Home   Article Categories   Industry Events   Webcasts Surveys
Unified Communications Strategies
Community Blog
   Industry Buzz   UC Strategies Views   UC Expert Views   In The Spotlight  

Entries Tagged as 'Add new tag'

If Unified Communications Could be Fun - Cius Demo at Ciscolive

Last week in Las Vegas I got to follow up on Cisco’s contact center analyst day by attending Ciscolive, which is Cisco’s big customer event, co-located with C-Scape, Cisco’s main analyst event. Ciscolive was huge! In the main keynote there were 12,500 customers, a lot of analysts, and 23K total attendees if you include those participating virtually. As usual, John Chambers was completely engaging speaking on the vision that Cisco has with snippets such as, “Economies of the future won’t be information economies, but network economies”, and “Every mistake I’ve made as a leader is in being too slow or in having speed without process and being replicable.”

Ciscolive also had what Cisco called, ‘The World of Solutions Expo’, which was essentially a trade show of Cisco and Cisco partners. In the collaboration area we got to see and hear much more about UC and collaboration products, such as Cisco Pulse, and I was happy to hear that Cisco has come a long way in getting the answers to some of the questions I had last November when they announced those products.

The best part of the keynote was the Cius demonstration; Cisco’s new tablet phone. Aimed at a business user, rather than consumer, like Apple’s iPad, this UC tool, is nice. This telephone/tablet combination acts as a portable communications and collaboration platform, working as a phone with a screen that works with Cisco applications such as Telepresence or WebEx, and with Cisco’s Unified Communications manager, or as a tablet. When the tablet is docked it provides the screen, and the base has USB ports, a wired Ethernet connection, and, of course, a telephone handset and speakerphone.

When used as a tablet, Cius has an HD 720p camera that faces the user, and a 5 megapixel camera mounted on the back, so that a user can pop the tablet off of the base, and use it for two way video calls, or video calls in which the user can see the other party and show them whatever the back camera is pointed at.

The Cius tablet weighs 1.14 pounds, runs on the Android operating system, and supports 802.11 a/b/g/n Wi-Fi and 3G. Later releases will include 4G mobile networking. Cius is blue-tooth enabled, and supports connection of other headsets through a micro-USB port. Cisco said that when the product is released in early 2011 that it will come with a set of applications and a Firefox browser, but also stated that Android developers can write applications to the device using Cisco’s own SDK and APIs. Cisco also claims that the tablet has an 8 hour battery life.

If a unified communications “phone” could be fun, this would be it. It has a nice design, supports a lot of functionality, and appears very easy to use. For Cisco, the Cius is also a very attractive add-on to their shameless drive to put video everywhere, not only because of the video capabilities of the phone, but also because of support for Cisco’s myriad video-enabled UC applications.  There is no hidden agenda here; just video everywhere all the time, and this makes video appealingly mobile.

 Lastly, although the Cius is positioned as a business device, with Cisco’s statements towards bringing the network to everyone, it’s not out of the question that further positioning towards the consumer market might happen not far down the road.

Unified Communications and Etiquette

Technology can only do so much, and sometimes, human nature has to play a role. There are times when a technology isn’t being implemented properly because of cultural or social issues, and there are many situations where we have to change our cultural habits to accommodate new technologies.

In the early days of computer telephony integration, there were examples of call center agents who received screen pops on their desktops providing them with information on the caller’s name and what they’re calling about, and the agents would answer the phone based on this information. “Hello, Mr. Jones, I see you have a problem with your credit card statement, and since you’re a platinum card holder, I’d be happy to assist you.” Instead of rejoicing at this recognition, customers got flustered, wondering how the agent knew who they were, and the time it took for the agent to explain about screen pops eliminated the expected time savings that screen pops are supposed to provide. Some companies stopped using screen pops altogether, but generally most call center agents went back to using a neutral greeting so they wouldn’t alarm the callers.

In the world of unified communications, presence and IM, new etiquette rules are being developed, both formally and informally. I’ve heard of many companies where it’s considered rude to call someone without sending an IM first to see whether it’s a good time to call. Most companies haven’t formalized these rules, but I expect to see more and more companies promoting “best practices” or “etiquette guides.”

