It touches on some interesting points, namely “a WebRTC app is not defined by its wrapper.” Here is an excerpt from the post..
Google Chrome was the first browser to support WebRTC, and most of the new applications rely on Chrome in order to be plugin-free. Other browsers that support WebRTC include Mozilla Firefox and Opera. These browsers use much of the same code, yet compatibility issues exist because Chrome has considerably more capability than what’s specified in the WebRTC specification….
Headsets. You probably don’t think of them as a particularly exciting conversation topic for a high-tech cocktail party. But they are quickly becoming a key integral part of a knowledge worker’s communications endpoint set. The newest models look snazzy and they help users work in an ergonomic way, while being more efficient and taking better advantage of their communications tools.
I cannot imagine my life without a headset. I think, going forward, as we become an increasingly services-based society with a larger portion of the workforce spending significant amounts of time communicating and collaborating using various forms of voice communication (desktop phones, web-based or thick clients, mobile devices, etc.), headsets will gain even greater popularity.
Frost & Sullivan’s Alaa Saayed and Francisco Rizzo just finished a study titled World Professional Headset Markets. They found out that the contact center (CC) and office (O) headset market bounced back in 2010 after a few years of negative growth. Global revenue in 2010 was $788.9 million, an impressive 19.5 percent increase from 2009. They are projecting a compound annual growth rate (CAGR) for professional headset revenues over the forecast period (2011-2017) of 10.7 percent.
It appears that the increasing adoption of Unified Communications (UC) solutions is the main growth driver for headsets in the enterprise space. Headset vendors are beginning to differentiate UC headset sales from traditional headset sales. Frost & Sullivan estimates that approximately 10 percent of contact center and office (CC&O) headset revenue in 2010 came from UC headset sales.
You are probably wondering what a UC headset is. Even the authors of the study admit that “Unified Communications (UC)-enabled headsets are an emerging and evolving type of devices and, with some ambiguity surrounding UC itself, it’s easy to confuse what these devices are really offering to the end user “. Here is how they defined UC headsets:
“Simply put, UC headsets expand the communication eco-system, permitting remote work groups to efficiently collaborate in real time. Also, UC headsets are usually described as advanced endpoints that are used across devices, platforms and applications. Frost & Sullivan believes that these headsets are both fueling growth in the UC market as well as benefiting from the strong adoption of UC in the enterprise space (snow-ball effect). For a headset to be considered UC it must be able to:
· Interact with a PC via USB dongle, USB adapter or base station.
· Integrate with different UC communications servers (e.g. Microsoft, IBM, Cisco, Avaya, among others)
While many UC headsets offer superior sound quality, smart sensor technology, battery status notifications, and many other advanced features, these should not to be confused as being UC-only features. For a headset to be considered UC it must include the two aforementioned attributes.
A third criterion, headset-user presence, is also beginning to appear on the newest headset models. While not all UC headsets today include presence, Frost & Sullivan considers that this will become a standard in all UC headsets moving forward.”
The majority of headset vendors have picked up on the UC trend and are developing partnerships with UC solution providers such as Avaya, Cisco, IBM, Microsoft, among others. They are launching UC-certified headsets that integrate directly into certain UC platforms and offer advanced functionality such as presence.
First-generation UC deployments tend to use corded headsets and not wireless. The trend, however, has been to purchase wireless headsets once the corded headsets have completed their life cycle.
The UC opportunity is also changing the channel, with system integrators taking a more prominent role. Frost & Sullivan believes that system integrators have the largest future CC&O headset growth potential.
Overall, Frost & Sullivan believes that the UC opportunity is one of the most significant opportunities in the headset market’s history and expects this trend to significantly boost headset sales going forward.
Plantronics’ Savi Office and the newly launched Savi 440 and Savi 700, Voyager PRO UC, as well as their Blackwire 200, 420 and 600 series are examples of advanced, UC headsets, interoperable with various UC technologies.
Look at the Voyager PRO UC. It’s a Bluetooth headset, which automatically answers calls, transfers calls between the mobile phone and the headset, and when the user is on a mobile or PC call, softphone presence is automatically updated. It also eliminates accidental dialing by locking the call button when the headset is not worn. Users also get voice alerts about remaining talk time, connection status, battery level and mute.
Source: Plantronics: http://www.plantronics.com/us/product/voyager-pro
GN Netcom’s portfolio also features a number of UC headsets in the BIZ, GN, Go and PRO series. Let’s take the Jabra Go 6470 Bluetooth Wireless headset system as an example. It is a multi-purpose headset that works with desktop, mobile and PC phones. It also features a touch screen with a smart setup wizard, automatic microphone tuning and phone compatibility settings, wideband sound (150–6,800 Hz), and the dual-microphone Noise Blackout system.
As communications tools proliferate in the workplace, users will be increasingly tempted to seek to consolidate their communications endpoints. Headsets are becoming increasingly intelligent, providing some basic call-control capabilities and a single access to multiple communications devices (desktop, PC and mobile phones). As IT looks to consolidate systems at the back end, users will increasingly demand some consolidation at the front end. And who doesn’t want to be able to communicate hands-free – not just when driving, but also while in the office? Multi-tasking is the knowledge worker’s most common MO (modus operandi) and we are no strangers to typing, filing, viewing web pages or even handling some household chores while on hours-long conference calls. I believe, in the future, headsets will become the most common device among office workers.
Update 2: To the hundreds/thousands of repetitive spam tweets / twits, “Will WebRTC replace / kill Skype”, the answer is NO!! It will not. WebRTC is using broken Jingle in the browser, it does not support chat and can only make and receive calls., there is no buddy / contact list to speak of etc etc. NO it will not replace Skype. Stop with the spam tweets already, please!
Update: It seems to me that until all the browsers are on board, native clients will be required to make this go. Which is not outside the realm of possibility, considering Google has open sourced the GIPS audio and video engine along with WebRTC.
Something to remember, WebRTC is not RTCWEB! It may sound silly but it’s true. WebRTC is a Google-centric project using Google code etc. RTCWEB is essentially an IETF effort, a working group driving towards open real-time communications on the web. They are not the same, which can be rather confusing.
— Original Post —
Google has been busy it would seem, last night WebRTC appeared to the public for the first time. This has some pretty serious implications for Flash, which was the de-facto technology one had to use to get real-time communications in a browser, that has now been circumvented, at least to a certain degree.
The sessions are not run by a signaling protocol per se, not Jingle, no XMPP, not SIP not anything we have seen before. All the session management looks to be coming from libjingle. Which, to me means Jingle is in the browser.
A few early comments:
1. Where does Google stand on websockets? Google have said they will block it if an exploit emerges.
2. Chrome, Opera & Firefox are the supported browsers. Where does Safari and IE land? My guess is that Microsoft will not be in any hurry to implement this considering their recent Skype acquisition.
3. Web-cam captures from HTM5 has not been ratified, although this is likely not as serious as the former points.
Imagine a new secure P2P (Skype like) offer that also supported SIP in the client. You could use the client software on it’s own (just like Skype) or attach it to just about any VoIP service or phone system for free.
Does it make sense for consumers?
Does it make sense for business users?
Is there room in the market?
Would you use it?
Martyn Davies chimes in…
I would use it, but as a telecom industry insider, I know that I’m not the average business user or consumer. As to whether there is room in the market, I think that depends a lot on what Microsoft do with Skype now that they own it. From a business point-of-view, their efforts are focused around OCS/Lync (and software licenses), so Skype there is not adding to their central proposition. Skype has a lot of users, but produces very little revenue, since the majority just use the free services. As a Skype competitor you would have the same problems getting to the cash.
Skype was really the first company to take VoIP and make it completely trivial to install and use. To do that, they had to take some liberties and deviate from standards (like SIP), so that they could add the magic that made it work from behind firewalls, add security and self-configuration, and integrate video so seamlessly. Like Facebook, once it is clearly the biggest of its kind of services, it becomes the community that everyone must join. I can’t see that another Skype-alike has a way in, unless Microsoft significantly change the rules now.
