 Comments
I was reading an article on Wireless News regarding Gartner’s top 10 strategic technologies for 2008. Here are those technologies with the analysis from Wireless News. Obviously I agree with the first two items on this list and I do agree with a number of others here as well.
 
Here is the full article.
 
Green IT. The focus of Green IT that came to the forefront in 2007 will accelerate and expand in 2008. Consider potential regulations and have alternative plans for data center and capacity growth. Regulations are multiplying and have the potential to seriously constrain companies in building data centers, as the impact on power grids, carbon emissions from increased use and other environmental impacts are under scrutiny. Some companies are emphasizing their social responsibility behavior, which might result in vendor preferences and policies that affect IT decisions. Scheduling decisions for workloads on servers will begin to consider power efficiency as a key placement attribute.
 
Unified Communications. Today, 20 percent of the installed base with PBX has migrated to IP telephony, but more than 80 percent are already doing trials of some form. Gartner analysts expect the next three years to be the point at which the majority of companies implement this, the first major change in voice communications since the digital PBX and cellular phone changes in the 1970s and 1980s.
 
Business Process Modeling. Top-level process services must be defined jointly by a set of roles (which include enterprise architects, senior developers, process architects and/or process analysts). Some of those roles sit in a service oriented architecture center of excellence, some in a process center of excellence and some in both. The strategic imperative for 2008 is to bring these groups together. Gartner expects BPM suites to fill a critical role as a compliment to SOA development.
 
Metadata Management. Through 2010, organizations implementing both customer data integration and product integration and product information management will link these master data management initiatives as part of an overall enterprise information management (EIM) strategy. Metadata management is a critical part of a company's information infrastructure. It enables optimization, abstraction and semantic reconciliation of metadata to support reuse, consistency, integrity and shareability. Metadata management also extends into SOA projects with service registries and application development repositories. Metadata also plays a role in operations management with CMDB initiatives.
 
Virtualization 2.0. Virtualization technologies can improve IT resource utilization and increase the flexibility needed to adapt to changing requirements and workloads. However, by themselves, virtualization technologies are simply enablers that help broader improvements in infrastructure cost reduction, flexibility and resiliency. With the addition of automation technologies - with service-level, policy-based active management - resource efficiency can improve dramatically, flexibility can become automatic based on requirements, and services can be managed holistically, ensuring high levels of resiliency. Virtualization plus service-level, policy-based automation constitutes an RTI.
 
Mashup & Composite Apps. By 2010, Web mashups will be the dominant model (80 percent) for the creation of composite enterprise applications. Mashup technologies will evolve significantly over the next five years, and application leaders must take this evolution into account when evaluating the impact of mashups and in formulating an enterprise mashup strategy.
 
Web Platform & WOA. Software as a service (SaaS) is becoming a viable option in more markets and companies must evaluate where service based delivery may provide value in 2008-2010. Meanwhile Web platforms are emerging which provide service-based access to infrastructure services, information, applications, and business processes through Web based "cloud computing" environments. Companies must also look beyond SaaS to examine how Web platforms will impact their business in 3-5 years.
 
Computing Fabric. A computing fabric is the evolution of server design beyond the interim stage, blade servers, that exists today. The next step in this progression is the introduction of technology to allow several blades to be merged operationally over the fabric, operating as a larger single system image that is the sum of the components from those blades. The fabric-based server of the future will treat memory, processors, and I/O cards as components in a pool, combining and recombining them into particular arrangements to suits the owner's needs. For example a large server can be created by combining 32 processors and a number of memory modules from the pool, operating together over the fabric to appear to an operating system as a single fixed server.
 
Real World Web. The term "real world Web" is informal, referring to places where information from the Web is applied to the particular location, activity or context in the real world. It is intended to augment the reality that a user faces, not to replace it as in virtual worlds. It is used in real-time based on the real world situation, not prepared in advance for consumption at specific times or researched after the events have occurred. For example in navigation, a printed list of directions from the Web do not react to changes, but a GPS navigation unit provides real-time directions that react to events and movements; the latter case is akin to the real-world Web of augmented reality. Now is the time to seek out new applications, new revenue streams and improvements to business process that can come from augmenting the world at the right time, place or situation.
 
Social Software. Through 2010, the enterprise Web 2.0 product environment will experience considerable flux with continued product innovation and new entrants, including start-ups, large vendors and traditional collaboration vendors. Expect significant consolidation as competitors strive to deliver robust Web 2.0 offerings to the enterprise. Nevertheless social software technologies will increasingly be brought into the enterprise to augment traditional collaboration.
If you have been in the telecommunications market for any period of time you are no doubt aware of Jon Shapiro the founder of Alliance Systems the company responsible for building bullet-proof communications servers. Alliance Systems has great industry partnerships with vendors like Interactive Intelligence, AudioCodes and Dialogic.
 
Alliance Systems was just sold to Network Engines for about $40 million dollars and according to the acquiring company, this addition of telecommunications products and services blends nicely with the company’s storage and security business.
 
As always, stay tuned for more.

Here is a letter Jon just sent out:

Dear Friends

I am very pleased to share some exciting news with you.  This morning, Network Engines announced that it has entered into a definitive agreement to acquire   Alliance Systems, Inc., a leading provider of server appliances and computer infrastructure that support telecommunications and enterprise communications solutions. 

This acquisition represents a major milestone for Network Engines and Alliance Systems.  From a strategic perspective, it brings Network Engines into new vertical markets -- specifically telecommunications and enterprise communications.  It also combines Alliance’s expertise in these segments with Network Engines’ capability in storage and security to create new solutions for customers that take advantage of major trends we see in the market   From a financial perspective, Alliance adds more than $100 million to Network Engines’ annual revenue, diversifies its customer base and is immediately accretive to earnings per share on a non-GAAP basis. 

The two companies are both in the business of providing server appliances to OEM customers.  As such, the operations and financial models of both companies are similar, but have very little overlap.  Each company has concentrations of business in different vertical markets which are complementary.  Network Engines has focused on storage and security, while Alliance has telecommunications and enterprise communications as its main vertical markets.  The capabilities of both companies are also complementary.  For example, Alliance has on-site service capabilities in the Americas, EMEA and Asia, while NEI has developed its own appliance management framework (NEWS), a Linux distribution and package management service (ACE Linux) and a Virtual Appliance service.  All of this means that Network Engines will be a stronger and higher value add partner to our customers. 

It is important for our customers to know that we will take no action that will adversely affect our ability to meet your needsOur goal is that the new company will immediately benefit from the increased technical and support resources to better serve our customers. 

There is more information about the acquisition on our website, www.networkengines.com.  If you have any questions please feel free to contact your sales representative or simply reply to this message, and we will respond or call you with the requested information.

We appreciate your business and value the partnership we have with your company.  Thank you.

Best regards,

Jon Shapiro

CEO

Alliance Systems

VooDooVox

October 10, 2007 5:34 AM | 0 Comments
I thought I had heard it all when it came to telecom. I have been doing this job long enough that I have seen probably ten thousand companies come and some go.
 
VooDooVox however has a new twist on telephony and will now allow people on hold to listen to ad-supported news and sports scores.
 
In addition the technology allows radio stations to actually answer the thousands of many unanswered calls they can receive each day. You can now easily poll these callers and/or you can get personal information and build an e-mail list.
 
In short, VooDooVox has a great idea in taking inefficiency in the telecom space and eliminating it.
 
I know the question you are likely asking – Rich, do they have a prayer at being successful (pun intended).smile
 
Are they guaranteed to be successful – no. But the company could do well in a few niches in my opinion. Over time they may become a ubiquitous company we all expect to hear from when we call the cable or electric company.
 
For more check out what TMCnet’s Patrick Barnard has to say about VooDooVox.

Google Acquires Jaiku

October 9, 2007 7:53 PM | 0 Comments
Google is rumored to be launching their Gphone any day now and Jaiku – the company providing mobile presence has just been acquired by the search leader. It seems Google is really serious about the mobile communications market and whether they develop their own phone or not is immaterial – they are positioned very well to add value to a number of phones already on the market.
 