Microsoft has a wonderful “Instant Messaging Etiquette Guide” that provides general guidelines. For example, some tips for politeness when using IM include:
•    If you are initiating the IM, it’s generally considered polite to ask the other person if they have time to “talk” with you. This may not be necessary with someone you work with frequently and when the question is quick, as opposed to something requiring discussion.
•    Don’t invite someone to join a conference in progress without first asking the others in the conference if it’s OK to do so.
•    Don’t use all capital letters to type your message. It’s the IM equivalent of shouting (note: this goes for twitter, Facebook, etc.).

Social and personal issues are often the reasons why technologies fail to be adopted, despite the quality and reliability of the technology itself. I often hear from enterprise workers that they don’t want to use UC (particularly presence capabilities) because they don’t want people knowing their status or because they don’t want to be interrupted if they’re working. Instead, they generally set their status to “unavailable” all the time, thus greatly reducing the value of the technology for not only that individual, but for people in their workgroups and organization. This could be avoided if everyone followed guidelines and best practices. For example, respect IM status settings. If someone’s IM status is “busy” or “away,” don’t try contacting them and disturbing them. Alternatively, recognize that just because someone’s status is “available” doesn’t mean that they can drop what they’re doing and interact with you. If someone doesn’t respond to your messaging request, it probably means they’re busy, even if they’re status shows that they are available.

Microsoft also suggests: “If you’re carrying on too many IM conversations at once, those you’re corresponding with may feel that you’re not giving them the proper amount of attention. No more than three conversations at a time is a general rule.” I suggest that contact centers also follow this rule – I’ve stopped using the web chat option for customer service because too often the agent I’m chatting with for service is also helping several other customers at the same time, causing delays in the chat and making it a very lengthy and unpleasant experience.

One of my personal guidelines is that after going back and forth on IM for a long time, it’s generally easier to have a live conversation, and UC users can easily click-to-communicate to have a phone or conference call.

What all of this points to is the need to consider human factors in any design. Success in a UC project will come not just from buying the best hardware and software, but from designing the best solution. As we are dealing with new tools that will allow people to do their jobs in new ways, we need to address the issue of how we help people to use these tools in the most effective way. People know their telephone etiquette, but part of our UC deployment plan has to look at how we teach UC etiquette.

A Peek at an Answer as to What to do about the Dangers of Incorporating Social Media into UC and the Contact Center

My last blog touched upon legal issues in UC and speech technologies by addressing patent trolls and what can be done about them. Here is another little legal nugget, rising up within UC which merits some attention as well, and that is, what to do about compliance issues, privacy and all those other things, that sometimes fall by the wayside when employees use social media applications.

It is pretty evident that companies are jumping on the bandwagon of social media, and investigating, planning, developing or deploying social media within their unified communications and contact center applications. Voxeo, Avaya, Siemens, Cisco, Genesys….. The list is getting longer and longer. The issue is that if we thought we had problems with just pure instant messaging working its way into corporate life unattended, well, well, well, think about Twitter, Facebook, LinkedIn, or any other of the dozens of applications popping up.

Below are excerpts of a press release from Autonomy this week that tackles this issue head on, so I wanted to post it here since the announcement is one of only a few that seems to deal with the legal aspects of incorporating social media into the enterprise, rather than just the fun and business use side. Autonomy announced the availability of Autonomy Social Media Governance, what Autonomy claims is the industry’s first solution designed to monitor, govern, and protect organizations across social media channels. Social Media Governance enables businesses to maintain compliance with new regulatory requirements for employees engaging on social media sites.

The May 26th press release said:

“Rapid adoption of social media by employees, customers, advertisers, bloggers, and news organizations presents unique challenges to many organizations. Regulators recognize the influence and risks associated with these channels, and are starting to require organizations to actively monitor and govern employees’ social media interactions. For instance, FINRA (The Financial Industry Regulatory Authority) recently issued FINRA Regulatory Notice 10-06, which requires member firms to supervise and archive content posted to social media for business purposes. The Food and Drug Administration (FDA), Federal Trade Commission (FTC), and the National Futures Association (NFA) are also developing rules associated with the use of social media.

New regulatory requirements around social media add to the already burdensome task of adhering to current law for organizations - which requires that corporations archive, set policy, and make discoverable many forms of electronic information, including email, audio, and video.”

“Social media represents an extremely important new channel for businesses to develop engaging and profitable relationships with their customers. However, it is not without its risks, and for a business to leverage social media legally and profitably, corporations need to establish a comprehensive strategy to govern social media interaction.

For instance, a business could face regulatory issues if a bank employee marketed or misrepresented the value of a potential investment on social networks. Likewise, if an employee defamed another fellow employee, or a client, on a social site, this could raise legal issues for the company. Also, a pharmaceutical company could run into litigation issues if an employee denigrated a product on a social site that the company is actively promoting with advertising on traditional channels.”

Those are some good examples of the risks. What Autonomy provides is a platform that does what they call ‘meaning based computing’ which is recognizing patterns and relationships in unstructured information. They combine this with the company’s archiving, policy management, supervision, and analytics technologies. The result is that Autonomy Social Media Governance automatically identifies content and conversations on social networks, and allows a corporation to tie the information directly into a company’s existing compliance infrastructure.  All of this can be stored in Autonomy Digital Safe; a hosted archive service that enables corporations to outsource the storage and management of email messages, rich-media files, audio and video files, instant messages, and web content. According to the press release, the Social Media Governance product includes:

  • Connectors and aggregation of thousands of relevant news feeds, blogs, and social media sites. Autonomy Social Media Governance can monitor social media content from employees logged in through company networks, as well as identify discussion from users operating outside company networks.
  • Conceptual search of all aggregated content
  • Policy-based monitoring
  • Compliant archiving for regulated content
  • Advanced analytics such as clustering and visualization tools
  • Escalation and workflow management
  • Reporting and trend analysis
  • Executive dashboards

This is a great start to a knotty and growing issue that isn’t as fun to talk about as the benefits of incorporating social media into the contact center and UC.

VoiceCon View - “Mash-up” of Social Media and Unified Communications

Among the usual chatter about “What do you think of the show”, at VoiceCon this week were comments about the need to modify some of the usual presentations that we have on comparing vendor offerings in unified communications, and where the industry is in unified communications. The vendors I talked to commonly voiced that for the most part, comparing the features of unified communications is a moot point, because almost every player has all the basics by now. That is pretty much what I saw too. The show was smaller, and there weren’t any tremendous new announcements this year.

This year VoiceCon was co-resident with Enterprise 2.0, which focused on social media, etc., with lots of smaller companies present. I didn’t focus on those individual players so much as the spillover of the theme of the inclusion of social media within unified communications and collaboration, or even the reverse, the disappearing of the term unified communications within a larger framework of collaboration that includes social media.

So, much of these tweaks in innovation I saw revolved around the inclusion of social media into UC. For example, highlighted in the keynote given by Mark Straton of Siemens Enterprise Communication Group, was Siemens announcement of “Socially Aware Unified Communications”. This announcement was about open, standards-based integration of social networking into the Siemens OpenScape UC platform. Rightfully, up until recently, the UC vendors had their hands full doing what I mentioned earlier - developing all the basic UC bells and whistles, but now, despite grappling with how to incorporate social media and all of its privacy and security concerns into the enterprise, the industry is now turning towards just that - bringing social networking into the fold, but with a focus on how to improve business with it.

One of Siemens goals along these lines is to unify UC and social media through innovative mash-up applications in the cloud. What Siemens announced and demonstrated was the inclusion of Twitter into OpenScape UC.  Despite the fact that yours truly, is still personally blocked from Twitter - reasons unknown - I thought this was pretty cool.

Siemens is using OpenScape and Twitter to automate routine tasks. The reasoning behind this is that more and more users are updating their social status before attending to other basic tasks. So, for example, if a person is traveling and lands at an airport, what is the first thing they do? They turn their mobile devices on. The second thing they do if they don’t have to call someone to say that they have arrived is to read emails, update FaceBook or they tweet. Therefore, if you have a socially aware mash-up application within UC that can follow what a user tweets about, and get information from those tweets that can be used to do a task - such as update the person’s presence status based on knowing that the person has landed and is reconnected with the world, then that saves the person time, and makes them more efficient, without them having to do anything.  Yes, the user would have to pre-define words or phrases, or hash tags, that the application would use to search for, but that is not a big deal in the long run for the benefits they would gain.

