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The Impact of Microsoft's Unified Communications Launch

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The Impact of Microsoft's Unified Communications Launch www.yankeegroup.com Enterprise Computing & Networking by Zeus Kerravala August 2006 The Impact of Microsoft’s Y ANKEE GROUP Unified Communications Launch Executive Summary The unified communications (UC) market has been in This Yankee Group Report achieves the following: transition for the past several years. UC has evolved from • Provide an overview of unified communications. simple unified messaging and voicemail integrated into • Clarify what Microsoft announced during the past 2 e-mail, to a market where all of a user’s collaboration tools months and how its desktop approach compares to are brought together under one umbrella. UC has been Cisco’s communications-based architecture. the main visionary focal point for the VoIP market, led • Provide recommendations on what enterprises should do by companies such as Cisco, Avaya and Nortel. In late right now when considering IP telephony and related June, Microsoft launched its plans to enter the UC unified communications suites. market followed by a July announcement detailing a partnership with Nortel known as the Innovative Communications Alliance (ICA). Exhibit 1 Which Brands of IP Telephony Do You Most Prefer? Most organizations have headed down the path of UC by Source: Yankee Group 2005 North American Economics of IP Communications Survey first deploying IP telephony as the underlying foundation Cisco into which all other collaborative applications will be Avaya integrated. Because of this and the fact that Cisco is the Nortel 3Com leader in user preference for IP telephony (see Exhibit 1), Digital Voice much of the industry has positioned Microsoft’s entrance Alcatel into UC as a “battle of the titans”—pitting Microsoft, the Ericsson Siemens industry’s desktop leader, against Cisco, the global leader in NEC network and communications infrastructure. AltiGen Comdial Inter-Tel Mitel Polycom 0 5 10 15 20 25 30 35 40 45 Percent of Respondents This custom publication has been funded by Cisco. © Copyright 1997-2006. Yankee Group Research, Inc. All rights reserved. This Yankee Group Consulting Report is published for the sole use of Yankee Group clients. It may not be duplicated, reproduced or transmitted in whole or in part without the express permission of Yankee Group, 31 St. James Avenue, Boston, MA 02116. For more information, contact Yankee Group: [email protected]; Phone: 617-956-5005. All rights reserved. All opinions and estimates herein constitute our judgment as of this date and are subject to change without notice. Enterprise Computing & Networking August 2006 Table of Contents I. Introduction: An Overview of Unified Communications . 2 II. Microsoft’s Announcements . 4 Microsoft Office Communications Server 2007 . 4 Live Meeting and Conferencing Applications . 4 Microsoft Exchange Server 2007 with Unified Messaging . 4 Office Communicator 2007 . 4 Office Communicator Phone Experience and Third-Party Devices . 5 Innovative Communications Alliance (ICA) . 5 III. Cisco’s Communications-Based Approach . 6 IV. Vendor Comparison . 7 Go-to-Market Differences . 8 Product Comparison . 9 V. Conclusions and Recommendations . 11 I. Introduction: An Overview of Unified Communications ompanies have opened their walls and become extended To achieve their full potential, organizations require the Centerprises: global organizations that are networked ability to communicate and collaborate better. Competitive together and comprise a variety of constituents. Employees, advantage is not about any one person or core capability. partners, suppliers and customers are part of the extended The entire extended enterprise and the ability of each of its enterprise and need the ability to communicate faster and components to communicate and collaborate with others in more collaboratively over a variety of devices and mediums. real time forms the basis of competitive advantage today. To enable users within the extended enterprise to UC brings all of these devices and systems together. It communicate better, organizations have deployed several improves the manageability and effectiveness of the communications tools (see Exhibit 2 on next page). These ecosystem and makes the enterprise more responsive and tools include telephony, mobile phones, video conferencing, agile, which enables it to achieve its full potential and audio and web conferencing, e-mail, soft phones and other ultimately gain an advantage over the competition. commonly used communications devices. Although these devices address the need for faster communications, few of UC is the convergence of all forms of audio, video, web and them are linked together. This creates a manageability desktop communications, built on an IP network that breaks headache for the end user and prohibits the organization down all distance, time and media barriers. This will enable from reaching its full potential. people to communicate with each other anywhere, any time, over any device. 