When you think about it, whether Gphone becomes popular or not is missing the point. The market will be defined by how many phones Google can get its software on. By software I mean mapping, advertising, IM, presence, whatever. Google seems deadest on becoming a mobile and PC OS leader.

Vonage Resellers Concerned

October 9, 2007 4:53 PM | 0 Comments
I just heard through the grapevine that a major retailer has told a VoIP provider that if there is any more bad Vonage news they will pull the Vonage boxes off shelves and replace them with another company. I haven’t independently verified this news but I thought it worth sharing. I would assume this comment was made before the good Vonage news regarding Sprint where there was a settlement.

AT&T’s Alternative Spectrum Buy

October 9, 2007 1:58 PM | 0 Comments
As you likely remember, Google was pushing the FCC to ensure the winner of the 700 MHz auction permitted open access to devices. Verizon was vocal about this being a bad idea but AT&T was more quiet. Now it may seem the reason AT&T was quiet had to do with the fact they were in the process of purchasing alternate spectrum from Aloha Partners.
 
This was a smart move by AT&T. An impressive strategy. What is most interesting perhaps is the nation’s largest phone company hasn’t actually decided on what they will do with this newly acquired spectrum.
 
Only in telecom do companies spend billions of dollars on things they aren’t sure how they will use.smile

Some Early October News

October 9, 2007 7:39 AM | 1 Comment
In case you missed some of the recent market news, you should be aware that Disney Mobile customers fearing they have nowhere to turn can in fact pick up service from kajeet – the mobile phone service designed from a kid’s point of view.
 
In addition, XO will be focusing more on the enterprise while Alcatel-Lucent fights rumors that AT&T will be dropping them in parts of their network going forward.
 
To top things off, NTT DoCoMo and Mitsubishi Electric Corporation jointly developed a “wellness coach” phone in a bid to keep very busy people hassle-free and living a healthy life.

E-Mail Miscommunication

October 9, 2007 7:28 AM | 1 Comment
E-mail is not the perfect form of communication and there are times when emotion can be misinterpreted by this communications medium. I have dealt with this in the past myself and have learned there are times when it is better to stop typing and pick up the phone.
 
Here is more from the New York Times.

The End of Car Theft

October 9, 2007 7:17 AM | 0 Comments
Although this has nothing to do with IP communications, I thought it worth mentioning the end of car theft is likely right around the corner. Why? GM’s OnStar the satellite linked service which helps passengers get to restaurants can also be used to slowly bring a stolen vehicle to a halt. The service currently finds 700-800 stolen cars per month – now all that’s left is to find the cars with the thieves in them and then slowly kill the engine. This is a great example of technology making life a lot better for consumers.
 
Here is more from the AP.

RingCentral VoIP

October 8, 2007 11:59 PM | 0 Comments
The folks at RingCentral have had a great virtual PBX service for ages and it was almost a surprise to hear the company still didn’t have a VoIP module. Even if you weren't aware... Fear not as I've got your back and I mentioned it back in June of last year and again a few months ago. In my most recent article I ended it with the following:
 
The service has some big news coming soon which will make it even more useful but I can’t tell you yet what it is. Be sure to sign up for a TMCnet news alert on RingCentral or check out the RingCentral news page to stay posted.
 
The big news is the California based company has now gone VoIP. I should point out that it’s not like I am such an IP bigot that I think every company needs to go IP – then again, maybe I am.wink
 
So the company has a new IP communications solution and I decided to give the new service dubbed RingCentral Digital Line a spin. I already had a RingCentral account so to go VoIP I just downloaded the new software module, selected a plan and was off.
 
Once the software was on my computer I made an outbound call and the quality was flawless. The user interface was fairly straightforward and the number of options available was bewildering. Still, with all the options it was a straightforward install.
 
When I called into the service I was surprised the computer did not ring. Instead I received voicemail that was sent in real-time to the softphone on the computer. I decided to go into the configuration menu and snoop. There I found the setting was defaulted to voicemail only. I changed it so it would allow full call control and the system started to ring when calls were made.
 
