The move will take Nokia into close competition with fixed-mobile substitution (FMS) early movers such as Ericsson, Avaya and the recently enterprise re-focused Motorola.
Nokia has dabbled in the area of enterprise voice before, as have many others. Indeed, the company was talking up prospects for the technology more than a year ago. But the current effort indicates a more concerted effort by Nokia to capitalize on an area that is only now starting to generate genuine interest in terms of deployment.
Jaakko Olkonnen, general manager of the newly-created enterprise voice solutions business with Nokia Enterprise Solutions highlighted the opportunity as Nokia sees it.
Voice is still the biggest application in the enterprise in terms of spending and number of users. It’s bigger than email or ERP.
The biggest trend in voice is VoIP [voice over IP] and integrating legacy phones and PBXs in terms of IP-based networks. Based on research we have done and a lot of active engagements we believe that an even better proposition is a converged fixed-mobile [network]. That will provide even better cost savings and provide mobility to an even greater proportion of the work force.
Mr Olkonnen did not elaborate significantly on Nokia’s plans in FMS although indications are that the mobile phone equipment vendor intends to capitalize on its core competencies.
We don’t have to wait for devices and voice over wireless LAN [VoWLAN]. A lot can be done with cellular. That knowledge we’re using when we put [our experience] together with the fixed side of telephony, he said.
Most probably, Nokia’s strategy enterprise voice strategy will be centered on the creation of dedicated GSM clouds for corporates. These would presumably offer full access to PBX (private branch exchange) functions such as voicemail, follow-me calling, call distribution and so on using a single phone and number, both inside and beyond the local network.
It remains unclear whether Nokia intends to offer its products directly or whether they will be provided through service provider partners. However, the company appears ready to call on the technical expertise of others to achieve its aim. We’re working together with partners, said Mr Olkonnen, both established enterprise voice players and smaller players.
Some precedent for this kind of service has already been set. For instance, Siemens provides indoor GSM networks for Spring Mobil’s fixed-to-mobile substitution service in Sweden. Spring Mobile handles calls made inside the private network while Tele2 handles outside calls and international roaming.
While Nokia is not the first company to chase the opportunity in fixed-to-mobile substitution it believes the door remains open to new entrants as the potential cost savings and productivity benefits become clear. [There are] a few commercial trials but it’s still quite new and there’s a good chance to succeed in future, said Mr Olkonnen.
Enterprise solutions has become Nokia’s fastest growing business of late, albeit from a small base. Enterprise voice services should provide a strong synergy with the company’s offerings in other areas, such as its already successful security appliances and its business focused smart phones and Communicator devices.
