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As an analyst, I am frequently asked to explain the
merits of new technologies and products. For the past
several years I have been one of the strongest
proponents of LAN telephony, which is the technology
and market segment in which enterprise telephone calls
are transmitted via the local area network (LAN)
instead of using telephone wiring and a PBX. It's a
very cool technology with many great reasons to
implement it. However, the best motivators are not
what you might imagine.
To better demonstrate this point, I thought I'd
share with you an example of a typical dialogue I have
had on dozens of occasions with both end users and the
press:
End user: Wow! You
mean we only have to have a single wire to the
desktop?
Me: Yes, but that's not really the most
compelling reason to buy it. There are a variety of
reasons, not the least of which is price. Most LAN
telephony systems are at least 30 percent cheaper than
the PBX alternative.
End user: I don't buy into any of those pricing
statistics. Statistics can be made to show anything,
87 percent of all people know that!
Me: Well, don't forget about administration.
Moves, adds, and changes are all done using a simple
graphical interface. In fact, you can just unplug your
IP phone, walk down the hall and plug it in somewhere
else and it will work. This will save you thousands in
maintenance costs from the PBX company.
End user: I rarely have my people move offices
or change extensions. That's not really a big deal to
me.
Me: Far and away the biggest reason is the
applications! By using IP technology in the handsets,
it is an ideal environment for new applications that
are not possible using circuit-switched environment.
LAN telephony lets you do things you simply can't do
with a standard network. It's the applications that
are the real motivator, and the best reason to go with
LAN telephony.
End user: Sounds great. What kind of
applications are you talking about?
Me: Well, umm, lot's of great apps. They're
just not here yet... but they will be!
The Time Is Now
And that's where the conversation usually takes a
downturn. LAN telephony offers a great technical
environment for some really innovative applications.
It's just that they haven't been built yet. I've
always believed that it's the applications, not the
technology, that truly drives a new product, but the
better the technology the better the app. It was only
a matter of time before we saw cool apps and the
market really takes off. That time is finally here.
I recently spoke with Cisco, one of the leaders in LAN
telephony, and they mentioned they recently had a
developers' showcase and gave out awards for the most
compelling applications. I'm not going to mention
names of vendors here because these products are still
preliminary and untested, but I thought I'd share some
of the applications. I believe they are important to
the LAN telephony market as a whole.
Room-To-Room Text Messaging
This is a great app targeted at the hospitality
industry. It lets users send text messages from room
to room, thus greatly freeing up hotel operators' time
and giving guests a more efficient way to schedule
things like wake up calls, check out times, and dinner
reservations.
Time-Of-Day Routing
This app, designed for the K-12 market, lets specific
calls go to specific phones based on the time of day.
For the worried parent, this application means that by
dialing one number the system can query a student's
schedule and route the call immediately to the
appropriate classroom. Knowing how overly worried some
parents are, this app would have to be used with great
discretion.
Conference Room Scheduling
Both for the hospitality industry and the enterprise,
this app eliminates the headache of overbooking
conference rooms and can even automatically forward
calls.
User-Administered Routing
Not to forget the call center, this app lets the user
define basic routing and hunt groups right from the
desktop. For the small call center, proper call
routing can mean the difference between success and
failure.
Training
The average PBX has over 500 different features and
most users don't know more than three. I know I still
tell callers to hang on and not be surprised if I drop
them during call transfers. This app is a set of
training exercises designed to help the user get the
most from their phone. Ideally the IP handset will be
easier to use than its PBX cousin, but training is
still necessary and often overlooked.
Driving The Market
These are just a few examples of applications that are
only possible with the use of LAN telephony. Through
Cisco's developer program, these apps will be brought
to market over the next year. However, this is simply
the first step, signaling future products yet to come.
LAN telephony is the right technology for enterprise
voice, yet it is still up to the developers to create
them. And my typical response when asked what these
great applications will be that will create a billion
dollar market? "If I knew what these great
applications were, I'd quit my job and start a company
producing them. I just know they're coming."
Brian Strachman is senior analyst, Voice and Data Communications,
Cahners In-Stat Group. To correspond with the author, please send your
comments to brians@instat.com.
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