Similarly, from a user perspective, I loved the fact that Siemens has incorporated the Twitter feed onto the user screen, but then added OpenScape presence status next to the name of anyone that the user is following that is an OpenScape user. That is very cool.

Many other hallway conversations with vendors mentioned Twitter, FaceBook and other applications and how they applied to UC. I wouldn’t be surprised if next year that Enterprise 2.0 and UC are combined as one theme at the show.

 

Unified Communications is Just a Buzzword? Get Real.

I’ve been reading comments from several analysts saying that unified communications is just the latest buzzword and marketing buzz. To these analysts I say the same thing that Congressman Barney Frank said to a woman at a health care reform town hall meeting: “On what planet do you spend most of your time?”

Yes, some will say that UC is getting more press than customers, but anyone who says that UC is just a buzzword doesn’t get it. You simply need to take a look at the many case studies that demonstrate the quantifiable benefits companies are getting from UC. And if you talk to actual end users, or read the study that I did with Nancy Jamison where we interviewed UC end users to see how UC is impacting them and their productivity, you’ll know that UC is much, much more than a buzzword. It’s real, it’s here – get used to it.

Here are a couple recent case studies, demonstrating the power of UC.

•    LifeNet, the nation’s largest non-profit, full-service organ donation agency and biomedical tissue banking system, upgraded its existing Unified Communications solution from Avaya to enhance its reliability and business security, while deploying new features and functional¬ities that make its workforce more mobile. Avaya Unified Communications solutions, including Avaya Modular Messaging and Avaya Extension to Cellular, enable LifeNet’s field workers throughout the United States to access directories, conduct conference calls, and receive voicemail and e mail on their mobile cellular devices. LifeNet also is using the one-X Deskphone Edition to speed communications and donations, and making it possible to notify LifeNet employees, wherever they are, when a donation is ready.

•    Abilene Christian University (ACU) provides each incoming student with an Apple iPhone or iPod touch. The Alcatel-Lucent OmniPCX Enterprise Communications Server, OmniTouch Contact Center solution, Alcatel-Lucent LAN switches and wireless LAN solution support an environment that gives students unique services customized for these devices and access to information wherever and whenever they need it. Students can access course calendars, campus maps, receive homework alerts, security alerts, and answer in-class surveys and quizzes, among other ACU-developed web applications.

•    Thiess, a mining, construction, and services contractor in Australia uses Cisco Unified Communications to enable business-to-business exchange of presence and instant messaging with partners. Thiess workers need to collaborate with coworkers and partners to develop project bids and execute projects. It can take as long as a year to develop proposals, and the ability to reach someone for one extra piece of information “can make the difference in winning a multibillion dollar deal, which can be lost by as little as US$100,000.” In addition, employees in temporary and remote locations need to quickly reach their mobile colleagues in any location. With Cisco Unified Presence 7.0, Thiess employees can view the availability of business partners and exchange instant messages, click a button to escalate the chat to a voice call, and then click another button to launch a MeetingPlace session to collaborate further. Thiess notes, “If we need an answer from one of our partner’s engineers while developing the proposal, we will use Cisco Unified Personal Communicator to see which engineer is available and then just send an instant message. Near a proposal deadline, the ability to communicate across company boundaries can make the difference in winning a contract.”

To be fair, UC hasn’t taken off as quickly as some of us expected, in part due to its complexity, and in part due to the economy. Just as things were ramping up and enterprises were starting to make their UC plans, the economy took a nosedive, putting technology spending on hold. Despite that, there are still some bright spots in the UC market. Many companies have been investing in UC conferencing and collaboration solutions in order to reduce their travel budgets. People can see who is available via presence capabilities, and initiate conferencing and collaboration sessions, making it easier to do work with people around the globe without leaving the office. This saves time and money, while improving the work-life balance.

Is UC just a buzzword? Heck no. There are hundreds of case studies of companies using UC to save money, increase collaboration, enhance productivity, and increase revenues. And we’re just at the beginning…

A Rose by Any Other Name….

Over the past several days the UCStrategies team has been involved in an interesting, sometimes heated, and sometimes funny discussion on a name for UC “resellers”.  As we prepare our marketing material for the UC Summit 2010, we’ve been trying to figure out the best/proper term for the data VARs, systems integrators, and telecom dealers/interconnects who offer VoIP and UC solutions to their customers.  Certainly “VARs/systems integrators/telecom dealers/interconnects” is much too long.  We could lump them together as “resellers” – but that term doesn’t even begin to describe what they do or the level of expertise that they bring to the table. 

If a rose by any other name is still a rose – what the heck is a VAR or telecom dealer who has progressed beyond selling “features and benefits” to identifying and solving customer business problems by integrating various technology elements into a “solution” (whew! that was a mouthful!)?  And while each UCS team member had their own thoughts and suggestions (some not repeatable), it seems to me that the naming issue comes down to this:

·         The name/term needs to properly position the “VAR/systems integrator/telecom dealer/interconnect” as a problem solver (or that over-used term “trusted advisor”) for their customer.  In other words, I think the term needs to focus on what the “VAR/systems integrator/telecom dealer/interconnect” does rather than where they come from or what they sell.

·         The name/term needs to be flexible and broad so that it survives the changes in the industries and changes in the “VAR/systems integrator/telecom dealer/interconnect’s” product or solution direction.

·         “UC” should NOT be a part of the name/term because a “VAR/systems integrator/telecom dealer/interconnect” may be focusing on only one area of UC or UC may be only one silo in their overall business direction.

OK – are you tired yet of reading “VAR/systems integrator/telecom dealer/interconnect” to describe those who are integrating products to provide voice/data/mobility/video solutions to their customers?

So here’s what the team came up with – and I like it a lot…… “SOLUTIONS INTEGRATORS”!  If I were a “VAR/systems integrator/telecom dealer/interconnect”, I’d like it because it says to a customer that I deal in solutions for their needs/problems and it says that I have the expertise to integrate elements/technologies to create those solutions.  It doesn’t reflect whether I come from a traditional voice or data environment….. it doesn’t reflect that I sell something…. it does reflect my focus on solving problems and providing solutions.  Yea!  Higher margins!

What do you think?  Does “solutions integrator” work?  And if you’re thinking about the acronym “SI” and its current meaning for “systems integrator” – DON’T GO THERE!     

Will It Take a Miracle?

I’m looking for a miracle!  A couple of weeks ago a company contacted me for some assistance with a proposal that they had received for a “phone system” for one of their 20+ remote offices.  I told them I’d look at the proposal and give them my thoughts.  When I saw the proposal, my first thought was “What the heck is this reseller thinking?”  My second thought was, “Don’t they ever learn?”  Will it take a miracle to get resellers to act as sales professionals instead of used car salesmen?   

More than ten years ago, I began working with data VARs and telecom dealers who were interested in changing their business models to address the new opportunities being offered by “CTI” (computer telephony integration)….. then VoIP…. and now “UC” (unified communications). One of the areas we focused on over the years was the sales process for those in the reseller channel.  It’s well documented that too many resellers sell product, not business solutions, contributing to low margins and low revenue overall. Oh, some of these resellers claim they’re selling VoIP or UC “solutions” because they integrate several products to create a “solution” – but we know this isn’t solution selling.  It isn’t focused on addressing a customer’s specific business needs – it’s focused on selling products.  And too many reseller proposals reflect this product focus, to their detriment, not to mention to their customers’ detriment.

Here’s the perfect example of a product-focused proposal that is a lost sale in the making….follow me on this one.  The proposal looked professional and had lots of info about why a customer wants to do business with this particular reseller.  It talked about relationships and trust.  It talked about excellent service.  It described the product/phone system that the reseller recommended for this customer.  It gave a bottom line price for the system.  And all of this from a reseller that I had recommended because I considered them to be way above the norm in professionalism and understanding consultative/solution selling.

But what the proposal didn’t do – and should have in a true consultative/solution selling environment – was address the customer’s specific issues and questions.  Nowhere in the proposal did the reseller indicate that they understood the customer’s business overall, much less their communication strategy.  Nowhere did the reseller indicate why they were proposing this particular product to this particular customer.  Why not product A or B instead of product C?  Nowhere did the reseller talk about how the end-users would actually benefit from having the proposed product in their office, or how management would benefit by selecting and installing the product?  Needless to say, the prospective customer was left with a lot of questions and a lack of confidence in the reseller, which is too bad because that prospect was looking to the reseller to help them develop a long term voice and data (UC) strategy that would address all of their remote offices plus their headquarters.

On my own website, in a more recent White Paper directed to vendors, I discuss the economic prospects for those resellers who have committed their business to consultative/solution selling versus the prospects for those resellers who still insist on focusing on product.

Was the situation described here a blown opportunity?  Probably!  I’m still waiting for the miracle that will turn low margins into higher margins and small sales into bigger sales….. the miracle that  will only come when the reseller channel learns how to perform even a basic consultative sale.

Nortel Bankruptcy — Implications for UC

The news, of course, is the Nortel announcement today of Bankruptcy proceedings.  But, as others have already commented, this is not a surprise — the rumors and preliminary actions have been visible.

What are the implications for UC?  It’s not bad news, that’s for sure.  Here’s a quick list of ideas:

  • Motivation to Change to Software Format:  This is just one more signal that there is not much profit in the traditional telecom industry — both enterprise and carrier.  There are still too many players, little differentiation, and minimal or no growth.  Thus, both the suppliers (Nortel, et al.) and the customers should be motivated to look to the future and move to the new, layered software model, which just happens to be the format of all the new UC innovations, from Nortel and others in telephony as well as from those in the desktop, application, mobility and web categories.  This will produce a leaner, but more profitable and flexible set of solutions and options, with an emphasis on UC. 
  • Customer Investment in the Software Layers vs. Hardware Options: Perhaps it will make sense for customers to focus on a software-based UC overlay to the traditional telephony systems as a safety play for telecom as well as a smart investment based on the UC applications value.  These software overlays could come in a variety of formats, such as the Nortel Innovative Communications Alliance with Microsoft, or Nortel’s partner solutions with IBM.  Siemens Openscape, NEC UniVerge 360, Mitel Unified IP Client for SunRay, Cisco WebEx Connect are other software layer options from the telecom community.
  • Increased Focus on Service Sources and Agreements:  Existing customers will want to look carefully at their service agreements and providers to assure they have a reasonable source of parts (for the hardware components), a solid source of expertise from the smartest VARs, and with a good contract for on-going support from the vendor.  (This is good advice for any of the telecom providers, not just Nortel, and including Cisco.)  Since the pace of innovation in traditional telecom is fairly low, a good services program can deliver a long useful life for the existing products, even without new product releases.  One possible implication for UC is that the pace of hardware investment slows, opening up more budgetary room for UC investments.
  • New Solutions and Approaches Look More Interesting:  With the traditional telephony base in question, customers may want to hedge their bets even further by exploring the alternative approaches, such as the desktop, mobility, or applications options for UC as described at VoiceCon and here on the UCStrategies.com site.  Of course Microsoft Office Communications Server 2007 or IBM Lotus Sametime are the leading examples of this approach.  Other options include the RIM Mobile Voice System which makes the BlackBerry phone into a corporate extension, and the embedded or integrated communcations functions of software providers such as Salesforce.com, Siebel, or Oracle.

Major events, such as this bankruptcy filing, tend to catalyze shifts in thinking and in resulting actions.  This sort of evolution has happened in many other industries in past decades — transportation, automobiles, steel, newspapers, cash registers, and steam shovels, just to name a few.  The cause and the effect have been innovations that, in the end, produced more efficient and economical solutions.  My perspective is that this is happening in communications and the software-based world we are calling Unified Communications will be the long-term winner.

Comments?

Avaya…Where Are You?

This past year, there has been quite a bit of activity in the UC industry.  Mitel acquires Inter-Tel; Gores Group acquires Siemens Enterprise; Cisco undergoes a number of acquisitions, most recently Jabber, to round out its UC and collaboration portfolio, Microsoft goes through extensive product development to become a comprehensive, enterprise class communications platform.  So what has Avaya been up to lately?

 

The only news from Avaya this past year has been that Lou D’Ambrosio was stepping down as CEO, announced back in June.  Although the former CEO alluded to medical reasons for his sudden departure, I can’t help but think that this happened a year to the date when Avaya was taken private, acquired by SIlverlake Partners, in an 8.2 billion dollar deal.  At the time, it seemed that Avaya was poised for growth.  It had a great team in place, led by a great leader, as was Lou D’Ambrosio, with a strong story, “Democratization of UC”, which he preached at VoiceCon 2008.  My initial thoughts were that this private equity firm was going to make the necessary investments and take Avaya to the next level, becoming a leader in this industry.

Now, a year and a half later, the CEO has stepped down; Charlie Giancarlo, an ex-Cisco executive, has been at the helm of the organization since June; and there have been significant lay-offs and “resignations” of key people at Avaya.  Furthermore, and more importantly, product innovation has been stagnant.  It seems that leadership at Avaya is busy, going through organizational restructuring, or in laymen’s terms, cutting out the fat from the organization.  Although it’s not unheard of for organizations to go through some restructuring, particularly when private equity is involved, the lack of product innovation is happening at a wrong time, when the industry is moving so quickly, and innovation is happening at the blink of an eye. 

Initially, I thought the privatization was a good idea; now, I’m not so sure.  With no official CEO successor (Giancarlo is still interim CEO), and staff being slashed in droves, it almost seems as if the company was being dressed for two options:  (1) To be merged with another company or (2) To reinvent itself.  The latter would be the better option, but it will cost them.  Time to market is everything, and the clock is a-ticking.  Selling it would not be worth it at this point, given the economy and the state of Avaya as it stands now. So what does this mean for Avaya customers?

Customers must assess Avaya’s next moves and figure out what that means for them.  This is a crucial moment for enterprises to start implementing a UC and collaboration strategy, and evaluating the right vendors, who are promoting interoperability, is key.  So while Avaya has been a leader in telephony, I question their ability to take it to the next level of collaboration, as we saw a few weeks ago from Cisco.  UC and collaboration is much more than just telephony, and traditional vendors will need to make the right additions to their product portfolio.  Avaya was on its way, but seems as though it’s fallen off track.  Their analyst conference is next week; stay tuned to this blog for an update.

A Modest UC-Centric Proposal for Siemens Enterprise Networks

Our UCStrategies.com team has been discussing the acquisition of Siemens Enterprise Networks (SEN) into a joint venture with The Gores Group, who also owns Enterasys and SER.

As we pondered the situation, it became clear that this is an ideal time for some dramatic action.  SEN has arguably the best software stack for UC solutions in the entire industry in their OpenScape Communications Suite.  (Yes, we mean just the OpenScape Suite, not all the updated telephony-centric products such as the HiPath 8000, et al.).  

Our modest proposal is that the new SEN look past the traditional converged voice and PBX market, in which they are in a money-losing fourth place position (this according to their own slides from yesterday’s announcement) and look instead to the future via Unified Communications. 

What if they told all of their installed base customers that the new SEN is different?  The new SEN will not declare end-of-support on all that good Siemens technology that still works.  Instead, the new SEN recommends that the customers don’t waste their time replacing PBXs with IP PBXs and buying new phones, but rather spend their time and money installing OpenScape, connected to any PBX they own (old or new, of any brand).  Since OpenScape provides the complete set of communications tools that integrate seamlessly with both Microsoft and IBM (SEN has alliances for this with both companies) and with the enterprise back-office or hosted solutions (think SAP, Salesforce.com and more), SEN has the best chance of any company to come out as the market leader in Unified Communications. 

Hmmm. So the choice is to continue to sell PBXs, where SEN lost 602 million Euros on revenues of 3,200 million Euros in FY2007 and try to hold on to fourth place with declining market share, or to use this opportunity to truncate the loses in PBX selling (but continue the more profitable servicing business) and shoot for the leadership position in UC.  Losses/share laggard or smaller but profitable leader?  Oh, yeah, let’s be the leader! 

So, there’s our modest proposal.  What do you think?  Please post away on our blog here.