At this time of year we’re all evaluating the current year’s results and planning how best to move forward in 2010. Overall IP communications growth has been very positive.
I’m sure that many of you have seen the Infonetics report indicating significant growth in VoIP and unified communications – with revenue exceeding $21 billion in the first half of 2009. They forecast that the second half of 2009 will top $22 billion—7.3 percent growth in just six months.
Many of us have experienced similar growth rates in our businesses. We are all well positioned to leverage this growing demand for IP-based communication services.
At BroadSoft we are very pleased with where we’ll end 2009—most likely up 26 percent year-over-year in shipped lines. More encouraging is comparing that result to PBX shipments, which are down about 20 percent.
These statistics reflect a shift in the communications industry. End-users are seeking more interactive, advanced communication solutions. BroadSoft has kept pace with solutions that are designed to delight the end-user.
As we prepare for 2010, it’s a good time to share our thoughts on the current environment and our strategies for moving the communications industry forward. There are key indicators that IP communications solutions are the future of our industry.
Our mutual growth starts with broadband adoption. Fixed broadband penetration is about 440 million subscribers today, and it is expected to grow to more than 600 million by 2013. Today VoIP is provided on approximately one-third of all broadband lines.
Broadband penetration will continue to grow at a rapid pace. There will be exponential growth of mobile broadband and new devices. As rich communication options become available, they will require broadband access to ensure a superior user experience.
As end-users quickly embrace IP and hosted communication services, service providers are well positioned to focus on innovative services and applications that deliver greater value to consumers. We must all ensure that we evolve our network architectures so that products and solutions easily integrate with new applications that can be delivered quickly and inexpensively.
To build on our business success, BroadSoft will focus on four key areas going forward:
Smart Devices – new innovative multimedia, always-connected devices
Personalization – the ability for users to customize communication services for their devices and preferences
Rich media – moving beyond voice to video, messaging and content sharing
Mobility – communications anywhere, anytime and any device
Our goal is to enable service providers to integrate a set of smart devices with network services to maximize the user experience. You will see BroadSoft define solutions in which BroadWorks services complement our partners’ smart devices. We are working on end-to-end solutions that are pre-integrated with partner devices to ensure that service providers can take them to market quickly. As the penetration of smart devices increases and end-users have multiple devices, it becomes more important to ensure that service data end management is centralized.
Storing data directly on devices is problematic due to the need to synchronize the data between the devices—for example, the problem of synchronizing contacts across two mobile phones. It’s better to provide an end-user with a service profile in the network. A single service profile will work across all of the end-user’s devices—their desk phones, soft clients on a netbook, IP media phones, smartphones, connected consumer electronics and so forth. With a network-based service profile, end-users can configure their social interaction or communication preferences. Basically they can define the how, when and where rules for their communication services.
BroadSoft’s strategy is to transform BroadWorks from a VoIP platform to a multimedia, real-time communications platform. The goal is to provide a comprehensive set of user and group features that work independently of the medium. For example, simultaneous ringing should work for voice calls, video calls, text messages and content sharing. Smart devices working together with hosted services will deliver a superior user experience.
It is good to talk about where we are going, but it is always better to SEE where BroadSoft is focused. We just demonstrated more than 25 innovative new solutions at our recent users’ conference. Here are two applications that will give you a sense of the evolutionary trend.
Hosted Home Monitoring . See how a home monitoring system can be converted to a surveillance tool to care for your home and watch over family members.
The Mobile Office. Imagine a more flexible and productive work environment through UC solutions for the Mobile Business.
So our strategy on the user front is to enable a smart user experience, which will be critical to success. Our focus is on communication services that are intuitive, easy to use and available from any device.