It looks like the first victim in the Microsoft acquisition of Skype is Digium and the open source PBX – Asterisk. The following is an email sent to existing Skype for Asterisk users…
Skype for Asterisk will not be available for sale or activation after July 26, 2011.
Skype for Asterisk was developed by Digium in cooperation with Skype. It includes proprietary software from Skype that allows Asterisk to join the Skype network as a native client. Skype has decided not to renew the agreement that permits us to package this proprietary software. Therefore Skype for Asterisk sales and activations will cease on July 26, 2011.
This change should not affect any existing users of Skype for Asterisk. Representatives of Skype have assured us that they will continue to support and maintain the Skype for Asterisk software for a period of two years thereafter, as specified in the agreement with Digium. We expect that users of Skype for Asterisk will be able to continue using their Asterisk systems on the Skype network until at least July 26, 2013. Skype may extend this at their discretion.
Skype for Asterisk remains for sale and activation until July 26, 2011. Please complete any purchases and activations before that date.
Thank you for your business.
Digium Product Management
One has to wonder what will become of Skype Connect, Skype’s answer to SIP Trunking. Will Microsoft shut off the Skype Connect vendors (Cisco, Avaya, Grandstream, etc.) as well?
Original forum post here.
The acquisition of Skype could have enormous implications for Microsoft. If everything works out well, Microsoft gains access to about 600 million potential users globally. What it can do with those users is up to Microsoft, but the possibilities are almost infinite.
Even without any integration or service adjustments, Skype brings close to $860 million in revenues, even though they come at a loss. With the recent service enhancements (for instance, multi-party video, enterprise voice functionality) the existing (and rapidly growing) customer base can be further monetized for revenue growth and greater profitability.
But no one expects Microsoft to pay a premium (which the $8.5 billion appears to be) to just leverage the status quo. Microsoft is likely to seek to connect businesses using its own business software and services (from Office to Outlook, Lync, SharePoint, Office 365, etc.) to all the consumers and businesses using Skype’s VoIP and collaboration services. With Microsoft’s big push into enterprise communications and collaboration with the OCS and Lync platforms, Skype nicely complements its portfolio with cloud communications capabilities – including the app, the network, DIDs, mobility, and federation with other apps and networks. Potentially, this could help Microsoft customers enhance sales and marketing reach or create new options for economic and effective collaboration between office locations and teleworkers.
Skype’s capabilities can help Microsoft re-enter the SMB voice space, which it pretty much deserted after it chose to discontinue Response Point. OCS and Lync are fairly expensive for this customer segment. Skype can also help add inexpensive VoIP alternatives for Microsoft’s cloud-based Office 365 packages.
Certainly, Microsoft can leverage this acquisition in the consumer space by linking the Skype customer base with its Windows Mobile and Xbox 360 and Kinect users or simply integrating Skype services into its gaming and mobile products. But the bigger opportunity is in bridging the consumer and business worlds. The lines between the two are blurring as the prosumer segment grows both in number of users and in terms of application and devices used for both personal and business purposes, leading to increasing consumerization of enterprise IT. Prosumers expect familiar, intuitive interfaces in their business environments and access to inexpensive communications and collaboration tools anywhere, anytime. Skype can help Microsoft deliver some of these capabilities to its business customers.
This is also a big defensive move for Microsoft – against Google as well as against the enterprise communications vendors. It is not clear how Skype’s partnerships with enterprise vendors will fare after the acquisition, but regardless of whether they survive or not, Microsoft will limit the options for others, while expanding its own. If Microsoft pushes for greater federation, this will be beneficial to everyone, both on the supply and demand side. But it will mostly help Microsoft, the new kid on the block, make friends with the existing leaders, to be able to survive and thrive. It is a little hard to believe, but it is possible that Microsoft can use Skype as the common network for all its business customers (not just those using OCS or Lync for voice) to communicate and collaborate “on-net” among each other. Imagine free calls with your suppliers, partners and customers. Of course, businesses can use Skype to do that today, but having Skype integrated into Microsoft applications is going to make the value proposition a lot more compelling. The ability to get its foot in the door with businesses using competitors’ communications systems with a service that provides clear benefits and does not require a significant capital outlay, can open tremendous opportunities for Microsoft. It will have the disruptive impact that other communications solutions and cloud-based communications services have not been able to accomplish yet.
