Recently in Skype Category

Skype is certainly a major symbol for the IP communications market and although it plays in a niche in the market - consumer VoIP/Video, it is now a household name and having it entangled in legal limbo does it or the industry no good. You may remember that the company was in the process of possibly going IPO and then eBay decided to sell it. But there was a sticking point consisting of Skype's p2p technology not being theirs and the original founders, Janus Friis and Niklas Zennström playing hardball to cease Skype from working until they got paid what they believe they were owed.

Thankfully the companies settled and as a result eBay announced that the investor group led by Silver Lake, which had previously entered into a definitive agreement to acquire a majority stake in Skype from the company, has reached a settlement agreement with Joltid Limited and Joost N.V. that gives Skype ownership over all software previously licensed from Joltid and ends all litigation currently pending against the investor group and eBay at the closing of the acquisition.

As part of the settlement agreement, Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14 percent stake in Skype. As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 percent of Skype and eBay will retain 30 percent. As previously announced, eBay will receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at $2.75 billion and is expected to close in the fourth quarter of 2009.

I agree with Skype investor and Netscape founder and Ning co-founder Marc Andresen that Skype is one of the most important companies on the Internet.

Now let's see what they can do with this company which has massive potential to keep changing communications and highlighting how IP can disrupt an industry and shake it to its core. One area of exploration will hopefully be deep integration between Ning and Skype allowing the social network building service to leverage real-time communications more effectively. How much stickier will online communities be when participants can see each other and speak immediately. Does a Ning/Skype combination become the largest real-time directory in the world?

Now I really can't wait to hear Skype's Chief Strategy Officer Christopher Dean speak in a few months at ITEXPO in Miami.

Today is a big Twitter day for me. You may or may not realize that my Twitter feed is automated meaning my blog posts just convert over to Twitter posts. I have set up my account to get an email whenever a new person follows me. At a certain point the follows were becoming a distraction so I have a rule which forwards all Twitter follows into a folder which I go through when I have a moment. Today is that day and I will likely look at 50 of them or so.

The reason I look at all my followers is that many of the people following me work for companies which may make for good stories, people to invite to speak at an event, etc.

To me, Twitter is just another channel for my blog to live on - like RSS, Facebook, LinkedIn, etc. I have a number of people who would rather follow me in this manner - and that works for me.

Well, back to my Twitter account.

We are thrilled to announce a slew of top notch keynoters for the upcoming ITEXPO which takes place in Miami, FL Jan 20-22, 2010. I will share them with you by first explaining why they were invited:

A keynote picture from ITEXPO East 2009 in Miami

Open Source

One of the biggest trends in tech this last decade has been open source and while you may not know this, I was a UNIX (the Linux precursor) system admin at TMC back in 1982 or so and I am a big fan of this OS which is reliable, stable and the strong basis for cost-effective solutions in a number of fields. Without a doubt, Asterisk is the major force in the open-source communications space and as such, Digium's CEO Danny Windham (the company behind Asterisk) was the perfect choice to address the audience of businesses, carriers and resellers. By the way, Digium Asterisk World (DAW) is collocated at this show and I hear it just sold out of exhibit spaces and my team is looking for ways to get the waiting list
of companies into an expanded DAW pavilion on the exhibit hall floor.

Digium Asterisk World Photos from ITEXPO East 2009 this year

Google Voice vs. AT&T

Google Voice has been one of the most disruptive influences in telecom these past years and this service has single-handedly become a point of public argument between the search leader and Apple and AT&T - with the FCC acting as referee of sorts. The argument revolves around net neutrality - the concept that carriers will apply discrimination to traffic on their networks based upon traffic, application type or source. Google obviously wants their services to run on any network in an unencumbered fashion while AT&T has said since 1995 when they were SBC that they want to charge for their pipes. AT&T actually then pointed out to the FCC that Google Voice does not terminate all calls on its free Google Voice service meaning it is not adhering to the principles of net neutrality. The reason of course as Google points out is traffic pumping and bizarre intercarrier compensation rules which allow some rural carriers to charge exorbitant rates for calls terminating in their areas. Craig Walker founded Grand Central, the company purchased by Google and the basis for Google Voice and as the Group Product Manager for the Real Time Communications Group at Google, he was a natural person to invite to speak with us at the show. It seems his accomplishments have unleashed a firestorm of controversy which should hopefully clean up some of the ugly mess that is telecom policy and regulation.

