Tag: unified-communications

  • INTERVIEW: Carriers' "Sea Change" Towards IP Networks, JAJAH CEO Trevor Healy

    JAJAH CEO Trevor Healy talks to voip.biz-news about the "sea change" currently taking place in the communications industry – and explains how that has resulted in JAJAH itself evolving from a consumer VoIP focus to become a global IP communications platform provider.

    Telecom operators realise their business is shifting – what they do about it is another matter.

    One company that appears well placed to offer an opinion is JAJAH – not least because it is about to sign "three or four" operators globally to use its IP platform.

    Since its launch in March 2006 it has gone from being a web-activated calling solution to a platform of choice for outsourced IP managed services, partnering with a growing number of carriers, telcos and technology companies to white label its services.

    Trevor Healy, CEO of JAJAH, said there is no doubt that mobile operators’ views have evolved over the last two to three years.

    JAJAH CEO Trevor Healy

    He told voip.biz-news that their attitude to a service like mobile VoIP has gone from ‘this is not going to happen’ to ‘it’s a problem on a small scale’ and had now reached ‘it’s going to happen and we have to be involved’.

    "When we started our business we always had these strategy debates internally about whether we should engage the operators," he said. "We knew it would take time for them to get their heads around it.

    "Now we are close to signing three or four operators globally to use our platform."

    Healy said JAJAH is offering carriers a fully serviced data communications platform, from which they can then cherry pick services such as payment and billing, fraud protection and termination engines.

    He said the carriers would use the JAJAH IP platform for a number of different things.

    "Some want to effectively capture more international call traffic, either originating or arising in their country," he said.

    "They now understand that customers are using this tool for long distance calls. But rather than build a platform themselves it’s easier for them to partner us and OEM our platform."

    Healy said operators didn’t only want to capture domestic calls but also those made by displaced internationals.

    "So, for example, it could be an Irish operator trying to capture all Irish callers in the US," he said.

    At the other end of the spectrum were operators such as Japan’s EMOBILE who are working on pure Voice over HSDPA.

    "They are right at the edge of the technology curve," said Healy. "Then there are the WiMAX guys who are coming to us saying ‘we need something to bridge the gap between now and then."

    Another "market" for JAJAH is operators that are experiencing saturation in their domestic markets and who are looking to find new sources of revenue.

    This is the case in Italy, according to Healy, where there are two mobiles for every male in the country.

    "So because of this they need to go overseas," he said. "As they go international they look at how they can build up their market internationally."

    Healy said he expected to see interest from the Tier 2 operators first, since they were facing far more competition.

    And he said the Tier 1s would probably try and integrate platforms internally initially, a process which he reckoned would see some failures and provide "pickings" for JAJAH.

    "There’s definitely a sea change in the operator landscape – and it will continue to evolve," he said.

    "We are trying to evolve a business model philosophy. The CAPEX model is not going to work.

    "If we do not put a barrier in front of these companies, we will drag them along to our vision."

    That vision has been developing for the past three years, during which time JAJAH has been shifting its focus away from just providing the mobile web VoIP model of free client-to-client calls and low-cost international rates.

    A year ago the Silicon Valley-based company began providing VoIP back-end operations to customers such as Yahoo and Match.com.

    It formed a strategic partnership with Intel to get its technology onboard next-generation PCs and offers a range of software clients to support VoIP calling on WiFi.

    However, the real emphasis has been on becoming a service provider as well as a brand for end-user calls. At the end of February, JAJAH signed a deal with BoldCall to provide online retail customers with JAJAH’s click-to-call services.

    Healy said JAJAH has effectively re-invented itself three times in its corporate life, while staying in the same core market.

    The genesis behind the changes had been seeing the flow of dollars from large companies into enterprises, which then wanted to offer new solutions to their customers – very often their employees.

    "We started as a consumer business. What we did for consumers, we did very well," he said.

    "Then other companies started saying: ‘why not open up your platform on an OEM/white label basis?’"

    The resulting evolution has seen JAJAH design its IP platform to suit three general participants in the market:

    • Enterprises – especially large multinationals such as Pfizer
    • Internet companies – such as Yahoo, that use JAJAH’s platform to carry voice
    • Operators – who want to make a platform for OEMs

    Healy said the initial part of this business model change saw JAJAH offering its services to large companies.

