Microsoft OCS = Cisco Entering IP

The battle for control of voice telephony is not just at the network level, where IP is replacing TDM connections and wireless is enabling faster, more mobile contacts. The telephone as viewed by users primarily as a real-time, person-to-person communications device, is what is changing from a conversational voice, TUI-based interface endpoint to a richer, "multimodal," interface device that can seamlessly accomodate all forms of real-time and asynchronous messaging contacts with people.

Cisco's big successful push was to replace traditional telephony with IP connections, but they first tried to keep telephony locked up with proprietary desktop telephones, just like the tradtional PBX systems. The reality is that business unified communications (UC) must be endpoint-device independent and must interoperate with personal, mobile "consumer UC" services. That shift is being being driven by the launch of the innovative iPhone, which, along with the success of RIM's secure "push" email for business users, is creating the end user demand for enterprise support of personal, multimodal "smart phones."

Note that neither Microsoft nor IBM, who dominate enterprise text messaging (email, IM) and desktop business application interfaces, are trying to compete with enterprise IP network products and services. They are leaving it up to the the likes of Cisco and Avaya, as well as to the carriers, who are focusing more on wireless services for individual subscribers.

The two domains of business and consumer mobile services are slowly converging under IP, but require that the legacy mobile "walled gardens" disappear in favor of other forms of revenue generation.

Cisco did a "bottom-up" push at the hardware, network level for convergence, while Microsoft did more of a "top-down" approach with software for application servers and client user interfaces. The "bottom-up" approach appeals to IT management, while the "top-down" targets end users and their business management. Which will eventually win out in migrating legacy telephony to the world of mobile business UC?

The Microsoft vs Cisco battle over the UC space will be an interesting one as Doug has identified.

As the current PABX replacement market continues to be commoditized, UC features will be a key differentiator and business case driver. This is where Microsoft is positioned as a leader.

However, if Microsoft is to be succesful they will need to establish and educated a channel partner network that is skilled in delivering VOIP solutions. This could be a different set of partners from the current channel partners. This is what Cisco was good at when it entered the VOIP market - and still is!!

The best technology and solution will not get sold without the channel.