Exhibit hall pictures from ITEXPO East 2009 in Miami

HD Voice/SIP and Video

Another major trend in our markets is that of HD voice, video adoption and of course SIP endpoints. AT ITEXPO last year, we had the first panel in the world focusing on HD voice (video) and since then I am excited to see other conference organizers throwing their hat in the HD ring. A major player in all of the above spaces is Polycom and they have done an amazing job of working with disparate vendors on interoperability issues which has moved the market forward by reducing the friction caused by proprietary endpoints. In the world of video, the company has been a major player - developing telepresence systems all the way down to video phones. To get a bead on where this market is heading we invited Polycom Co-Founder, and the CTO of the Voice Communications Group Jeff Rodman to join us as a keynoter.

HD Voice Panel I moderated from ITEXPO East 2009 in Miami

Skype

No matter how you break out the IP communications market, Skype is likely a factor in changing the market in a pro-consumer manner. By giving away global voice calling with quality which far exceeds the PSTN, they have disrupted while getting users used to better voice quality. On top of that, they give away video calling as well, making them a company which excites consumers and scares carriers and anyone else who dares compete with their network of hundreds of millions of subscribers.

Interview I had with Skype's Ian Robin

Skype has been making a major push into the enterprise and is working on enhancing relationships with carriers as well. They are even looking for channel partners who can share in the newly created revenue streams from a number of products like Skye for SIP. When you take all of this into account, it does make great sense to invite Skype Chief Strategy Officer Christopher Dean to speak, doesn't it?

Smartphones, Wireless and Smart Ecosystems

One of the biggest trends in the world of communications is smart devices and ecosystems. What is an ecosystem you ask? Well it is a group of companies who develop products which work with a product or service offered by a host company or companies. The iTunes App Store may be the best example but certainly Avaya's DevConnect or Cisco's Partner Programs are good examples as well. You may know that TMC has focused a tremendous amount of resources on educating the world on smart ecosystems via our new SPEC site. I truly believe ecosystems have a bright future.

In order to bring attendees up to speed on all these topics we invited two top keynoters to present on the matter. Sprint's Mathew Oommen is the vice president of device and technology development at the company and uniquely positioned to share with us his company's view on the future of wireless technology. Oh and by the way, be sure to check out my recent interview with Sprint's Wayne Ward who heads up the company's M2M activities (did I mention there is a collocated M2M conference at ITEXPO?).

To get a handle on wireless devices as they pertain to ecosystems we invited Brian Higgins the Executive Director for Ecosystem Development within Verizon Wireless to join us so we can learn where the company thinks the market is headed. Verizon has been very ambitious in its goal to develop an ecosystem of products and applications which interoperate in the hope of one-upping the iTunes App Store.

We continue to work to add fantastic new speakers to our roster and you can expect this ITEXPO to be the most comprehensive and educational ever and a must-attend. I personally hope to see you there.

Oh and by the way, we have secured great rates this year at the Loews Miami Beach Hotel - you can save $150/night if you book now - the rate is $249 vs. what is typically a $399 rate at prime season. There are many advantages to staying at the show hotel such as networking, etc - and I have always been a fan of the Loews. In fact I was a guest the first day the hotel opened about ten years ago or so.

Bill Gurley writes correctly that Google is positioned to take over the world. I am certainly paraphrasing and adding some personal bias - he describes in detail how the company invested great sums of money to assemble a superior turn-by-turn GPS database which includes a street view and in so doing is now able to take marketshare from competing mapping vendors by using advertising to subsidize the cost of acquiring this information.

Advertising revenue in fact will drive the company's operating system, software as a service and just about everything else.

As the company shares part of this revenue with partners you have seen wide adoption of Android by wireless carriers and no doubt hardware vendors installing the Google Chrome OS are next.

Expect the company to continue going after Microsoft products - by giving services away and supporting them through ads.

Any competitor which has an inferior ad network and generates less money from advertising (this is all of them) is pretty much domed.

The only way to stop the onslaught is to build a far superior search engine and hope the world switches. At this point the sheer marketshare Google commands in search allows them to utilize their massive database of user behavior as a massive focus group allowing them to improve by the second.

I just can't see anything stopping this company besides, a scandal, high level departure, illness or something similar. Even then, the company is a monopoly at this point and perhaps momentum will ensure their future success.

Is the company using its power in a way which warrants them being broken up by the DOJ? Possibly, but Google reminds me a heck of a lot of Wal-Mart as the larger it gets, the better consumers do. Giving away free GPS for example is a pro-consumer behavior and as long as the company keeps breaking into new markets and giving things away, it is tough to see how the Google could be considered to be harming customers.

Getting back to the headline of this article -- do I really think Microsoft is doomed? Yes. Immediately? Obviously not. But any time a company with a quality name in the market can make money while giving away good products which you charge for, you are done.

I really excited to speak at the Illinois Institute of Technology Rice Campus for the VoIP Conference and Expo 2009. This will be my first time to this event and interestingly the third time in recent weeks in which I am in Chicago instead of Vegas for a show. Maybe the city didn't get the Olympics but they certainly seem to have gotten all the shows - WiMAX World, Supercomm and now this event.

Getting back to my talk - I am moderating a Keynote Panel titled: Are the "Bells" ringing for Carrier VoIP? And my panelists include Carl Ford, Crossfire Media; Anne Lee, ALU; Gaston Ormazabal, Verizon and Henning Schulzrinne, Columbia University at 4:00 pm this Thursday 10/29/2009. I hope to see you there. Here is the schedule with my panel in yellow at the bottom.

Here is the website for details.

I wanted to alert my readers to some exciting news happening at TMC. As you likely know TMC is among a handful of media companies growing at a time when the media landscape is in dramatic decline. As you might imagine this growth is primarily online. Over the last decade and especially in the last few years we have focused on building online communities (Channels and GOCs) for customers who sponsor these areas as they rapidly attract focused decision-makers from around the world.

The visitors who come to these communities benefit from a massive amount of free content which helps them make informed purchasing decisions. For example people looking for products in Call Recording, Smart Data Centers, IP communications, HD Voice, Fixed Mobile Convergence or Next Generation Communications can come to the respective communities focused on these topics and have access to hundreds and in most cases thousands of TMC written articles detailing the news in their specific area of interest. Our business model is straightforward; aggregate massive amounts of focused and quality content using custom-built content targeting technology - make it relevant and pertinent so as to attract the right readers who need this information as they research the products and services they are looking to buy.

For our sponsors, these communities allow them to rank high organically on search engines to get their message out to a focused audience while simultaneously being able to measure the traffic to ensure they can justify their spend to the sales and executive management teams.

Basically, this suite of communities replicates the trade show model online and just like a trade show that attracts more attendees as the exhibitor base grows; the 120 monthly sponsored communities on TMCnet attract a massive audience which in turn attracts more sponsors.

In short, I am very confident we can continue to provide free quality content in all the areas we enter. Meaning while other media companies are beginning to charge for their once free content and many others are reducing their editorial teams, TMC is adding to its editorial, sales and marketing teams as we have a model which works exceptionally well for our readers and sponsors.

We are growing our team as we enter a slew of new markets with our business model of providing laser-focused content - backed by over a decade of proprietary content targeting technology; essentially building targeted online communities which rank high on search engines as they attract large amounts of focused traffic.

Here is my quote from a press release we put out today mentioning the hire of a brand new position - VP of Business Development. Matt Weiner is filling this position and his background of working for Penton and Yahoo! make him a good fit for the position."Over the last decade, TMC has invested in the technology and people necessary to build a next-generation media company which creates communities online, in-print and in-person," Tehrani continued. "By providing our audience with top quality news, training and information, we have attracted global purchasing decision-makers to our communities. As TMC's global communities have increased in size and quality, they have attracted hundreds of advertisers and sponsors who receive regular measurable results for their marketing and SEO budgets. Our future strategy involves continuing to build communities which draw large amounts of targeted traffic as we continue to connect buyers and sellers -- and adding Matt to the team is an integral element of that strategy."

Aside from Matt, we have added a number of other positions and just as importantly we continue to ink partnership after new partnership as we enter new spaces where we leverage our community building engine in combination with the thought leadership of individuals and/or corporations in new markets.

Thank you for continuing to support our rapid growth - thanks to our readers and existing and news sponsors - we look forward to helping all of your companies grow with ours.

I am here in Chicago for Supercomm 2009 where I have numerous video interviews and meetings set up. I will be attending a few receptions and the first one is this evening in celebration of Genband's 10-year anniversary. We have a booth at the show where we will be filming live interviews with industry executives and thought leaders and we are excited that TMC's Paula Bernier will be participating in the conference portion of the event. Genband is participating on the panel she will be moderating and will be sending out a press release which I feel objectively describes the session. Hopefully you will get a chance to stop by and see Paula in action.

Here is a photo of Supercomm 2009 Chicago exhibit hall and the release:

GENBAND to Participate in Transcoding Panel with Verizon, Nokia Siemens Networks at SUPERCOMM 2009

Conference session explores transcoding requirements, challenges, insight for voice and multimedia interplay

Plano, TX, October 19, 2009 - GENBAND Inc., a market-leading developer of next-generation IP infrastructure solutions, today announced it will join with Verizon Communications Inc., and Nokia Siemens Networks for SUPERCOMM 2009's programming session: The Transcoding Path to IP Network Interoperability. Taking place on Wednesday, Oct. 21 from 3:10 p.m. - 3:55 p.m. in room W183b, the panel will discuss interworking complexities at network borders and how the industry is addressing these challenges through transcoding.

"As challenges arise from managing and routing VoIP and multimedia sessions, service providers are increasingly using transcoding to address interconnections at network borders," said Paula Bernier, Executive Editor at TMC and moderator of the session. "I look forward to discussing this timely topic, including both the service provider and equipment manufacturer perspectives as they supply and deploy transcoding solutions across IP networks. We will discuss successes and challenges of implementation as well as the roadmap for transcoding and its relationship to trends such as IMS and FMC."

Ms. Bernier will moderate a panel comprised of Tim Dwight, Principal Member of Technical Staff in Verizon's Core Network Technology organization; Al Young, Account Director at Nokia Siemens Networks; and Andrew Bender, Vice President of Technology at GENBAND.

SUPERCOMM 2009's conference program focuses on broadband solutions, in the form of real-world examples and case studies that feature the users of technologies and services as presenters, along with the service providers implementing the technologies in their networks and deploying the applications those technologies enable.

The Transcoding Path to IP Network Interoperability session will explore the requirements for transcoding and the strategies to resolve challenges that arise from combining networks with varying voice and multimedia traffic types.

Carrier consolidation, the convergence of fixed and mobile networks, and the prevalence of all-IP network architectures are all driving a growing need for transcoding in today's communications networks.

The traditional approach to connecting IP networks uses gateways to convert traffic to a common TDM format, which resolves media compatibility but increases cost and can impair voice quality. GENBAND offers a unique solution that avoids these issues by enabling direct IP-IP transcoding with support for fixed, mobile, and satellite codecs.

Speaking with Sprint's Wayne Ward you come away amazed at the potential ahead for wireless carriers in the burgeoning machine-to-machine or M2M space. Just what exactly is M2M? It is simply machines communicating with machines. Quite often this interaction is to satisfy the needs of a person, corporation or system - for example when an automobile senses a mechanical problem and signals the manufacturer for a wireless diagnostic which determines the car needs service and subsequently alerts the driver.

In other cases sensors communicate with backend systems which perform some action as a result of the conditions where the sensor is located.

Wayne explained the opportunity in M2M and moreover that human subscribers in the wireless market have reached saturation with most of the growth coming today from switchers (churn) and prepaid users. He said emphatically on a recent phone call, "The M2M market is wide open."

If there is one thing which is happening faster than change in the communications space it is the pace of convergence. Social networking widgets on televisions, cars which sync with music players, phones with GPS, PCs which double as home entertainment systems, photo frames which can receive MMS photos, there seems to be no stopping this trend.

The consumer, business, wireless and wireline businesses are converging as well and to respond to this new landscape, Sprint has rolled up a few of their existing units into a new Emerging Solutions unit to specifically focus on M2M and mobile computing.

The M2M category alone is massive and Ward is right to be enthused. These are just some of the markets touched by this technology: remote monitoring, asset tracking, fleet management, telematics, automation and control, automated meter reading, smartgrid, point-of-sale/ATM and wireless routing.

Sprint has had many challenges lately such as massive customer churn and general customer dissatisfaction. To fight back, the company is obviously looking at new markets such as M2M and the company touted its relationship with Amazon's Kindle as a major step forward in a new market. While the amount of money being made from the Kindle so far is not great, it is certainly a huge account you didn't want to see go to AT&T. Well, Amazon did leave Sprint for AT&T recently and one reason for this move was the need to access the GSM as the Kindle goes global.

Update: Here is an official statement and clarification from Sprint on the matter:

The Kindle DX will continue to operate on Sprint's network -- existing Kindles currently in use or already in the sales pipeline will still be powered by Sprint. We continue to enjoy a great relationship with Amazon. Though we are disappointed in their decision to work with AT&T for their international version, we understand their international strategy.

A consistent theme on our call was that Ward wants to see M2M getting pushed by other carriers as it grows awareness and the market. Just as the push-to-talk market grew more quickly when new players entered the market, he expects the same thing to happen in M2M.

He then explained how Sprint's various networks can serve the company well in the M2M-based world of the future. Often thought of as a liability in the world of wireless voice the combination of iDEN, CDMA 1xRTT, CDMA EVDO and 4G is a benefit in this new machine-driven world. The reason is, each of these networks has various advantages in terms of speed, performance and/or cost and subsequently the broadest array of networks is best in this new world.

I mentioned the Kindle is not a massive moneymaker and that should get you wondering about this market - can it generate serious revenue for Sprint and others? Ward says the old models of ARPU, subsidies and churn go out the window with M2M and instead there is a much lower ARPU and a small or nonexistent subsidy. What you get instead is a healthy customer lifetime value and higher profit margins. Why? Well, one reason is there is no human interaction as machines deal with rate plans and other issues without using customer service reps.

So what does Sprint's Wayne Ward want to see? Among other things, more M2M adoption which will lead to cheaper chipsets which will lead to even more adoption. He tells me there is lots of business in the pipeline and his company is talking with enterprise customers and their supply chains as well as chipset vendors, module vendors, 3^rd party application vendors, software developers, healthcare companies, VCs and many others.

To me the potential of this new market is massive. Coincidentally, I recently decided to purchase a GPS device because it could connect to the internet and I pay $10/month to keep it connected. What does Ward think about M2M's potential? He summed it up nicely by saying, "There are billions of machines we can assign an IP address to and wirelessly enable."

To stay up to date on the rapidly growing M2M space be sure to attend TMC and Crossfire Media's M2M Evolution Conference and visit M2M Evolution online.

The next time you are in a restaurant listening to some captivating tune and see other people in the restaurant signaling for others to be quiet as they hold their phone up to the ceiling, you may be witnessing someone using Shazam (dare I say Shazaming?) to try to discover the song which is playing. I have used the service quite often and I think it is amazing. It doesn't always work but when it does I am thrilled as without it, I am not sure how I would figure out what I was listening to.
 

The company just announced it got funding and moreover they have 50 million users worldwide with 15 million added since February of this year. Kleiner Perkins Caufield & Byers (KPCB) gave the company an undisclosed sum from its iFund which contains a cool $100 million which is being doled out to an iPhone developer near you.

Currently you can use the service for an unlimited amount of song discovery but going forward you will get five free songs per month and have to pay $4.99 for unlimited usage and other features. The company also plans to sell tickets to concerts and other media like video.

The ability to decipher the entertainment a person is enjoying could be a big step towards personalizing content delivery based on personal taste. In other words, if Shazam was to run on a mobile phone all day while it deciphers what you listen to on the radio and watch on TV, it could collect all the pertinent information needed to construct a personalized playlist of television programs and songs you may like.

Of course, this functionality may not be on the company's roadmap but if you start to integrate technology from Pandora and Slacker you could come up with some really interesting applications which could increase the relevancy of programming and advertising.

Of course KPCB is a top firm having funded very successful companies such as Google and Amazon. They must know Shazam has significant potential. It will be great to see how they navigate the mobile landscape to turn song discovery into profit.

A fascinating bit of reporting from the Wall Street Journal confirms some things that many in the communications industry already knew and some things we didn't.

1. eBay doesn't get Skype - this is as obvious as it gets.
2. The current Skype Management and investors don't want to deal with Niklas Zennstrom or Janus Friis
3. Mike Volpi, past Joost CEO wanted to change Skype's underlying technology to SIP - knowing this would upset Skype's founders Zennstrom and Friis - Coincidentally about five years ago at ITEXPO Niklas Zennstrom was giving a keynote and at the end of the presentation Andy Voss, founder of Session Border Conrol company Sansay asked why Skype doesn't support SIP. Zennstrom replied accurately that there are far more Skype endpoints than SIP endpoints.

What amazes me the most about this situation is that to all the people who understand Skype, there is a tremendous amount of value in the company and it is worth fighting over tooth and nail. To those who don't understand it - eBay for example, there is limited value.

This story keeps getting more interesting.