The Cloud – Simply a CapEx/OpEx Choice?

May 22, 2013 by Leave a comment

Ken Landoline

Ken Landoline

Summary Bullets:

  • The cloud approach to telecom solutions is catching on like wildfire as a growing number of vendors offer a cloud version of their products and some report that cloud solutions already account for the major portion of all sales.
  • In addition to a shift of expenditures from a large capital outlay to a monthly operational expense the reasons companies are moving to the cloud fall into a few more categories including; flexibility in changing capacity levels, speed in adding applications to premise-based solutions while protecting current investments, and disaster recovery back-up.

While much is made of the CapEx versus OpEx comparison of premise- versus cloud-based solutions, it seems those decisions are limited, for the most part, to end users that are in the start-up or “greenfield” mode of their lifecycle. Conversations I have had with many enterprise end users regarding the premise versus cloud decision process, as well as vendors selling telecom solutions, suggest many purchasing situations fits into one of three scenarios. In scenario 1 the business has a premise-based solution but appreciates the ability of the cloud to add capacity when needed and shrink capacity when activity slows down. Such a situation could be a retail contact center with a premise-based solution that must expand and shrink based on the seasonality of their business. Adding remote, home-based agents via a cloud offering is the perfect solution. Scenario 2 are end users with a substantial investment in a premise-based solution but a requirement to add applications and broader functionality quickly and efficiently without scrapping the not yet depreciated investment. The application of a “hybrid” solution allows the business to add applications to existing solutions without scrapping the premise based solution prematurely, before it is fully depreciated. In scenario 3, a few end users see cloud solutions as a method of providing a disaster recovery, back-up system to their premise-based system that will take over operations when disaster strikes. In this situation the cloud solution can be run in parallel to the premise solution and the cloud could take over if and when the premise-based solution fails for any reason, maintaining operations. Although the disaster solution may add significantly to operating costs, in many situations company revenue streams can be preserved, which make it a feasible investment. Read more of this post

Filed under Cloud Enable Tagged with , , ,

Managed Videoconferencing Homes in on Price Point Differentiation

March 13, 2013 by 1 Comment

Brian Washburn

Brian Washburn

Summary Bullets

  • Reservationless telepresence – emulating the familiar dial-in audioconferencing experience – has proven popular, to the point that the major competitors either have it, or are launching it.
  • Telepresence providers with a large conventional videoconferencing installed base are now drawing from these benefits, as their clients expand beyond immersive endpoints.

As Current Analysis has begun its latest analysis and update to the world’s major telepresence and videoconferencing providers, some trends are already becoming clear. Below is a list of issues that are currently top-of-mind for service providers: Read more of this post

Filed under Network Tagged with , ,

The Superior Customer Service/Personalization Trade-Off: A Decision Based on Trust

February 12, 2013 by Leave a comment

Ken Landoline

Ken Landoline

Summary Bullets:

  • An in-depth understanding of the customer, on the part of the enterprise, has the potential to provide a superior customer service experience and establish the groundwork for a high level of customer satisfaction, loyalty and longevity, assuming the enterprise makes appropriate use of the information.
  • Many customers are still reluctant to share personal information with a customer service provider because there remains a strong distrust regarding whether or not the information will be used appropriately and contained within the boundaries of the enterprise to which it was entrusted.

Last week I had the opportunity to attend the ITEXPO Conference in Miami Beach and act as moderator for two breakout panel sessions focused on the topics of “customer personalization” and “creating a consistent and quality customer experience” during customer service interactions. The three panelists on the stage with me at each session represented companies that develop, sell or use technologies designed to improve customer service interactions. The companies included InAppCare, Nuance/VirtuOz, Phone.com, TSG Global and VHT. Oddly enough, both sessions gravitated to an audience-prompted discussion regarding trading private and personal information for the potential of getting better service from the enterprise. While many argued that they thought customer care solutions were far from successful in meeting their expectations and needed improvement, it was implied that they were not willing to trade their privacy to improve the situation, at least not yet. Read more of this post

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Vendor Upheaval Overrated

February 11, 2013 by Leave a comment

Jerry Caron

Jerry Caron

Summary Bullets:

  • It is questionable whether vendor difficulties or management upheaval should be a major concern when making an IT buying decision.
  • Due diligence is important, but history suggests that fear-mongering is overrated.

It is debatable how much the financial or managerial state of a potential supplier should weigh on the minds of IT buyers as they consider various solutions.  Sure, on the one hand, no buyer wants to get caught out with an investment in products from a company that may not be able to support it for long.  On the other hand, how often does that actually happen? Read more of this post

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Premise, Hosted or Both? What UC Model Will Prevail in the Future?

December 20, 2012 by Leave a comment

Cindy Whelan

Cindy Whelan

Summary Bullets:

  • As the unified communications (UC) market develops, enterprises have access to a wide range of solutions from equipment vendors and service providers that offer hosted and on-premise UC solutions.
  • Enterprises that want to deploy hosted and managed UC solutions must consider which entire service wrap has the best model for their needs.