One of the biggest questions is how Microsoft will deal with the various challenges that the merger presents. Certainly, the two cultures are very different. Also, as an Internet-based, primarily consumer service, Skype does not offer the type of SLAs businesses require. The quality of Skype communications is only as good as the available bandwidth, the quality of the access network and the processing power of the devices it’s running on. If Microsoft plans to penetrate the enterprise space with Skype communications and collaboration capabilities, it will have to make sure it only promises what it can deliver or else customer disappointment will have an irreversible negative impact on future adoption. Also, Microsoft will need to learn about managing phone numbers and handling regulatory issues related to voice services in various countries. So the bottom-line question is – with all its ambitions to leverage the cloud and to grow its real-time communications business, is Microsoft prepared to be a voice services provider?
I have written some earlier posts on Mitel’s and Siemens’ strategies for the hosted IP telephony/cloud UC market. But there are others that have tapped into this space previously reserved for the telcos (ILECs, CLECs), MSOs, ISPs and some ASPs. I get a lot of questions about BroadSoft, Cisco, Microsoft, IBM, etc. I have now completed my study on North American hosted IP telephony and UC services markets and have some new insights to share. Unfortunately, the individual vendor analysis is too lengthy to post here, but I will share excerpts that more broadly discuss the value proposition of these new business models.
A key new development in the hosted IP telephony and UC services market is the entry of PBX vendors with their own multi-tenant or virtualized (multi-instance) solutions designed specifically for carriers and partners or intended for service delivery out of their own data centers. Cisco’s Hosted Collaboration Solution (HCS) architecture, Mitel’s various hosted/cloud solutions and Siemens’ OpenScape cloud architecture are some examples of these new business models. These platforms are typically more feature-rich than the carrier softswitches and application servers traditionally utilized to deliver multi-tenant business telephony services, but they also offer some additional benefits. For example, Verizon’s UCaaS services based on Cisco’s HCS are positioned as most suitable for the highly demanding large enterprises who wish to integrate the hosted service with their existing Cisco premises-based infrastructure. Also, most of these new architectures are not truly multi-tenant, but are instead using shared hardware and dedicated software, thus addressing some security concerns associated with hosted services.
The new business models are likely to cause some re-alignment in the value chain, with potential advantages and disadvantages for all market participants. Their impact on end users, however, is going to be mostly beneficial as they will be able to choose from a larger number of alternative solutions. For the supply side, the key benefit is ability to focus on core competencies – vendors will be able to leverage their software expertise, data center providers will deliver the most cost-effective server hosting and management, and the diverse range of service providers will focus on customer acquisition and ongoing management, as well as the integration of typical carrier services such as SIP trunking.
- PBX vendors: PBX vendors are likely to benefit from gaining access to a customer base looking to outsource both infrastructure and infrastructure management from a third party. They will also be able to deliver greater value to their channel partners by enabling them to generate recurring revenues by either hosting the platforms themselves or reselling services hosted in a third-party data center. Potential pitfalls for PBX vendors include channel conflicts, if the vendors are also selling hosted/cloud services directly; customer mismanagement, if tiers of support and responsibilities are not clearly defined; and some loss of professional and managed services revenues. Also, customer churn is likely to be greater compared to that experienced in the premises-based business.
