13 August 2004

VOIP Sub-Critical Dependency

This from Om Malik was going to be just another VoIP's not quite ready for prime time story's and was about to enter file 13 when I picked a comment from Andy Abramson "Outages like Vonage is having are to be expected, but not appreciated. With growth comes growing pains. Experience in a carrier is what one needs to look for, and a network that is fully redundant, fault tolerant. One has to ask, does your voip carrier have that?"

Andy then blogsOm's post w/o his comment. The post is not wrong, a very Russian way of putting things, but the comment is more correct. If, as Om says, he wants a form of communication that works all the time then VoIP's not there because the carrier network was designed to be best efforts only. To get fault tolerant VoIP we will have to pay a carrier who will give our voice carrying data packages QoS preference over the porn surfers. And that will carry a cost.

Whilst I believe in disruptive technologies and business models, it's part of the DFJ faith, fully fault tolerant VoIP is not as cheap and "free" as currently touted. Yes its an order of magnitude cheaper than circuit switched calls but it's not free. Free as a marketing trick in Russia does not work. Russians don't believe that something that's free is worth having - it's a communism thing. Now a shed load of Russians use cheap VoIP calling cards etc to call Israel and the US, but they expect the QoS that they get.

Bottom line; enterprise-VoIP will save companies a lot of cash - it won't be for free.

No comments:

13 August 2004

VOIP Sub-Critical Dependency

This from Om Malik was going to be just another VoIP's not quite ready for prime time story's and was about to enter file 13 when I picked a comment from Andy Abramson "Outages like Vonage is having are to be expected, but not appreciated. With growth comes growing pains. Experience in a carrier is what one needs to look for, and a network that is fully redundant, fault tolerant. One has to ask, does your voip carrier have that?"

Andy then blogsOm's post w/o his comment. The post is not wrong, a very Russian way of putting things, but the comment is more correct. If, as Om says, he wants a form of communication that works all the time then VoIP's not there because the carrier network was designed to be best efforts only. To get fault tolerant VoIP we will have to pay a carrier who will give our voice carrying data packages QoS preference over the porn surfers. And that will carry a cost.

Whilst I believe in disruptive technologies and business models, it's part of the DFJ faith, fully fault tolerant VoIP is not as cheap and "free" as currently touted. Yes its an order of magnitude cheaper than circuit switched calls but it's not free. Free as a marketing trick in Russia does not work. Russians don't believe that something that's free is worth having - it's a communism thing. Now a shed load of Russians use cheap VoIP calling cards etc to call Israel and the US, but they expect the QoS that they get.

Bottom line; enterprise-VoIP will save companies a lot of cash - it won't be for free.

No comments: