A Sea Change
in Business
Communications
As organizations
grow in size and
become more
geographically
dispersed,
corporations
find themselves
on a seemingly
perpetual search
for business
communication
solutions that
boost employee productivity and
effectiveness,
and show a
substantial—if
not
instant—return
on investment.
Over the past
five years,
there has been
steady movement
for
organizations of
all sizes to
leverage the
Internet for all
types of
communications:
written, spoken
and seen. As a
result, a wide
variety of
vendors, both
large and small,
have emerged to
take a piece of
the
multi-billion
dollar markets
in real-time
data
conferencing,
teleconferencing
and
video-centric
communications.
Web
Conferencing,
Voice over
Internet
Protocol (VoIP),
Instant
Messaging (IM)
and, most
recently, the
notion of
Presence is
among the newest
technologies
that are
changing the way
large
organizations
and enterprises
communicate.
Since 1999,
thousands of
companies around
the world have
chosen to
embrace the
power and
inherent
flexibility of
these business
communication
initiatives for
a variety of
compelling
reasons: reduced
travel, revenue
generation,
improved
customer
service,
increased
employee
productivity and
more.
Enterprise
communication is
rapidly evolving
and larger
companies are
taking a much
more critical
approach when
researching and
selecting
communication
solutions and
vendors. These
forward-thinking
enterprises
recognize that
security,
performance,
ease of use,
integration and
measurable
increases in
revenue are
needs that
cannot be
sacrificed.
Today’s
approaches to
enterprise
communication
have attacked
these challenges
in a
“piece-meal”,
one-off fashion
and, as a
result, have
failed to meet
these critical
requirements.
In this white
paper, we will
explore past,
current and
future
Internet-based
enterprise
communications
and how these
critical
functions have
passed the
embryonic phase
and are staged
for the next
level of
function:
integrated and
converged
real-time
enterprise
communication.
Market
Background and
History
In 1995, a
communication
standard known
as T.120 was
created and
ratified by two
organizations:
FutureLabs (now
known as WebEx
Communications)
and DataBeam
(acquired by
Lotus and then
by IBM). T.120
was created to
enable
network-independent
teleconferencing
and video
conferencing,
which was viewed
as an important
building block
of
Internet-based
conferencing.
This enabled the
creation of a
wide range of
collaborative
applications—such
as desktop data
conferencing,
Instant
Messaging and
chat,
point-to-point
IP video
conferencing and
multi-player
gaming.
To truly
recognize the
benefits of this
newfound
point-to-point
standard, large
amounts of
bandwidth (in
addition to
expensive
hardware and
software) were
necessary to
maximize
communications
and maintain
data integrity.
In response to
the costs
involved,
corporations
retreated as
customization,
implementation
and securing
dedicated
bandwidth from
each “data
point” were
expensive and
arduous
processes.
Communications
providers found
it difficult to
scale with the
growing needs of
customers and
the
proliferation of
the Internet.
Moreover,
point-to-point
communications
solutions failed
between these
private
end-points.
In 1998, the
market began to
change
direction. Many
data, voice and
video
communication
providers
altered their
business models
to
subscription-based
hosted
services—now
known as
Application
Service
Providers
(ASPs). These
“Web-enabled”
solutions
overshadowed the
presumed
antiquated
client/server
solutions with
promises of
speeding
implementation
and enabling
companies to
maximize their
Web
communications
with little or
no capital
expenditures. In
this
user-focused
model, security
and on-going
costs were
afterthoughts
and features
were king.
Recent research
has proved,
however, that as
usage of these
ASP solutions
spread
throughout an
organization—and
its partners,
suppliers and
vendors—and
despite the
promises of the
ASPs themselves,
costs actually
increase. This
requires the
enterprise to
pay highly
variable and
often
unpredictable
recurring
monthly fees for
the privilege of
using these
services. This
brings us to the
present day,
where old is new
again, as large
organizations
search for
scalable
architecture,
long-term ROI
and cost control
and internal
administration.
