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Sorry you are down, wait we are down, too! (Or: The sad state of HA)

Sorry you are down, wait we are down, too! (Or: The sad state of HA)

This week I learned about an outage that happened at a provider of Microsoft Office applications. Which reminded me about the sad state of high availability across the industry.


 

More on the provider

The provider is a medium sized infrastructure vendor that is successful in providing hosted Microsoft Officer applications, basically running the servers for Outlook for their clients. They are  not small with 5 corporate locations on both sides of the Atlantic, and 10 datacenters in the US and Europe. The provider is professional and has e.g. achieved SOC2 and SOC3 compliance.

The vendor offers a a 99.999% up-time guarantee - but that was definitively broken by being down for most of a workday from 7 AM till 3:30 PM.
 

What happened

Clients noticed in the morning, that they were not able to get their emails, send emails and work with their calendars. When calling the provider, calls went dead, the provider's website and support applications were not available. The first provider to client communication happened then over... Twitter. And Twitter remained the lifeline between provider and customers till - you may have guessed it - the Twitter account went into Twitter jail for hitting the daily limit of 1000 tweets. And while that seems generous - it's not much if Twitter is your only ways of communication with multiple hundreds customers.
 

What went right

The provider got the system back, tried all they can do to get customer informed (so they were obviously in the dark), offered the usual letter form the CEO in the next 24 hours and had that followed up by the COO. The vendor communicated pro-actively that they had broken the service levels, and that that they would waive the requirement to ask for re-imbursement, and re-imburse customers diretly based on their SLAs.
 

What went wrong

In the CEO letter the provider already offered an issue with their routers as the root cause of the outage. And while it's fine to not have the ultimate reasons 24 hours post an outage event - you need to do better than the following from the letter of the COO- 48 hours later:
 

"the routers connecting all our systems each received an invalid update”
 
As my colleague Frank Scavo pointed out - that is pretty passive language - no one did the update. Was it the provider, was it the router manufacturer etc - we do not know. No one is taking responsibility. 
 
Moreover there was no mention why all the routers went down, why the update was not tested separately and routers were not switched in groups, why were no backup routers held back etc. 
 
And the provider explained that the phones (VoIP) and customer support systems were down - because the provider is using its own infrastructure. And while drink your own champagne is a good argument - it is an empty glass when you have a system outage. The provider missed to explain how this happened and why e.g. their DR for their operational systems did not kick in.
 
The lack of an answer on both of these areas does not instill confidence to customers.
 

The sorry state of HA

We all know that data center components should only be switched in groups and with redundancy - but obviously this went wrong at the provider. Equally running your critical customer systems on the same infrastructure with your customers is a disaster waiting to happen - and it happened to this provider.
 
So why do well known and proven HA principles get broken? The reasons are manifold. Human error, overconfidence (both are my bets in this case), cutting corners cost wise, not thinking the impossible, etc are all likely. And human nature is good at discrediting highly unlikely events - but when they happen we too often do not think of it was the decision makers looking the other way back then when they came up.
 

MyPOV

Outages are always unfortunate and can't be planned as the Dilbert cartoon requests. It comes back to how a provider reacts, investigates, communicates and then remedies the sources. On reaction and investigation the provider was solid with a B rating - but on communication and remedies they only deserve an F.
 
And HA on Twitter is easy - get a 2nd and 3rd account and switch over when your main account goes to Twitter jail. Yours truly knows about the 200 tweets per hour limit well. So follow holgermu1, too. Just in case. Happened twice this year - so far. And I won't beat 400 tweets per hour - promised... now wait...

 

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Constellation Research Publishes Cloud Customer Service Market Overview

Constellation Research Publishes Cloud Customer Service Market Overview

Helping brands determine if a cloud solution makes good business sense for their organization

Best practices and a checklist for vendor selection

San Francisco, CA – September 5, 2013 Constellation Research, Inc. the research and advisory firm focused how disruptive technologies transform business models announced today the publication of a new research report: “Cloud Customer Support Delivers High Value” by Constellation Vice President and Principal Analyst, Elizabeth Herrell. Cloud customer support addresses the new demands for cross channel services, social and mobile support.  This market overview discusses the major benefits of cloud services for customer support in addition to factors required for making informed decisions regarding utilization of cloud services for next generation customer support.

This report reveals:

  • Major shifts in customer expectations that drive a new support model
  • How cloud services support innovation to improve customers’ experiences
  • Importantly, this report helps brands determine if a cloud solution makes good business sense for their organization. It also highlights key vendors in this space and the type of services they provide

While cloud solutions have been available for several years, many brands have major concerns regarding using the cloud to support their complex customer support ecosystem. Deciding on a cloud solution for customer support is not just about cost savings but about driving innovation and flexibility into current operations to support emerging support requirements for traditional, social and mobile customers.  This report looks closely at the operational, technical and customer support benefits of a cloud customer support solution and provides guidance in developing a business case for the cloud.

