Transcript Technology Adoption: VoIP in Asia

Technology Adoption: VoIP in Asia
Tim Lauer
Managing Director, APAC Ventures
March 26, 2004
[email protected]
Objectives
 Provide a common understanding of VoIP & the
value propositions
 Discuss the adoption of emerging technology and
worldwide drivers affecting VoIP in Asia
 Present a business case of a Taiwan Company
who is an “Early Adopter” of VoIP
 Demonstrate the use of Voice-over-Internet (VoI)
as a complementary solution to VoIP
Who is APAC Ventures?
APAC Ventures
 Asia Pacific Business Development
– Specialize in software licensing for foreign
companies who want to expand their business in
Asia
 Identify Value Add Software Building Blocks
– Develop and License Software to complement Asia
companies who develop or provide the following:
• Software
• Hardware
• Services
What is Voice over Internet
Protocol (VoIP)?
V
V
Phone
Company
Headquarters
Branch Office
Circuit Network
Branch
 Transporting voice over leased or managed
data networks
 Requires management of Internet traffic (data
and voice) to ensure voice quality
Why the Hype?
V
V
Phone
Company
Branch Office
Headquarters
V
Branch
Enterprise/SMB Perspective
 Cost savings associated with transporting voice over
an existing Leased Line
 Adding a new employee within the facility is as
simple as plugging in the phone to the network
connection
Types of VoIP
 Internet Routed Calls
– Major service providers use internet to route calls to
save money as their network traffic grows
– Dial 009, Prepaid Cards, etc.
– About 10% of all US telephone calls use the
Internet in some way
 End-to-End VoIP
– Complete Digital Network
– PC to PC Calls
– Hard IP Phones connected by Data Network
VoIP Value Propositions
 Convergence of Voice & Data
– Cost Savings for the Enterprise and Consumer
• Reduce cost of long distance calls, setting up new phones
– Convenience
• One Bill, One Network
 Exciting new applications
– Generate new (more?) revenue for service providers
• Unified Messaging: Voicemail, SMS, Email, Fax, Conferencing,
all come together
• Video
• Others TBD: Cellular examples include Games, Ring Tones,
Ring Back, etc.
Technology Adoption
Emerging Technologies
 Characteristics
– Sometimes old technology, with new use
– Solve a major problem
– Impact an Industry (country/region)
– Require companies to change
• Business model, business processes,
organization, structure
• Re-invent, Re-tool, RETIRE?
– Provide new opportunities
Geoffrey A. Moore’s
Technology Adoption Curve
Chasm
Early Adopter
Pragmatists
Innovator
Traditionalists
Time
The “Chasm”
 Dictionary Definition
– A very deep crack or separation in the surface of
the earth
 Moore’s Meaning
– The Chasm represents a critical phase or opening
from the last early adopters that allows for
mainstream acceptance of the product.
– Steve Jobs of Apple says "The Chasm is where
many high-tech fortunes have been lost. Crossing
the Chasm is vital to long-term value creation and
market dominance.”
The “Pragmatists”
 Dictionary Definition
– People concerned with practical or proven results
 Moore’s Meaning
– Those people who are interested in new
technology and will adopt as soon as they see that
their competition is successful.
– Proven business cases drive Pragatic people to
take actions.
Key Drivers to Adoption of VoIP







Ability to deliver voice quality
End user experience
Proven Business Model (Cost/Revenue)
Government Investment
Reducing costs
Favorable government regulation
Agreement on key technology standards
Quality and User’s Experience
 Quality of VoIP has improved
 Features similar: dial tone, hold,
forward, voicemail, etc.
 Use is same Hand Phone and Dial Pad
 Signs of Change
– Wireless Ear Piece for Cell Phones
– Students talking on the Internet thru PC
– Mobile Office and Wireless Internet
Proven Business Model: Japan
 Broadband Infrastructure is in Place
– Government Support
– 12Mbps is standard, 25% of homes
 Yahoo BB
– Free Bundled IP Phone with Broadband
Services
– 3.6M VoIP users, consumers cross Chasm
– Voice is the “killer broadband application”
Reducing costs
 IP Phone versus Analog Phone
– Much more expensive
 Sweet Spot for IP Phone
– US$75
 Long Distance VoIP Calls
– PC to PC, PC to Phone through Service provider
– Taiwan to US as little $.02 a minute
– Free for low quality calls
US Gov Position on VoIP
“In examining VoIP, we should begin with
non-regulation of the Internet……
because it maximizes the potential for
innovation and increases the
opportunities for the nation as a whole.”
Michael Powell, Chairman FCC
February 2004
Agreement on Technology
Standards
 Engineers lobby to have their
company’s technology written into an
“industry” standard
– Standards Bodies
– Industry Forums
– White papers
 Results are sometimes not so Standard
– Cell Phones, China driving their own WiFi
Case Study:
Enterprise VoIP Deployment
Taiwan HQ to China Branch
Jerry Yang,
AVP, LANtel
Reason for Changing to VoIP
 Company Background
 Limited number of lines on existing PBX
Phone Network
 Plan for expanding China Office
 Need to build private data network
between offices
Key Points in Evaluation of VoIP
 Cost of deployment
 Ability to Manage Data/Voice Network
from one location
 Enable new combined applications
– Data, Voice and Video
 Also integrates with other apps &
business processes
– Administrative Sales software/process
VoIP Network Diagram
Taipei
1.
2.
3.
W/CCM
Unity VM
Centralized management
No MIS personnel in Shanghai
Cut expense in both straits
telecommunication
PSTN
PBX
3550-12T
256k
2950T-24
3524-PWR*2
VG
MPLS
256k
VG
DSP Farm
ISDN
2610
W/SRST
IP Phone
3524-PWR
VG
ADSL
PIX-515R
DMZ
Internet
Shanghai
Voice over Internet (VoI)
The Difference: VoI vs. VoIP
 Voice over Internet (VoI)
– Impossible manage entire network
– Technically challenging
– Unlimited application reach
 Voice over IP (VoIP)
– Easy (but more expensive) to manage the network
– Common technology
– Application reach based on availability of managed
network
• Does your VPN work behind firewalls, over dial up, etc.
Voice over the public Internet?
V
V
Phone
Company
Branch Office
Headquarters
Internet
Branch
 Transporting voice over the public Internet is free
 Requires just a simple connection to the Internet
• Extend the reach of corporate phone systems
• Add voice to any web experience
The Internet Challenge
 Jitter
– Variable packet arrival
– Packets out of sequence
 Packet Loss
Packets
3
2
1
– Dropped packets
 Latency
– Network delay
Computer A
3
1
2
Computer B
A “Web” of
connections
Routers
Computer C
Demo of Voice over Internet (VoI)
Click to Talk over the Internet
University Arkansas
http://www.uapb.edu
Non profit Organization
http://www.nethope.org
CrystalVoice Communications
 US Software Company
– VoI deployments worldwide with Cisco,
3Com and others
 Let’s chat with Steve Zola, President &
COO
– Click to Talk
– http://www.crystalvoice.com/contact.htm
Questions?
Thank You for coming