    Then Yahoo asked JAJAH to integrate voice into its messaging platform for its 100 million IM users.

    "More recently we re-invented ourselves again by putting it into the cloud and offering a purely managed service to companies like Yahoo with no upfront fee," he said.

    "We started to see unified communications in the cloud."

    Healy said they saw what the likes of Microsoft, Cisco and Oracle were doing in enterprises and identified a "sweet spot".

    He said they realised that enterprises had a lot of front-end applications but no connectivity.

    So large corporations with offices worldwide were having to organise and invest in UC – effectively replicating JAJAH’s offering.

    "So we reiterated our platform as a full platform for enterprises, moving into UC," he said.

    While enterprises have always featured in JAJAH’s activities – there are more than 5,000 businesses using the platform at any one time – this shift into UC on the cloud is a new niche.

    However, Healy said various factors mean the company is well placed for the change.

    He said JAJAH is global by nature, connecting into 220 countries around the world, and its consumer background means it understands what services and apps people are using outside the office environment.

    This global connectivity is device-agnostic – the company has an "anything in and anything out" philosophy of connectivity – and it has mobile solutions for a wide range of devices.

    In financial terms, the change in emphasis has meant revenues shifting in favor of infrastructure activities.

    Healy said this is increasing every quarter and is nearly at an 80-20 revenue split between the IP platform and consumer sides of the business.

    "Having said that, the consumer business is a very good one and is still important because it’s our sandbox to test a lot of our offerings," he said.

    "When we bring it to a carrier, it’s been seriously tested. A lot of companies are doing their testing in a lab environment and then testing it in an operator’s environment."

    Healy said the VoIP calling business had also proved itself on a small scale – it has more than 15 million subscribers.

    "If our consumer business was in the hands of a bigger brand and with more investment then it would be a huge business," he said. "The model works and consumers are very loyal."

    It has been necessary to concentrate on the platform side at the expense of the consumer business, according to Healy, because JAJAH is a small company and can’t afford to dilute itself too much.

    He fully expects the company to reap the rewards from this approach.

    "In the long term, enabling others to do what we do is the better strategy," he said.

  • Avaya Announces SIP Architecture That Connects Users, Applications and Systems


    Avaya today announced the launch of a new SIP-based architecture that integrates communications across multi-vendor, multi-location and multi-modal businesses.

    Called Aura, the company said it is centered on the new open standards Aura Session Manager, which centralizes communications control and application integration.

    Session Manager orchestrates a wide array of communications applications and systems by decoupling applications from the network.

    The software simplifies complex communications networks, reduces infrastructure costs and delivers voice, video, messaging, presence, Web applications to employees anywhere.

    Kevin Kennedy, CEO and president Avaya

    Kevin Kennedy, president and CEO of Avaya, said that as a result, services can be deployed to users depending on what they need rather than by where they work or the capabilities of the system to which they are connected.

    He said Session Manager instantly reduces complexity and provides the foundation for broader unified communications strategies.

    "With Avaya Aura, organizations can achieve rapid returns on their business communications investment, while simplifying the development and deployment of applications that improve operational performance," he said.

    "We’ve seen some organizations use SIP routing to reduce trunking costs by 20 to 60 per cent.

    "With this new architecture, for the first time, the way we communicate is defined by the applications and the user, not the network."

    Avaya Aura will be available globally in May 2009.

    The company said Avaya Aura offers the following benefits:

    • Ability to create new applications and quickly extend them to users anywhere
    • Map applications to individual employee profiles, making the appropriate features globally available regardless of the location, system or device to which they are connected
    • Reduce costs through centrally managed, enterprisewide dial plans and on-net calling, global least-cost routing and PSTN access from the most cost-effective location.
    • Eliminate local application servers and optimize software licensing across the full breadth of the enterprise rather than for a single location
    • Massively scale to 250,000 business users and 25,000 locations.
  • BT Trials OnRelay's MBX Software


    The cellular Fixed Mobile Convergence (FMC) software provider OnRelay announced today that it has entered into a customer trial agreement with BT Global Services.

