Tuesday, October 28, 2008

When a Phone Is Not a Phone

I got an email from my corporate IT guy last week with the subject "OCS Phones". I thought - cool, IT is going to send me one of those Microsoft USB phones to use in my home office. Now I consider myself a pretty progressive guy when it comes to UC technology but I was surprised by what I saw when I opened the email (or perhaps more surprised by my own expectation).

There were no phones to choose from...just headsets to connect to the PC - a bluetooth one and a corded one.

I should have known better. I, of all people, immediately assumed he meant "phone" as in dialpad, handset, craddle, buttons. Old habbits die hard I guess but it got me to thinking...

People have a strange relationship with their desk phone; this love-hate thing that's been going on for years. On one hand, I hear people always complaining about the phone on their desk. It doesn't matter if it's an IP phone or digital or even analog. On the other hand, people can't seem to live without them.

The hate part I can understand. Trust me, in my day I've seen some pretty nasty phones, like the Rolm "deadwood" for example. It had dialtone that sounded like finger nails on a chalkboard! In general, the deskphone takes up extra space; it's corded to the wall; it has an annoying ring; a menacing, flashing light that never seems to stop; it's hard to use any of the features on it (even tranferring a call is brutal). If you're an IT or Telecom professional it's even worse. I can't tell you how many times a budget request for a telephone system upgrade has been denied by a CFO because of the phones...

"Well, do the phones work" asks the CFO.
"Yes, of course they do." answers th IT professional.
"Then what do you need more money for?" retorts the CFO.

Damn those phones!

Then there's the love story - for whatever reason people love their phones. There is some sort of emotional connection that exists. People love the fact that every time they pick up the receiver they hear dial tone; that there is always a voice mail behind the red flashing light; that the phone will always be there for them...even after a nuclear holocaust!

But wait, perhaps I have mistaken love for addiction or fear. Maybe people don't really love their desk telephones...maybe they are just so used to having them that they can't imagine making a call without them! That would explain why, as soon as you suggest that they don't need a physical phone any more, people wig out. "You'll have to pry it from my cold, dead hand" is often the reaction you will hear from such a purpostorous suggestion.

The point to all of this is that Microsoft has a unique story here (in this case, being new to voice is a good thing). For those users that are progressive and want to use the familiar Microsoft interface to make phone calls they can do so easily from their mobile device or PC. For those that still need the comfort of a physical phone to hold on to, there is the USB phone (no power over ethernet required). And for the hard core folks that want a phone corded to the wall Microsoft has the more traditional IP phone.

Me, I am going to let go today. My new phone isn't going to be a phone at all.

Thursday, October 23, 2008

Solving the Voice Conundrum

The Voice Conundrum: elevating the value of voice (and UC) in the enterprise; from commodity to strategic business asset.

Telephony has been around a long time; over 130 years in fact. The interesting thing is that it initially transformed the way people worked and communicated. I remember back in 1927 (no, I wasn't actually around then) the big news was that you could make a 3 minute call from NY to London, UK for $75. That was a huge event back then even though the submarine cable could literally only handle one call at a time. Unfortunately, not much has changed since then...

Even VoIP turned out to be just another transport conversation - i.e. a less expensive way for people to call between NY and London - but it's never been able to demonstrate sustainable business value.

A little story that epitomizes the “status” of telephony and voice in the enterprise: I was at a hospital for an IP telephony meeting a few years back. It was a crowded day for meetings so we were in a conference room in the lower level of the hospital. During one of the breaks the phone guy wanted to show us the “phone room”. Reluctantly, we obliged and as we headed down the hall we walked past the morgue. The very next door was the phone room. This sent a chill down my spine, so I commented that this was the oddest place I had ever seen a phone room...to which the voice guy replied “You don’t know the half of it son. Sometimes I’ll be in here punching down cables in the bix block and I can hear the bone saw going in the next room.”

Right then and there I realized voice/telephony was at the bottom of the barrel and could never drive business value on its own. Now let's fast forward a few years to the age of unified communications...

