January 2009 Archives

Video hasn't really hit mainstream yet, except as consumer entertainment in the form of pirated movies, Hulu and YouTube. As a communications medium such as video email, video phone and video conferencing (including tele-presence), it has not taken off yet.

When talking with consultants, coaches, and other work-at-home types, not a one of them wants to do video calling. They don't want to get dressed for it. The office space is too cluttered to be in the background. It isn't as easy as it sounds. The broadband connection isn't up to speed most of the time.

How does that translate into a communications tool?

Cisco and VidTel (as well as Grandstream and some other hardware players) are big proponents of video communications. Even MLM companies like EyeJot and Talk Fusion with a push from former Tampa Bucs Mike Alsott, couldn't gain video email traction.  As I explained to a few, I get mega amounts of email daily - not a one has been video thus far.

In an article on Vnunet, a study points out both pros and cons of video conferencing, especially for tele-workers: "The study found that, compared to traditional voice or text-only communication, video can help to reduce the effects of culture and personality clashes. However, it can also heighten anxiety and self-consciousness, meaning that businesses need to help employees develop the right skills to make the most of these too."

Many SMB's just don't have the policy or skill or understand of technology in order to leverage it properly for productivity or efficiency gains. (This holds true for most technology and social media use.) That's the barrier.

Small Business wins as Sutus announces new lower pricing for  'Office in a box' technology

All-in-one Telephony and Data Communications vendor announces SOHO-grade pricing for award-winning Business Central device

January 27th, 2009, Vancouver, B.C. Sutus Inc., the company behind the Sutus Business Central™, a unique all-in-one device that combines all the Telephony, data and networking features required to run a modern-day office, today announced pricing that dramatically reduces the TCO (total cost of ownership) for small businesses. The new pricing opens the door for any small business, from start-ups to established, mature companies, to leverage the benefits of enterprise-grade advanced telephony and networking technology.  The pricing, which makes the Business Central the most competitive small business solution on the market, starts from a MSRP of $2199 (USD). 


The Sutus Business Central™ has been developed specifically for businesses of up to 25 employees and comprises a wide array of advanced telephony, data and networking functions.  It includes a business-class phone system, file server, email server, router, firewall, wireless access point, VPN remote access server, and automated backups. It has the ability to simultaneously support both standard phone line and VoIP connections and comes with an array of business productivity features.

Shawn Chute, EVP of Sutus, said, "Now more than ever, small businesses need an affordable, reliable solution that meets their IT and communication requirements and can grow with them.  Sutus has always been the "all-in-one" solution that is easy to install, use and manage, added to these advantages now is the fact that we have the most affordable all-in-one IT and communications product available for small businesses."

The Business Central also performs the tasks of a gateway or edge device, enabling both Sutus and its business partners to seamlessly deliver a wide range of turnkey hosted services, such as remote device management, VoIP, back-up and disaster recovery.

Sometimes known as an 'office-in-a-box', the Business Central is a Multi-service Business Gateway.  InStat qualifies Multi-service Business Gateways (MSBG) as hardware which combines phone systems with other mission-critical components like routers and servers, and has estimated the market at US$615 million in 2007 and projected to rocket to US$2.6 billion by 2010.

SUTUS is looking for Agents and VAR's to offer its product to small business. Do you understand that the Business Central box handles all of the functions of a pile of blue boxes and services? See SUTUS at the Miami IT EXPO EAST next week. Or contact Mike Cassidy at SUTUS at 925.274.1380

"Nearly one-third of VARs (value added resellers like Cisco certified IT shops) are planning to grow their businesses in excess of 15 percent in 2009", according to CRN.

The most interesting quote was not about the importance of Managing Cash Flow or How Goal # 1 is Finding new busines, it was this quote:

"When we asked them to rank what is most critical, they said "finding new business." Note the word "finding" because these are not organizations waiting around for Microsoft or HP to send them sales leads. Growth-oriented VARs in a down economy go out and find new customers."

Good agencies have a Lead Generation system in place. But one thing Agents ask for from their vendors (carriers) is Lead Gen.