    This will allow BT to begin on-site trials of OnRelay’s MBX software with a number of UK-based and multinational customers as part of its Unified Communications offering.

    OnRelay MBX allows companies to replace some, or all, of their IP desk phones with mobile phones – and removes the need for PBX hardware.
    The software works over any public mobile network, anywhere in the world.

    Upon completion of these trials, it is expected that the OnRelay solution will join the successful BT Corporate Fusion portfolio.

    Malcolm Pilcher, head of voice CPE & FMC at BT Global Services, said the customer trials of OnRelay’s cellular FMC solution reflected BT’s ongoing commitment to addressing the demand for global fixed mobile convergence technologies.

    "We see this demand accelerating as our customers look to maximise their existing infrastructure, improve employee productivity and continue their drive to manage and control costs," he said.

    Ivar Plahte, OnRelay’s CEO, is confident that mobile PBX is the future – with smartphones increasingly replacing desktop phones to become the sole business phone.

    "BT’s evaluation further validates OnRelay’s focus on enabling enterprises to cost-effectively extend Unified Communications to mobile phones," he said.

    "2009 will be the year of cellular FMC."

  • Hosted VoIP Approaches One Million in the US – and Climbing


    The US had almost one million installed hosted IP telephony lines at the end of 2008.

    This figure is expected to grow to about 3.6 million lines in 2014, according to a report by Frost & Sullivan.

    It suggests that integration with other unified communications (UC) applications – chat, presence and conferencing – will provide the most opportunity for the hosted IP telephony market, which it believes is being challenged by the economic downturn.

    Elka Popova, Frost & Sullivan’s global program director, said small businesses will continue to be attracted to hosted IP telephony offerings primarily for cost-efficient voice communications.

    However, she said some of them will also choose a hosted offering for the ability to gain access to a complete UC package from a single provider.

    "Medium and large businesses will also appreciate the economies provided by hosted IP telephony, but will seek such solutions mostly so they can focus on core business processes and gain access to applications and capabilities that they can test without making a capital investment," she said.

    Popova said that integration with other applications can help the hosted IP telephony market plough ahead.

    Barriers to Market

    However, significant technology enhancements to premise-based solutions and extensive private branch exchange (PBX) vendor channels present significant barriers to further market penetration.

    The report said that IP telephony vendors will have to develop astute channel strategies since most market participants are small, next-generation providers with limited geographic presence and service support capabilities – and with no established customer base or brand-name recognition.

    It recommended that service providers should seek to expand and diversify their channels and strengthen relationships.

    Moves that will need to be based on specific portfolio requirements, it added.

    "Meanwhile, the low barriers to entry will cause the North American market to remain extremely fragmented," said the report.

    "The incumbent local exchange carriers (LECs) are reluctant to grab larger market shares due to the fear of cannibalizing legacy service revenues and limited demand for next-gen hosted telephony services among their existing Centrex base."

    Diverse Competitive Landscape

    The competitive landscape is also likely to become increasingly diverse with competitive LECs (CLECs), software as a service (SaaS)/hosted application providers, value-added resellers (VARs) and system integrators (SIs) competing for a share of a slowly growing market.

    In such a scenario, channel support will determine each provider’s chances for success.

    Popova said that in order to ensure extensive customer reach and superior customer support, service providers need to develop stronger relationships with various VARs, SIs, and agents that may include real estate companies, IT consultants, and moving companies.

    "Further, providers should seek to develop an eco-system of partnerships to jointly enhance market awareness and be able to offer customers a range of interoperable solutions and capabilities," she said.

    Other recommendations made in the report include:

    • Telephony providers should cooperate with hosted contact center, email, customer relationship management (CRM), Web 2.0 and other communication and business application providers.
    • Service providers may choose to adopt diverse business strategies. For instance, some may focus on businesses seeking inexpensive voice communication packages, while others may choose to target businesses that seek advanced communication solutions such as UC, where application integration provides considerable productivity benefits.
    • Providers could also take advantage of merger and acquisition opportunities based on complementary technologies, expertise or channels, since consolidation can help improve customer awareness, margins and the value proposition of hosted IP telephony.
  • VoIP Solutions Provider Cypress Communications Expanding into Europe and Middle East

    INTERVIEW: Frank Grillo, Cypress Communication’s executive vice president of marketing, speaks to voip-biz.news about the company and its move into international markets
    voip solutions
    One of the US’s largest providers of VoIP solutions, Cypress Communications, is to announce shortly that it is expanding operations into Europe and the Middle East.