Carriers have long supported premises-based managed IP PBX solutions, typically based on platforms from Avaya, Cisco and Siemens.  In 2011, as interest in unified communications services began to grow, major service providers added hosted UC offers based on the Cisco Hosted Collaboration Solution (HCS) platform.  In 2012, service providers continued to build out their UC solutions, adding support for Microsoft Lync.  BT launched a pilot program for a dedicated hosted Microsoft Lync solution in February 2012, followed by its October 2012 commercial launch of hosted Lync in the U.S.  In November 2012, Verizon opted for a different approach with the launch of a managed customer premise-based Microsoft Lync solution that can be offered alongside a professional services practice specifically designed for Lync implementations. Orange Business Services has had a dedicated hosted Microsoft Lync offer for some time, and plans a Microsoft Lync ‘as a service’ shared hosted platform in 2013.  Many more carriers have certified their SIP trunking solutions with Microsoft Lync, even if they don’t yet provide a fully managed UC solution for the platform. Read more of this post

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Logitech Is Using R&D to Expand Its Strong Consumer Brand into Business Markets

December 11, 2012 by Leave a comment

Ken Landoline

Ken Landoline

Summary Bullets:

  • The BYOD phenomenon has resulted in a variety of consumer devices and services becoming standard components of business IT solutions in the SMB and enterprise marketplaces.
  • Consumer product developers now have an opportunity to broaden product market scope and expand revenues by evolving their offerings into business solutions through strong R&D and marketing efforts.

A few days ago, I was invited to attend a lab tour at Logitech, a market leader in the consumer web camera market, headquartered in Newark, California.  I refer to Logitech as a market leader because it holds an indisputable leading position in the consumer webcam market (reported to be around 70%).  You might wonder why an analyst following the enterprise unified communications business would be invited to Logitech.  Well, approximately two years ago, Logitech set up its Enterprise Division and began developing high-quality video cameras aimed at capturing the attention of IT decision makers interested in delivering video collaboration applications to their employees.  The initial result was a personal videoconferencing camera named the BCC 950 ConferenceCam.  The BCC 950 is a desktop or small group videoconference camera that plugs into a PC or laptop via a USB port.  This simple-to-use device, introduced to the marketplace earlier this year, includes features expected in a video conferencing terminal used in a small conference room or business office, including 1080p30 resolution, noise cancellation, and pan-zoom-tilt functionality, and it has the plug-and-play ease-of-use capabilities of a consumer product.  The product also has a very impressive list price at $250. There is no software installation required, and it offers out-of-the-box integration with Microsoft Lync, Cisco Jabber, Skype, Google+ Hangouts, and several other consumer videoconferencing services that are migrating into the enterprise office environment. Read more of this post

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Superstorm Sandy Reinforces the Need for Business Continuity Planning

November 6, 2012 by 2 Comments

Cindy Whelan

Cindy Whelan

Summary Bullets:

  • The arrival of yet another devastating storm reinforces the need for business continuity features.
  • Business customers need to have a clear understanding of their carrier’s internal architecture for redundancy; they should also take secondary steps for further assurance of continuity.

In my August 28 blog, “UCaaS Can Be a Lifesaver in a Disaster,” I discussed the need for customers to have a clear understanding of their service providers’ business continuity features.  When I wrote that article, nobody had any idea that a storm on the scale of Sandy, which ravaged the Mid-Atlantic seaboard, was on the horizon.  Of course, the first and most important thing in these situations is the protection of family and loved ones.  This was a storm like nothing else in recent history in the region, leaving devastation in its wake. Read more of this post

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UC Hanging On Users’ Permission

July 31, 2012 by Leave a comment

M. Halama

M. Halama

Summary Bullets:

  • User adoption challenges UC deployments.
  • Permission by presence status fits some corporate cultures but clashes with others.

Customers and providers of UC services cite low adoption and usage by end users as challenging.  Both buyers and providers of UC services have a stake in encouraging end users to adopt UC services; once demanding UC projects have been rolled out, finance directors are keen to see some sorts of return on investment.  Some UC features fare better than others (typically telephony gets high use) and they vary from user to user, but the power of ‘presence status’ to give contact permission can both deter and appeal to users. Read more of this post

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Cloud-based Contact Centers – The Appeal Beyond OpEx vs. CapEx

April 24, 2012 by Leave a comment

K. Landoline

K. Landoline

Summary Bullets:

  • Cloud service offerings in the contact center are proliferating, and more often than not they are reaching the short lists of decision makers who select customer care applications.
  • Many considering a cloud-based contact center solution summarize the appeal in terms of capital to operating expense conversion and seldom note the potential benefits in the area of disaster recovery.

It was difficult to walk the exhibit floor of the Enterprise Connect conference in Orlando a few weeks ago without realizing that cloud services was given a major emphasis by exhibitors and show attendees alike. The program listed 46 exhibitors (more than 30% of total exhibitors) under the category of “Cloud-Based Services,” and the attendees flocked to any break-out sessions with the word “Cloud” in the title, which resulted in standing room only sessions in many cases. As an analyst who has been tracking the shift to the cloud in the contact center marketplace, I was very interested in the advantages of the cloud being highlighted by exhibitors and perceived by enterprises and SMBs with mission-critical contact center applications. Read more of this post

Filed under Cloud Enable Tagged with , ,

Communications Market Needs More Fish Out of Water

April 3, 2012 by 2 Comments

B. Shimmin

B. Shimmin

Summary Bullets:

  • Despite marketing rhetoric, Enterprise Connect and its exhibitors are still struggling to blend communications and collaboration.
  • One solution is to invite unusual exhibitors steeped in collaborative business solutions outside of the realm of unified communications.

As a dyed in the wool software enthusiast, I often feel a bit out of my element at trade shows like last week’s Enterprise Connect, where solutions come in rack unit increments and business value is measured in port densities. Over the past year, especially after show organizers dropped the VoiceCon moniker in favor of a less PBX-centric name, Enterprise Connect has shown signs of becoming a venue capable of reflecting the needs of enterprise customers both today and tomorrow. That is, an enterprise where collaboration and communication not only co-exist but also understand and directly drive business value. But as my compatriot IT Connection blogger, Jerry Caron, pointed out yesterday, most of the vendors exhibiting at Enterprise Connect have not yet heeded this memo. Read more of this post

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