The other point was keeping "up with changing technologies. With growth VARs, this doesn't mean perusing a vendor's latest offering -- it means they are in front of customers with Oracle's new $750 express database application before the local rep checks in to see if the marketing materials have arrived."

Johnny Hustle, like never before

There are so many applications that you can add to cell phones to allow for some form of calling. For the life of me, I can't figure out how these would be mainstream - and how there could be a demand for hundreds of them.

Are people now trading in all of their calling cards for an app? All the penny pinchers that were using calling cards have a data plan on their phone that allows them to make VoIP calls?

I get that landline usage is way down as folks move to not only cellular only, but pre-paid cellular. But how much International dialing is being done on cell phones? Wouldn't the majority be migrating to Skype?

Even look at that market: the PC-to-PSTN market. Pulver's FWD was in the marketplace first (and won an FCC ruling with his name on it). Yet it seems that only Skype is left.

Leads me to think that when these mobile VoIP apps are being marketed, you need to be very specific about what the benefit is. And you need to make it stupid easy.

I am looking forward to Miami Beach next week. I'll be leaving the chaos of Tampa in the midst of Super Bowl 43 on Sunday because flying out Monday was too expensive (and crazy). So I'll be in Miami Beach (staying at the host hotel, the Royal Palm) and watching the game at a neighborhood bar. If you are in town, ping me on twitter.

Have you checked out the Facebook page for IT Expo/4GWR?  Bowling party courtesy of DIDX on Tuesday evening.  And if you are looking to have dinner with some interesting people drop me a note - we will be at Meat Market on Monday night and Icebox on Tuesday.

There are plenty of no-charge reasons to go to the show: Microsoft Response Point training; Reseller Solutions Day (or How to Make Money with VOIP)  and this IS the place to learn about SIP Trunking.

Well, got to run and write some more notes for my keynote, The Road Ahead, at 4 PM on Tuesday for Telecom Agent Day.

For those agents out there that attend ACC Business training at Channel Partners Expo over the years, you will notice that Dan Morford is missing this year. ACC Business let him go during their layoffs in December. The good news is that MicroCorp hired Dan Morford as Product Manager of their Insite Inventory software application. As product manager, Mr. Morford will be responsible for managing the pre-sales and post-sales support of the Insite application. In addition, he will help drive all product enhancements and work directly with MicroCorp's application development staff.

"I'm very enthusiastic about the opportunity to join an entrepreneurial company that has bold plans to provide value-added tools to their agents, VARs and end customers. I've known MicroCorp for years and have always admired their integrity and progressive nature. I am truly excited to be a part of the MicroCorp team and look forward to contributing to the success of the company," states Mr. Morford.

That means that Microcorp is putting some muscle behind this differentiating app in 2009. It's one more tool for Microcorp agents to use to get in doors and to upsell the base.

Agents are paddling like a duck in a pond to stay afloat. Always have been, but moreso now.  Many companies are wondering how to get Agents to sell their services. (I get this daily). Here's some thoughts:

Agents spends all day just running their business and keeping customers happy. To add another vendor and/or service, the agent has to take time to learn it and  evaluate it. Then figure out where that service and vendor fits into his portfolio.

A carrier doesn't realize how much they are asking of the Agent.  Time is money and a lot more. To maximize the time and effectiveness, vendors should look at the top 5 ways to improve agent training.

1. Have good training available online as video and as a podcast. (As a downloadable MP3, agents can learn while traveling).
2. Create a Clear, Concise message. Most don't have this. A good Positioning statement, USP, or why choose Carrier A over B.
3. Case studies by verticals helps agents figure out where the service fits.
4. ROI and TCO calculations help sell the service.
5. Specific sales examples, like Agent X sold Service Y to Client CDE because CDE needed Z.  (What was the sales trigger?)

Make it clear, concise, and memorable.  Case studies and sales triggers are like story-telling, which is the most viral way to get your message across.

