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Research Publication Date: 16 October 2006 ID Number: G00142613 © 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. Hype Cycle for Enterprise Communication Applications, 2006 Geoff Johnson, Bern Elliot, Steve Cramoysan, Jeffrey Mann, Esteban Kolsky, Bob Hafner, Ted Chamberlin, David Mario Smith, Katja Ruud, Phillip Redman, Matthew Goldman, Rita E. Knox, Daniel Sholler, L. Frank Kenney, Avivah Litan, Ant Allan A trend is emerging in communications (particularly "click to call" voice) that is embedded in enterprise IT applications. As technologies, such as PBX, migrate into IP telephony, serious alternative and complementary communication technologies threaten to displace corporate telephony.
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Page 1: Hype Cycle for Enterprise Communication Applications, 2006

ResearchPublication Date: 16 October 2006 ID Number: G00142613

© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Hype Cycle for Enterprise Communication Applications, 2006 Geoff Johnson, Bern Elliot, Steve Cramoysan, Jeffrey Mann, Esteban Kolsky, Bob Hafner, Ted Chamberlin, David Mario Smith, Katja Ruud, Phillip Redman, Matthew Goldman, Rita E. Knox, Daniel Sholler, L. Frank Kenney, Avivah Litan, Ant Allan

A trend is emerging in communications (particularly "click to call" voice) that is embedded in enterprise IT applications. As technologies, such as PBX, migrate into IP telephony, serious alternative and complementary communication technologies threaten to displace corporate telephony.

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

TABLE OF CONTENTS

1.0 What You Need to Know ............................................................................................................. 4 2.0 The Hype Cycle ........................................................................................................................... 4 3.0 The Priority Matrix ....................................................................................................................... 7 4.0 On the Rise.................................................................................................................................. 8

4.1 Speech-Enabled Web..................................................................................................... 8 4.2 Ubiquitous Collaboration ................................................................................................ 8 4.3 Session-Based IP Telephony Middleware...................................................................... 9

5.0 At the Peak ................................................................................................................................ 10 5.1 Presence-Based Contact Routing ................................................................................ 10 5.2 On-Demand Contact Center Infrastructure .................................................................. 11 5.3 Work-at-Home Outsourcing.......................................................................................... 11 5.4 Mobile Collaboration..................................................................................................... 12 5.5 Web Collaboration ........................................................................................................ 13 5.6 Open-Source IP Telephony.......................................................................................... 14 5.7 Unified Communications............................................................................................... 15

6.0 Sliding Into the Trough .............................................................................................................. 16 6.1 XML Appliances............................................................................................................16 6.2 Contact Center ............................................................................................................. 17 6.3 IP Contact Centers ....................................................................................................... 18 6.4 Enterprise Peer-to-Peer VoIP....................................................................................... 18 6.5 Hosted IP Telephony .................................................................................................... 19 6.6 Voice Verification.......................................................................................................... 20 6.7 Universal Queue Management..................................................................................... 21 6.8 VoIP WLAN .................................................................................................................. 21 6.9 Session Initiation Protocol ............................................................................................ 22 6.10 Chat ............................................................................................................................ 23

7.0 Climbing the Slope .................................................................................................................... 23 7.1 ERMS ........................................................................................................................... 23 7.2 Natural Language Speech Recognition........................................................................ 24 7.3 IP Telephony ................................................................................................................ 25 7.4 Presence....................................................................................................................... 25 7.5 Virtual Contact Centers ................................................................................................ 26 7.6 VoiceXML ..................................................................................................................... 27 7.7 VoIP Toll Bypass .......................................................................................................... 27

8.0 Entering the Plateau .................................................................................................................. 28 8.1 Speech Recognition for Telephony and Contact Center Applications ......................... 28 8.2 Call Center.................................................................................................................... 29

9.0 Appendices................................................................................................................................ 30 9.1 Hype Cycle Phases, Benefit Ratings and Maturity Levels ........................................... 30

LIST OF TABLES

Table 1. Hype Cycle Phases ........................................................................................................... 30

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Table 2. Benefit Ratings .................................................................................................................. 30 Table 3. Maturity Levels .................................................................................................................. 31

LIST OF FIGURES

Figure 1. Hype Cycle for Enterprise Communication Applications, 2006.......................................... 6 Figure 2. Priority Matrix for Enterprise Communication Applications, 2006...................................... 7

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

STRATEGIC PLANNING ASSUMPTION(S)

Through 2009, business resources and priorities will be readily adjusted to accommodate communications technologies being embedded into enterprise IT applications where the advantages are clear (0.7 probability).