Current State of
the Market
In this
cross-functional,
enterprise and
global
partnering
environment,
companies are
increasingly
looking for ways
to leverage the
Internet for
communicating on
a global scale.
Pressure to
reduce travel
costs while
maintaining
real-time
communications
with customers,
employees and
partners, has
resulted in
virtually all
Fortune 1000
companies using
some form of Web
conferencing,
IM, and/or video
conferencing
solution—although
most often on a
hosted (read:
ASP) basis.
More widespread,
global
collaboration
implies a need
for more
efficient
communication
between
corporations and
their customers,
partners,
distributors,
manufacturers
and designers.
Technology
industry
analysts have
discovered that
through better
collaborative
tools and
techniques,
industry-leaders
are also
reducing their
development time
significantly—sometimes
by 50 percent.

Application
Service
Providers (ASPs)
have enabled
small workgroups
to
cost-effectively
communicate
regardless of
time zone or
logistics
constraints, but
as usage of
these solutions
spread across an
enterprise and
beyond, costs
dramatically
increase and the
scalability and
performance of
these archaic
ASP-only
services
suffers.
Additionally,
overage
fees—much like
today’s cellular
phone
charges—are
standard and
hold back
mainstream
acceptance of
Web-centric
collaboration.
Also, multiple
vendors are
being utilized
by large
organizations,
and thus the end
result is higher
costs.
In consideration
of Microsoft’s
acquisition of
PlaceWare in
2003, thus
announcing their
market entry,
other
collaboration
vendors are
scrambling to
build and/or
acquire key
functionality to
stay
competitive.
Also, with
Microsoft’s
renewed focus on
the Microsoft
Real-Time
Collaboration
project and its
inclusion in the
next Windows®
operating system
(codename:
Longhorn),
analysts are in
agreement that
major changes
are in store for
the
collaboration
category in the
next 24-36
months. Some of
the speculation
centers on the
following
issues:
- Virtual
dismissal of the
T.120 standard –
Analysts across
the board are
rethinking their
opinions on
T.120 for the
enterprise and
have begun to
deepen their
understanding of
why a larger
organization
needs more than
just a
point-to-point
communications
solution for the
LAN.
Additionally,
T.120/point-to-point
solutions fail
to function
securely and
consistently
between routers, NATs and
firewalls.
- Market
Consolidation
and Convergence
– Over the last
18 months the
number of
collaboration
vendors has
increased; but
there has also
been a number of
mergers and
acquisitions.
Large
corporations
such as
Microsoft, Documentum and
Polycom have
recently
acquired
technology
players in the
industry. In
addition, there
have also been
mergers and
acquisitions
that have
occurred from
large audio
conferencing
service
providers, such
as Teleservice’s
$400 million
acquisition of
InterCall. This
is a trend that
is expected to
gain momentum
over the next
two years.
Currently, there
are a number of
collaboration
vendors that
offer a single
solution (read:
IM or
conferencing or
telephony,
etc.). For the
next two years,
industry analyst
Frost & Sullivan
expects that
many of these
organizations
will be able to
build reasonable
revenue and
client bases by
merely offering
single
collaboration
applications and
services.
However, for the
long run, the
outlook for
these vendors is
very bleak (see
sidebar).
- Usage
Entrenchment –
While awareness
of collaboration
continues to
permeate
businesses of
all levels and
sizes—and major
vendors such as
AOL, WebEx and
Yahoo! continue
their attempts
at garnering
end-users—the
majority of
growth continues
in the corporate
environment.
Similar to what
has taken place
in the audio
conferencing
market, the
majority of
businesses have
yet to realize
the benefits of
instituting
collaboration
into their
communication
practices. As
the market grows
toward
saturation, the
extremes of the
market (read:
small business
sector and large
enterprise/government)
will be critical
in driving
vendor growth
and for the
market to reach
its full
potential.
The
collaboration
functions of web
conferencing are
driving a
measurable surge
in usage.