It is getting tough out there, as the news keeps repeating as nauseum.
Businesses are laying off and closing. If you can maneuver in this environment, then opportunity awaits. No I haven't been drinking. Let's examine things.

Layoffs means companies have to be more efficient and more productive with less. What does that mean? Technology needs to be applied and work.

Budgets for travel are slashed, but people still have to connect/communicate.

Legislation is in place forcing IT teams to work harder.

The message is that Unified Communications can save you. So can Tele-Presence, Video/web/audio conferencing, hosted email, SAAS, VoIP/Hosted PBX, and that over-used term "managed services".

If the IT staff is short handed, but still has to do data storage, email archiving, and other DR/BC and regulatory processes - it can be outsourced.
And you can sell it. Gartner just did a paper on Hosted Email which spells out the Return on investment for using Hosted email. IBM Lotus, Microsoft Office, and Google Apps are looking for VAR's.  What's a VAR? An agent that stepped up.

At a VAR Kick-Off meeting, Cisco emphasized touching the customer. The box got them into the client with switch and router sales. Now the trick is to upsell the out-dated boxes and to add security modules to as many sales as possible. That's the Upsell. After security, comes VoIP and Collaboration (Webex, Web 2.0, UC). Cisco has designed the sales road map for its VAR Channel.

Do you have a road map, sales flow chart or other process in place to help your agents move from selling transactional services like DSL, cell phones, POTS, PRI, Integrated T1 to complex sales like Hosted PBX, Metro Ethernet, and Managed Services like firewall, backup, intrusion detection, DDOS Defense and SAAS. Remember, SAAS is the bucket that Hosted PBX, Secure Email, and Hosted Exchange fall in.

To become a rainmaker, you must make a fundamental shift in thinking from:
"How can I close this sale?" to "How can I create a relationship that will benefit the customer and my company in the long run?" 

There is a lot of buzz about recasting and renewing. Should agents be paid?
Should carriers grab that renewal?  This would not be an issue at all if you owned the relationship with the customer. By owned I mean that you are providing the client with enough added value that he wouldn't want to go direct to the carrier. I always explained it that I was the Outsourced Telecom Provisioning department. I am the go-to guy for any questions about telecom (and by extension IT). Don't you want to be in that position?

More Broadband Stimulus Bill (and here at TMC) info from Stephen Ronan on the CyberTelecom listserv.  (probably in response to the volume of comments from Tom Keatings blog!)

Can anyone provide a pointer to the bill at issue?

• text of bill
• House Draft Report

The summary of the principal broadband provisions below:

1) $2.825 billion for loans, loan guarantees and grants to be administered by the USDA's Rural Utilities Service Distance Learning, Tele-medicine and Broadband Program. .... Those funds are for "open access broadband infrastructure in any area of the United States." However at least 75 percent of the area to be served by each funded project must be in "a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture." ... Priority is given to projects "that provide service to the most rural residents that do not have access to broadband service" and to project applications from (or including) borrowers or former borrowers under Title II of the Rural Electrification Act. .... 50% percent of the funds are to be awarded not later than 9/30/2009 .... "No area of a project funded" by these funds may also "receive funding to provide broadband service under the Broadband Deployment Grant Program" (see below).

In addition to that USDA program:

2) $2.825 billion for "Wireless and Broadband Deployment Grant Programs" to be administered by the National Telecommunications and Information Administration (in the Dep't of Commerce), of which $1 billion shall be for Wireless Deployment Grants and $1.825 billion for Broadband Deployment Grants (though NTIA would be able to transfer up to 20% of the funds from either program to the other). The grants are intended for "the non-recurring costs associated with the deployment of broadband infrastructure in rural, suburban, and urban areas..." ... Of the $1 billion for Wireless Deployment grants, NTIA is instructed "to the extent possible" to provide 25 percent for wireless VOICE service and 75 percent for "advanced wireless broadband service" (3 megabit per second down by 1 megabit up) to under-served areas. ... And of the $1.825 billion for (presumably non-wireless) broadband, 25% are to be awarded for provision of "BASIC broadband service" (5 megabits per second downstream by 1 megabit upstream) to underserved areas and 75% for ADVANCED broadband service (45 megabits per second downstream by 15 megabits up). .... Services are to be provided on an "open access basis" (that's to be defined by the FCC within 45 days of enactment) and adhere to the FCC's 8/5/05 statement on net neutrality (05-151)

"Factors in grant award decisions by the NTIA will include public safety; state reports on priorities; increases in affordability and subscribership; service enhancement for health care delivery, education, or children; enhancement of computer ownership and computer literacy; and state or local matching funds."