ANALYSIS

1.0 What You Need to Know Enterprise communication applications use a series of communication-related technologies to support communication-enabled business processes (CEBP). Chief among the enhancing communication technologies is unified communications. Voice will become increasingly available in large-scale enterprise IT systems and customized IT application developments. "Click to call" communications (particularly voice) will provide convenient, productive and profitable help in customer service and support for internal staff. The increasingly popular "self-help" metaphor in consumer Web browsing and e-commerce will be enhanced by the emerging ease of integration of communications within business processes.

2.0 The Hype Cycle Traditional approaches to providing corporate telephony voice calls, such as public switched telephone network (PSTN) or PBX traffic, were expected to change significantly as voice over IP (VoIP) emerged as a practical technology in consumer, enterprise and carrier networks. Most enterprises have evaluated how they expect to migrate to Internet Protocol (IP) telephony — usually because new buildings require telephony — but PBX is obsolete and IP telephony will be the choice in new installations.

As traditional network equipment vendors turn to software to create telephony over data communication networks with dedicated telephony servers, they are finding that enterprise system vendors, with their huge installed base of organization-wide IT applications, are well placed to provide compelling communication alternatives. Enterprise click-to-call is the act of conducting communications between remote parties from within enterprise-scale business systems by the click of a mouse. Most commonly, the call will be voice and will be made from a Web browser page or from within an IT application or softphone using directory dialing technologies.

In the near-term, unified communication (UC) technologies will have the greatest impact on enterprise communications applications (ECA) developments.

Gartner defines UCs as "products that enhance enterprise productivity by enabling and facilitating the user's management of enterprise communication systems and the integration of these systems with business processes." UC is accomplished through the convergence of the physical communication channels, networks, devices and systems, as well as through the consolidation of controls over them. UC systems may be made up of a stand-alone product suite or of a portfolio of integrated applications and platforms. Its related markets include business process integration, collaboration, mobility and contact centers.

IP telephony and softphones will replace the PBX. Unified messaging will bring voice mail and e-mail together. Separate voice, video and Web conferencing capabilities will converge. Instant messaging (IM) will provide the next-generation "dial tone," as well as presence and status services. IM's current capabilities will expand to voice, conferencing, video and e-mail. Contact

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management and call-control components are the key to UC functionality. UC's capabilities are achieved through routing, filters, notification, profiles, business rules, reporting, analysis and workflow integration from the many communication channels available to it.

Ultimately, UC will provide the management, control and analysis of all enterprise communications.

Human verbal and video communications delivered as voice, video and multimedia calls are an important new feature and productivity tool in enterprise business solutions. When a helpful, knowledgeable person can assist any type of transaction by his or her availability for a voice call (or other valuable communication, such as e-mail or IM) at an important moment in the dealing cycle, we see an important new genre of personal and corporate productivity — the CEBP.

The issues and opportunities for CEBP are well known, but not completely understood.

• There are many business processes where real-time access to a particular person or skill set is required or desirable. Quick, brief access to specific skills, knowledge or authority can enable a process or transaction to progress. In a selling situation, a representative may need specific or expert advice to convince his or her prospect to buy, or a quality assurance inspector who needs engineering input on the acceptability of an alternative component needs rapid responses to keep production lines flowing.

• Identifying and reaching the right person quickly is often difficult (given increasing individual mobility) and results in significant amounts of human latency and delay in business processes.

• Next-generation ECA will enable companies to better integrate communications into these processes using CEBP.

CEBP cannot be relied on for a narrow set of emerging new technologies. Many of its functions have been provided by complex and expensive IT systems integration in telephony and contact centers in the past. The critical difference is that once communications are carried as an IP stream, they can become vulnerable and capable of being readily and inexpensively embedded into a wide range of IT applications using current technologies and many of the popular, emerging communication technologies used in consumer, enterprise and carrier markets. Web services will become a particular beneficiary of communication-facilitated IT services.

This Hype Cycle for Enterprise Communication Applications shows the wide range of competing and complementary technologies at different stages of maturity that can sustain and promote CEBP.