So here we are talking about UC and I accused many vendors of commoditizing UC in the same way telephony has been commoditized. The problem, as pointed out in the blog "Presence, not VoIP is the Foundation of Unified Communications" by Zeus Kerravala, The Yankee Group, is that most vendors have been approaching UC as an evolution of voice. As Zeus points out, "it hinders deployments of UC. If, as an industry, we promote UC as a set of tools to be built on VoIP then only companies that have finished their VoIP deployments will really be in a position to deploy UC". Now, considering that the average Cisco VoIP deployment is less than 350 phones, it's going to take them a long time to get to UC (if at all).

Microsoft, was one of the vendors I chastised for commoditizing UC back in my blog in May but I think they may have turned a corner. Thankfully the term VoIP is fading from their vocabulary and they've embraced Zeus' revelation that presence is the foundation for UC...dare I say this is the start of a movement to UC 2.0 (universal collaboration)!

So here is my spin on how I think Microsoft can approach the voice conundrum when talking about their UC vision:

Microsoft Unified Communications approaches voice as one of the many capabilities inherent with UC. They elevate the value of voice/telephony by surrounding it with communications software (like email, IM, presence, web and video conferencing) and drawing it into the workflow and embedding it into business processes.

Admittedly, Microsoft has some ground to make up in providing enterprise-class telephony capabilities (like e911 and branch survivability to PSTN) but that shouldn't stop them from transforming the industry and leading the charge into the next phase of Unified Communications.

Wednesday, October 15, 2008

A Lot Can Change In 5 Months

After a long break, I am back! it's been 5 months since I last blogged and much has transpired in the world of UC. Cisco bought Jabber and PostPath as well as announced UC System 7 and Webex Connect. Microsoft announced R2 of OCS to close the voice gap on their mission to replace the PBX and grab their share of the estimated $45B UC market.

My last blog was "A Good Buy For Microsoft" in which I suggested that "they could buy Avaya by the end of the summer". Obviously that hasn't happened which further illustrates the flux of the industry at present. I am not so confident that it's going to happen...perhaps because of the economy or because Microsoft decided to do a $40B stock buy back instead of an M&A deal or maybe they don't want the legacy technology.

Regardless, now that Charlie Giancarlo is "filling in" as CEO Avaya one could expect that this is the start of some exciting times over there...if for no other reason than to make themselves more appeaing to prospective buyers. No question TPG and Silverlake still want to sell the company...or at least parts of it so what are we going to see from them in the coming months?

The fact that Charlie is the keynote at VoiceCon in San Francisco next month should tip you off that somethings coming - even without Jim Grubb to help him demo telepresence! What could they be developing that's news worthy? Maybe some announcement around their Ubiquity acquisition from two years ago, but that'd be it. Perhaps its around a partnership with someone like IBM or even RIM (yes, RIM…if you recall RIM acquired Ascendent in 2006 and in a Gartner research document from March/2006 Bern Elliot, Ken Dulaney, and Phillip Redman stated, “Ascendent's software will enable Research in Motion's BlackBerry to connect with PBXs and work like a business phone. This could enable its entry into the mobile unified communications market”). Maybe even a merger announcement - there have been rumors of a private equity buyout of Tandberg by TPG/Silverlake that could result in a merger bween Avaya and Tandberg. If that were the case Charlie could do another telepresence demo - this time with the MOC client and an Avaya PBX backend! Don’t scoff, Cisco even discussed a possible merger between the two during their UC System 7 Launch Webinar in September!

The real question out of all of this is: Does anyone care? I think most people have written Avaya off and look at the $45B UC market as a three horse race between Microsoft, IBM, and Cisco. However, I don't think Avaya is out of it yet. Giancarlo is a great leader and visionary...Avaya still has some of the best products around...and they have a huge customer base. In some way, shape or form Avaya is still going to play a big part in the future of UC - even if it's under someone else's logo.