States are required to provide up front to NTIA a report indicating which geographic areas of the State should be considered to have the greatest priority for service (can't represent in aggregate more than 20% of the population or geographic area).

VoIP originally was sold as the answer to the next wave of cost savings for consumers and especially for small business. Business phone lines have always cost more than residential lines because, in theory, businesses use the phone line more often. (I guess, if you have 2 teenagers then that equals 1 small business).

Now that businesses are looking for ways to cut costs, analysts are predicting a rise in VoIP sales. Maybe. Define VoIP.  Hosted PBX certainly offers an attractive ROI, but to take full advantage of it, there is an upfront CAPEX (capital expenditure) that includes: IP Phones, cabling, POE switch, and some form of IAD or QOS Router like an Edgewater.   A lease could alleviate some of this, but Voxilla agrees with me on the CAPEX question.

If we are talking about the myriad apps that offer VoIP on the cell phone, I have to ask, why? These apps don't work on every handset. These apps either use up minutes (on callbacks) or data. It seems that it would be cheaper to bulk up the minutes than go through the trouble. But Gary Kim writes that the small business segment will move mainly to cellular IF the iPhone can become like the desk phone. I guess people like to ask, "Huh? What? you cut out there." Or more likely they aren't paying attention any way so don't care about call quality, dropped calls, or dead batteries.

VoIP mainly makes sense when there is a lot of inter-branch calling. Or when there is a virtual office, tele-workers, or other location varied need.

While SIP Trunking is the new buzz word, it is sold primarily as a PRI replacement, which makes no sense to me.  TDM and PRI are tried and true. You might save 10%, but so what? SIP Trunking isn't a standard so it may or may not work with your PBX IP card, depending on carrier and implementation. And how much cheaper do you think long distance will be on a SIP Trunk versus a PRI?

If the SIP Trunk is a means to extend the life of a IP-PBX as well as add SIP overlay features, that would be a better offer, but that isn't the "I'll save you 10%" deal that most folks tout. 

Overall, cellular will probably win for the mobility.

Ten to fifteen years ago, LEC-based networks carried more than 90 percent of voice traffic. Today, that number has dropped to about 40 percent -- and it continues to fall quickly. A similar trend, in smaller numbers, finds users moving to Voice over Internet Protocol (VoIP). And, according to Frost & Sullivan, U.S. mobile phone penetration will practically double in the period spanning 2002 - 2012, from 45.7% to 87.4%. As wireless continues its momentum to become the pervasive technology for communications, Level 3 Communications® is prepared to deliver.

At the IT Expo West, WBS Connect had a great booth that was a Tele-presence suite - fully tricked out. I interviewed Scott Charter, managing partner of WBS Connect, at the show, but after reading IP Business magazine's write-up, I thought that mine would look like a rip-off. 

The key component of the WBS TelePresence offering is that WBS is working on being vendor agnostic or the translator. Right now, Tangberg talks to Tandberg and Cisco to Cisco, but how does Tangberg talk to Cisco's rooms? Using H.264-SVC and WBS Connect as the translator.  It's a great way to put all that transit to work.

If there was ever a demonstration of how a government could use Web 2.0 (user generated content), it has to be the Obama group. Here's 10 Online tools that the Obama Administration is using to connect to the People.  I can see why he wants to keep his Blackberry.

Bruce Kushnick of New Networks Institute released a response to the Deloitte & Touche report about New Jersey, Broadband Opportunity - Job Creation, Healthcare, Education.

