As I hinted last week, I would have some "interesting" news to tell after my visit to Digium's brand new headquarters along with colleagues Greg Galitzine and Dave Rodriguez. Before I get into the MAJOR news being made by Digium, let me cover what else I learned on my trip. It had been 3 years since I last visited Digium down in Huntville, Alabama.

After getting a grand tour of the new Digium building we sat down in a state-of-art boardroom complete with a high-end Polycom IP conferencing unit, theater lighting, and a projector with motorized retractable screen. The boardroom was named the Mark C. Smith Boardroom to honor Mark Smith, who was the founder and chief executive officer of ADTRAN and Mark Spencer's mentor. A picture honoring Mark Smith sits on a table in the room. We all admire how Mark Spencer was able to transform open source telephony - myself included - but no doubt Mark Smith and his company ADTRAN played  a major role in making Asterisk the phenomenon it is today.

During our full-day meeting, Digium wanted to fill us in on the latest happenings going on and the future directions Digium was planning to take. One of the first takeaways I took was that their 1.5 year term CEO, Danny Windham believes strongly that Asterisk should be classified as an "engine". It's the "core guts" on which other software from third-parties can be added. For instance, Asterisk is not simply an IP-PBX, as of 1.6 it has an SS7 stack enabling Asterisk to be used in carrier and service provider applications. Another example they gave was how Asterisk can run just about any protocol, and were quick to point out that sipXecs, an open source alternative recently acquired by Nortel, can't even natively run Nortel's own digital phones while Asterisk works just fine with Nortel phones.

Another important takeaway was that Digium said flat out that claims Asterisk could not scale were false or at the very least were misleading since they were based on older versions of Asterisk. In fact, it seemed Digium took great personal umbrage that some of their competitors were making these claims. As evidence of scalability, they mentioned a particular service provider running thousands of ports and are currently writing a write paper case study on this customer. When they publish it, I'll be sure to include excerpts in my blog.

One last takeaway that is important to mention is that Digium considers themselves to be the "Benevolent Asterisk Project Sponsor and Maintainer". This is a key mantra that they want to reinforce. They have no plans to ever fork Asterisk into say an open source version and a premium closed source version. They know there are many companies that do add proprietary code on top of the Asterisk engine and don't give back to the community, but Digium has no plans on monetizing Asterisk that way. I should point out that corporations that purchase Asterisk Business Edition (ABE) do have the right under the dual licensing to add their own code without giving it back to the community, however, there are companies that have taken the Asterisk engine, didn't pay for ABE, added their own code, and didn't give the code to the community.

Some interesting statistics about Digium that they told me during the meeting that I thought I'd share. First, Digium currently has 150 employees and has had 26 consecutive growth quarters. The headquarters are now running on Switchvox, which Digium acquired in September of last year. This is the first year that Digium has been named to Gartner's renowned visionaries quadrant. One stat that I've always wonder about is what percentage of Asterisk code is developed by the open source community and what percentage by Digium. Well, the answer is 50% each, which was a little surprising. I would have expected the open source community to be higher, but this goes to show you how important Digium is to the future of Asterisk. They are obviously paying for developers and making an investment in improving Asterisk.

Some other interesting stats:

• Over 1,000,000 downloads in 2007
• Project 2008 downloads at over 1.54M
• Over 4 million servers deployed with Asterisk
• Over 56,000 active on forums
• Over 17,700 on active Asterisk mailing lists
• Over 7,248 on our Bug Tracker
• Over 400 active contributors
• Over 200 service providers worldwide using Asterisk

Further, the number of commits to Asterisk Trunk was 3,498 (mainly Asterisk 1.6 related) and the number of commits to Asterisk 1.4 was 1,401 (bug fixes). A staggering 132GB of bandwidth was consumed in 2008 YTD.

Here's an interesting photo I took from the 2nd or 3rd floor aimed at the Asterisk logo which I believe is the center of the 3 buildings. From what I'm told if you fly over Digium's building, the three buildings form the Asterisk logo. For some reason looking down at this circular area reminded me of the Star Trek Enterprise's warp core. Forget "Powered by Intel", this building is "Powered by Asterisk".


