Last year, the communications server, or comm server, was the most
overblown and underutilized product of the year. It was on everyone�s
lips, but in hardly anyone�s communications closet. Some even intimated
that the communications server was the next unified messaging � lots of
hype and little reality. But, in the new year, such doubts will fade away,
disappearing along with 1999�s ill-founded Y2K concerns.
WHAT IS IT?
A communications server is a product that replaces a PBX, and brings
enterprise telecommunications out of the world of Alexander Graham Bell
and into the information age. It is, in essence, a single box that
includes features such as voice mail, unified messaging, and
auto-attendant. (These features are usually separate expenditures.)
Moreover, the communications server is often open to third-party
developers.
In addition to offering multiple functions and being
developer-friendly, the communications server delivers another solid
benefit. It is typically an order of magnitude cheaper than its distant
cousin � the PBX. Taken together, the benefits add up to a compelling
argument towards the purchase of a communications server. This fact did
not escape the eyes of CTI industry pundits, and 1999 saw considerable
media attention focused on the communications server. However, the
revenues have not supported the hype � yet.
WHO MAKES IT?
In 1998, there were really only three communications server companies:
AltiGen, Artisoft, and Picazo. These three pioneers effectively created
the industry and garnered approximately $100 million in 1998 end-user
revenue. Surprisingly, this measly sum (when compared to the $7 billion
PBX market) drew the attention of the large switch manufacturers as well
as a flood of startups.
By the end of 1999, there were 25 communications server products
available, with more entering the fray every week. The once peaceful
playing field is now attracting a crowd that includes oversized bullies
and young, agile contenders. The following is a scorecard to familiarize
you with the players in the communications server market.
3Com: 3Com purchased NBX, the first vendor to successful
produce and ship IP telephones, and has the advantage of being first in
this sub-market. The system uses a router for call control and an NT
server for applications, thus distributing the points of failure.
AltiGen: One of the original three vendors, AltiGen
recently released version 3.5 of their AltiServ OE software. Coupled with
a strong multi-site voice over IP application, they have the advantage of
a long market history and over 3,000 installations.
Artisoft: As a pure software company, Artisoft markets
itself as being a totally open platform and leaves it to the VARs to
install the boards and build the system. Artisoft also holds the trump
card of being in the communications server business for several years and
having gone through multiple generations of products.
Cisco: Determined to leave no market untapped, Cisco
acquired Selsius to immediately have an IP handset, thus allowing them to
sell more routers into the telephony space. Cisco has since remodeled the
old handset, added some features, and is pushing hard to make LAN
telephony a reality.
Com2001: As its name suggests, their InternetPBX offers
an impressive set of Internet integration features to ease the suffering
of remote workers and road warriors. And in an interesting development,
Com2001 has partnered with Dell to distribute their products, thus
assuring an entrance into the more mainstream data markets.
Flexion: Targeted at small businesses, Flexion offers an
impressive product for under $10,000 that includes unified messaging and
auto-attendant. Using an embedded operating system for increased
reliability, Flexion should be one to watch as they have just begun
shipping in the past six months.
Lucent: Also using LAN telephony, Lucent offers two
products, IPExchangeComm and IPExchangeLink (targeted at large and small
businesses, respectively). IPExchangeComm uses an application server for
all of the CTI functionality, while IPExchangeLink is a router and server
in a single box.
Nortel and Hewlett-Packard: Hewlett-Packet, Nortel,
Microsoft, and Intel partnered last year to produce the HP Business
Communications Server, a robust platform running Windows NT that will
continue to operate even if the operating system fails. This big-name
group will be distributing their product through Ingram Micro, among
others.
Picazo: Also one of the original communications server
vendors, Picazo had until recently sold its product only on DOS, due to
its stability. However, Picazo is now the first vendor to sell a Windows
2000 communication server, and will likely ride Microsoft�s wave of
market hype. In addition, Picazo is now offering an optional product
called NetACD, which turns its communication server into a full-featured
Internet call center.
Praxon: The ultimate in-one-box solutions, Praxon�s
Phone Data Exchange (PDX) is targeted at small offices like realtors and
doctors. Although based on an embedded operating system, which makes it
prohibitive to third-party applications, their typical clientele will get
exactly what they need, a complete yet simple communications solution.
Praxon is using a variety of channels including local exchange carriers to
distribute their products.
Shoreline: Using an innovative blending of circuit and
IP, Shoreline communicates across floors and campuses using IP, yet brings
voice to the desktop over circuit to standard analog phones. Shoreline�s
product is the CrystaLAN, a device servicing up to twelve analog stations,
and all CrystaLAN-to-CrystaLAN communication is done over IP. This
approach will greatly appeal to those wanting a gradual migration to IP.
Vertical Networks: The InstantOffice from Vertical
Networks is truly a one-box solution. The system includes the switching
system for analog phones, auto-attendant, voice mail, unified messaging,
remote access server, hub, router, and desktop CTI. For the small to
medium-sized office, the InstantOffice should offer almost every feature
desired.
WHAT�S NEXT?
This is just a sampling of the vendors who are currently in the
communications server market. More and more are entering at a startling
pace. I believe this flood of activity will dramatically increase the
legitimacy of the product category, and I estimate 2000 sales at almost
$800 million. While 1999 was a year of unfounded concerns, 2000 will truly
be the year of the communications server.
Brian Strachman is industry analyst, Voice and Data Communications, Cahners In-Stat
Group. To correspond with the author, please send your comments to [email protected]. |