- Telcos: Service providers stand to benefit from the opportunity to deliver hosted/cloud services to more demanding customers using advanced telephony and UC platforms previously only available as premises-based solutions. Also, they can realize cost savings and reduce time to market, if the solution is hosted in a third-party data center, as the deployment and integration of multiple servers and software stacks is typically costly and time consuming. Virtualized solutions such as Mitel’s Virtual MCD and Cisco’s HCS also enable them to provide more secure hosted services to customers requiring their own dedicated software while leveraging the benefits of shared hardware and a hosted model. Potential challenges for service providers include the need to maintain multiple versions of vendors’ software stacks (as in the case of Verizon’s implementation of Cisco HCS), and more limited ability to customize the solution when hosted in a third-party data center. Furthermore, the new business model lowers barriers to entry thus potentially leading to increased competition.
- VARs, SIs and MSPs: For VARs, SIs, MSPs and smaller LECs this is an excellent opportunity to expand their portfolio and generate recurring revenues by introducing hosted/cloud-based services without the cost and hassle of acquiring, integrating and running the systems in their own data centers. The cost and complexity of next-generation architectures has prevented this group of market participants from exploring hosted services in earnest. Now they can more successfully compete against larger telcos and premises-based solution vendors by presenting several alternatives to their customers – from premises-based systems, managed in house, to provider-managed on-premises solutions and fully hosted services. With their strong expertise in CPE installation, integration and management and typically better customer service and support, smaller, regional interconnects will now be able to serve their customers even more effectively.
- Business customers: Business customers will benefit from increased availability and diversity of hosted/cloud solutions. As more service providers introduce hosted IP telephony or UC solutions, businesses will be able to choose a partner from a broad range of providers – from large telcos with a substantial brand-name reputation to trusted local system resellers with whom they have long-standing relationships. The increasing competition is likely to result in more competitive prices and better customer service. Also, service offerings now include a large spectrum of alternatives – from low-end basic telephony offerings to comprehensive UC bundles and packages of tightly integrated communications and business applications (e.g. CRM). Furthermore, along with the cost-effective multi-tenant services, providers are now able to address the needs of businesses with high security requirements by using virtualized solutions based on shared hardware but dedicated software.
The Hosted IP Communications Market
I am currently updating Frost & Sullivan’s North American Hosted IP Telephony and UC Services study. This is one of my favorite enterprise communications markets and I have tracked it closely over the past nine years. To many that may sound unbelievable as hosted IP PBX and UC services have only recently gained popularity, boosted by the cloud hype.
Over the years, hosted communications services have evolved and matured – both on the platform/technology side and the business model side. BroadSoft has gobbled up two of its original competitors – VocalData (aka Tekelec, aka GenBand) and Sylantro; softswitch vendors such as Sonus and Metaswitch have more aggressively pursued feature-rich services; Nortel’s carrier group has been acquired by GenBand; and a host of PBX vendors have launched various hosted/cloud platforms. Fortunately for these vendors, service providers are becoming increasingly interested in hosted IP communications as traditional voice loses ground to mobile and consumer PC-based communications. On the demand side, economic factors coupled with greater awareness of the benefits of hosted communications are making enterprise decision makers more open to discussing outsourcing alternatives.
I will delve deeper into market trends, market size and competitive factors when I complete my research. In this article, I would like to focus on Mitel and its portfolio of hosted solutions. As always, Mitel is at the forefront of technology development, but this time also venturing with some new delivery models.
For about a year now, Mitel has been offering a multi-tenant platform – the Multi-Instance Communications Director (MICD). This solution is targeted at service providers looking to brand their own hosted IP communications services and provide all billing and management support. MICD is a high-density platform that competes directly with the more “traditional” hosted IP telephony platforms (such as BroadSoft’s) and appears best suited for SMBs looking for standard PBX functionality, along with voicemail, twinning and basic conferencing. Its architecture makes it more flexible than most other hosted platforms, however, enabling service providers to deliver more distinct sets of capabilities to each customer, resembling single-tenant hosted PBX implementations.
MICD has so far found appeal with CLECs, traditional VARs, as well as for in-building multi-tenant deployments. Service providers can purchase either perpetual licenses or a licensing subscription. Mitel claims about 15 service provider customers globally.