2 © Copyright 1997-2006. Yankee Group Research, Inc. All rights reserved. Enterprise Computing & Networking August 2006 UC consists of the following components: • Security: The security aspect of UC cannot be • IP network: An IP network is required to deliver the underestimated. Because of its distributed nature, information and communications to users. IP is the only security must be built into the design of UC. protocol that is scalable and simple enough to make the • Presence information: This is the ability for users to vision of UC a reality; it will be the common network for understand another user’s availability and willingness to the deployment of all communications systems. communicate over a variety of devices. This is common • IP telephony/VoIP: VoIP is a component of UC, but today for instant messaging applications, but it will many consider it to be the most important and core to quickly be used to understand a user’s status on phones, any UC strategy. Most organizations Yankee Group has wireless devices, video conferencing and other interviewed on this topic have stated that a solid, stable collaborative tools. VoIP infrastructure is required, and then the other collaboration tools will be integrated into this architecture. This Yankee Group Report reviews the recent Microsoft • Desktop software: The desktop software includes announcements in the UC market and the impact the messaging software, conferencing applications (voice, company will have there. We also examine the current IP video and web), soft phones, e-mail clients and other telephony and communications leader, Cisco Systems, and communications tools used by end users. compare how Cisco’s network- and communications-centric • Mobility: The concept of UC is to replicate the user approach contrasts with Microsoft’s desktop- and server- experience regardless of location. This might be in an based solution. office, a hotel, an airport lounge or anywhere a user may have mobile phone service. Exhibit 2 Communications in the Extended Enterprise Source: Yankee Group, 2006 Mobile Collaboration E-Mail Phone Software Pager Web Conferencing Desktop Video Your Business Fax Back Front Suppliers SCM Office ERP Office CRM Customers 56 2 34 7 8 9 1 E R T Y U I 0 Q W O P PDA Voicemail + - = : ’ " / * D F G H J K @ A S L ; ? , $ $ . C V B N CAP Z X M SYMBOL Employees Messaging Audio Software Conferencing Room-Based Laptop Video Phone © Copyright 1997-2006. Yankee Group Research, Inc. All rights reserved. 3 Enterprise Computing & Networking August 2006 II. Microsoft’s Announcements n June 26, 2006, Microsoft announced the next phase Microsoft Exchange Server 2007 with Unified in its communications strategy. The new Unified O Messaging Communications Group (UCG) has been formed from the former Real-Time Collaboration (RTC) and Microsoft he major change from Exchange 2003 will be the Exchange groups. Specifically, Microsoft announced the Tintegration of voice services for unified messaging following as part of its strategy. purposes. Exchange 2007 will integrate with most current IP PBX and will require a gateway for PBX integration. Voicemails will be converted into Windows Media Audio Microsoft Office Communications Server 2007 (WMA) format and then routed into the Exchange inbox. ffice Communications Server (OCS) is a standards- The voice integration into Exchange 2007 will also enable Obased SIP server that supports several real-time users to use their IP phone to interact with traditional communications features such as presence-based VoIP call Exchange features. For example, users will be able to dial management, instant messaging capabilities, and video, into Exchange and have their messages or calendar entries audio and web conferencing. converted from text to speech and then read to them. Microsoft’s initial release of OCS will have a limited set of Microsoft expects to release Exchange 2007 in the first half basic PBX-like features including some call control such as of 2007. It’s difficult to predict which of the traditional call transfer, pickup and hold, and presence-based call telephony features (e.g., message waiting indicators) will routing features. Although Microsoft plans to make OCS a make it into the first version of Exchange 2007, but it’s full-featured PBX, its first release will not include many likely Microsoft will need several revisions to catch up to telephony and survivability features; and it’s unlikely to the traditional manufacturers. deliver the five-nines reliability most businesses expect with telephony. Microsoft plans to release OCS 2007 in the second half of 2007. Office
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