Although the
newest users
typically feel
more comfortable
with the
presentation
features,
experienced
users are
finding the
collaboration
piece to be the
most beneficial.
Data/desktop
sharing and
document
collaboration
functions of web
conferencing
enable users to
efficiently work
in a virtual
team environment
whether they are
a few cubicles
apart or
thousands of
miles away.
Document
sharing,
application
sharing, group
web browsing,
desktop sharing
and
whiteboarding
represent the
features and
functions most
frequently
utilized by the
enterprise.
The Two-Horse
Race:
On-Premises vs.
ASP
Enterprises have
garnered
experience with
business
communication
solutions and
recognize that
selection of the
right vendor is
paramount to
short-term
implementation,
performance and
long-term
success. C-level
executives
across a wide
range of
horizontal
markets and
vertical
segments are
tasking IT to
research,
investigate and
recommend
solutions to
enable global
Web-centric
collaboration.
These efforts
yield two
distinct
choices:
subscribe to a
hosted service;
or, bring
collaboration
behind the
corporate
firewall.
Hosted/ASP
Turnkey
subscription-based
solutions are
inherently
cost-intensive
over long-term
use and
T.120-based
peer-to-peer
technology
prohibits a
secure and
scalable,
cross-platform
solution. These
global leaders
are shifting to
implement
viable,
server-centric
solutions that
enable both
secure, scalable
Web
communications
and
cost-effective
ownership and
integration.
These
services-centric
companies have
hit the market
strongly and
captured early
market share.
However, most of
these
collaborative
solutions are
based on
technology/functionality
that can only be
acquired as
subscription
services (ASPs)
and provide
significant
barriers to
enterprise-wide
acceptance:
- Cost: Costs
beyond the
customer’s
license
agreement—overage
fees—are
exorbitant and
limit the use of
collaboration in
any size
organization.
Additionally,
these customers
have no
awareness of
real-time usage
and costs;
therefore
overage fees are
a surprise at
the end of the
month. Current
pricing of
ASP-only vendors
is currently
between $40-$200
per month per
user. This
monthly
recurring cost,
combined with
overage fees,
does not provide
for
cost-effective
usage of
ASP-only Web
conferencing
solutions.
- Security: As
ASP-only Web
conferencing
services are
offered on a
subscription-basis
and hosted
outside the
corporate
firewall,
security is
often limited to
Secure Socket
Layer (SSL)
encryption.
ASP-only
services do not
allow migration
to a
behind-the-firewall
solution and,
therefore,
cannot enable
ironclad
security for the
distributed
Enterprise.
- Scalability:
Web-centric data
communication
services based
on older,
unreliable
standards have
inherent
challenges
scaling to
support the
distributed
Enterprise.
These services
enable Web
meetings on a
peer-to-peer
basis.
- Channel
Conflict:
Today’s ASP
vendors have
created their
own channel
sales problems
by changing
their
business/sales
models and
enabling
customers to buy
Web conferencing
at any level
and/or cost. The
dominant source
of Channel
Conflict is the
Pay-Per-Use (PPU)
model, where
customers pay a
small recurring
monthly access
fee and are
charged only for
they time they
use. While it
sounds
beneficial,
larger
corporations are
beginning to
experience the
exact opposite
and should turn
to a more
cost-effective
solution in the
near future.
Conclusion:
While hosted
solutions are
extremely
advantageous for
workgroups and
smaller
organizations,
larger
corporations
need a
standards-based
solution with
enhanced
security and
administrative
control that
enables
bandwidth-independent
collaboration
and incorporated
IM, video, data
and voice.
On-Premises
Current
Client/Server
LAN
collaboration
software vendors
have attempted
to acquire
market share by
retrofitting and
adding
collaborative
functionality
into their
existing
software
offerings. These
software vendors
have inherent
architectural
problems
reaching out
beyond the
corporate LAN to
securely include
external
conference
participants.
