The word ‘convergence’ has been thrown around the IT sector for a few years but often those outside the industry, and at times those within it, don’t really know what it is.
To consumers, convergence might mean using software like Skype to talk to friends over the internet; or PDAs enabled with voice and data, like BlackBerries.
For businesses, it means engaging one network to run data and communication services.
Voice over internet protocol (VoIP) is the converged application currently attracting the most interest. Pacific Internet’s Broadband Barometer, compiled by ACNielsen Consult, shows 33 percent of Australian small businesses currently use or intend to use VoIP. It involves moving off the traditional PBX network and using an IP broadband network to send voice data.
VoIP could have a profound affect on the way we communicate and companies like Cisco are making it a priority. While Telstra doesn’t seem concerned, the threat to its traditional fixed line cash cow is certainly an issue.
In the past, businesses used completely different networks for data, voice, video and storage. But over the last decade, the emergence of IP based networks means businesses can now roll these separate networks onto a single converged IP data network.
By eliminating the need for separate networks, vendors, hardware and skill set requirements, organisations can cut costs and simplify their IT infrastructure. This is a benefit that’s often overlooked while people focus on the dollars that can be saved in voice calls. But convergence is about making available applications previously the reserve of big business.
Broadband is the key enabler in the equation. Its increased take-up by the business community means we’re now at the forefront of this convergence revolution.
Kids have certainly embraced convergence. My son plays online games while simultaneously speaking to his opponent – all over our home broadband connection. But this is ‘best efforts’ connectivity over the public internet and there isn’t an economic loss if the connection cuts out – just a cross teenager!
It’s a different story for the commercial world; business-grade broadband is an absolute prerequisite of convergence. The good news is we can deliver large pipes that offer guaranteed grades of service to efficiently manage the delivery of traffic.
Our latest findings show 49 per cent of SMEs use a plan specifically created for the business market, so awareness of the importance of reliable networks and SLAs is growing. Plans aimed at the residential market don’t cut it when it comes to business convergence and running next generation applications.
For multi-site businesses, the next step into the world of convergence is to implement a private network, the essential platform to blend converged services. These private links offer increased security, reliability and guaranteed performance, allowing companies to confidently hook up sites to share data and communications.
Until now, the hype around convergence hasn’t matched reality, with many innovative tools useless over slow dial-up connections. But now we’re seeing real time rentable applications, like accounting systems, thanks to the take-up of broadband.
The report findings also highlight some issues that could hold convergence back, with business concern around viruses, spam, intrusions and hacking.
Convergence means a competitive edge for business, by cutting costs and boosting efficiency. It can facilitate better customer service and business growth. With broadband growth, businesses are now taking the lead to discover exactly what convergence can do for them.
It may take a few years but there could certainly be a power shift in the industry. ISPs that offer business grade services and support will play a fundamental role in providing the essential platform for convergence.
Dennis Muscat is Managing Director of Pacific Internet (Australia). The company is a wholly owned subsidiary of Pacific Internet Limited (NASDAQ: PCNTF).