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Figure 1. Hype Cycle for Enterprise Communication Applications, 2006

Technology Trigger

Peak ofInflated

ExpectationsTrough of

Disillusionment Slope of Enlightenment Plateau of Productivity

time

visibility

Years to mainstream adoption:less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsoletebefore plateau

As of October 2006

VoIP Toll BypassVoiceXMLVirtual Contact Centers

PresenceIP Telephony

Natural LanguageSpeech Recognition

ChatSession Initiation Protocol

VoIP WLANUniversal Queue Management

Voice Verification

Hosted IPTelephony

EnterprisePeer-to-Peer VoIP

IP Contact CentersContact Center

XML Appliances

Unified CommunicationsOpen-Source IP TelephonyWeb Collaboration

Mobile Collaboration

Work-at-HomeOutsourcing

On-Demand ContactCenter Infrastructure

Presence-BasedContact Routing

Session-BasedIP Telephony Middleware

Ubiquitous CollaborationSpeech-Enabled Web

Call Center

Speech Recognition for Telephony andContact Center Applications

ERMS

Technology Trigger

Peak ofInflated

ExpectationsTrough of

Disillusionment Slope of Enlightenment Plateau of Productivity

time

visibility

Technology Trigger

Peak ofInflated

ExpectationsTrough of

Disillusionment Slope of Enlightenment Plateau of Productivity

Technology Trigger

Peak ofInflated

ExpectationsTrough of

Disillusionment Slope of Enlightenment Plateau of Productivity

time

visibility

time

visibility

Years to mainstream adoption:less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsoletebefore plateau

Years to mainstream adoption:less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsoletebefore plateau

As of October 2006

VoIP Toll BypassVoiceXMLVirtual Contact Centers

PresenceIP Telephony

Natural LanguageSpeech Recognition

ChatSession Initiation Protocol

VoIP WLANUniversal Queue Management

Voice Verification

Hosted IPTelephony

EnterprisePeer-to-Peer VoIP

IP Contact CentersContact Center

XML Appliances

Unified CommunicationsOpen-Source IP TelephonyWeb Collaboration

Mobile Collaboration

Work-at-HomeOutsourcing

On-Demand ContactCenter Infrastructure

Presence-BasedContact Routing

Session-BasedIP Telephony Middleware

Ubiquitous CollaborationSpeech-Enabled Web

Call Center

Speech Recognition for Telephony andContact Center Applications

ERMS

Source: Gartner (October 2006)

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

3.0 The Priority Matrix The Priority Matrix provides a time scale for particular enterprise communication application technologies to achieve sufficient technical maturity to become actively and widely adopted by mainstream users. The impact or benefit for users of these communication applications will be low, moderate, high or transformational, depending on the value created by providing human attention to serve an important business or consumer need at a sensitive moment in the transaction cycles.

This Matrix provides a timeline indicating how long until each identified technology reaches the Plateau of Productivity — where it is widely adopted as a mature technology. Enterprise IT users should regard the Priority Matrix as an aid to their business planning and resource allocation schedules and budgets for communication technologies, enterprisewide IT applications and business processes.