Mitel has been one of the first communications vendors to offer a virtualized solution – Virtual Mitel Communications Director (MCD). It is available to service providers looking to target a slightly different customer base – typically larger businesses with hybrid (hosted and premises-based) environments. Distributed organizations typically have different needs across their geographically dispersed sites. While larger locations favor premises-based implementations, smaller remote sites are more suited for hosted services. Virtual MCD allows service providers to deliver highly customized communications solutions to businesses that require integrations with premises-based platforms and databases. For service providers, the virtual MCD architecture is comparable to MICD in terms of implementation and management costs. It is less scalable, but delivers some superior features and functionalities, such as virtualized contact center, web conferencing and UC capabilities.
Virtual MCD has been commercially available for approximately one year and, to date, Mitel has mostly marketed it, directly and through its channel, to the traditional CPE base. More recently, it has enabled hosted providers to also take advantage of this cloud-based offering. Resellers can use this solution to generate additional revenues and differentiate, leveraging their existing customer relationships, knowledge of customer CPE infrastructure and close familiarity with Mitel’s portfolio.
For a little over two months now, Mitel has been offering yet another hosted alternative – Mitel Anywhere. With this solution, Mitel steps in as the communications service provider hosting the MICD platform in its own data center. Mitel recognizes that, while demand for hosted communications is growing, a lot of the service providers are not equipped to host advanced communications infrastructures. Mitel has identified the SMB customer segment up to 100 users as the sweet spot for Mitel Anywhere services. It can, however, meet the demand of larger, distributed organizations using Virtual MCD.
Mitel plans to add some advanced capabilities such as contact center ACD to its suite of messaging and audio and web conferencing apps currently available on the platform. Eventually, the full Unified Communicator Advanced capabilities are likely to become part of the offering.
Datacenter Accreditation for Cloud-based Communications Services
On February 7th, Mitel announced a new initiative. The Virtualized Datacenter Accreditation program is targeted at datacenters, and Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) providers. The program is intended to certify partners’ infrastructure capabilities required to support Mitel voice and UC applications. Mitel announced three certified IaaS providers: Artisan Infrastructure, Host.net, and Hosting.com, who intend to support or offer hosted voice and UC solutions to the market in the coming months based on Mitel cloud-ready software.
Mitel acknowledges that there are many partners who wish to be between an agent and a service provider. They have the capabilities to interface directly with end users and design and market hosted communications to them, but are not well equipped to manage a datacenter or a sophisticated communications platform with the required billing and management infrastructure and processes. By enabling IaaS and PaaS providers to deliver the appropriate infrastructure to VARs and managed services providers (MSPs), Mitel effectively creates a new business model that leverages the specific skills and capabilities of different providers to extend the reach of advanced communications to a larger number of market participants.
The value chain in the communications marketplace is likely to disintegrate further as vendors and service providers choose whether to develop technologies, manage datacenter infrastructure and/or communications platforms (now increasingly part of virtual datacenter environments), or specialize in marketing, sales and customer relationship management. New business models will emerge and market participants will have to find the formula that best works for them.
Mitel has been fast to market with its hosted/cloud initiatives and is now offering some appealing deployment options to its partners and business customers. It is likely to face competition from other carrier and traditionally CPE vendors pursuing similar strategies. For example, BroadSoft has a cloud service delivered out of its own datacenter in beta trials and claims overwhelming interest from the service provider community. Microsoft is likley to launch a multi-tenant VoIP capability on its Lync platform in the future, even though it has so far declined to support service providers in customizing Lync for hosted voice. Alcatel-Lucent, Cisco and Siemens are developing technologies and strategies for the cloud market as well. As the market evolves, functionality, partner relationships and financial viability will represent key success factors.
As we eagerly anticipate the New Year, we are all wondering what it holds in stock for us. Will the global economy continue on a growth path or will there be more turbulence in certain geographic regions or industry sectors? Where will the next natural disasters strike and how will we be able to cope with them? What role will technology play in the economic recovery and man’s continued strive for power over nature?