If you are a small business the new RingCentral Digital Line software coupled with existing RingCentral service will make your company look much bigger than you ever thought possible. It is a good service and can work with SIP-based IP phones as well.
 
Other features worth pointing out are music on hold, visual voicemail, fax and e-mail notification of messages. You can even pull callers out of voicemail and use an 800 or vanity number. There is lots of power at a reasonable price.
 
So RingCentral is late with their VoIP solution but the delay was more than worth it. It is full-featured and a great value. Check it out over at RingCentral’s website.
It’s been another busy week in the IP communications space as evidenced by the cornucopia of news from seemingly every sector of the market. If you happened to be on vacation this past week or just don’t want to deal with hassle of figuring out for yourself what is important in the world of IP communications, you came to the right place.
 
First off, you may be surprised to hear how fast VoIP is growing in the US if your sole source of news is your shareholder reports from SunRocket and Vonage. According to this article detailing North American VoIP and broadband growth – the rates are much higher than you may have thought.
 
Of course the odds are you knew this already because you probably use a VoIP PBX. What’s this you ask? For the answer check out this article from Mae Kowalke.
 
Here are a few other stories as well which you are free to discover for yourself.
 
I already covered the Dialogic/Cantata news in this blog but I want to make sure you saw it.
 
I wish I had time to tackle the news about Bandwidth.com and of course bringing VoIP to social networking is a fascinating topic as well.
 

Share Music, Get Fined

October 8, 2007 6:43 AM | 2 Comments
In case you haven’t heard of the woman who was fined $220,000 for sharing music, here she is with her feelings on the matter. If you feel up to it, this link will allow you to donate to her cause.

Siemens Unified Communications

October 7, 2007 5:41 PM | 0 Comments
I recently had the opportunity to speak with Mark Straton the Senior Vice President of Product Marketing at Siemens about his thoughts on unified communications and where the telecom market is headed. Straton spent the early part of the conversation talking about Microsoft’s vision.
 
This vision in his words is basically that the first generation of VoIP solutions were tied to hardware but now you can overlay the communications software and migrate to a fully software-based approach. It should be noted the Siemens VP agrees with this vision.
 
But he argues that Microsoft has started to put walls around their systems. He says other providers must operate within this environment.
 
Straton thinks there needs to be an open approach to UC and one vendor cannot provide everything – we need flexibility he says.
 
Straton mentions to scale such a solution is a very difficult task… He points to the decades of telecom development embodied in the HiPath 8000 from people who are communications experts.
 
At this moment he took the opportunity to explain the fact that HiPath sales are rapidly accelerating at a number of major Fortune class organizations including the deployment of a massive hosted solution provided by Global Crossing in the UK. When queried about why the systems are selling better than ever, Straton points to the latest version 3.0 which has a laundry list of major features such as network optimization, unified communications, end-to-end video, FMC and call center support.
 
I asked Straton about the difference between Microsoft and Siemens as Microsoft also says they work with other vendors just like Siemens. To this he replied, “Work or dictate?” which I must admit caught me off guard.
 
He contrasted this to IBM who he says has a much more open approach.
 
It was at this point a surprising fact emerged… Siemens is the largest enterprise Microsoft customer in the world which of course puts Siemens and Microsoft in an interesting competitive situation.
 
I asked Mark about the Nortel/IBM Microsoft relationship and he said this is a bit like letting the fox in the henhouse.
 
In the near future we can expect to see an SMB unified communications device from Siemens geared towards 20-150 users. The system will have wireless support built-in but will need external access points to function as a true dual mode solution.
 
Certainly this was an interesting conversation as most executives are scared of going public with comments that are less than complimentary towards the Redmond-based software giant. Then again, most people don’t work at companies which are on the top of Microsoft’s customer list.
 
At the end of the conversation Straton took a moment to remind me how in certain respects Siemens and Microsoft have a similar communications vision. He said, “He believes a truly successful UC solution needs to start with a software approach and not a hardware one.”
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