I. Introduction

Periodically, we randomly survey the SOHO (Small Office Home Office), SMB (Small Medium Business, and Enterprise environments to determine the awareness and impacts of emerging concepts/technologies in the communication arena and the impacts upon the underlying IT infrastructure requirements. The SMB and remote office sectors of the Enterprise are of interest given the expansion of teleworking and remote access for companies large and small and in many cases they are the early adopters for they do not contend with time consuming decision making processes. However, the survey results can be mixed at times and reflect the knowledge levels of the survey participants.

At the moment, there appears to be a rather high confusion levels amongst all market segments about the meanings of Convergence and Triple Play. The understanding level of the concept of VoIP (not to be confused with utilization) is nearly universal for most have either read about the technology or have tried voice over the Internet at a friend’s home or office. We will attempt to provide some clarification of the concepts and the attendant potentials. An overlying concern is the potential for increased security breaches with the additional media modes and streams.

We will discuss the perceptions and technological needs based upon our user and industry discussions. We do not intend to enter into an extensive technology discourse for the merits and ultimate success in the marketplace is a function of satisfying the user perceptions and needs.

II. Definitions

For our purposes we define each item as follows (others may vary the terminology):

a. VoIP – “Packet” voice transmission over the IP networks (i.e. Internet and Intranets in some people’s minds). We consider IP Telephony as a subset of VoIP.

b. Convergence – Transmission and receipt of Voice (Analog or Digital), Data, and Video over the same global transmission networks.

c. Triple Play - All three media types (Voice, Data, and Video) are combined in an activity.

III. VoIP

The concept of voice transmission in digital (packet format) has been discussed seemingly for decades as a logical replacement for the traditional TDM (time division multiplexed) analog technology. TDM has served the community with a high reliability and consistent quality with dial-tone high availability and virtually no dropped line calls – setting a high standard for VoIP to match. Prognosticators, for years, forecast imminent acceptance by the mainstream but earlier trials (plus constant desk top computer crashes and data network outages) created more questions about reliability and quality for a computer dependent system than clearly defined user benefits. Frustration levels with quality and inconsistency were more elevated than users of cell phones with intermittent or in some areas non existent coverage. (The cellular situation will be the topic for a future edition.

However, many of the critical issues have been resolved (not totally but acceptably for most users) and is making inroads into multiple vertical market sectors. Cost savings is a consideration but applications (such as call centers and telecommuting), accessibility, reliability, quality, and ease of configuration/operation are the key drivers in our opinion. As a result, acceptance of VoIP continues to increase across the spectrum of office and location size. When “web-tone” (net availability) reaches the “dial tone” reliability of 5+  9s (99.999% uptime) of the TDM networks, utilization should soar.

IP phones use IP for signaling and streaming of voice.  There is no phone jack (RJ-11 Connector) needed for there is a direct LAN/WAN connection through the computer connectivity to the network. (Example, One can use a service such a SKYPE and connect a handset with a USB connector). One obvious problem in most cases is that if the power fails at your site and there is no back up generator, there is no communications capability unless one has a cell phone or access to a land line.

Intrinsic in the IP phone features is the duality of voice and data with both being always on and always connected to the network. The screen interfaces are rapidly improving and features of the IP phone are beyond those of the land line sets and PBXs. A Key opportunity is to simplify the feature functionality and help screens for the non-technical user and make it as simple as the traditional “punching numbers” of a traditional handset. Another opportunity is the IP PBX arena with easy to use systems and software. Minimizing complexity is vital for success in serving the SOHO through the Enterprise segments. However, security issues must be addressed and become a non issue with respect to triple play deployment in these segments.

An increasing number of IP phones are being shipped by nearly all major vendors. This includes both soft phones (computer screen only from vendors such as Nortel and others) plus handsets. One estimate is that Cisco alone has shipped more than 5,000,000 IP phones through the middle of last year with an increasing placement ramp... Clearly we have moved beyond the early adopters on the curve.

However, there are special considerations/caveats for VoIP or the WLAN. Typical packet or cell protocols tend to be “bursty” but VoIP must be predictable with a steady stream of packets. Latency is critical with VoIP for any delays or intermittent packet receipt inhibits quality and may actually result in disjointed speech receipt. The limited bandwidth also is more error prone than the wired connection.

Security is of the utmost importance for the WLAN and WAN are global and there are no boundaries. WLAN signaling is exposed and particularly vulnerable. Secure authentication and encryption is a must but encryption can affect latency (encryption requires another computing step on each end to encrypt and decrypt) and resultant quality. There could be hand off delays, dropped calls, annoying “clicks minimizing utility to the remote user. (Sounds a bit like current cell phone coverage problems). An opportunity exists for those companies able to seamlessly minimize the encryption and related delays perhaps with MPLS like techniques to streamline the end point to end point connection.

Another opportunity evident to us in the VoIP quality improvement/maintenance to foster excellent user experiences with the technology. Why? The dynamic networks and use patterns necessitates vigilant monitoring, especially in the wireless components. Here probes, sensors, and engines are crucial for fault analysis with consoles to permit multi-location analyses. The focus is to determine and correct weaknesses in quality performance, security provision and monitoring, DOS attacks, latency, dropped packets, signaling problems, jitter, timing, resends, access point usage, and others to improve and provide maximum QoS (Quality of Service). There are a number of competitors in this sector but there is room for more if the products solve the problems efficiently and cost effectively.

VoIP is not a perfect system but is dramatically improving. What problems can be encountered while using VoIP? An echo may be heard by the users if latency is high. The phone rings but the answerer cannot hear the caller for a firewall is blocking the call. SIP (session initiation protocol).

Registrations may not work through a firewall. The phone cannot place a call for it will not register on SIP or to the H.323 gateway. The quality breaks down with simultaneous calls due to insufficient ram, CPU power, or bandwidth. You lose dial tone and cannot receive calls from the public network due to IP address changes. Calls can sound robotic. Drop outs are encountered when jitter and latency become problems. Quality at times is erratic for a variety of reason such as latency. There are many others than can be listed but this provides a sampling of potential problems. Remember where problems exist in the network there is opportunity and your core technologies might be able to create a solution.

Security issues are being addressed but in our minds there remains a long road ahead, not only in authentication issues, data integrity, and “pipe" security, but in a seamless integration of security and encryption without performance degradation. Software, such as HP’s virus throttling as excellent initial steps but added intelligence is needed at all points in the global networks.

IV. Convergence

Convergence is happening at the network level with transport of voice, video and data. VoIP has promised convergence but Voice and Data tend to remain unrelated entities with no end point convergence. However, the end points are becoming both voice and data aware and data and voice converge at the application level and business workflow operations. Voice and Data are becoming available anywhere, anytime and anyplace. End points are exchanging data with the network to access applications. Further, PBX functions are available via “Web Services” leading to increased convergence of voice and data. Video is added to the mix and now streaming video is available on the desk top and can be accessed anywhere by using a web connection. All are transmitted over the same network but typically not interwoven in most applications. That is where “Triple Play” enters the picture and will be discussed in subsequent paragraphs.

When one transport such as TCP/IP is used for all communications and networked applications (voice and multimedia plus data), a converged network is achieved.  Traditional applications on the converged networks include fax (now using ITU standards T.37 and T.38) for Fax over IP (FoIP), fire and burglary systems, surveillance systems, video conferencing, voice mail, IVR (interactive voice response), CT, and E911. Additional applications are white board applications, instant text messaging, and video streaming to mention a few. New applications are merely a function of one’s imagination for the transport can deliver what is needed in most cases with the exception of bandwidth and processing power limitations. However, each new application and media mode integration opens venues for potential attacks.

V. “Triple Play”

The latest in a continuing stream of terminology facing the user is “Triple Play”. Many are actually using triple play activities but are not aware of the term or the technology implications – just the results. Opportunities abound in this arena but the vendors are well advised to use an applications approach not a technology enablement to the mass market.

Currently each media type uses a different system. A telephone is used for voice; a video system for video conference calls; and various data collaboration systems for data sharing. In a triple play approach, all the three media types are combined. For example – Viewing an email to open a session with the sender; easily switching between voice and video and voice only or vice versa; and sharing desktop applications during the session. In essence, a single CPE box to handle all communications applications - TVoIP/TVoDSL, VoD, PVR, and DVR.

There are numerous drivers fostering this emergence. Video deployment has improved with better video codecs (H.263, MPEG4, and H.264); cheaper LCD and memory components; improved battery life for handhelds; and cheaper and lower power processors. Cellular 3G, Wireless (WiFi and WiMax), Wireline IP and Wireline PSTN can all be converged today. Cellular 3G is in mass deployment in at least 70 countries. Video streaming is routine and video on demand is available. Messaging such as IM, MMS, and Video Mail has become ubiquitous. Video telephony and online multi-participant gaming are commonplace on 3G cellular networks and will spill into other applications. Wireless IP connectivity is gaining in acceptance and with converged networks the triple play is enabled. Wireline activity is also present to add to the sector.

The current market earlier adopters and initial mass market are in the Enterprise and the 3G Mobile sectors. Also, in the broadband and PSTN areas, video applications are increasing rapidly.

As the service operators increase the connectivity between networks and offer cross network services such as Voice/Video mail, Multimedia Server services, Voice/Video recording capabilities, and Video Portals, additional applications will be developed at price points that are acceptable to the mass markets. Within this increasing complexity of information flows and delivery mechanisms, opportunity abounds for security purveyors not only independently but in global alliances to create best of breed offerings.

Our clients are advised to research and assess the opportunities in VoIP, Convergence, Triple Play, and Security (intrusion, detection, prevention, and self healing) sectors for all offer significant revenue and profit potential. The Product Marketing and Product Management functions need to conduct sufficient market and product research to identify the areas of the highest potentials and matches to the organizations strengths. Addressing any areas in improving the Quality of Service (QoS), Security, User Interfaces on the screen (Nortel soft phones are an example of an easy to use system in our opinion), Simplified handsets with USB connection for the users (we feel that many users in the SOHO and SMB versus the Enterprise will prefer handsets for the computer connection), Technology to connect disparate networks, Interoperability between systems and Converged network management through web connections are opportune areas for investigation.

Meanwhile – Back to our VoIP and Triple Play testing.

Jeri Trippe, Editor

E. J. Poshkus, Principal Analyst

Issue No. 2006-07b    07-30-06

I             If there are questions about the content or opinions expressed, contact E. Poshkus at edp@venturestechwatch

            Editor: Jeri Trippe    jerit@cventurestechwatchcom