Digium recently hired Stephen Burcham, the Director of Quality who came from a company that designed controllers for anti-lock braking systems, which demand the most stringent quality control and reliability standards. Stephen has brought that same high standards mentality to Digium. Surprisingly, Digium's hardware production is done by two American companies, so it's Made in the U.S.A. Considering many electronics can be done more cheaply in China, I was happy to hear Digium was using American companies to manufacture their goods. In fact, Digium is using two local Alabama companies and they told me that they actually made in an investment in at least one of them to purchase a higher-end process manufacturing machine to meet Digium's stringent quality requirements.

One of the biggest challenges facing Digium has less to do with technology and more to do with market perception. Digium told us that they have to battle Cisco and their claims that Asterisk is not a business class solution. I found it fascinating that Cisco is still able to leverage their own name brand recognition to get (scare?) customer wins, but if anything that's great news for Digium and Asterisk. It isn't technical comparisons or feature-sets that Asterisk is losing customers to Cisco, it's name brand recognition. That'll improve with time and my guess is very quickly since Asterisk has a full head of steam.

Now for the interesting news. AsteriskNOW which previously ran on rPath will now be using the very popular CentOS (5.2) distribution. Now that it runs on CentOS it will support easy operating system updates (via .rpm files). Also new in AsteriskNOW will be a yum repository for easy updates of Asterisk itself. Just 'yum' the lastest version of Asterisk and it will upgrade your version of Asterisk without screwing up your customizations.

Also new is that the next release of AsteriskNOW (1.5) will bundle the very popular FreePBX front-end GUI. This is big news! FreePBX has become the defacto standard for web-based GUI administration of Asterisk, so now Asterisk fans can download AsteriskNOW, boot of the self-install CD and not only getting a working copy of AsteriskNOW, but FreePBX as well! This isn't to say Digium will stop developing their own GUI. In fact, when I asked that question, they said categorically they will continue to develop and improve their Asterisk GUI 2.0, which is currently installed on Asterisk Business Edition (ABE) and the Digium Asterisk Appliance 50 (AA50), as part of the 1.2 release I recently blogged about. Digium told me they expect the next release of AsteriskNOW to be available by Astricon.

Some other interesting news to talk about soon and I want to blog my grand tour of Digium's state-of-the-art facility, but I'll break that out into a separate blog post. Stay tuned...

So today I get a new report from the Tolly Group stating that the ShoreTel Unified Communications system is significantly more energy efficient than the Cisco Unified Communications Manager. ShoreTel apparently topped Cisco in using less energy to drive VoIP communications in specific large, medium and small enterprise-class scenarios.

This energy usage comparison reminded me of Nortel's "The 'Nortel' Tax Relief Plan", which aims to "stop paying the 'Cisco Energy Tax' and save up to 40%". Tony Rybczynski who works for Nortel and writes a TMCNet blog called The HyperConnected Enterprise sparked some controversy with some of his blog posts promoting the fact that Nortel is more efficient than Cisco. He even cites one customer that put a stop order on a $2 million dollar Cisco order once they did the energy efficiency calculations.

Is that what it's come down to? Instead of feature-to-feature comparisons where going to have to start comparing energy consumption? I'm not against the idea, I just find it kind of humorous that everyone is jumping on the enviro-green bandwagon.

I have to wonder if an IT manager, CTO, etc. might purchase a more efficient IP-PBX over a less efficient one that has many more features? Well, certainly in San Francisco and other uber-green areas that might be the case. Green trumps everything when you're a greenie - not that there's anything wrong with that.

I should point out that the IT Manager or CTO often not held accountable to what the electricity costs are. Many businesses see their electricity bills just as one of the costs of running their businesses. Other than instructing their users to turn off their radios, monitors, and computers at night, most businesses don't delve into purchasing energy efficient computer or phone equipment. That is changing due to high energy costs - albeit slowly.

What's missing from this ShoreTel energy comparison report is a comparison with Nortel, Avaya, and other IP-PBX players. Just who is the "king" of energy efficiency? Inquiring minds want to know.

So what are your thoughts on the IP-PBX Energy Wars? Do you care about efficiency or are features for important to you? Post a comment.

Lastly, the press release is included after the jump for your perusal...

You remember the scene in Jurassic Park where the there was no power or working phones on the island so they head to the control room? Lex Murphy, the young hacker girl, gets on a computer, works some computer wizardry and gets the power and phones back online and is able boot up the door locks and other systems - though its not enough to keep the raptors from getting to them.

Well, there's a funny Youtube parody video that solves the apparent "IP phone" outage simply by restarting the Cisco Manager services.

Ironically, the girl says it's a UNIX system, while Call Manager is Windows-based.

Preview snapshot:


Click Play Below

Infonetics sent me over a summary of their latest report on the unified communications (UC) market.  Infonetics Research reports that the unified communications market, which includes unified messaging and communicator software, jumped 20% sequentially in 2007, following a 19% increase in 2006. Similarly, the IP contact center (IPCC) market grew 24% in 2007, after a whopping 26% increase in 2006. Infonetics' report, Unified Communications and IP Contact Centers, shows that together, UC and IPCC sales grew 22% to hit $1.05 billion worldwide in 2007, and healthy growth is expected through at least 2011.

Interestingly, Microsoft jumped to first place in worldwide communicator revenue market share in 2007. Looks like Microsoft OCS 2007 deployment blues aren't so blue after all!

Another interesting aspect of the report is that it states the transition from TDM to IP is causing the IP contact center market to grow more rapidly than the overall contact center market. They've already optimized TDM to death with predictive dialers, ACDs, workforce management software, etc, so it makes sense that the contact center is now looking to unified communications as a new way of increasing communications efficiencies, agent productivity, etc.

"As a key component of unified communications, sales of communicator software clients are taking off. The Nortel/Microsoft alliance drove growth in 2007, and Microsoft captured close to half the communicator market. Market share will likely bounce around in the coming years, as vendors from different backgrounds try to establish themselves as the leader in the nascent UC market and promote their offerings aggressively," said Matthias Machowinski, Infonetics Research's directing analyst for enterprise voice and data.

Other report highlights:

• Sales of the relatively small communicator segment skyrocketed 164% from 2006 to 2007
• Unified messaging makes up the bulk of the UC market, and is led by Avaya, with more than 1/3 of the market
• Avaya also leads the IP contact center market by far, with more than half of worldwide revenue; Cisco is 2nd

I'm reticent to spread rumors about a VoIP company's demise - I certainly don't want to be be the Valleywag of VoIP blogs. However, Rich Tehrani, my boss, has been hearing rumors about ShoreTel and it doesn't sound good. It goes without saying that Rich Tehrani has his "ear to the ground" in the VoIP industry perhaps more than anyone - myself included. Rich heard things about TMC's main competitor long before the story broke out in the blogosphere, but both Rich and the TMC team took the "high road" and chose not to write damaging stories about our competitor.

With this in mind, Rich wrote in his blog, "I have never heard the kind of rumors about a vendor that I am hearing about Shoretel. Reports of unhappiness in the ranks of the workers and management problems persist in the industry."

Rich adds, "I normally hate to talk about rumors without doing more research than this but in my experience this level of negativity is unusual for any company and for it to come out of the blue and unsolicited from multiple sources means there could likely be fire causing the smoke."

Greg Galitzine also weighs in when he writes, "In my opinion these guys were once the truest darlings of the VoIP world. Maybe I was simply a sucker for a great desk set (and they had some nice hardware, I tell you) but in the wake of all the sour news in the VoIP world I have to wonder if the old adage “where there’s smoke, there’s fire” applies."

Greg adds, "Shoretel stock (SHOR) was down 10.10 percent on Wednesday, but appeared to be making a huge run in aftermarket trading, bouncing back about 8.5% at 6:50 pm ET."