    After more than 20 years providing managed communication solutions to clients across the States, the Atlanta, Georgia-based company is to extend its network internationally.

    Frank Grillo, Cypress Communication’s executive vice president of marketing, told voip-biz.news that more than 80 per cent of its revenue and customers come from a very focused base.

    This comprises law firms and businesses in the financial services, commercial real estate and professional services sectors.

    voip solutions, frank brillo, cypress communications
    Frank Grillo,  EVP Marketing, Cypress Communications

    Grillo said the decision to move into Europe and the Middle East came as a result of a new client – a large US law firm of a similar size to Cypress’ anchor tenant, Pillsbury Winthrop Shaw Pittman LLP.

    The full details are expected to be released by the end of March.

    He said a data center is to be established in London, which is to be the initial anchor point in Europe.

    But the expectation is that the expansion will continue.

    "We are extending the Cypress network into other markets," he said.

    "We will initially be marketing to our US customers and serving their needs in Europe and the Middle East."

    Targeting US customers

    Grillo, who was recently, announced as the winner of the voip-biz.news’ Person of the Year award, said focusing Cypress’ initial marketing push on US customers made sense since many existing clients, such as law firms, had offices in Europe.

    The company’s business model is to be modified in the new markets, with more reliance placed on partners.

    In the Middle East, that is likely to be as a network manager rather than as a true end-to-end provider.

    Grillo added: "But from the customers’ perspective, it will be the same."

    As a provider of managed communication solutions, Cypress supplies technology that includes:

    * IP Communications (managed VoIP)
    * unified communication
    * digital and IP phones
    * unlimited calling
    * business-class Internet connectivity
    * firewalls
    * security and VPN solutions
    * audio/Web conferencing solutions

    Grillo described Cypress as a "fairly unique creature", firstly because its experience of hosted PBXs stretches back to the mid-1980s.

    "One of our biggest core strengths is that we get what it’s like to manage desktop phones," he said.

    The second reason was that Cypress’ core customers are high-value employees that depend on a quality phone service for doing business.

    So Grillo said a lawyer charging a client USD $400 per hour expects excellent service when using the phone for an important call.

    "Our clients are people using the phone as their primary tool for doing business," he said.

    Leap of Faith

    Last month, Cypress announced that an existing client, Ascensus, was making the move to IP communications.

    Grillo said this was an example of how customers are willing to put their faith in new systems because of the creditability Cypress has generated in over two decades in the industry.

    In Ascensus’ case, putting its trust in Cypress’ hosted VoIP and hosted unified communications solution, C4 IP, extends to nearly 1,000 associates from six offices — including a 300-person call center.

    C4 IP offers features such as integrated audio and Web conferencing, multimedia collaboration tools,presence, chat and Microsoft Outlook integration.

    "While the technology was new, we were not new," said Grillo. "We were a trusted provided."

    That’s not the case with every provider in the industry, according to Grillo.

    He said the hosted VoIP marketplace has been damaged in the past by providers that he describes as nothing more than "two guys and a truck looking to make some fast money with a bare bones product and the appearance of low cost".

    He said there were only a few providers that offered the reliability and quality required – one he was happy to name was M5 Networks.

    However, Grillo said the current state of the economy meant that those providing poor service were unlikely to fare well.

    "There’s only so much appetite in the market for bad VoIP," he added.

  • Digium Adds New US Features To Latest Version of Switchvox IP PBX


    Digium has introduced a new version of Switchvox SMB, its IP PBX designed for small- to mid-sized businesses (SMBs). 

    Switchvox’s web-aware capabilities allow its integration with web and back-office applications, effectively turning the phone system into a unified communications (UC) platform. 

    Switchvox SMB 4.0 adds various UC capabilities, including support for fax, chat and video calling, which the company says improve users’ productivity and efficiency. 

    Josh Stephens, general manager of Digium’s San Diego operations and a co-creator of Switchvox, said the IP PBX has always leveraged web technologies more than other competing products. 