The rapid change in how customers expect to interact with customer support requires that traditional customer support organizations move rapidly to keep up with the many emerging applications that are now considered essential for customer support.  This report provides best practices and a checklist for vendor selection.

This report fits into Constellation’s business-focused research themes: Next Generation Customer Experience and Technology Optimization & Innovation

ABOUT Elizabeth Herrell
Elizabeth Herrell is Vice President and Principal Analyst covering customer experience, customer service and unified communications. Elizabeth’s current research focuses on identifying key trends and innovative technologies for customer support.

COORDINATES

Profile: http://constellationr.com/users/eherrell
Twitter: @eherrell
Linkedin
linkedin.com/elizabethherrell250
Geo: Sedona, AZ

THE REPORT
More information about “Cloud Customer Support Delivers High Value” can be found here: http://constellationr.com/research/cloud-customer-service-delivers-high-value

Press Contacts
Contact the Media and Influencers relations team at [email protected] for interviews with analysts.

Sales Contacts:
Contact our sales team at [email protected].

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News Analysis: Zuora Raises $50M Series E Round, Rides #MatrixCommerce Wave

News Analysis: Zuora Raises $50M Series E Round, Rides #MatrixCommerce Wave

Zuora Rides The Wave In The Subscription Economy

On September 5th, 2013, Foster City, CA based Zuora, announced $50 million in Series E capital.  The announcement has significant ramifications not only for Zuora’s self proclaimed subscription economy category, but also the broader business theme of matrix commerce because Zuora:

  • Expanded the investor pool. Zuora successfully added Next World Capital, Northgate Capital and Vulcan Capital to existing investors.  Benchmark Capital, Greylock Partners, Index Ventures, Redpoint Ventures, Shasta Ventures, Tenaya Capital, Workday founder and co-CEO Dave Duffield and Marc Benioff, chairman and CEO, salesforce.com all contributed to the existing round.

    Point of View (POV): The quality of the investment round and the amount indicate significant affirmation that the subscription economy thesis carries a gravitas among the A-list of Silicon valley investors and angels.   With $132.5M in funds raised to date, Zuora is sitting on tremendous amounts of cash from fundraising.  While Zuora could wait well into 2014 for an additional round, the move to raise additional capital will provide Zuora with an advantage over any new entrants or potential direct competitors.  Buyers can expect Zuora to be around for quite some time.
  • Added new board members with deep experiences. CEO and founder Tien Zuo adds Abhishek Agrawal of Vulcan Capital and Craig Hanson of Next World Capital to the board.

    Point of View (POV): Craig Hanson  brings significant experience in mergers and acquisitions of late stage and public companies.  Successful acquisitions include MXLogic, LeftHand Networks, NexGen Storage, Nimsoft, PSS Systems, and SenSage.  Abhishek Agrawal brings deep consumer experience from his General Atlantic heritage including Alibaba Gropu, Bazaarvoice, Dice, Facebook, Gilt Groupe, and Network solutions.  Buyers can expect more expertise in supporting vertical markets.  Buyers can expect new partnerships and entry into new geographies.
  • Demonstrated continued growth in a new market category. Since 2007, Zuora’s core solution provides subscription commerce, billing, and finance solutions for pay-as-you-go pricing models.   The model of recurring subscriptions has led to customer wins at customers such as Appneta, Borderfree, BoxHop, Dell, Docusign, Dyn, Gigya, Google Wildfire, HasOffers, Joyent, MLSListings, Okta, Rightscale, Symbility Solutions, SMTP.com, Timetrade, UniversityNow, Versature, and Zendesk.

    Point of View (POV): Zuora enables the business model shift to subscriptions and time sliced access for customers disrupting existing business models built on ownership and one time upfront payments.  Zuora’s contract values have risen from the low five digits to over 20 million-dollar plus deals in the past 3 years.  Buyers can expect more expansion in supporting vertical markets.

The Bottom Line: The Subscription Economy Will Power Elements of Matrix Commerce

Zuora’s growth highlights the significant opportunity not only for cloud businesses, but also for digital goods, media, education, travel, high tech, telecommunications, and consumer packaged goods to make the business model shifts.  Two parallel trends, the sharing economy and the shift from analog to digital business create macro factors to the subscription economy thesis.  In the sharing economy, where consumers prioritize access over ownership, Zuora plays an important role as legacy businesses reinvent their business models to support access to goods, services, and experiences among certain demographics.  In the shift from analog to digital business, brands and companies will require players such as Zuora to provide the commerce, billing, and finance infrastructure.   Today’s funding announcement highlights the growing investments and bets in the matrix commerce category.  The result – innovative startups and entrepreneurs can rely on new solutions that will enable business model disruption.

Your POV.

What’s your plan to achieve customer centricity? Are you embarking on a digital business transformation?  Let us know how it’s going!  Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) com.

Please let us know if you need help with your Matrix Commerce and Digital Business transformation efforts.  Here’s how we can assist:

  • Assessing matrix commerce readiness
  • Developing your digital business strategy
  • Vendor selection
  • Implementation partner selection
  • Connecting with other pioneers
  • Sharing best practices
  • Designing a next gen apps strategy
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Related Resources

Reprints

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2001 – 2013 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Customer Experience!

 

 

 

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Speed-Briefings at VMWorld inside and outside the VMware ecosystem

Speed-Briefings at VMWorld inside and outside the VMware ecosystem

I had the pleasure to attend the VMWorld user conference last week - if you have missed my takeaways you can find them here. VMworld is a gathering of all professionals and companies involved in virtualization, IaaS and PaaS - starting 6 months ago I began receiving questions during briefings (formally and informally) about whether I would attend.

 
 
[I kept the sequence in alphabetical order - there is no preference or ranking of vendors here!].
 

 
AppEnsure was founded with the idea to bring an end to perennial finger pointing that happens between different functions of technical support, when a performance problem occurs, while the business side is in agony. I met with the founders that went the hard way by looking at the network packet traffic - by inspecting the packets and recording normal application performance and then being aware of issues coming up. Sounds pretty hard but with both founders coming from a networking background they seem to know what they are doing and have mastered a perennial problem for the business users. 
 
 
Atlantis computing brings a solution to the usually sluggish VDI situation - by moving the whole desktop and storage into server side RAM. Obviously a huge performance boost - that brings the VDI experience ahead of even very fast SSDs - and the cost seems to be controlled by amongst others by compression and in-line de-duplication of requests across the clients. Atlantis claims that the cost of a virtualized PC is below of that of a real PC - while offering better performance. Give their impressive list of customers they are clearly on to something - making usually performance challenged VDI deployments scale is an obvious strong point. 
 
 
 
CloudPhysics, founded amongst other by two VMware alumni, makes reporting and simulating load in a VMware running data center easier. Strong points are the focus on usability - it has to work in 60 seconds and show a benefit - said founder and CTO Irfan Ahmad and the crowd sourcing or community based building of cards - the way CloudPhysics stores and display system information. This should be a powerful combination that will the company drive adoption. If CloudPhysics manages now to advise the IT community on which system loads could when be moved to the public cloud - there is a home run potential here.
 
CloudVelocity makes it easy to move multi tier apps to the public cloud - without need for modification. Sound like really hard if not impossible to do - but with the founding teams is ex Neopath and with that has significant expertise in file exploration and transfer. Right now the company focusses on Disaster Recovery - and more interesting - Cloud Cloning and Migration. The company has the experience and guts to potentially create one of the first migration products between private cloud and public cloud - and there to multiple providers. The strong point is the non invasive way to just read and transfer files to different cloud environments.
 
Next up was iland - a relatively small cloud infrastructure provider that nonetheless has been able to play with the big guys around development and test cloud offerings, disaster recovery and VMware related services between private and public cloud. The strong point is the companies expertise with VMware and smart product and service development around the needs of the ecosystem. It's encouraging to see dynamic players enriching the numbers of options companies have to build out their cloud infrastructure and that these players can chart a successful course through the market. 
 
 
 
Not really a startup anymore Jamcracker addresses the need to offer a framework and platform to vendors that want to sell cloud applications and services into their respective ecosystems. And while large public cloud providers will create their own platforms and stores, Jamcracker is a viable option for telecom providers, IT Distributors and large end users, as e.g. public institutions. As such Jamcracker plays a critical role for the adoption of web services in different industries, the strong point being an integrated platform and significant complexity reduction for the operator.
 
 
Teradici plays in the VDI space and own the PCoIP protocol that allows the host side compression of video images and its delivery to non PC clients. Teradici technology features heavily in VMware's horizon VDI product but the company works also outside the VMware ecosystem. Teradici's strongpointt is a turnkey solution around their PCoIP protocol starting with hostside hardware acceleration, over optimized network usage all the way to enable VDI clients. It's good to see a system play around a strong protocol - you don't see these often these days anymore - but in a performance critical space like VDI they have room to go.
 
