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Mobile Unified Communications

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Archive for the ‘enterprise’ Category

IT spending on wireless services to outstrip wireline by 2010

Tuesday, June 19th, 2007

Instat published a report today, predicting that corporate spending on wireless voice and data services will outstrip spending on wireline services by 2010. The report is pitched at service providers, pointing out that corporate users are more profitable. Of course some service providers, like Sotto, already pin their strategy on this. The report also encourages corporations to unify their wireless spending, rather than have employees get their service piecemeal and expense it. I wrote about this in an earlier posting.

As cell phones get smarter and as they get more tightly bound into corporate networks, security becomes a major concern. This is the subject of two stories in today’s Wall Street Journal. The first tells how the iPhone is precipitating a standoff between IT managers who don’t want it on their networks, and users who want to use it as a corporate email client. The second explains how iPods, iPhones and any device with storage and a USB connector constitute network security threats.

My May column in Internet Telephony Magazine is about the Jericho Forum, which proposes a radical solution to the security concerns of the wireless enterprise.

WSJ on FMC

Thursday, May 3rd, 2007

Today’s Wall Street Journal has a good article about T-Mobile’s UMA trial in Seattle. It says that T-Mobile may be rolling it out nationally as early as next month, despite some trial particpants’ complaints about handoff and battery life issues. T-Mobile will be offering a home router to help with QoS and battery life. I presume that for the battery life this is just WMM Power Save (802.11e APSD) since that is what the phones in the trial (Samsung T709 and Nokia 6136) support. For QoS side I expect these APs will support WMM (802.11e EDCF), but they could also support some proprietary QoS on the WAN access link, the way that the AT&T CallVantage routers do, which would be interesting.

There is some background on the trial here.

The article goes on to put the trial into the context of other FMC deployments, from BT Fusion, Telecom Italia and Orange. The article quotes a Verizon Wireless spokesman saying that they aren’t convinced that Wi-Fi can deliver high enough voice quality to carry Verizon branded calls. This is amusing bearing in mind the usual quality of a cellular call in a residence.

The article also quotes Frank Hanzlik, the head of the Wi-Fi Alliance as saying that business FMC may have more potential than consumer. I agree.

DiVitas and enterprise-controlled FMC

Wednesday, March 7th, 2007

Still at VoiceCon, there was a great presentation in a FMC panel by Vivek Khuller of DiVitas Networks. DiVitas has just released a product that rebuts the idea that cellular/Wi-Fi roaming requires participation by a Mobile Network Operator. Cellular companies get the vast bulk of their revenues from consumers, (though business users are more profitable) and have not been motivated to tailor their services to businesses. This offering from DiVitas, and MVNO efforts like Sotto address a gaping need in the market.

Vivek prefaced his presentation by enumerating three big-picture observations.

First, the current crop of FMC devices is actually the second generation – we just didn’t recognize the first generation, which is mobile computers. They are converged devices because they have multiple network connections: POTS (built-in modem), Ethernet, Wi-Fi and possibly a WWAN card from Verizon or Sprint or whoever. Of course the truth of this observation depends on your definition of FMC, but it illuminates the roots of DiVitas’s strategy.

Second, when you start a job at a new company, they give you two things, a phone and a computer. They get both of them through the same type of channel, which is not a service provider.

Third, Skype came out of the blue from the service provider perspective; none of their founders had any voice service provider experience, but Skype is now the biggest voice service provider in the world in subscriber count.

He then launched into his presentation, pointing out that cellular penetration in the consumer space is about 75%, while in the enterprise space it’s only 20%, even though 75% of workers consider mobility “critical” or “important,” and the chances of finding a person at their desk are less than 30%.

He gave the reasons for the lack of penetration of cell phones in the enterprise as cost, control and complexity. On the cost front, he showed us his corporate phone bills – $14K for mobile and $1.4K for wireline. He acknowledged that a lot of his cellular use was lab testing, but felt that the point was still valid – cellular service is actually roughly 10x as expensive as wireline.

On the control front he pointed out that 80% of corporations use a PBX rather than Centrex, and he felt the primary reason was control issues.

On complexity, he pointed out that current solutions require multiple devices and servers – he might easily have added that they also require multiple MNO relationships for companies with international presence.

He went on to identify three major forces of change in the enterprise mobility market that are related to these barriers: first, the massive uptake of Wi-Fi, which reduces costs and increases control; second, the advent of SIP, which together with the availability of a lot of high quality open source code, lowers barriers to entry by leveraging engineering resources and increasing control. Third, the increasing potency of cell phones, with more processing power and connectivity, which he sees as reducing complexity and cost of the overall solution.

He ended up claiming an ROI for his enterprise-based FMC solution of 6 months, which may be hyperbolic, but would remain impressive even if far longer.