    He said they had integrated Switchvox with Google maps and web-based CRM software such as Salesforce and SugarCRM. 

    "We’ve also provided easy-to-use APIs that enable businesses to quickly tie together their back-office software that they rely on day to day with their Switchvox IP PBX," he said. 

    "Now, support for instant messaging, fax and video calling, plus additional IVR functionality and a range of new benefits for administrators and users alike make Switchvox SMB 4.0 a truly web-aware UC solution." 

    To add to the appeal of the latest version of Switchvox SMB 4.0, it is available free of charge to customers with a current Switchvox SMB software subscription. 

    For new customers, Switchvox SMB USD $3,390 for a 10 user system, including hardware, software, a one-year subscription and warranty. 

    The entire line of Switchvox SMB appliances, the largest of which scales to serve 400 users, will be available from Digium and partners world-wide beginning on 3 March, 2009. 

    Danny Windham, CEO of Digium, said Switchvox is the first time that advanced unified communications features have been made available to SMBs that might not have big-company budgets. 

    He said these organisations are as reliant as anyone on their phones, e-mail, fax, chat and video and on the web to improve employee communications and efficiency. 

    "With Switchvox SMB 4.0, Digium brings all of these elements together and significantly integrates the business phone system with web applications in a way that we believe is unique today."

  • Slower Growth Expected In IP Contact Center Market


    Global economic problems will cause a slowdown in spending in the IP contact center (IPCC) market in 2009, according to Infonetics Research.

    The communications market research firm reports that while the overall Unified Communications and IPCC markets will experience a downturn, the IPCC and communicator segments will weather the economic downturn better than others.

    Infonetics said sales of UC products ended mixed in 2008, with unified messaging platform sales up and communicator software sales flat.

    Matthias Machowinski, analyst, Infonetics Research

    Overall, the IPCC market finished 2008 up 37 per cent over 2007, with many vendors reporting robust sales, particularly in Asia Pacific.

    Worldwide, businesses bought USD $851 million in IP contact center equipment in 2008, up 37 per cent from USD $622 million in 2007, based on the report.

    The 2008 numbers are based on actual sales numbers for the first half of the year and projections for the second half.

    Current economic conditions make repeating this level of activity virtually impossible.

    Matthias Machowinski, Infonetics Research’s directing analyst for enterprise voice and data, said the communicator market continues to be fluid.

    He said growth was not yet following established patterns and market share positions were shifting one period to the next as PBX vendors battle each other and Microsoft.

    "It’s an exciting market to watch, and one that should thrive in 2009, even as the overall enterprise telephony market declines due to the economic environment," he said.

    "Similarly, the IPCC market will slow down in 2009, but should do relatively well as customers find IP contact centers, self service, and automation cost effective ways to deliver on customer service."

    Other report highlights:

    • In 1H08, over a million IPCC seats were sold worldwide
    • Avaya still leads the IPCC market by far in 1H08, but lost share to Cisco and Alcatel-Lucent
    • Nortel takes the lead in unified messaging license market share in 1H08, while Avaya maintains its lead in revenue market share; Cisco is now a close 3rd for both
  • Business World May Be Rocked By IP PBX – But Not Yet


    Industry hype surrounding unified communications (UC) may cause seismic shifts across the business world – but the changes could take up to a generation to impact.

    That’s the findings of a study by In-Stat into UC such as IP PBX and how they will make fundamental differences to how people work.

    David Lemelin, an analyst at the company, said: "Real transformational changes will take more time, perhaps even a generation, to accomplish.

    "But it’s possible that a new generation, dubbed ‘Millennials’, bringing to the workplace communications habits formed in their early years, portends more rapid adoption."

    The sorts of changes likely to be adopted at work include personal habits, like text messaging and social networking.

    The study also dealt with suggestions that around 50 per cent of enterprises are either evaluating, installing or already running UC applications.

    In-Stat said the claims about UC uptake could prove accurate because definitions of UC are so wide-ranging, including both instant messaging and IP PBX.

    A survey in June by Interactive Intelligence found that 87 per cent of businesses were planning on investing in UC, with VoIP and SIP driving the move.