Figure 2. Priority Matrix for Enterprise Communication Applications, 2006

VoIP Toll Bypasslow

years to mainstream adoptionbenefit

moderate

high

transformational

As of October 2006

Work-at-Home Outsourcing

Enterprise Peer-to-Peer VoIP

IP Contact Centers

Open-Source IP Telephony

Session-Based IP Telephony Middleware

Universal Queue Management

Web Collaboration

Presence

Speech Recognition for Telephony and Contact Center Applications

VoiceXML

VoIP WLAN

Mobile Collaboration

On-Demand Contact Center Infrastructure

Speech-Enabled Web

Hosted IP Telephony

Natural Language Speech Recognition

Session Initiation Protocol

Unified Communications

Voice Verification

XML Appliances

Virtual Contact Centers

Ubiquitous CollaborationIP Telephony

Presence-Based Contact Routing

Call Center

Contact Center

more than 10 years5 to 10 years2 to 5 yearsless than 2 years

VoIP Toll Bypasslow

years to mainstream adoptionbenefit

moderate

high

transformational

As of October 2006

Work-at-Home Outsourcing

Enterprise Peer-to-Peer VoIP

IP Contact Centers

Open-Source IP Telephony

Session-Based IP Telephony Middleware

Universal Queue Management

Web Collaboration

Presence

Speech Recognition for Telephony and Contact Center Applications

VoiceXML

VoIP WLAN

Mobile Collaboration

On-Demand Contact Center Infrastructure

Speech-Enabled Web

Hosted IP Telephony

Natural Language Speech Recognition

Session Initiation Protocol

Unified Communications

Voice Verification

XML Appliances

Virtual Contact Centers

Ubiquitous CollaborationIP Telephony

Presence-Based Contact Routing

Call Center

Contact Center

more than 10 years5 to 10 years2 to 5 yearsless than 2 years

Source: Gartner (October 2006)

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4.0 On the Rise 4.1 Speech-Enabled Web Definition: Speech-enabled Web allows navigation and search of Web pages via an integrated speech channel. The primary difference between speech and Web applications is in the presentation logic "visual for Web" and "speech for telephone."

Position and Adoption Speed Justification: Speech-enabled Web requires the voice response architecture to move to utility model and improvements in performance and packaging so that speech access is effective with a standard voice user interface that doesn't require substantial customization. Few Web pages are structured for navigation via an audio channel only. This will likely require a multimodal user interface.

User Advice: Consider speech-enabled Web as a vision for the future of speech access to applications and information. It promises a lot, but the challenges are substantial.

Business Impact: Speech enabling the Web will lower the barriers to companies that wish to provide telephone access to Internet- and intranet-based applications and content.

Market Penetration: Less than 1 percent of target audience

Maturity: Embryonic

Sample Vendors: Google; IBM; Microsoft; Oracle; SAP

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Enterprise Speech Technologies, 2006"

Analysis By: Steve Cramoysan; Bernard Elliot

4.2 Ubiquitous Collaboration Definition: Ubiquitous collaboration describes the use of collaboration services as an inherent part of all work. With ubiquitous collaboration, it is possible to collaborate with anyone, at any place, at any time. Collaboration support technology is available seamlessly for intracompany and intercompany collaboration — that is, collaborative commerce — through devices, portals, business applications or other specialized clients. Progress from mobile collaboration and integrated collaboration will contribute toward making ubiquitous collaboration possible. No single vendor is addressing all possible forms of ubiquitous collaboration; however, many vendors contribute parts.

Position and Adoption Speed Justification: Collaboration is already available in many devices, applications and systems. As collaboration becomes more integrated, the services that are available from one computer will be available seamlessly for intracompany and intercompany collaboration, as well as through PDAs, in-car screens and phones. With ubiquitous collaboration, real-time and asynchronous collaboration are fully integrated.

User Advice: Achieving ubiquitous collaboration is more likely to be a result of several other successful initiatives than a specific objective. Users should concentrate on more-achievable

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

goals (such as contextual collaboration, mobile collaboration or integrated collaboration) and training programs to encourage the cultural change this requires. Once these goals are accomplished, users will be well on their way to ubiquitous collaboration.

Business Impact: The business impact will be in cross-organizational and cross-industry scenarios. However, early adopters will include consulting services, manufacturers, pharmaceutical companies, financial services and media.

Market Penetration: Less than 1 percent of target audience

Maturity: Embryonic

Recommended Reading:

• "High-Performance Workplaces Promote Revenue Growth and Productivity"

• "Understand the Opportunities of the Emerging Integrated Collaboration Market"

• "Refocusing on Strategic Collaboration"

• "How to Exploit Contextual Collaboration"

Appears In Hype Cycle:

• "Hype Cycle for Collaboration and Communication, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for High-Performance Workplace, 2006"

Analysis By: Jeffrey Mann

4.3 Session-Based IP Telephony Middleware Definition: Session-based IP telephony middleware describes a suite of IP telephony technologies that can be made available for application developers to install within an IT application. Its intention is to provide telephony functions (such as "click-to-call" from a Web browser page) within an IT application on a per-session basis. It is expected to support thin-client and Web services approaches to service-oriented architecture (SOA). By providing communications functionality as middleware, voice, video and multimedia can be provided into a wide range of IT applications where communications functionality had not been planned, intended or available.