Some vendors
have attempted
to re-tool their
product
offerings in an
effort to
augment their
solutions and
support the
globally
distributed
enterprise.
Aside from
unreliable
functionality
and
insurmountable
firewall
challenges,
these solutions
usually require
major
expenditures and
significant
implementation
time.
However, a
select number of
vendors have
emerged with
significant
vision, talent,
capital, and
relationships
that enable
enterprises of
all sizes to
integrate and
implement all
aspects of
real-time and
on-demand
collaboration
behind the
firewall in
days—not weeks
or
months—without
significant
investment,
administration,
training or
management.
Leading the
charge for
enterprise
communication
and
collaboration
convergence is
industry leader WiredRed
Software.
Benefits of
Converged
Collaboration
with WiredRed
As previously
stated,
Web-centric
collaboration
includes various
forms of
communication
and has many
applications.
Since its
inception,
collaboration
found a strong
niche in a
number of
business
critical
applications
such as outbound
sales and
marketing
efforts,
customer
support,
corporate
presentations
and internal
communications.
Thousands of
organizations
have maximized
the efficiencies
of their
workforces by
utilizing all
forms of
collaboration:
instant
messaging, web
conferencing,
multi-point
video
conferencing,
and
telecommunications.
Internally, the
ability to link
globally
distributed
workgroups and
project team
members—including
vendors,
contractors and
partners—results
in higher
efficiencies,
reduced
communication
costs and faster
time-to-market.
The result is a
streamlined
modus operandi
for business
communication
that is more
efficient than
email threads,
faxes, overnight
couriers, and
one-off
teleconferences
and lengthy
face-to-face
meetings.
Externally,
collaboration
can
significantly
shorten
traditional
sales cycles and
seamlessly
integrates into
sales,
marketing,
training and
technical
support efforts.
WiredRed’s e/pop
product line has
the ability to
answer the call
of the
distributed
enterprise and
has eliminated
common barriers
to entry for any
size
organization—from
the smallest
business to the
largest
distributed
enterprise.
Converged
Enterprise
Collaboration
Collaboration
encompasses many
functions of
communications,
and thus has
many vendors
offering
specialized
solutions. While
this model is
beneficial to
smaller
organizations
requiring
limited a nd/or
single-function
usage, these
“communication
silos” offer
little to
satisfy a
globally
distributed
enterprise.
To date, only a
small number of
vendors have
gone the path of
offering a
complete
solution
enabling the
best in
collaboration —
secure IM,
company/system-wide
alerts, data
conferencing,
multi-point
video,
multi-point VoIP
and more. This
short list of
vendors includes
the likes of
Microsoft and
IBM/Lotus. Both
require
standardization
on their
respective
platforms, large
capital
expenditures and
significant time
implementing and
deploying their
solutions.
Significant time
and cost for
training (for
users and
administrators)
is also
required.
WiredRed’s e/pop
enables
converged
business
communication in
ways never
before possible.
Whether the need
is simple
(starting a
secure IM chat
and moving to a
Web conferencing
session with a
mouse-click) or
complex
(gathering a
global team to
respond to a
time-constrained
RFP). WiredRed
is driving
collaboration
convergence.
Cost of
Implementation
The cost
involved with
deploying
Internet-based
communication
solutions has
been a key
factor for
organizations
looking to
select and adopt
a vendor. When
compared to the
costs of travel
(and associated
travel
expenses), the
cost benefits
and return on
investment
becomes clear.
However, when
larger
organizations
take into
account the
recurring cost
model offered by
today’s ASPs, it
becomes clear
that this rapid
ROI is only
short-term.
WiredRed’s e/pop
product line has
made it easy for
companies of all
sizes to
recognize
instant
deployment-based
cost savings
while
considering and
enabling
long-term
benefits of
security,
administration,
integration,
cost control and
enterprise-wide
standardization.
