Cisco has long dominated the networking market,with its routers, switches, and VoIP solutions. But Microsoft is bringing its own line of unified communications products -- Office Communications 2007 -- to market. Can Cisco hold on?
Microsoft wants to be a prime supplier of Voice over IP technology and is girding for a battle with network behemoth Cisco Systems. Will this foray go the way of the Microsoft/IBM war in the 1990s? Probably.
Microsoft has been dabbling with unified communications technologies, such as VoIP, for more than a decade, but hasn't yet been able to deliver anything comprehensive or compelling to customers. The company is trying to change that perception with delivery of its Office Communications 2007 Server, which features VoIP, video, instant messaging, conferencing, and presence bundled within Microsoft Office, Microsoft Dynamics ERP products, and Microsoft CRM software, which is due to be released later this year. Fifty partners developed various products designed to run on the new infrastructure and touted the benefits of the Microsoft infrastructure.
The potential benefits that the new products can deliver include improved productivity and lower operating costs. Employees will be able to respond to messages instantly, regardless of where they originate. Small and midsize businesses will be able to cut their communications costs because they will rely on fewer components. Those are two appealing traits.
Microsoft Crosses the Line
This announcement was different from previous Microsoft forays into the integrated communications market. In those instances, the company clearly drew a line between its software and the underlying networking functions. This time, Microsoft crossed that line and included call control features, which set up and tear down network connections. As a result, companies that once viewed Microsoft's products as complementary, such as Alcatel-Lucent, Avaya, Cisco, and 3Com, now see them as competitive.
So, what now stands in the way of Microsoft becoming a prime player in the integrated communications marketplace? The first problem is experience -- or lack thereof. While Microsoft rules the software industry, the company has had little to no experience or success in the networking market.
Microsoft has jumped into a complicated area. While pundits have been touting the benefits for integrated communications for more than a decade, getting all of the necessary pieces to interoperate has been an arduous process. Voice suppliers have traditionally relied on proprietary interfaces in their products and have been loath to cooperate with one another. After years of trying to go it alone, Microsoft has enlisted Nortel's help in understanding the complexities of and gaining more of a foothold in this market niche. Nortel was front and center at the Microsoft announcement unveiling a series of phones that work with Office Communications 2007 Server.
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