 
 
Zerigo is part of the larger 8x8 Inc and focuses on bringing the Destop as a service (DAAS) to the SMB companies. The company exploits some of the weaknesses in scaling, licensing and usability that the VMware products have, that focus on the larger customers. Strong points are the understanding of the SMB market and creating smart software add-ons that create a simpler and easier to use user experience.
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Constellation Names Bridgette Chambers as New CEO

Constellation Names Bridgette Chambers as New CEO

Founder and former CEO R "Ray" Wang remains on board as Chairman and Principal Analyst

Today Constellation Research, Inc. announced that Bridgette Chambers, a well respected and accomplished executive with a track record of successful corporate turnaround, transformation, and growth, is joining Constellation as Chief Executive Officer and member of the Board of Directors.  Chambers will take the reins from founder Ray Wang, who will maintain his role as Chairman and Lead Analyst and continue to drive the company’s research strategy.

Chambers comes to Constellation from Americas’ SAP Users’ Group (ASUG), the largest independent trade association serving SAP customers and partners on the globe.  During her tenure with ASUG, Chambers led a transformation that took the twenty-year brand from a period of financial and operational trouble to one of prosperity and stability.  While serving as CEO for ASUG, Chambers doubled membership, enhanced services and delivery, rebuilt the corporate culture, and created substantial growth in earnings.  ASUG was awarded two American Business Awards under Chambers’ tenure, including Company of the Year recognition in 2012 and 2013.  Chambers was awarded several ABA awards as well, including recognition as Maverick of the Year in 2012 and Executive of the Year in 2013.

“Constellation Research has experienced remarkable growth in the past three years.  We are poised to continue the growth and success by enhancing our business strategy, growing our analyst community, and expanding into end-user markets,” said Wang.  “Bridgette has long championed purposeful disruption for the sake of progress and innovation and I am confident she is the right person to take our firm to the next level. This new Constellation Research leadership team has a shared vision for the future and a passion to take the company to new heights.”

“Making smart technology decisions is an imperative; translating those smart decisions into value is a source of competitive advantage.  I believe Constellation’s unique value proposition empowers our clients to make bold use of smart, disruptive innovation and thus, become more competitive in the market place,” said Chambers.  “Ray has built an exceptional brand and an impressive body of market-leading research.  I am excited and honored to join the firm.  I have no doubt that our growth strategy and expansion plans will elevate Constellation Research, and the customer communities it serves, into the ranks of the most innovative brands on the globe.”

Chambers received her B.S. from The University of Houston and her MBA from Texas A&M University.  Chambers is a well-known keynote speaker and presenter.  Chambers honed her leadership skills while proudly serving in the U.S. Army Reserves and Texas Army National Guard.

Constellation Research is hosting its successful Connected Enterprise event, The Executive Innovation Conference October 30 to November 1 at the Ritz Carlton in Half Moon Bay.  During the event Wang, Chambers, and COO Dennis Kanemitsu will address Constellation’s exciting growth strategy and launch new offerings.  Register here: http://connectedenterprise.ontrackevents.com/speakers.cfm

COORDINATES
Twitter:
@bridgchambers
LinkedIn: www.linkedin.com/in/bridgettechambers?

Press Contacts:
Contact the Media and Influencers relations team at [email protected] for interviews with analysts.

Sales Contacts:
Contact our sales team at [email protected].

 

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Vidyo-Google Announcement of VP9 SVC for WebRTC: Why It's Important

Vidyo-Google Announcement of VP9 SVC for WebRTC: Why It's Important

*Originally published on NoJitter.com

Vidyo is positioned to see tremendous benefit from a revenue and deployment perspective as WebRTC clients proliferate using VP9 SVC

Google and Vidyo jointly announced an agreement in which "Vidyo will develop a scalable video extension for the VP9 codec as part of the WebRTC client open source project". What does this really mean, and what will be the impact for both WebRTC and Vidyo?

This article will explore the implications of the announcement, but first will offer some background on the technology.

A Short Discussion of Video Encoding
Digital video must be compressed, using a video codec, so that it can be transmitted efficiently over a network. Although many video codecs exist, the most prevalent in the enterprise video conferencing industry today are H.263 and the newer H.264. Another codec, VP8, is the video codec currently available in the WebRTC implementations available via Google Chrome and Mozilla Firefox browsers. Google is currently working on the next iteration of its VP codec, VP9.

The H.264 codecs allow video to be compressed into bit rates that are half or less of the H.263 bit rates, for equivalent video quality. H.264 "AVC" or baseline profile codecs have been available since they were approved by the ITU in May 2003, and several clarifications or enhancements have been added since then.

One of the most significant enhancements, approved in November 2007, was H.264 Scalable Video Coding (H.264 Annex G). SVC leverages the same encoding techniques but allows the encoding engine to split the video into a base layer, called AVC, and several enhancement layers or streams. These enhancement layers can represent spatial resolution (screen size), temporal resolution (frame rate) or video image quality. Vidyo was the company that really brought H.264 SVC into the video conferencing world through its line of SVC-enabled Vidyo endpoints and infrastructure.

It is this additive capability of SVC layers that makes this encoding technique so compelling, because it eliminates the need for video transcoding and bridging devices. Even if some layers of the full video stream are removed, the resulting sub-layers form a valid video bit stream for target endpoints supporting lower quality . For example, a mobile phone, with a small screen, requires a much smaller amount of video information in order to show a high quality image on its small display; consequently, it does not need or use all of the SVC layers a telepresence system would require. Contrast this to a non-SVC call in which a transcoding video bridge would be required to connect systems with different resolutions to the same call.

Figure 1. H.264 SVC Introduces Temporal, Spatial and Quality Video Layers

It is the responsibility of the SVC-compliant endpoints to signal the capabilities they have to other endpoints and to any infrastructure participating in the call. Note that SVC does not use less bandwidth than AVC; it may actually increase bandwidth by 10% to 15% compared with AVC. But the tradeoff is worth it because the video infrastructure should in principle be less expensive.

SVC-encoded video performs better over networks with significant packet loss or with less available bandwidth; this is because it sends only those video layers that can make it through the network and which are then used in the decoding process to reconstruct the video image at a lower frame rate or possibly a lower image size or even at a lower video quality. H.264 AVC and H.264 SVC both require about half the bandwidth of the older H.263 codec, and it is anticipated that H.265 and VP9 will require about half of the bandwidth of their predecessors.

Compressing video using newer video codecs usually requires more CPU processing than does compressing a codec's earlier versions. Consequently, care must be taken when deploying a new version of a codec, because one must assure that the devices on which this video is to be compressed have enough processing power.

Not all SVC encoders are created equal. The standard really defines how to decode video, not encode it. So video encoders from different vendors will support varying video quality and bandwidth efficiencies. In principle, all encoders encoding the same video standard should at least interoperate at the base layer. The reality is that implementations from different vendors may not interoperate, even for the base layer, and SVC implementations certainly do not interoperate. In addition, some incompatibilities even for the same codec (H.264, for example) may arise due to proprietary signaling a vendor may choose to use.

Figure 2 below shows the video compression codecs used by major desktop video conferencing vendors.

Figure 2. Video Compression Codecs Used in Several Desktop Video Solutions


* Note that Lync 2013 does not support H.263. Lync 2010 does support H.264. Also see http://social.technet.microsoft.com/Forums/en-US/ocscapacityplanning/thread/8bb71480-64d8-47f3-b639-0f4b7d3320ff for more details on the Microsoft codecs.
** The Vidyo endpoints do not support H.263 nor H.264 AVC natively. A gateway is required to connect with these endpoints. Vidyo asked that H.263 and H.264 be placed in this list so that readers would not be misled into thinking that Vidyo does not support these older codecs at all.

A Short Discussion of Multipoint Video
The first question many video users ask after experiencing a point-to-point video call is how to have a video meeting with three or more people. There are basically two mechanisms for enabling multiparty video, depending upon which codecs and bridging hardware are being used: a Multipoint Control Unit (MCU) or a video media relay server.

Traditional MCUs
If multiple endpoints in a call are using single-layer codecs like H.264 AVC or H.263 (or earlier codecs), then an MCU is required for audio and/or video bridging. (This assumes continuous presence, i.e., video from multiple video endpoints viewable simultaneously on the same screen, sometimes called "Hollywood Squares" video). Each video endpoint enters into a point-to-point call with the MCU. The MCU receives video feeds from all endpoints and mixes both the audio streams and the video streams and then sends a single audio and a single video stream back to each endpoint.

In order to do this mixing, the MCU must first decode the audio and video streams. It then combines or mixes the audio, often mixing only two or three of the audio inputs with the most amplitude. Simultaneously, the MCU takes those images corresponding to the loudest audio inputs and puts them together in a smaller single image. It then re-encodes the audio and video, and returns these streams to the individual endpoints. (There is more processing than is described here; for example, there has to be some subtraction when mixing audio so that a speaker's own audio is not returned. However, for the purposes of this paper, the description here will suffice.).

