[March 07, 2007]

Microsoft Shifts Into VoIP Market

By Spencer D. Chin

TMCnet Web Editor

In a move further signaling that VoIP

is now serious business, Microsoft (News - Alert) announced at the VoiceCon Spring 2007 conference it would enter the booming VoIP market, and release a public beta of its VoIP server software by the end of March.

The announcement clearly shows that Voice over IP

technology has gone beyond the realm of leading-edge startup companies into the mainstream, as an industry giant moves to make the technology available to potentially a far greater number of customers than previously possible.

Microsoft will publicly distribute the beta-test version of Office Communications Server 2007, its VoIP and Unified Communications server, and Office Communicator 2007, Microsoft’s unified communications client for mobiles and desktops, to millions of testers at the month’s end. Users can register to download the beta versions of both programs on the company’s website.

At VoiceCon, Microsoft Business Division president Jeff Raikes said in a keynote address he expects the average VoIP solution for business to cost half of what it does today, as VoIP moves from hardware to software. He predicted that 100 million people—twice the number of current business users—will be able to make phone calls from Microsoft Office applications.

“Software is set to transform business phone systems as profoundly as it has transformed virtually every other form of workplace communication,” said Raikes. “Over time, the software-based VoIP technology built into Microsoft Office Communications Server and Microsoft Office Communicator will offer so much value and cost savings that it will make the standard telephone look like that old typewriter that’s gathering dust in the stockroom.”

How quickly Raikes’ vision becomes a reality remains to be seen, but given the software giant’s track record in transforming the PC world with its products, it is likely that enterprises will be more apt to overlook the traditional concerns over VoIP deployment, reliability, and voice quality.

Several other companies, such as Cisco Systems (News - Alert) and Avaya, have made huge forays into enterprise VoIP hardware and software. However, Microsoft is trying to eliminate the economic and technical barriers of implementing VoIP, by integrating the capability into its existing suite of Office productivity tools as part of a unified communications strategy.

According to Microsoft, users would be able to launch a VoIP call by clicking on a person's name in Microsoft's Outlook e-mail program or its SharePoint Server 2007, a portal and collaboration tool. The embedded "presence" technology can determine whether a person is busy or not. Other options include Web-based audio and video conferences.

Microsoft’s software approach could also put the squeeze on VoIP systems requiring telephony network changes. According to the company, Communications Server 2007 will interoperate with PBX

networks through the SIP VoIP protocol, and works with different phones, devices and management tools. Companies won't have to rip out their existing private branch exchange (PBX (News - Alert)) phone networks, said Microsoft.

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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.