Position and Adoption Speed Justification: Session-based IP telephony packaged as middleware that can be integrated with IT applications is an emerging technology not far from its embryonic stage. The technology is in pilot trials today and provided by small developers backed by venture capital. This approach is relatively high risk but, if it is successful and click-to-call services from within browser pages become popular, it could be widely and rapidly adopted. These small vendors will collide with the traditional voice vendors as they rearchitect their IP-PBXs for an SOA world and as the very large software vendors add SIP telephony capabilities to their applications.

User Advice: Monitor the traction of these telephony functions and their viability as middleware as part of your business's environmental scanning process.

Business Impact: The provision of communications functions within IT applications and the movement toward communications-enabled business processes is under way today. The

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approach of using session-based middleware will make the provision of communications functions on a per-Web-session basis much more portable into a wide range to IT applications.

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

Sample Vendors: Avaya; BlueNote Networks; IBM; Microsoft; Nortel; Siemens Communications

Recommended Reading:

• "Cool Vendors in Enterprise Communications, 2006"

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Geoff Johnson

5.0 At the Peak 5.1 Presence-Based Contact Routing Definition: In presence-based contact routing, enterprisewide presence services are integrated with contact routing. The model and database of individual availability and preferences assists in determining contact availability.

Position and Adoption Speed Justification: Enterprisewide adoption, awareness and application of presence are increasing. As this occurs, interest and the ability to integrate nontraditional agents into the center will increase.

User Advice: Consider presence-based contact routing for extending Tier 2 and Tier 3 support and for including field support more directly in the customer support function.

Business Impact: Presence-based contact routing allows contact centers to access a significantly different and larger population. When fully integrated, it allows a new paradigm for supporting customers, effectively enlisting all areas of the corporation into the support operation as needed.

Market Penetration: Less than 1 percent of target audience

Maturity: Embryonic

Sample Vendors: A few contact center vendors are testing.

Recommended Reading:

• "Magic Quadrant for Contact Center Infrastructure, North America, 2006”

• "Magic Quadrant for Contact Center Infrastructure, EMEA, 2006”

• "Magic Quadrant for Contact Center Infrastructure, Asia/Pacific, 2006”

• "Achieving Agility Through Communication-Enabled Business Processes"

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

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• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

5.2 On-Demand Contact Center Infrastructure Definition: On-demand contact center infrastructure are contact centers based on infrastructure and applications that are located off-site and are owned and operated by a service. The enterprise pays for the service based on usage.

Position and Adoption Speed Justification: General lack of corporate acceptance inhibits adoption. Usually, established organizations must significantly change their operating model and reorganize their management approaches to shift to this model. This inhibits adoption by established centers. New and smaller contact centers may adopt more readily.

User Advice: This approach to contact center infrastructure offers the advantages of limited initial capital investment, flexible access and rapid scalability. There are risks as well, which include dependence on external services, possible reliability issues, and lack of control over the application functions.

Business Impact: On-demand contact center infrastructure provides an alternative business model for addressing an enterprise's contact center requirements.

Market Penetration: One percent to 5 percent of target audience

Maturity: Emerging

Sample Vendors: AT&T; Avaya-TeleTech; Convergys; EchoPass; MCI; Tellme Networks; Verizon

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Software as a Service, 2006"

Analysis By: Bernard Elliot

5.3 Work-at-Home Outsourcing Definition: A sourcing model that's heavily used in contact centers, but is gaining ground in other areas (such as telesales and telemarketing). Using this model, agents equipped with a desktop computer and network connection, and enabled by a virtual automatic call distributor, work from their homes rather than purpose-built call centers.

Position and Adoption Speed Justification: Processes and management for this model are different from traditional contact centers. Many companies will attempt to do it themselves and fail. Specialist outsourcers that offer service are small, few and concentrated in the U.S. customer service and support market.

The excessive hype during the past 12 months led to security and monitoring questions that providers weren't prepared to answer, thus delaying adoption by larger organizations. Any results that adopters achieved tended to be better than expected.

User Advice: Dismiss security and monitoring hype as being the model's vulnerability. Research has shown similar levels of privacy and security breaches in outsourced solutions (for example, in

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call centers). Workforce optimization software vendors are accommodating for remote monitoring, which, together with best practices, should all but eliminate the potential for problems. Focus on higher-level interactions that require an educational or background level that isn't easily accessible at brick-and-mortar interaction centers. This is the best approach to working at home.

Business Impact:

• Contact center

• Telesales

• Telemarketing

• CRM

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

Sample Vendors: Alpine Access; West Corporation; Willow CSN; Working Solutions

Recommended Reading:

• "Matching Contact Center Sourcing Models to Needs Protects Organizations From Costly Failures"

• "Focus on the Realities, Not the Myths, of the Work-at-Home Contact Center"

Appears In Hype Cycle:

• "Hype Cycle for Business Process Outsourcing, 2006"

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Esteban Kolsky; Matthew Goldman

5.4 Mobile Collaboration Definition: Mobile collaboration incorporates mobile devices, such as car navigation systems, kiosks, mobile telephones and PDAs, into corporate collaboration frameworks. It goes beyond mobile e-mail or instant messaging to accommodate all important forms of collaboration, such as voice over Internet Protocol, Web/video/audio conferencing and team workspaces.

Position and Adoption Speed Justification: Mobile devices are often used for collaboration; however, beyond e-mail, they are usually part of a stand-alone silo and are rarely integrated in enterprise collaboration frameworks. As these devices become more capable and connectivity to these devices improves (primarily through the adoption of the Session Initiation Protocol), their use in collaboration will increase. Although mobile e-mail, instant messaging and calendar support are increasingly common, a lot of work remains to support conferencing, presence and emerging collaboration facilities, such as wikis, blogs and social networking. Some video vendors, such as Polycom and Tandberg, have begun to incorporate mobile phone support in their products.

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User Advice: As more users access their e-mail remotely, they will expect more (and eventually all) of their collaboration facilities to be available no matter where they are located. Users should plan to include mobile collaboration support in their unified communication strategies.

Business Impact: The high penetration of mobile devices makes better integration with collaboration frameworks imperative.

Market Penetration: One percent to 5 percent of target audience

Maturity: Adolescent

Sample Vendors: Alcatel; Avaya; Cisco; IBM; Microsoft; Motorola; Nokia; Palm; Research In Motion

Recommended Reading:

• "Understanding the Assumptions Behind Communications and Collaboration Products"

• "Assess the Business Value of Mobile and Wireless Applications"

Appears In Hype Cycle:

• "Hype Cycle for Collaboration and Communication, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Jeffrey Mann

5.5 Web Collaboration Definition: Web collaboration uses Web technology for live interaction between call center agents and customers or users. It can include cobrowsing and Web page steering.

Position and Adoption Speed Justification: Web collaboration is based on well-known technology. However, it requires adoption by consumers before it can be justified as an enterprise investment.

User Advice: This technology is effective when the Web service fits the demographic segment and the product or service.

Business Impact: Web collaboration allows businesses to augment contact center interactions with collaborative Web use. This is effective when the sharing of forms or visual information is useful.

Market Penetration: One percent to 5 percent of target audience

Maturity: Adolescent

Sample Vendors: Various Web and contact center vendors.

Recommended Reading:

• "Magic Quadrant for Contact Center Infrastructure, North America, 2006”

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

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Analysis By: Bernard Elliot

5.6 Open-Source IP Telephony Definition: Open-source software (OSS) for IP telephony is the use of public-domain programs to create IP PBX functions and system operations in software.

Position and Adoption Speed Justification: OSS IP telephony solutions such as Digium's Asterisk IP PBX provide workable solutions today for businesses where there is a significant interest in open-source and alternative communications solutions. There are many competent IP telephony vendors effectively competing with their somewhat proprietary solutions today but pledging to migrate to open standards such as SIP. All vendors with communications interests are watching the open-source telephony (OST) model to see if there is value in including OST in their strategies. Can Digium become a Red Hat (open-source Linux developer)?

User Advice: OSS IP telephony is not recommended for enterprises as a means of providing mission-critical telephony for their business, because of the need for a higher level of in-house support for not just telephony operations and system development but also the evolving OST standards and their detailed and customized implementation. The primary driver for using OST is that it may appear to be initially less expensive than buying a proprietary IP-PBX solution (see "Open-Source Telephony Is Cheap to Buy but Costly to Manage," G00128220). As proprietary communications vendors increase their use of the evolving SIP standard, which was only 60% complete in mid-2006, this will reduce the need for OST but not diminish interest in this approach.

Business Impact: The main early beneficiaries of OSS IP telephony have been universities and technology-development-oriented businesses that found OSS necessary to aid the integration of early-generation SIP implementations with proprietary voice solutions, such as Microsoft Live Communications Server and IBM Sametime, or traditional telephony vendors, such as Alcatel, Avaya, Cisco Systems, Ericsson, Mitel, NEC, Nortel or Siemens.

OST has the potential to reach end users in two distinct ways:

1. Any broadly based "communications" vendor may package OST as a component of a solution that has its own product specification and service-level agreement (SLA). The open-source will be a subset of the manufacturer's product — for example, Aspect Software or Altitude Software's vBox.

2. Application providers and business process re-engineering consultants (such as Accenture) may embed the OST component into applications to create communications-enabled business processes. Again, the total product specification and SLA should be provided and supported by the vendor.

The opportunity for end users to embed OST inside their applications is far more limited and onerous, but this may become possible via Web services in the future.

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

Sample Vendors: Digium Asterisk; Pingtel SIPxchange

Recommended Reading:

• "Open-Source Telephony Is Cheap to Buy but Costly to Manage,"

• "Magic Quadrant for Corporate Telephony in Asia/Pacific, 2006,"

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Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Geoff Johnson

5.7 Unified Communications Definition: Unified communications (UC) is the direct result of convergence in communication networks and applications. Differing forms of communication have historically been developed, marketed and sold as individual applications. The convergence of all communications on IP networks and on open software platforms is allowing a new paradigm for UC and its impact on how individuals, groups and organizations communicate.

Gartner defines UC products (equipment, software and services) as those that enhance individual, workgroup, and organizational productivity by enabling and facilitating the control, management, integration, and use of multiple enterprise communication methods. UC products achieve this through convergence and integration of the communication channels (that is, media), networks, systems and business applications, as well as through consolidation of controls over them. UC products may be made up of a stand-alone product suite or from a portfolio of integrated applications and platforms.

UC products are used by employees for their own communications as well by enterprises to support workgroup and collaborative communications. These products also extend UC outside of the boundaries of a company to enhance communications between organizations and to support interactions among both very large public audiences and specific individuals.

Position and Adoption Speed Justification: UC solutions are now emerging onto the market. They represent a consolidation and convergence of capabilities that previously were available only separately. Key functional areas that are being combined include PBX, IP-PBX, softphones, voice mail, unified messaging, e-mail, desktop calendaring, audioconferencing, Web collaboration, videoconferencing, presence and instant messaging.

User Advice: Users should review the existing communication servers to see how they could offer more value by being integrated. They should also review business processes to see how these could benefit by being communication-enabled. Pilots can be undertaken to evaluate the solutions. A migration path should be developed so that as communications equipment is updated or acquired, it has a better chance of fitting into a broader portfolio.

Business Impact: UC improves the communications ability of individuals, groups and enterprises. This is typically reflected in speedier response to events and increased availability of accurate information.

Market Penetration: Less than 1 percent of target audience

Maturity: Embryonic

Sample Vendors: Alcatel; Cisco; IBM; Microsoft; Nortel; Siemens

Recommended Reading:

• "Achieving Agility Through Communication-Enabled Business Processes"

• "Magic Quadrant for Unified Communications, 2006"

Appears In Hype Cycle:

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• "Hype Cycle for Collaboration and Communication, 2006"

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for High-Performance Workplace, 2006"

• "Hype Cycle for Networking and Communications, 2006"

• "Hype Cycle for the Telecommunications Industry, 2006"

• "Hype Cycle for Wireless Hardware, Software and Services, 2006"

Analysis By: Bernard Elliot

6.0 Sliding Into the Trough 6.1 XML Appliances Definition: Extensible Markup Language (XML) appliances (increasingly called integration appliances) are software-configurable devices that perform processing (for example, validation, routing, security checking, transformation, logging, tracking and compression) of XML data. Some vendors have appliances that apply these functions to non-XML data as well, which essentially are application integration functions.

Position and Adoption Speed Justification: The primary advantages of XML appliances are to offload processes from general-purpose CPUs and provide enhanced security, message quality, throughput and business process tracking in a scalable, centrally configured and managed topology. Accelerated implementation times are also claimed due to the reduced complexity of creating data descriptions using XML (in those cases where they are used). The interest in and need for XML processing capabilities continues to grow in government, financial (investment, banking, insurance), telecommunications and retail organizations. The need for high-speed XML-based processing will grow with activities in the commercial sector and the rapid adoption of XML standards by, among others, the U.S. military, the Internal Revenue Service, the Securities and Exchange Commission and the Federal Deposit Insurance Corp.