The report states that Broadband is:

• "essential for the State to achieve the level of employment and job creation in that state;
• "advance the public agenda for excellence in education,
• "improve quality of care and cost reduction in the health-care industry."

The report was written in 1991! Dubbed "Opportunity New Jersey" (a Verizon state), the Deloitte Report details how rewiring the state of New Jersey with fiber optics would be an economic boom and help health-care, employment and education. In fact, by 2010, 100% of New Jersey is supposed to have 45mbps bi-directional broadband, open to all competitors.

According to Business Week, the Obama Administration is planning on giving $20 to $30 billion in financial incentives, most likely aiding the incumbent phone companies, including ATT, Verizon and Qwest.

In fact, Qwest has just asked for a chunk of the financial incentives as well.

Some other plans, such as the Free Press proposal, want to deploy 'open broadband', but would add $30 billion in taxes by raising the Universal Service Fund, now a corporate slush fund of billions of dollars hard-wired to the phone companies.

Information Technology and Innovation Foundation's (ITIF) plan is incumbent-friendly. They want to simply throw money/perks and let's not worry about competition.

NNI's belief is one of those inconvenient truths --- America is 15th in the world in broadband because RBOC's have already received massive financial incentives state by state-- billions per state --- using the promise of broadband. And the money is still being collected today in the form of cost of service increases and other perks, yet services were never delivered.

Think of it as this, Kushnick writes: We hired a contractor to upgrade the roads. We paid them billions based on the specifications and instead they simply dressed up the place, pocketing billions. We estimate the total to be over $280 billion and growing. By 2009, 113 million homes should have been rewired in the US. Combined, AT&T and Verizon have only 2.2 million upgraded fiber-optic TV customers.

History reveals that we'll just be throwing money at the problem instead of fixing what's broken and answering the fundamental question:

How does America create and pay for ubiquitous, competitive, very fast networks?

This is the question being debated on Tom Keatings blog.

What should be done about the companies who were the caretakers of America's essential infrastructure? Where's the Accountability.

You can read the rest at New Networks Institute website.

There has been a deep discussion that started on Tom Keating's blog about the Broadband Bail-out plan (known in various circles as a Bell hand-out, Stimulus package, Information Highway Infrastructure Development Funding).

Attorney Jim Baller has more on the House Stimulus Bill:

• $2.825B for USDA RUS, mostly for rural open access broadband grants, 50% to be awarded no later than Sept. 30, 2009;
• $2.825B to NTIA, including $1B for Wireless Deployment Grants and $1.825B for Broadband Deployment Grants for the deployment of basic broadband service or advanced broadband service;
• $350M to fund state broadband tracking initiatives; NTIA to develop and maintain broadband inventory map of U.S.;
• $1.85B for wireline to be split 75% for advanced broadband in underserved areas and 25% for basic broadband in unserved areas
• $1B for wireless to be split 75% for advanced broadband in underserved areas and 25% for basic wireless in unserved areas

definitions

• "Advanced broadband service"=45Mbps/15Mbps;
"advanced wireless broadband service" = 3Mbps/1Mbps;
• "basic broadband service" = 5Mbps/1Mbps
• FCC to define "unserved" and "underserved"
• Recipients must provide "open access" (except for providers of basic wireless broadband);
• bill also lists numerous preferences (text of bill)(House Report)

Coverage and reactions:

• Wall Street Journal: "So much for the broad- band tax breaks" 
• Declan McCullough: "Democrats sneak net neutrality rules into 'stimulus' bill" 
• BroadbandCensus
• Telephony Online
• Broadband Reports
• Ars Technica
• Exchange

NATIONAL BROADBAND STRATEGY "President-elect Barack Obama may want broadband for all, but it's not going to happen just with the $800 billion economic stimulus plan being debated in Congress right now...the economic stimulus package is meant to address very short-term goals, and should not be read as including provisions for addressing the long-term goal of universal broadband." [exchange mag]

BTW, a Draft UK government plan "will guarantee broadband coverage with minimum download speeds of 2 MB per second to every household that wants it." [Inquirer]