Figure 3. How A Traditional MCU Mixes Video

MCUs exist as software running on a server or as dedicated hardware with Digital Signal Processing (DSP) chips. Large enterprises typically use hardware-based MCUs for performance reasons. By the nature of the processes involved, MCUs add some latency (typically less than 200 milliseconds) to a multipoint video conference. In addition to doing the processing necessary to create a composite video image, the MCU must have "jitter" buffers to reassemble packets that arrive out of order, a common occurrence on many networks. Also, because there are multiple encode/decode cycles, the video quality will slightly degrade.

Media Relay Servers for SVC
SVC codecs and the endpoints that support SVC have enabled a different way to provide multipoint video. These endpoints are able to encode and decode multiple streams simultaneously. An SVC multipoint video solution is controlled by a media relay server that determines which layers are sent to each connected endpoint. At least one H.264 SVC solution, that from Vidyo, also requires the media server even in point-to-point calls between Vidyo's H.264 SVC endpoints. In any case, as discussed above, each endpoint receives only those SVC layers it can properly decode based on an endpoint's screen size, processing power and the dynamically computed available bandwidth connecting the endpoint to the video router.

In an SVC solution, no video is mixed or transcoded (assuming all endpoints are SVC; if there is a mix of SVC and non-SVC endpoints, some mixing will still be required). For SVC endpoints, the media relay server replicates and routes video streams for each participant to the other endpoints without mixing. The SVC-compliant endpoint simultaneously decodes these multiple video streams, each with their own layers, and displays a multipoint image properly on its corresponding screen.

Because SVC media relay servers do not encode or decode the video, the video quality will be higher than when a MCU is used. In addition, routing video packets adds less latency than does a MCU (typically less than 10-20 milliseconds).

Figure 4. SVC Video Call: Media Relay Server Replicates and Routes Video Packets, Mixing Only The Audio

The Implication of Using SVC for WebRTC
One of the complaints about WebRTC video is that it requires a lot of bandwidth--typically between 300 kbps and 2 Mbps--and that there are few options available to control that bandwidth. Creating the new VP9 SVC codec will reduce bandwidth in two ways:

1. VP9 will be able to more efficiently compress the video, and may give equivalent image quality at half the bandwidth. This is a huge benefit to VP9 in WebRTC.

2. Using SVC technology will allow WebRTC developers to provide excellent video quality even on low bandwidth networks or networks with significant packet loss. The proof that it works is seeing the current Vidyo H.264 SVC implementation working on mobile devices like Android phones, iPhones, and iPads over Wi-Fi connections.

The current WebRTC deployment using VP8 does not scale particularly well beyond a small number of endpoints in a call, because each endpoint must make a direct connection with every other endpoint. There are some companies that either have or who are working on WebRTC MCUs so that the MCU infrastructure will mediate the need for so many video streams and so much bandwidth and processing power required of each endpoint in a multiparty video call.

With WebRTC VP9 SVC, point-to-point calls will work just fine. But multipoint calls will need a media router. It is the media router that will be able to provide the fine controls for routing video packets. Using the VP9 SVC codec, each endpoint encodes at the highest quality that it is capable of producing. The media server determines what packets to send to all the other participants based upon what resolution they want to display for each participant, balanced with the available bandwidth and computational power of the device. A website serving up WebRTC will be able to become the media router, or this function can be disaggregated to a specialized server that only does media routing.

The bottom line is that WebRTC based on VP9 SVC will require much less bandwidth than WebRTC based on VP8 does. Just as H.265 compared to H.264 will require more processing power, VP9 as compared to VP8 will likely require more processing power as well. Should mobile chipset manufacturers include VP9 SVC in their future chip designs, then mobile devices will be able to support VP9 SVC just as easily as they do H.264 SVC today.

The Implication of VP9 SVC for Vidyo
Vidyo as a company has had remarkable success providing video communications technology to end user companies and to OEM manufacturers who have incorporated Vidyo's video capabilities within their own products. Vidyo will provide the WebRTC browser endpoint SVC technology through Google to the WebRTC open source product; however, the "secret sauce" of controlling the video effectively remains highly valuable Vidyo proprietary technology. If WebRTC ultimately includes VP9 SVC as enabled by Vidyo's technology, then every web server that uses WebRTC potentially becomes a customer for Vidyo's media routing engine.

As Vidyo stated in a recent interview: "Application developers may create their own SVC media routers from scratch, or they can use ours. Nothing prevents them from using the WebRTC VP9 SVC capabilities." However, Vidyo has 38 patents issued for optimizing control and routing video, with more on the way, which are largely not part of the WebRTC project. The company is positioned to see tremendous benefit from a revenue and deployment perspective as WebRTC clients proliferate using VP9 SVC.

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VM World 2013 – a business assessment

VM World 2013 – a business assessment

Holger Mueller, discusses VM Ware's biggest challenges with Dennis Howlett. Filmed at VM World 2013.

Chief Customer Officer Chief Information Officer On <iframe width="420" height="315" src="//www.youtube.com/embed/0R6IejToBN0" frameborder="0" allowfullscreen></iframe>
Media Name: shmueller1.png

Video Customer Support Gains Traction

Video Customer Support Gains Traction

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Whether or not you like being on camera, expect that you will be in the future when contacting your customer service organization.  Video has had relative limited usage for customer support but as costs decrease, many view video as a more natural way to engage with others and share information.  The former stumbling blocks of video, such as difficulties with setup and support, non-friendly user interface and struggles with publishing content have been reduced through technical advances and cloud services. Also, as Web Real-Time Communications (WebRTC) becomes more widespread, video sessions will become even simpler to deploy. 

The rapid rise in smart phones has more consumers interested in using video and receiving information through video channels. Video customer support includes live video chat with agents and video live streaming. Additionally, many consumers regularly use their smartphones and tablets for video conversations with friends over popular social media channels, such as Facebook, YouTube or Skype. This trend for video conversations and video viewing over social networks has set an expectation by consumers to receive more video content and engage in conversations with brands for both sales and service.

Brands spend much time and money trying to gain a competitive edge for their products and services.  Providing video as a customer support channel provides a way to differentiate customer service and deliver quality support.  Video for customer support enables faster delivery of content and information. Customers can absorb information more rapidly in a video clip than by reading information. This enables support organizations to spend less “live” talk time when streaming relevant video information to customers. However, it is important for the video to be succinct and not contain extraneous marketing comments. Video also adds an additional element of personalization, while also sending a message that the brand really cares about them

Video clips also get the job done faster than live conversations.  Savvy customers often go to online communities to troubleshoot an issue.  Short videos of customers who have solved the same problem provide credible insight and encourage customers to resolve problems. This works particularly well for explaining “how to” issues on products recently purchased.  It can also be used to answer repetitive questions that require several minutes of an agent’s time to resolve.  When a video clip is made describing how to fix a common issue, agents can forward the video clip to the caller’s smartphone and significantly reduce time for repeat questions.

I expect a sharp rise in video for customer support during the next few years as brands find that it adds an extra dimension to customer support and can also reduce agent talk time, which remains highest expense for customer support. 

Next-Generation Customer Experience Chief Customer Officer

Digital is Getting More Fragmented Not Less

Digital is Getting More Fragmented Not Less

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There was a time when the only “digital” device in your home was likely to be an alarm clock.

These days, we live with a range of internet connected devices from refrigerators to lightbulbs, and CCTV systems to VOIP phones. And that’s before we start counting computers, laptops, tablets and smartphones. When network security firm Sophos surveyed gadget users around the world in March 2013, respondents indicated that they carried an average of 2.9 devices with them. Smartphones and laptops were the most popular, with eReaders rounding out the list at 29%.

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But these days, “digital” isn’t just about hardware. In fact, it’s not even about software. It’s about BEHAVIOUR.

When we think of digital we are thinking of modes of production and consumption – what we create and what we consume. And since the explosion of the social web, we have seen a massive fragmentation of what can be described (for want of a better word) as “digital channels”. In the early days of the web, the only digital channel you had was email. And then the world wide web came along and began to nip away at the edge of our digital experiences. It promised much but seldom delivered.

When Brian Solis introduced the Conversation Prism in 2008, our digital experience had grown to embrace the fledgling social media platforms like Flickr, LinkedIn, kyte, Zooomr and Facebook. Along for the ride was Ning, Pownce, eventful, WordPress and Twitter (amongst others). Of course, not all survived, but they paved the way for many who followed. And vitally they transformed our digital behaviour, our online body language and set our expectations for online experiences.

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The latest version of the Conversation Prism has now been released. And you can see that consumers are presented with a vast array of options for both production and consumption of content. There are many more ways to engage online – more platforms, more approaches and more niches. And with each of these comes rules, regulations, terms of service, user etiquette and community cultures. It can be a minefield for users and a battleground for inexperienced marketers. This presents marketers with serious challenges:

  • Strategy is execution: We have to make our peace and realise that the pace of change is never going to slow. We must now view strategy as execution – something that happens in real time with real customers. We need to work with a continuous digital strategy to not only survive but vitally, to remain relevant.
  • Digital skills must be prioritised: This is not to say that traditional marketing skills no longer have a role. Far from it. But digital will continue to grow in prominence. If you have not begun to refresh your skills, start now. Check out cheap and low cost online courses from Coursera, Skillshare and Udemy. For those in Sydney, Vibewire also runs regular skills based workshops that are tremendous value. Also check out what is on offer from ADMA.
  • Automation for marketing at scale: The dream of one-to-one marketing is upon us – but comes with discipline, requires strategic planning and technology investment. Identify those repetitive marketing tasks and investigate the marketing automation solution that is right for you and your business. You’ll be amazed at the revenue impact.

So before you go wading into the sea of digital channels, be sure you’ve got your floaties on – and don’t be afraid to ask for help.

 

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Microsoft gets even more serious about devices - acquires Nokia smartphone business

Microsoft gets even more serious about devices - acquires Nokia smartphone business

After a long weekend due to labor day, Microsoft and Nokia hit the press with the intention to acquire Nokia's smartphone business and licenses by Microsoft. Which was a rumor many times in the past - but nonetheless a surprise that it (still) came through now (at last).

A surprise - or not?

There have been numerous rumors before, that Microsoft would buy a smartphone maker, and those rumors were often around Nokia, HTC and Blackberry. So now the rumors have come to an end - with the new Microsoft & Nokia combination. 

At the end of the day Microsoft needed to correct its weak position in the smartphone space - after all it competes with Apple and even more with Google - who either have an integrated device business - organically built or bought from Motorola. Understandable that the decision makers in Redmond did think that they could not compete. 

What does Microsoft get?

Microsoft gets Nokia's smartphone business, Steven Elop and some executives and licenses key patents for 10 years and will license also the mapping and location services of the HERE division of Nokia for the next 4 years. .

Nokia - a shadow of itself

The once darling and clear mobile phone market leader - only 10 years ago - and a true smartphone pioneer - is only a shadow if itself now. I remember using the Nokia Communicator and the shock and awe its fax capability had back then - amongst many other then cutting edge features. 

Nokia now is merely three divisions with NSN (network infrastructure), HERE (maps and location services) and Advanced Technologies (development and licensing). Some of my contacts in the intellectual property circles already started to call the new Nokia a potential patent troll - we all should hope it will not come to that. 

Organizational Implications

With Elop talking over the devices and bringing its team over from Nokia - it questions the role of Larson-Green who will report to Elop and was one of the rising stars of Microsoft executives, even a potential Ballmer replacement. We do not expect that Larson-Green will play a diminished role for long, the question is only will it be at Microsoft or at another company.

And Ballmer's email to employees also described the alignment of the Nokia marketing, support, etc functions with the new organizational model, meaning they will be moved to the respective functional leaders. Something we see critical - see our view on the CEO succession here

Devices - no matter what

One has to admire (to a certain point) the guts of the decision makers in Redmond. Despite record write down on inventory of the ill fated Surface tablet - they seem not to have enough of the device business. The belief of these decision makers must be that to succeed in the device space, Microsoft needs to have very tight control over software and device. 

Microsoft had that with the Surface and did not / has not succeeded there. Now it will be more of the same - the question is - what will be the secret ingredient to make the device strategy a success now?

Was there friction?

The easiest explanation for the intended acquisition would be, if there was still some sort of friction between Microsoft and Nokia. That this wasn't personal is shown that the Nokia executive team, that was involved with smartphones, is moving over to Microsoft. 

A potential reason could be that the architects of this acquisition know, that Nokia was not funded well enough to make a difference in the market place (aka marketing spend). That's an argument one could buy in.

The other possibility is, that the lines of communication between software in Redmond and hardware controlled in Espoo where too long and not effective. If this is the case the acquisition also makes sense - but will be a point of concern to the other Windows Mobile partners like HTC etc. Needless to say Microsoft has already addressed these concerns and its also clear that Windows Mobile will only become a success in the market place if - at least for the next 2-3 years - there is a successful multi vendor strategy.

MyPOV

The merger of two weak players does not make a strong one. But it certainly gives Microsoft more direct control and the chance to invest at will into the smartphone business. The appetite for more device business and exposure is baffling - it was never Microsoft's strategy, the company has become market leader with the help of partners and the recent issues of the Surface tablet would not have encouraged many boards to do more device business and risk more of the same. You certainly cannot proclaim a lack of guts by the Microsoft board. 

The next quarters will tell what held Nokia back - was it Nokia - or was it Microsoft. Exciting times. 

New C-Suite Innovation & Product-led Growth Next-Generation Customer Experience Tech Optimization android Google Microsoft Chief Executive Officer Chief Information Officer