On the subject of mass acceptance of VoIP...
Here is just a handful of excerpts from the many stories hitting the press, lately, that demonstrate that VoIP deployment will take many forms. Very few of these, over time, will depend on the exclusive assemblage that would be solely afforded by a VoIP carrier.
Today, VoIP is explicit, but it will become implicit over time, as it is assimilated into the mainstream of the PSTN fabric...as the Internet eventually fuses with the PSTN in a kind of reverse-mitosis, forming a seamless whole. Notwithstanding, private IP backbones and VPNs will continue to be the chosen methods for providing quality VoIP services for some years to come.
Frank Coluccio
============
Voice-over-IP to skyrocket
By Ben Heskett
Staff Writer, CNET NEWS.COM
March 20, 1998, 5:00 a.m. PT
SAN FRANCISCO--Voice communications over
the Net is for real, according to market researcher
International Data Corporation.
For typical long distance firms, the specter of
Net-based phone service will undercut their long
distance margins and force them to reevaluate their
plans, according to Mark Winther, group vice
president for telecommunications research.
The industry research firm estimates that use of the
Net--and, as a consequence, IP (Internet
Protocol)--to transmit voice calls internationally will
grow from a $600 million business in 1997 to a
$20.5 billion opportunity by the year 2002. For
domestic calls, revenues are predicted to reach
$3.9 billion in 2002 from $100 million in 1997.
"They're going to go through tremendous,
wrenching changes and a lot of it is going to be due
to IP communications," said Winther, who spoke at
an IDC conference here.
The change is already being felt in some circles. In
reaction to discount long distance initiatives from
the likes of Qwest Communications, AT&T is
planning to bolster its voice-over-IP story via its
WorldNet service.
IDC also predicts that by the year 2002, 11
percent of all minutes for international or domestic
long distance calls will be carried over an IP-based
network.
Winther said the voice services industry is currently
in a state where "price arbitrage" dominates, but
with the dawn of the year 2000, value-added
services on top of voice-over-IP will be the new
battleground, with multimedia and universal
messaging functions coming into play as priorities to
customers.
He also noted that IP-based phone service may
require intervention from the feds, since it bypasses
local access charges.
One place where IP-based voice communications
will still face barriers is within corporate intranet
settings. Winther said use of internal networks for
voice traffic will face hurdles, because voice is not
viewed as strategic to many companies, unlike
high-speed data networks.
"Corporations are going to adopt this--but we don't
see them doing it for cost savings, but because of
specific applications," Winther said.
====================
Nortel to buy Aptis for
switches
By Tim Clark
Staff Writer, CNET NEWS.COM
March 18, 1998, 12:10 p.m. PT
Telephone network equipment company Nortel
(Northern Telecom) (NT) will acquire Aptis
Communications, a data networking start-up, for
approximately $290 million in Nortel common
stock and cash.
Aptis develops access switches used by telephone
carriers and ISPs to integrate voice and data traffic
on Internet Protocol networks, to create virtual
private networks (VPNs), and to handle modem
traffic.
"Without a carrier-class remote access device like
Aptis's, Nortel would be drowning," Maribel
Lopez, a Forrester Research analyst, said. "Nortel
doesn't have one, and the Aptis acquisition gives
them a prod they can use to compete against
Cisco."
To offer Internet access and voice-over-IP
networks, carriers need a piece of equipment in
their central offices to accept incoming
transmissions.
Aptis's product, CVX 1800, is now in beta testing
and due to ship next month. It currently can handle
6,000 simultaneous modem connections at an ISP
or telephone carrier's central office. Nortel plans to
add DSL capabilities and SONET connections, as
well as network management.
The product will be integrated into Nortel's Internet
Thruway and Multi-Megabit network solutions,
already in service with carriers and ISPs across the
United States.
The acquisition continues telephone network
equipment vendors' rush, including that of rival
Lucent, to send data and voice traffic over the
same networks. From the data networking side,
Cisco Systems, Ascend, Bay Networks, and
3Com have announced or delivered similar
products.