By allowing all
flavors of e/pop
(data
conferencing,
secure
IM/presence,
alerts) to be
installed in a
matter of
minutes—not
days, weeks or
months—and by
leveraging
existing
infrastructure,
e/pop has
radically
shortened the
enterprise
software
installation and
management
paradigm.
Security
When considering
communications
of any
kind—instant
messages,
documents,
presentations,
tele/video
conferences,
etc.—confidentiality
is critical to
the success of
any
organization.
Most real-time
collaboration
vendors offer
their solutions
as a service,
residing outside
the corporate
firewall with
simple
password-based
security to
protect content.
If additional
security is
needed (i.e.
VPN), bandwidth
becomes an issue
in the effort to
keep latency at
bay.
As an
on-premises
solution, and
with security
placed
top-of-mind,
WiredRed’s e/pop
software is
installed and
managed behind
the corporate
firewall. This
enables complete
and total
confidentiality
of any and all
data/content: IM
chat, real-time
data
conferencing
content and/or
company-wide
alerts.
Enterprise-Grade
Architecture
WiredRed’s
Real-Time
Routing
Architecture™
powers all e/pop
products. This
patented
technology
design enables
an
enterprise-class
multi-server
presence
management
engine,
multi-server
intelligent
routing,
high-speed
virtual channels
(synchronous),
groups, security
and directory
integration.
WiredRed’s
Real-Time
Routing
Architecture
supports a wide
variety of
highly scalable
applications
across their
entire product
line including:
secure IM, alert
messaging
(company-wide
pop-up alerts),
scalable text
conferencing,
web
conferencing,
multi-point
audio/video
conferencing,
and
proxy-friendly
remote control.
Conclusion
As part of this
analysis on
Internet-based
enterprise
communication,
Engravado
Consulting has
conducted an
in-depth review
of WiredRed’s
e/pop product
line and has
determined the
following:
- WiredRed is on
the leading edge
in the
convergence of
collaboration
and
communication.
There is
significant
opportunity for
WiredRed as well
as their
customers based
on the
integrated
offerings in the
e/pop product
line. As e/pop
is deployed and
managed behind
the firewall,
WiredRed is able
to meet and
exceed the
short-term and
long-term
business
collaboration
needs of the
enterprise.
- The ability to
“start simple”
with the like of
an alert or chat
session and then
escalate the
encounter to a
fully
interactive
conference—with
multi-point and
bandwidth-friendly
data, voice and
video
conferencing—is
of significant
benefit to the
end user and the
organization as
a whole.
Aesthetically,
users and
administrators
will find the UI
extremely
intuitive.
Whether you are
starting a
conference or
installing the
server itself,
WiredRed has put
significant time
and energy in
maximizing and
simplifying the
experience.
- WiredRed’s
flexible and
scalable
Real-Time
Routing
Architecture is
a tremendous
benefit to
organizations
looking to truly
utilize the
Internet for
their
communication
needs. By acting
as a “smart
agent” and
enabling e/pop
modules to
“talk” to one
another,
WiredRed is
positioning
itself to
compete in the
realm of
enterprise
software
infrastructure.
- End-users and
administrators
alike will find
WiredRed’s e/pop
products
extremely
feature-rich,
offering the
best in
Internet-based
data, voice and
video
conferencing
functionality.
About WiredRed
Founded in 1998
and
headquartered in
San Diego,
California,
privately held
WiredRed
Software is a
technology
leader in
enterprise
real-time
communications.
WiredRed's e/pop
software appeals
to busy,
security
conscious IT
staff that seeks
a superior
solution to
secure instant
messaging,
company-wide
alert messaging
and web
conferencing
challenges. The
company licenses
its software to
corporate and
government IT
organizations
and a growing
network of
business
partners.
WiredRed
currently has
thousands of
organizations
using e/pop for
their business
communication
and
collaboration
needs.
| Engravado
Consulting
specializes in
bringing high
technology
solutions and
services to
market. For more
information,
please contact
us at
info@engravado.com
or visit us on
the web at
http://www.engravado.com. |
|