From a more pragmatic point of view, we also wish to know if businesses are looking to invest in communications and collaboration technologies in 2011 and beyond. Are technology budgets increasing and where are telecom and IT decision makers looking to spend their money?
Frost & Sullivan recently completed its 2010 communications & collaboration technologies end-user survey, which targeted 200 North American C-level executives and identifies their investment priorities and adoption drivers for advanced technologies including IM/presence, UC, audio, web and video conferencing, telepresence and collaboration. The survey revealed that the majority of decision makers seek to increase or maintain their investments in advanced IT and communications technologies over the coming year. An impressive 50% of respondents expect their communications and collaboration budgets to increase over the next 12 months, while 47% say their budgets are likely to remain the same. Respondents explain budget increases with the need to improve productivity and to take advantage of technology advancements.
Approximately half of surveyed companies allocate up to 30 percent of total expenditure to IT. Sixty percent allocate up to 30 percent of total expenditure to communications and collaboration technologies. The largest share of the surveyed companies allocate up to 15 percent of their communications budget to new technologies, such as unified communications and collaboration. CEOs, CIOs, and CTOs have the most influence at the final budget approval stage.
Generally, respondents evaluate all communications and collaboration technologies as similarly important. Improving collaboration and productivity across geographically dispersed teams prove to be the primary benefits among the majority of tools. It is also worth noting that most surveyed technologies satisfy or even exceed C-level executives’ expectations. Yet, current and future demand for specific communication and collaboration tools varies based on perceived value to the organization.
Similarly, demand for advanced communication and collaboration technologies varies by industry (vertical).
As businesses look for operational efficiencies and revenue growth in 2011 and beyond they will seek to invest in technologies that deliver a competitive advantage. For detailed industry forecasts by product segment and geographic region, please visit www.frost.com.
Happy New Year!
Rise of the Virtual Organization
Today, we are witnessing a powerful transformation in the business space. The very nature of the workplace is changing, as more and more people are working in locations that are different from those of their colleagues, managers and direct reports. It’s no longer the case that road warriors—sales people, service personnel and executive management—are the only people who routinely work outside the office. These days, everyone from contact-center agents to HR managers to general knowledge workers are likely to spend at least some of their time working from a remote or home-based location, and as the lines between home life and work life continue to blur, many employee find themselves “on the job” even as they watch their kids’ soccer games or commute on the train to the work.
One key factor driving organizational sprawl is the globalization of business. As businesses tap into new markets looking to expand customer reach and grow revenues, they also acquire local talent and maintain local presence through a growing number of branch offices and remote sites. As a result, functional teams increasingly span multiple, geographically dispersed locations.
But there is also a growing tendency to offer employees a better, more balanced life style. Many businesses today are creating flexible work programs – with flexibility extending to both employee workplace and working hours. Such programs enable businesses to accomplish three key objectives:
- Reduce facilities costs (including real estate, utilities, equipment, furniture, etc.),
- Reduce employee commuting costs and improve employee satisfaction and retention (and possibly productivity),
- Spare the environment by reducing fuel emissions.
Some refer to these benefits as the Triple Bottom Line. There’s no doubt that the virtual workplace offers significant advantages to companies and their employees. Myriad third-party research supports the benefits. For instance, in a 2009 study, the Institute for Corporate Productivity (i4cp) reports that 84% of companies believe that flexible work arrangements in their organization boost employee morale. That’s up from 76% over 2008. And 78% of polled companies say flexwork options bolster retention rates, up from 64% the previous year.”
Meanwhile, a 2008 report from Corporate Voices for Working Families notes that in a 2007 survey of senior-level executives at large corporations, respondents reported an overwhelmingly positive experience with flexible work strategies. By a ratio of 9-to-1, respondents reported that flexible work strategies have a positive effect on helping organizations reach business goals.
Mobility and Mobile Communications Drive a Paradigm Shift
Mobile communications have brought down the walls of the confined business space and the physical establishment. Individuals can now communicate and do business from their homes, cars, airports and hotel rooms, virtually anywhere.
Today’s employees are much more tech-savvy than they have ever been before. They have access to various high-end communications and collaboration tools as consumers and they demand the same tools and capabilities in the workplace as well. We acknowledge a growing trend of “consumerization” in the enterprise, which manifests itself in the increasing use of consumer devices, applications and tools for business purposes, with or without the official support of the IT department. This trend is most evident in the use of mobile devices – smart phones, tablets, and so on. A 2010 Frost & Sullivan survey of 200 North America-based C-level executives and IT managers revealed that 70% of the respondents used mobile devices for business purposes, and 49% claimed that mobile devices represented the primary communications endpoints used by the majority of users in the organization.
Consumerization is having a significant impact on technology investment decisions in the enterprise. Business IT and telecom managers have been somewhat reluctant to support all these consumer devices and applications, mostly due to cost, interoperability and security concerns. In fact, only 50% of the respondents in our survey reported that their mobile devices were integrated with the corporate communications systems and applications. Yet, 91% of those respondents reported that mobile extensions of corporate communications were either very important (61%) or somewhat important (30%) to their daily operations.
Discussions with CTO and CIO professionals reveal that technology investment decisions now involve a variety of stakeholders. Line-of-business (LOB) managers and even end users are forcing IT to take into account their preferences and needs when deploying new technologies and solutions. In fact, end users are the primary driving force behind the adoption of advanced mobile devices in the workplace. Going forward, as the workforce becomes increasingly mobile, IT will need to support the right set of mobile communications tools to enable employees to communicate and collaborate more effectively.
So What Can you Do? Gain a Competitive Advantage through Advanced Communications Solutions
The changing nature of today’s dispersed and diverse workforce demands employees be able to access a wide array of collaborative communications tools, regardless of the de-vices they’re using, or where they’re using them. Mobile workers, teleworkers, “corridor” warriors and the so-called “digital generation” have varied needs, but they all share several things in common:
- They require an “in-office” communications experience regardless of where they are based;
- They use a diverse set of software tools and devices to communicate (ranging from, but not limited to, instant messaging, web and video conferencing, soft and hard phones, social media, Blackberries, Android phones, iPads and iPhones, and even lowly PCs.).
- Users and business managers wish to be able to present a uniform public identity – a single number and a single mail box where users can be reached by customers, partners and co-workers.
Companies must embrace the virtual workplace, but as they do so, they must deploy technology that supports this new way of working. Communications solutions must conform to the needs of individuals and to specific job functions, not the other way around.
How do you Chose the Right Solution for your Organization?
I was recently on a panel with Jim Davies, Mitel’s CTO, discussing evolving business needs and changing requirements for communications solutions. Jim talked about the founding principles of Mitel’s Freedom Architecture and I found those in line with key market trends. Mitel’s next-generation architecture is based on the following building blocks:
- Flexible, software-based solutions that allow integration with other vendors’ best-of-breed technologies,
- Support for a broad range of endpoints, including UC application support on a variety of mobile devices such as Nokia, Windows Mobile, Blackberry, Android and iPhone smartphones,
- Alternative deployment models including on-premises virtualization, Mitel-hosted cloud (Mitel AnyWare) or carrier-hosted solutions (Multi-instance MCD).
Fred Crespo, VP of Information Technologies at Rosewood Hotels and Resorts, who was also on the panel, affirmed, that the walled-garden approach is no longer acceptable to end users. He also gave examples of employees demanding support for the mobile devices of their choice and the resulting need for proper integration with the rest of the company’s communications infrastructure.
Businesses looking to future-proof their investments need to develop their next-generation architectures taking the above factors into consideration. A business’ communications infrastructure must support a single user identity and integrated access to a variety of communications software and devices for a user without adding cost and complexity. That technology should be open and flexible, software-based, and be able to run on any device and accessed from anywhere.