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October 14, 2008 5:00 AM PDT

Microsoft plans unified communications update

by Ina Fried

Aiming to make further inroads into business telephony, Microsoft said on Tuesday that it is working on an update to its unified communications software.

Dubbed Office Communications Server 2007 R2, the release is currently in private testing and is slated to be released in February. The product, which will add group chat and screen-sharing technologies, comes roughly a year after Microsoft introduced the first version of its business telephony product.

Microsoft said that about half of Fortune 500 companies have at least one instance of Office Communications Server installed, but the company wouldn't give any sales estimates or say how many people are using the software to handle telephony as opposed to simply for corporate instant messaging.

"Where we are at with Office Communications Server, we have incredible acceptance and penetration from an instant messaging standpoint," Microsoft Business Division President Stephen Elop said in an interview. As for telephony, though he said Microsoft is still in the "early adoption" phase.

Elop declined to offer publicly any sales or unit targets for the new release, but said the software has exceeded internal forecasts so far.

"We still have steps ahead, (but) we're well on that journey," Elop said.

While some products are tougher to launch during tough economic times, Elop said OCS is the kind of product that can sell well into a slower market. In an interview on Friday, Elop said that such tough times play to Microsoft's strengths.

"It's at times like this that some of the most difficult technology decisions can be made," Elop said. "This is a disruptive technology that has value (and) lowers cost."

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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by Cheese McBeese October 14, 2008 6:38 AM PDT
Microsoft has a partnership with Nortel which is (believe it or not) still one of the big players in the enterprise voice world. In many of its commercial-grade UC deployments, Microsoft integrates the Nortel voice solution. Over time, I'm sure Microsoft will add the functionality to deliver native voice, but they don't really need to be in a rush. It's not like over time Nortel (or Cisco) is going to build in native Office applications.
Reply to this comment
by Penguinisto October 14, 2008 6:44 AM PDT
Nortel is pretty much everywhere - I have yet to see a PBX board that didn't include Nortel's name plastered on a box somewhere... little wonder that Microsoft (and Cisco, and etc) plays nice with them.

Irony of ironies, the older Nortel rigs run on.... OS/2.

/P
by Commander_Spock October 14, 2008 8:37 AM PDT
Wow! Re: "[....Irony of ironies, the older Nortel rigs run on.... OS/2.....]" Simply fantastic; and, if the IBM's Lotus Symphony/IBM's Lotus Notes/IBM's Lotus Sanetime mantra on "OS/2" takes off..... then - Its Blada Bling, Blah De Blah!
by Penguinisto October 14, 2008 6:41 AM PDT
Heh - they won't say because Cisco dominates VoIP gear.

For most corps, Communicator isn't much more than a glorified IM that handily plugs into Outlook/Exchange so you know who's online or busy.

Don't see how it could sell well in a tougher market, though - OCS licensing is as expensive as Hell (for what it does), requires modifying your existing Active Directory schema, and eats far more resources than it really should. It's almost as bad as SharePoint, truth be told.

/P
Reply to this comment
by MMC Racing October 14, 2008 7:55 AM PDT
Funny statements you make.. First - oh no, it extends the schema! So does Exchange.. So does a number of 3rd party products. What is the concern?

As for eating resources, the IM portion of OCS is extremely scalable. Hosting Audio/Video conferences are the intensive services - but that is true for any product that has to deal with audio and video.
by Vegaman_Dan October 14, 2008 11:38 AM PDT
"For most corps, Communicator isn't much more than a glorified IM that handily plugs into Outlook/Exchange so you know who's online or busy."

I've been using it now for three years. It replaced the telephone entirely. All voicemails also show up in email as attachments. I can make calls from *any* computer I'm logged on to. I can control my desk phone remotely. The system integrates with Exchange wondefully. The video features work if you have the bandwidth, but that is true of any video streaming demands on a network.

Could you tell me how you were able to tell that more than 50% of all the corporations in the world met your criteria? What evidence do you have to back up your claim? I'd like to verify it, if you don't mind.
by Penguinisto October 14, 2008 12:26 PM PDT
@ MMC Racing: Try reverting after you've decided to remove OCS, or end up having to make changes (e.g. after mergers, business name-changes, etc). With Exchange, you pretty much plan for it and install it initially. OCS isn't worth the potential headaches and downtime.

Anyone who treats the AD schema like a mere plaything is usually someone that later folks have to go in and clean up after.

@ Vegaman_Dan: I'm not surprised that you use OCS - you work at Microsoft after all. One would expect MSFT to prefer their own products in-house, no? Come out to the real world sometime though... things look a lot different out here. ;)
by Vegaman_Dan October 14, 2008 3:01 PM PDT
Penguinisto wrote:

"@ Vegaman_Dan: I'm not surprised that you use OCS - you work at Microsoft after all. One would expect MSFT to prefer their own products in-house, no? Come out to the real world sometime though... things look a lot different out here. ;)"

Ah, so you aren't going to back up your comments and claim that more than 50% of all corporations in the world are using Communicator as a glorified IM? You haven't brought forth any of your research of all these companies? I'm somewhat surprised that you won't even back up your own claim. Don't you believe in what you are saying yourself?

Now see, this is typical of your comments and why people don't take you seriously. I asked for evidence to back up your baseless claim and you changed the subject. You had the opportunity to defend yourself and really show that you were honest about your statement- but instead you avoided the issue and derailed any credibility that might have resulted. If you aren't willing to back up your claims with real world evidence, then don't make them in the first place. You're wasting everybody's time.

I've used Communicator at many companies in the past. I am in the real world, and it doesn't take long to see that you're simply just full of it.

FAIL.
by Seaspray0 October 14, 2008 3:33 PM PDT
You are a linux person and have never used it and have probably never seen it in use. Where's the "truth be told" in that? I'm working now with a company that just switched to it in the last 2 months. It went operational just prior to moving to their new building. When they moved, they didn't install any phone system; they didn't have to. The cost savings of that alone paid for OCS. What do the users think of it? They love it.
by The-UC-Guy October 14, 2008 7:49 AM PDT
More Information about the OCS 2007 R2 features are available on my blog
http://theucguy.wordpress.com/2008/10/12/microsoft-ocs-2007-r2-new-version/

I have gathered them from diffirent sources and some MVP friends :-)

also my blog contains updated information about Unified communications and all about OCS 2007 issues , integrations , news , know how.
http://theucguy.wordpress.com

Regards
The UC Guy
Reply to this comment
by Commander_Spock October 14, 2008 12:35 PM PDT
Right on Redmond - We are right behind ya!

Re: "Unified Communications + Collaboration = IBM's UCē Strategy"

http://www-01.ibm.com/software/lotus/unified-communications/

See ya at the "New Year's Eve Ball" in 1998 "ISO" Party Style.
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by Tony Rybczynski Nortel October 16, 2008 6:46 AM PDT
Nortel is distancing itself from traditional PBX vendors (including Cisco) who pooh pooh OCS telephony, by embracing these UC telephony solutions under its unique alliance with Microsoft.
See
http://blog.tmcnet.com/the-hyperconnected-enterprise/unified-communications/nortel-embraces-ocs-2007-telephony.asp
Reply to this comment
by TV James October 20, 2008 11:18 AM PDT
Is that why I have to press "7,6" to delete voicemails? Ugh. Nortel's Call Pilot is awful. Too many button presses necessary to do anything.
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