"We see a move to an IP-based network," said
Nortel's Glenn Falcao, vice president and general
manager of Nortel Public Data Networks. "It has
to be as reliable and scalable and robust and secure
as the existing [voice] network. Nortel is absolutely
focused on being a leader in making high-volume,
high-reliability data networks as reliable as the
voice networks."
"We have delivered by far the best product for this
space, now combined with one of the strongest
market players in the carrier space," Gustafson
said.
Nortel is pushing products that let carriers and ISPs
deliver data and voice traffic over the same Internet
Protocol networks.
The CVX 1800 is currently in trials with major
ISPs GTE Internetworking, formerly BBN Planet,
and UUNet, now part of long distance giant
WorldCom.
==========
Boosting remote access equipment
By Ben Heskett
Staff Writer, CNET NEWS.COM
March 16, 1998, 12:30 p.m. PT
It's not just about dense racks of modems
anymore.
Telecommunications giant Lucent Technologies
(LU) and fresh face MediaGate are among the
firms adding a variety of capabilities to basic
remote access equipment, which is used by Internet
service providers and large corporations to support
the increasing number of remote workers who need
to gain network access.
MediaGate will also launch new gear this week that
combines traditional remote access concentration
functions while adding new software additions that
offer "universal messaging" capabilities. The
features essentially allow users to have a single
point for all messages, whether they are sent via
fax, email, voice, or pager.
This activity follows the news last week that more
firms will join the rush to offer VPN capabilities, for
virtual private networks, with remote access and
switching equipment. VPN technology allows users
to initiate a secure connection across a network
based on IP (Internet Protocol) and provides
business opportunities for service providers
focused on the corporate outsourcing market.
Lucent unveiled a high-end addition to its
PortMaster series of access concentrators that
offers as many as 864 simultaneous modem
connections across 10 slots of modem bank
capacity. The launch is targeted at rivals Cisco
Systems, with its AS 5800 box, and Ascend
Communications, with its popular MAX TNT line
of gear.
The company plans to soon include features like
voice-over-IP capabilities. It already has support
for VPNs. The PortMaster 4 will ship in the second
quarter with prices starting at about $520 per port.
"We've got a whole bunch of technology that's
going to make our products top notch," said Marty
Likier, product marketing manager for Lucent's
remote access business unit.
MediaGate plans to offer even more specialized
features, counting on the desire on the part of users
to centralize the variety of methods at their disposal
to receive information. The company plans to ship
its Microsoft Windows NT-based remote access
system this month with capabilities that allow users
to receive messages from a single point.
The EdgeCommander system includes software
that can both receive and retrieve messages from a
variety of sources and translate those messages into
Web-based information accessible via any browser
or email client, according to company executives.
Pricing for the system starts at $19,995.
=================
3Com, Siemens pair for
multimedia
By Ben Heskett
Staff Writer, CNET NEWS.COM
March 9, 1998, 12:55 p.m. PT
Adding their names to the list of networking firms
embracing multimedia hype, 3Com (COMS) and
Siemens (SMAWY) rolled out plans for new voice,
video, and data capabilities within their equipment.
Networking firms continue to launch elaborate
initiatives to integrate multiple types of traffic within
a single device in order to garner a share of the
expected sales of this type of equipment to a
variety of Internet service providers and
telecommunications carriers. Some maintain that
this market is ready to take off now, while others
aren't so sure, believing that it will take years of
upgrades before use of the technology is
widespread.
The latest entrants will offer support for a Net
gateway within a Siemens subsidiary's
telecommunications switch, allowing 3Com's Total
Control remote access hardware to commingle with
the switch to deliver voice-over-IP (Internet
protocol) capabilities.
IP is the dominant transmission medium for the Net
and is rapidly evolving into the standard method for
businesses to send traffic across their networks.
The duo won't stop there, adding support for voice,
video, and data to 3Com's popular line of
SuperStack II and CoreBuilder switching devices.
The results of that work will be resold by Siemens
under that company's brand name. The joint
development between 3Com and Siemens is the
result of an alliance originally announced in October
of last year.
All of the enhancements will be demonstrated at the
gargantuan CeBIT trade show in Hanover,
Germany later this month.
3Com executives are bullish on the prospects for
multimedia integration, noting the growing adoption
of ATM (asynchronous transfer mode) technology
within carriers and ISPs and use of IP as the
dominant transport mechanism.
"You find true convergence happening at multiple
levels," said Irfan Ali, vice president of worldwide
marketing for 3Com's carrier systems business unit.
But to some observers, the rush to add multimedia
capabilities to network devices may be premature.
"People have to see a compelling business case
before implementing these," said Mary Petrosky,
analyst with the Burton Group. "I think we're going
to see organizations experiment with this stuff over
the next two years."
Petrosky noted that as organizations update existing
data-only equipment, multimedia networks will
become more prevalent.
Siemens will begin trials for the Net gateway soon,
with general availability expected in the second half
of this year. The rebranded 3Com gear will be
rolled out by Siemens in the second and third
quarters. A Siemens communications server will
also be resold by 3Com, due in the fourth quarter.
==================
Voice firms seek data traffic
niche
By Ben Heskett
Staff Writer, CNET NEWS.COM
February 3, 1998, 12:30 p.m. PT
Two multibillion-dollar telecommunications
powerhouses are zeroing in on territory currently
occupied by the likes of Cisco Systems and Bay
Networks.
Lucent Technologies (LU) and Northern Telecom
(NT) have both noted the bushels of profits being
reaped by data-centric networking firms and want
a piece of the action. From their roots as the
back-end of voice networks, both firms can offer
stiff competition for corporate and service provider
networking dollars due to the ongoing convergence
of voice and data networks.
What is driving this interest? Increasingly, service
providers are moving from simple Net-based
services to offer a plethora of options for
corporations who simply do not have the time,
employees, or money to handle their networking
needs. Furthermore, several studies have projected
that by the year 2000 data traffic will eclipse voice
traffic across public networks, offering unique
opportunities for veteran voice firms who also offer
data communications gear.
Lucent has built up its data networking portfolio
through a series of acquisitions culminating in the
purchase last December of gigabit-speed Ethernet
start-up Prominet for $200 million. Executives at
the sprawling $26 billion telecommunications firm
noted that their penchant for purchases is not over.
Nortel, eyeing a higher profile in data networking,
formally announced a new unit focused on
enterprise data networks today. Executives said
$785 million in revenue at the $15.5 billion firm
came from data and multimedia networking
products over the past year. F. William Conner will
head the new arm of the company, which will be
based in Dallas, Texas and will employ 3,000
worldwide.
Others, such as Alcatel and Siemens, may also
emerge as larger players in data networks.
"They have to expand their horizons," noted Craig
Johnson, analyst with market researcher Dataquest.
Both Lucent and Nortel seem advantageously
positioned to take advantage of increased
investment in networks by service providers who
offer high-speed leased lines, outsourcing, Web
hosting, and a myriad of other services. The two
companies also share a current focus on wide area
networks (WAN) with their products.
A WAN is a network that connects users across a
wide geographical area. Both public networks,
such as MCI's Internet backbone, and private
layouts, such as a multinational corporate network,
can be considered WANs.
"Networks of the future are going to service
providers," observed Karyn Mashima, vice
president of the enterprise systems group at Lucent.
"I could see where we could be a tremendous
threat to [data networking firms]."
Nortel executives are of a similar mind-set: "A lot
of the service providers are looking for people who
can transition into the data networking
marketplace," Conner said.
Both Lucent and Nortel are on the minds of
competitors such as Cisco. That company's CEO,
John Chambers, said he would continue efforts to
try and partner with one or both of the firms in an
effort to expand the company's alliance portfolio to
North America. "They understand voice
networking and they have deep pockets
financially," he added.
The CEO did note that he believed Cisco had
advantages due to its experience in building product
in the fast-paced Internet age and could reap
rewards due to the lower costs associated with
data networking layouts, as compared with voice
infrastructure.
However, Chambers said that the window for
cooperation between the firms was closing due to
Lucent and Nortel's increasing data networking
focus.
Lucent has gained new freedom since it split from
former parent company AT&T. As a result, the
company has spent hundreds of millions of dollars
to acquire new technology in recent months, adding
capabilities such as remote access to core in-house
products like its line of ATM (asynchronous
transfer mode)-based switches.
"Whereas AT&T/Lucent missed the bandwagon on
[the initial wave of] data networking, we aren't
going to miss next-generation networking,"
Mashima said.
Nortel has chosen to develop and acquire in a
similar fashion, though not at such a frequent pace
as Lucent. Whenever a networking firm appears to
be in play on Wall Street, however, Nortel is
among a small circle of companies always
mentioned as potential suitors. The company has
also promoted a "Power Networks" concept that
purports to offer an end-to-end layout for
corporations and service providers.
Currently the firm has chosen to partner to round
out its data networking story. Ongoing alliances
include deals with Cabletron Systems, Shiva, Fore
Systems, and Ascend Communications.
Nortel officials said the new data-focused
organization will provide a "stake in the ground" for
customers who previously did not realize the
Canadian behemoth had a data networking story to
tell.
Analysts said the strengths of companies like
Lucent and Nortel include experience at selling
high-end systems to high-level executives at big
corporations. Some also believe an understanding
of voice technology is harder to grasp than data
expertise. Potential pitfalls for voice-centric entrants
are a lack of visibility in the data networking arena
and a lack of sales channels to sell their products.
Down the road, some expect the current slate of
networking firms to diminish as sheer size
dominates over point product players and voice,
video, and data networks converge to the
advantage of players like Lucent and Nortel.
"There's probably only going to be one or two of
these networkers that can really play in five years,"
Johnson said. "Everyone is going to the exact same
space. You can't all survive."
related news stories
=========================
Ascend goes for voice-over-IP
By Ben Heskett
Staff Writer, CNET NEWS.COM
February 20, 1998, 12:40 p.m. PT
The convergence continues.
Taking advantage of the prevalence of a Net-era
transmission method, Ascend Communications
(ASND) will soon roll out a series of additions to
its networking equipment to allow voice and fax
traffic to coexist with data on an IP (Internet
Protocol)-based network, according to sources.
The expected move marks the latest instance of
multimedia support among the networking stalwart.
Included in Ascend's plans are hardware and
software upgrades to existing MAX 4000
equipment, new remote access systems under the
MAX name tailored specifically to integrate voice
and data traffic, and a new device designed to
provide connections from a corporate network to a
service provider, according to sources.
Ascend executives could not immediately be
reached for comment on the upcoming rollout.
The launch is an important one for Ascend, a
company that needs to stave off encroachment
from competitors such as Cisco Systems while
moving forward in the aftermath of a large
multibillion dollar merger last year with the
company once known as Cascade
Communications. A formal launch is expected next
month.
Estimates vary as to when voice and fax services
across an IP network infrastructure will become
widely used, but companies are scrambling to
articulate a strategy in this arena, since it is
perceived as a potentially high-growth area in future
years.
"Right now, voice-over-IP is getting a lot of hype in
the industry," noted Maribel Lopez, an analyst with
Forrester Research, who added that the future for
the market remains "unclear."
From Ascend's perspective, the firm has to stay
competitive to retain its presence in large accounts,
she said. "Ascend can't get behind in a feature war.
They don't want to lose their lead in the service
provider space. They can't afford to."
Ascend gained much of its strength in the
networking market by focusing its effort on
high-density equipment for dial-up remote access,
providing the gear that allows Net users to connect
to a service provider to download email and surf
the Web. The company used its expertise to access
customer accounts dominated by the likes of Cisco
as a result.
Adding new enhancements to the MAX line may
give Ascend customers a reason to stick with the
company, rather than move to equipment from
hard-charging Cisco or the U.S. Robotics arm of
3Com, another huge player in the remote access
market who recently announced similar multimedia
capabilities.
The logic behind offering fax and voice services
over IP is simple: Corporations can leverage
multimillion investments in networks to lower fax
and voice costs by sending this type of traffic
across a private link rather than over the public
Net, using infrastructure to get more "bang for the
buck." Additionally, service providers can offer
services based on the technology, potentially
gaining a cost advantage over competitors.
Separately, Cisco will reportedly announce a
high-end wide area access concentration device
next week, offering the latest indication that the
firm--stung by competitors in the remote access
market--will continue to apply pressure on Ascend
and 3Com, as well as other high-end equipment
providers. |
