How to Sell: Convergence - Part 4 - Cutting the cord
In the fourth part of our series, Dave Stott considers the combination of VoIP and wireless Lan technology.
Given the increased uptake of voice over IP (VoIP) and the growing popularity of wireless local area networks (Lans) it is not surprising that several manufacturers are looking at combining the two technologies to provide a unified solution.
The convergence of voice and data within the local mobile environment potentially offers users some interesting features.
When you look at technologies such as Bluetooth and Wi-Fi, as well as Digital Enhanced Cordless Telecommunications (DECT) and VoIP, it is easy to envisage the truly wireless office.
This approach will not only reduce office clutter but will allow for greater flexibility and techniques such as 'hot desking'.
For example, extension portability can now extend to wireless Lan phones, so a small pool of such handsets can support a larger number of users - they just pick one up and log in for the day.
Such convergence of mobile voice and data is still at a very early stage, and there are obstacles to be overcome before resellers can jump on the bandwagon. One of the main barriers is security, as Simon Boyle, senior consultant at vendor Dimension Data, points out.
"There are a variety of technologies available to address the problem of wireless security. However, we can't get away from the fundamentals.
"Current 802.11x standards are based on a shared-media 11Mbps Lan, which means that there is the potential for eavesdropping.
"Naturally this is not an ideal environment for voice traffic. Therefore, we believe the onus is on the reseller to correctly specify the solution and be very clear with the customer about both the user and performance limits," he says.
Wireless Lan security problems
Nadahl Shocair, UK chief executive of communications reseller DeTeWe, agrees that security is a major concern. "Several companies, including Cisco, recognise the problem of security on wireless Lans.
"Voice is less of a problem as the chances of breaking the security of an IP-based wireless voice solution are very slim, encryption is easier [taken from DECT technology] and the results of security breaches are less serious for what are effectively telephone systems.
"The whole security argument with regard to wireless data is, however, a major issue and must be overcome on each wireless Lan sale.
"Manufacturers such as Cisco and Avaya take this problem seriously, but as yet have not come up with a completely satisfactory solution - another indication that the technology is just not quite ready yet."
The second major hurdle that undoubtedly affects the take-up of converged mobile solutions is cost. At present, hybrid handsets that can handle local voice and data traffic are seen as prohibitively expensive at around £500 each.
"As with any new technology there is a premium to pay for early adopters," says Jon Weatherall, country manager UK and Ireland at Hewlett Packard's ProCurve Networking division.
"However, as soon as the demand increases and production gears itself up to supplying product there is no doubt that the prices will fall.
"We've seen this happen recently in the wireless data arena and I can't see any reason why the same thing shouldn't happen when it comes to converged mobile voice and data products as well."
Meanwhile, Ralf Ebbinghaus, vice president of sales and marketing at Swyx Solutions, is less certain that the price of handsets is such an issue.
"We believe that pricing has little to do with slow uptake. The price of handsets varies greatly. Poor adoption can be blamed more on human nature, which still needs to make that leap of faith. This inertia can be overcome - clever resellers are deploying systems right now."
According to Geoff Eagland, senior manager at contact centre vendor Aspect Communications, there is still too little awareness of the technology's potential.
"The big problem facing resellers trying to sell wireless Lan-based converged mobility solutions will be convincing people they need yet more handsets, and yet more infrastructure.
"The key question will be are the capabilities provided by wireless Lan handsets really going to be that different from the capabilities of next-generation mobile phones?
"If the answer is no, it's going to be difficult to justify them unless there are major cost advantages that aren't obvious at the moment," he says.
The market is currently in no state to support untried and unproven technologies, says Eagland.
"Organisations are fighting to squeeze every last bit of value from their existing systems, investing only in new solutions that deliver new applications or a quick return on investment.
"Wireless Lan-based converged mobility solutions must therefore prove their ability to create new ways of doing business via compelling new business applications.
"Until genuine applications come along most businesses, especially corporates, are reluctant to invest in converged mobility."
This corporate reluctance to invest appears to be borne out by the fact that it is currently the SME market where most product is being sold.
"In general the complexity of a network increases with the size of a company. At present, converged mobility solutions are typically smaller solutions, and while these may be used on a small scale within a large organisation they are probably more appropriate for solving communications problems in smaller companies," says Ebbinghaus.
Solutions for corporates
In addition, many converged mobility products are currently being sold via the retail route rather than through resellers. So are resellers missing an opportunity?
According to Lynda Colman, wireless and e-security business development director at Avaya UK and Ireland, there is an obvious reason why people go to the retailers to buy into converged mobility.
"At the moment, wireless solutions in the Dixons-type retailers are cheap and simple to install. It is normally individuals that turn to this source, rather than corporates.
"What corporates need is a solution that can be easily deployed and managed, and perhaps most importantly, a solution that is implemented according to the corporate security policy.
"Companies are increasingly aware that there are implications they need to consider, and it must be the responsibility of the reseller to assist in the advisory process. There is a great opportunity here for resellers to offer consultancy and assist in the deployment of such services," says Colman.
"Size is not important," she adds. "Converged mobility solutions are relevant to any organisation that requires a highly mobile workforce. Extending IP telephony capabilities to that organisation's mobile workers is an appropriate way to reduce costs.
"Obviously, the larger the organisation, the greater the savings. Avaya estimates a saving of £3,500 per employee by implementing VPNs [virtual private networks] to provide converged mobility."
Weatherall sees the initial deployment of converged mobile solutions within corporates being used as a proving ground for the technology, which is ultimately integrated with existing wired networks.
"Eventually, as such systems start to prove their worth, their adoption will become much more widespread within large companies," he said.
So who is better placed to provide converged mobility solutions: the data reseller or the voice reseller?
Boyle believes that there is not much to choose between the two. "It is an even battle. For example, the voice team will understand technologies such as DECT, while the data team should have a better understanding of the security issues and the underlying IP infrastructure."
Bob Old, chairman of telcoms distributor Rocom, feels that the specialist data VARs have historically failed to capitalise on converged voice and data.
"I can't see the convergence of mobile voice and data being any different. The data specialists have had the ability to converge voice for quite some time now but they haven't really picked up the ball and run with it.
"However, our voice resellers are certainly much more comfortable with digital systems nowadays, and consequently I feel that they are in a much better position to cope with mobile data and voice convergence than the data boys," he says.
Old also thinks that quality of service issues are not a major concern. "I've personally witnessed full-blown demonstrations of voice running over wireless Lan and despite being originally sceptical I came away totally impressed and convinced that it is a viable technology.
"The last thing you want is for someone to start selling the latest technology and for it to start coming back because of quality issues.
"On product that I know will shortly be in general circulation the quality of service is excellent, and basically you can't tell the different between a voice call over a standard wired system from calls made over wireless Lan."
Shocair believes that voice specialists have an historical advantage. "The drive for mobile VoIP has come from teleworkers.
"Both voice and data resellers have the ability to provide solutions, but the area is primarily driven by voice requirements. This means that voice resellers have the initial advantage but must be aware of the data implications," says Shocair.
Ebbinghaus doesn't rule out either type of reseller as being ultimately effective in the market. "IT resellers are often better motivated because convergence products represent 'easy money', although they still require training on the telecoms requirements of customers.
On the other hand, telecoms resellers need a clear and viable story of how to position the new product within their existing portfolio. Once this is done, they need more IT/networking training.
"The ideal resellers are IT resellers with a telecoms background or telecoms resellers with IT experience," he says.
The dawning of a new age of reseller
But, according to Colman, the emergence of combined mobile voice and data solutions means that a completely new class of reseller will be needed in the future.
"Convergence can be defined in many ways - voice and data, wired and wireless - and the converged mobile scenario encompasses all of these things. This is where converged resellers will come in.
"We are no longer in a situation where a 'voice' or 'data' reseller has the advantage. Resellers need to partner to complement their experience, or grow in-house experience through training and/or acquisition. Basically a hybrid solution requires the expertise of a hybrid reseller," she says.
It is vital that vendors and resellers work towards a common standard for training and accreditation in convergence, says Colman.
"Avaya has supported the move by the Telecommunications Industry Association Convergence Panel to achieve this, which will have significant benefits for all. It will help to develop the market and save time and money for resellers.
They could gain a core convergence accreditation and add to it with vendor-specific training. Converged mobility solutions provide an excellent grounding for customer-driven skills of systems integration. This will help customers gain the productivity benefits and cost savings from converged communication."
Shocair cautions potential customers when it comes to becoming early adopters of the technology. "The converged mobility market is in its infancy and, as such, companies will choose a manufacturer above a channel partner.
"No true mobility, wireless, DECT, Wi-Fi or VoIP converged product is available, despite various vendors' and manufacturers' claims. We are still talking about 'bleeding-edge' not 'leading-edge'.
"Who would you go to at this stage? The reseller who is still learning the technology or the vendor that actually develops the solutions? I know which horse I'd back," says Shocair.
How to Sell: Convergence - Part 1 - Answering the call
How to Sell: Convergence - Part 2 - Clear and simple