Mobile Presence-Based Services $6 Billion by 2012

The value of presence-based mobile services will increase to more than $6 billion by 2012, according to Juniper Research.  Increasing smartphone penetration in developed markets, coupled with rising global usage of mobile instant messaging will help to drive the trend, says John Levett, Juniper Research analyst.

Juniper thinks the key drivers will include presence-based text message alerts and services, geolocation applications that allow people to collaorate, share location details and take advantage of local knowledge, as well as social Web applications including social networking, user-generated content, blogs and dating apps.

Up to this point, revenues from presence-based services are almost exclusively derived from operator-billed mobile IM accounts. The amount of that activity faces two contradictory trends, one might argue.

On one hand, mobile IM will tend to fare better as end user adoption of 3G or 4G services increases. Broader adoption of 3G and 4G should therefore lead to heavier use of mobile IM, which should drive higher revenues. Mobile Web applications such as IM work best, and therefore encourage use, on faster data networks.

On the other hand, operator-billed IM revenues often are based on user inability to easily use over-the-top VoIP and IM applications that do not drive operator revenues. Over time, access to such open applications will deprive operators of the ability to profit from captive IM application access.

Juniper believes there is a way to thread the needle, as mobile broadband becomes a standard service for most developed-market customers and as operators move to embrace mobile VoIP in ways that include them in the revenue streams created by some over-the-top providers.

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$588 Billion in Information Overload Costs?

Interruptions from phone calls, e-mails and instant messages eat up 28 percent of a knowledge worker's work day, resulting in 28 billion hours of lost productivity a year, say analysts at Basex. That might be considered a $588 billion cost, assuming a salary of $21 per hour for knowledge workers. Basex argues that information overload has become a significant problem for companies of all sizes, with some large organizations losing billions of dollars each year in lower productivity and hampered innovation.

That's the sort of argument providers of unified communications and presence solutions will point to as arguments for such solutions. Others, such as Stowe Boyd, disagree with that thesis. Stowe argues people are not drowning in information, but ignoring most of the information, and reacting only when the information flow suggests something actually is important.

It is true that there is a lot more "information" streaming past any person these days. But people are smart. They don't actually pay close attention to most of it. In fact, people just selectively tune out most of it, like they tune out advertising that isn't relevant. Only some information gets a close level of attention. In fact, most of the "overload" is simply ignored.

So how can busy people safely ignore most information, most of the time? The environment, the people one works with and various information sources will signal what is relevant.

Multitasking is an example of this. People in meeting pay partial attention to what is going on while they check email on their mobiles. People remain connected while listening to conference panelists. Mobiles are set on vibrate while in both of those settings. TVs can be on, CDs can be playing while people are responding to instant or text messages and doing their homework.

That isn't to say people are not bombarded by a richness of information. It's just that they adapt by ignoring most of it, pay partial attention to some of it, and focus on just some of it.

Some of the multitasking, such as things people do in cars, is not entirely safe, though!

Microsoft OCS: Here Comes Presence

Microsoft Office Communications Server (OCS) 2007 has recently been released to manufacturing, so expect to hear a lot of noise from Microsoft about presence and voice, as Microsoft will be nudging and cajoling third-party software vendors to integrate presence into their applications. Microsoft also will be rearranging market share in the fragmented space as well (Cisco, Jabber and all the traditional business phone system vendors will be playing, as well as Oracle, for example)

And, oh by the way, the effort shows just how real is the danger of communications service providers becoming "dumb pipe" providers.

Consider a typical customer relationship management (CRM) application. A salesperson might be looking at a customer record, and see a list of all email communications that others on a sales team have had with a given customer. There's a problem noted, and the sales rep wants to make sure it is fixed before placing an outbound call to the customer. That means checking with another internal team member. This then entails:

1. Launching Outlook Address Book.
2. Pointing to Global Address List.
3. Double-clicking a name.
4. Finding the appropriate number.
5. Dialing on the desktop phone.

Using OCS 2007 with presence, the process is:

1. Right-click internal colleague's name directly within the CRM record.
2. Choose "Call this Person" or "Send an Instant Message to this Person."

Aside from access to the global IP network, where is the telco, cable company or other access service provider involved?