User Advice: Appliances are useful for high-speed processing of large data volumes. These are targeted at functions that may be specific to XML-defined data, or more generally applicable to predictable message streams. Be sure your integration appliance provider can process XML-defined messages.

Business Impact: High-speed, secure processing of discrete XML messages and large XML data sets.

Market Penetration: One percent to 5 percent of target audience

Maturity: Adolescent

Sample Vendors: Cast Iron Systems; Cisco Systems; Forum Systems; IBM (DataPower); Infotone Communications; Intel (Sarvega/Conformative Systems); Layer 7 Technologies; Reactivity; Solace Systems; Tarari; Vordel; Xlipstream

Recommended Reading:

• "Who's Who in Integration Appliances, 4Q05"

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• "XML Appliance Use in SOAs Benefits Organizations"

Appears In Hype Cycle:

• "Hype Cycle for Application Integration and Platform Middleware, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Networking and Communications, 2006"

• "Hype Cycle for XML Technologies, 2006"

Analysis By: Rita Knox; Daniel Sholler; Frank Kenney

6.2 Contact Center Definition: Gartner defines a contact center as an environment for structured high-volume communications that includes more than just voice (a call center). This would be used by multiservice customer and employee service and support centers, by inbound and outbound telemarketing services, by help desk services, by government-operated support centers, and by other types of structured communications operations. The interactions can be human-assisted or automated self-service. The channels for interaction use both live agents and messages and include voice (telephone, VoIP, Internet telephony), Web, e-mail, instant messaging, chat, video, mobile devices, and others.

Position and Adoption Speed Justification: Barriers to swifter adoption of a tightly integrated contact center include the following: the integration of channels is difficult; there is a lack of best practices; it will likely require a shift of routing to universal queuing and software-based control; organizational changes may be required as the Web and e-mail may be in a different line responsibility than telephony; and agent activity reports and compensation may need to change. Because of this, many adoptions will keep the call center and e-services separate.

User Advice: Eventually, consolidation of contact infrastructure, management, and routing rules will improve the user experience and better enable complex transactions that span time and channels. This will lead to more personalized and targeted services.

Business Impact: Contact centers improve the ability to deliver consistent support across channels.

Market Penetration: Five percent to 20 percent of target audience

Maturity: Early mainstream

Appears In Hype Cycle:

• "Hype Cycle for B2C CRM Technologies, 2006"

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

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6.3 IP Contact Centers Definition: IP contact centers are contact centers in which all contacts, including voice, are based on TCP/IP standards. Voice is supported via voice over IP (VoIP).

Position and Adoption Speed Justification: This type of contact center requires the maturation and integration of all contacts.

User Advice: This approach is most commonly deployed in "greenfield" sites, or where existing infrastructure must be replaced, or where VoIP and an Internet architecture offers identifiable improvement over the existing approach.

Business Impact: IP contact centers can result in improved contact center operations, especially in distributed environments.

Market Penetration: One percent to 5 percent of target audience

Maturity: Adolescent

Sample Vendors: Various Web and contact center vendors.

Recommended Reading:

• "Magic Quadrant for Contact Center Infrastructure, North America, 2006”

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

6.4 Enterprise Peer-to-Peer VoIP Definition: Business applications that enable peer-to-peer (P2P) voice connections using voice over Internet Protocol (VoIP) technology. In P2P communications, each end point is independent until a direct connection is made.

The relative simplicity of these applications means they can be sold through channels other than those used for traditional telephony products.

Position and Adoption Speed Justification: Vendors are developing proprietary applications. But security concerns have yet to be addressed.

User Advice: Businesses should assess the risks of using P2P VoIP applications. They should recognize that the main disadvantages are limited scalability and a lack of support for third-party controls and services (to create consolidated reports, for instance). In addition, they must consider the implications for bandwidth consumption.

On the other hand, these applications can reduce call costs — especially mobile roaming charges — significantly, and they allow for great independence of individual users and devices. What's more, administration overheads are very low or even nonexistent.

Organizations that decide to use such an application should strictly control the version deployed and its distribution to authorized users by means of configuration management tools.

Business Impact: Collaborative and multimedia applications. