Tuesday, May 20, 2008

Nortel Adds Web 2.0 Software

Nortel's new Adaptive Application Engine software, built around Session Initiation Protocol, allows Nortel customers to create Web 2.0 applications like social networking, blogs, and wikis with IP voice and multimedia.

Operators can choose to run the software on hundreds of Red Hat Enterprise Linux compliant servers.

The Adaptive Application Engine software provides an open programmability environment and web service Application Program Interfaces which allow third-party software developers to easily develop new applications which use call routing, presence and federated IM.

The software is designed to support both smaller service providers as well as tier one providers as well.

The Adaptive Application Engine software can be deployed as a SIP Application Server, as an IMS application server or as advanced capabilities on the Communication Server 2000.

Nortel says the new software will allow service providers to create unified communications services, federated instant messaging and IP communications integrated with Web applications.

The software also supports features such as using TVs to control calls or send instant messages.

The software also will allow service providers to create fixed mobile convergence services such as making mobile phones into office extensions and allowing calls to be moved back and forth across tethered and mobile devices.

Nortel is first among the large traditional switch vendors to make such tools available as a "bolt on" to its existing architecture. Depending on how the software is received, it could be an important step for service providers on the Nortel platform.

Up to this point there has been some skepticism that smaller service providers, in particular, would be able to create these sorts of applications on their own. The software is half the solution. Now Nortel has to pull together a developer community and make those apps available to its customers.

Digital to Analog Conversion: Why Cable Does It

Since most of the world's electronic entertainment and communication is moving from analog to digital, you might wonder why anybody would want to go the other way: take digital content and change it back to analog.

Well, as typically is the case in the networks business, there is a simple business reason for wanting to undertake an operation that might not make so much immediate sense.

Cable executives can save some money on digital converter boxes if they can supply simple tiers of popular programming to analog TVs without the need for a box. That might apply to second and other sets, for example, or to some customers who want basic services.

The other angle is that some percentage of the customer base might prefer simple analog-only service. And if all the other providers require digital decoders, cable might have an advantage.

Thomson has introduced a simple box the company said will cost less than $40 and allow delivery of 20 to perhaps 40 channels of analog service.

At the same time, such decoders will allow cable operators to migrate their networks to all-digital operation, allowing analog tiers to be offered to customers who want them.

Comcast has announced that it will rely on such converters to convert 20 percent of its systems to all-digital operation in the fourth quarter.

Cisco Systems, Motorola and Pace Micro Technology also have versions of the decoder.

It's a good thing to let the business case drive the technology. And this is an example of that.

VoIP License Shipments Dip in First Quarter

In the first quarter 2008, vendors shipped a total of about 7.9 million VoIP subscriber feature server licenses for deployment in service provider networks, say analysts at iLocus.

The number of lines is down by 19 percent quarter over quarter, though the analysts note that the third and fourth quarters of 2007 were marked by unusually high growth, so the sequential comparisons would be more difficult than is typical.

In the first quarter, Nokia Siemens Networks led the VoIP subscriber lines equipment market on a worldwide basis with a market share of 19.8 percent. That lead is followed by Italtel at number two and Cisco at number three worldwide.

Business Centrex lines account for over 1.03 million of the licenses. The remaining 6.87 million were mainly deployed for residential voice over broadband apps or switch replacement.

Analysts at iLocus caution that they do not track IP upgrades to TDM ports. They do track VoIP hosted telephony implementations (such as hosted PBX and VoBB), new greenfield VoIP deployments, complete replacement of legacy switches with VoIP, and extension of existing legacy networks with VoIP equipment in new geographies.

Netflix Enters Streaming Business

Netflix now is in the streaming business. A new "content to the TV" box made by Roku will allow subscribers to stream an unlimited number of movies and television shows directly to televisions.

The device costs $99. The video content is free to anyone with a Netflix subscription of $8.99 a month or more. Most of the video content will consist of older material, rather than new releases, though.

Carrier Ethernet Scorecard

More than 80 service providers are delivering retail carrier Ethernet services to business customers in the United States, say analysts at Vertical Systems Group.

Services range from Dedicated Internet Access (DIA) to Ethernet Private Lines to VPLS (Virtual Private LAN Service).   

Incumbents, including market leaders AT&T and Verizon, deliver nearly half (46%) of all business customer Ethernet ports installed in the U.S. 

Another one third of the total (34%) is supplied by competitive providers, with Time Warner Telecom and Cogent topping this segment.

Cable MSOs have the smallest base overall (20%), however this is the fastest growing segment of the U.S. Business Ethernet services market based on ports.

Cox and Time Warner Cable currently lead in the Cable MSO segment.

Monday, May 19, 2008

Femtocells, Wi-Fi, or All of the Above?

Though Wi-Fi remains the clear home-based wireless networking technology, mobile providers also are experimenting with UMA and femtocell techniques. But Aruba Networks suggests the ultimate solution might bit of "all of the above," as often happens in the communications business.

Those discussions, likely to become more pronounced as service providers grapple with their fixed-mobile convergence strategies, will require some choices.

Wi-Fi has high production volumes, low prices and good consumer acceptance. Femtocell technologies currently must climb an experience curve to provide reasonable consumer device prices, and sort through some business model issues, Aruba argues.

Wi-Fi already has a significant network effect, so mobile operators must choose whether to leverage Wi-Fi or use femtocells.

Mobile operators have the advantages of macro-cell coverage and phone numbers, so Aruba suggests a hybrid approach using both Wi-Fi and femtocell technologies.

A simple device might combine a Wi-Fi access point and femtocell, or possibly a digital subscriber line connection as well.

Microsoft Sees Big Future for Hosted Enterprise Email

Microsoft Corp. sees tens of millions of corporate e-mail accounts moving to its data centers over the next five years, Reuters news service reports. Consider that a vote in favor of "cloud computing" and hosted services.

Chris Capossela, Microsoft SVP, says he expects Microsoft to allow enterprises to choose between the more-traditional licensing model and a subscription-based service.

Exchange Online, the service offering for its Exchange mail and messaging server software, will be the primary application adopted by corporate customers, Capossela believes.

"In five years, 50 percent of our Exchange mailboxes will be Exchange Online," he predicts. Small-business specialist Cbeyond probably would agree. In its Atlanta market, its oldest market, Cbeyond is seeing 40 percent penetration of the hosted Exchange service it offers to small business customers.

According to research firm Radicati, Exchange will run about 210 million corporate e-mail accounts in 2008, growing to 319 million mailboxes in 2012.

DIY and Licensed GenAI Patterns Will Continue

As always with software, firms are going to opt for a mix of "do it yourself" owned technology and licensed third party offerings....