ShoreTel is one of the early IP-PBX pioneers and they have some really great technology. I for one would be sad to hear if the rumors of their demise are indeed true. While it could be fun for me to speculate that pressure from low-cost IP-PBX solutions, especially Asterisk, the open source IP-PBX is affecting ShoreTel, I don't think this is the case. The last time I looked at ShoreTel, their technology was more scalable than any of the Asterisk-based solutions out there. Asterisk's sweet-spot is really under 80 seats (some exceptions excluded) where as ShoreTel's sweet spot is 80 seats and up. ShoreTel competes more with Cisco, Nortel, and Avaya.

So why is ShoreTel having problems? As Rich wrote in July 2007, "ShoreTel hit it big with an IPO which jumped 27.5% on it’s opening day. The IPO was derailed last week as a result of a lawsuit filed by Mitel. The company closed the day at $12.15, after the company priced 7.9 million shares at $9.50 a share." So perhaps Mitel's lawsuit against ShoreTel took the steam out of ShoreTel?

Perhaps all the recent lawsuits against various VoIP companies, including Vonage, which has lawsuits filed against them by Verizon, Sprint Nextel, Nortel, and even me over my cold pizza has stymied ShoreTel?

According to a new study by analyst firm Infonetics Research, Cisco and Microsoft are locked in a "battle of the titans" for the unified communications (UC) market, with both vendors currently favored by buyers as Unified Messaging and Communicator suppliers. As almost an aside, the news release on the study says, "Avaya and Nortel also fare well as current UC suppliers." I'm sure Avaya and Nortel are thinking -- and to quote Rodney Dangerfield, "I get no respect."

According to Infonetics, "It's no secret that Microsoft is predicting the death of the PBX, to be replaced by a software-based communication approach like OCS 2007; but we didn't find many people convinced that this is yet the way to go. What we're seeing instead is companies keeping their IP PBXs, and layering unified communications applications on top. Microsoft is seeing early success by leveraging their leadership in e-mail messaging and desktop environments. The incumbent IP telephony players are also faring well. There are still opportunities ahead for vendors looking to get into or ahead in the unified communications market, because many buyers don't yet know who they will be buying from two years from now," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

Infonetics' study, "User Plans for Unified Communications: North America 2008", is based on interviews with 80 medium and large organizations based in North America to determine the market potential, product requirements, and implementation plans for unified communications products and services. More than 80% of those interviewed have already adopted either unified messaging or communicator, and all will adopt both by 2009, by study design.

The study features buyers' ratings of 5 UC vendors--Avaya, Cisco, IBM, Microsoft, and Nortel--on a number of criteria, including reliability, value, pricing, features, innovation, integration with third party vendors, and financial stability. According to respondents in the study, there are no clear ratings winners, with all manufacturers fairing well in some areas and not others. For example, Cisco rated high on reliability but low on pricing, and Microsoft rated high on financial stability but low on reliability.

Almost all vendors got docked for interoperability, indicating this area could use some serious improvements, and likely will be a major barrier to adoption of unified communications.

Other highlights from the study:
- The number-one reason given by study respondents for adopting
UC is improving employee productivity
- UC will start as a convergence of voice and e-mail, the most
widely used communication services, involving a single in-box for different message types, contact management, click-to-communicate capability, and presence
- Over time, companies will take on more complex projects; for
example, by adding new communication modes like video and new devices like mobile, or by integrating communications with business processes
- VoIP is not a requirement for UC, but there is a strong
correlation between the two; not having VoIP deployed pervasively is a barrier to deploying UC, and many respondents want to deploy VoIP first, then UC.
For more info on the report, head on over to Infonetics.

Sagem-Interstar, a Fax over IP (FoIP) solutions provider today announced new Cisco UCM 6.1 support using SIP trunking and T.38 real-time fax support. T.38 dead? No way! Today, Sagem-Interstar’s XMediusFAX Fax over IP (FoIP) solution adds Cisco Unified Communication Manager 6.1 support.

Check out the news release after the jump...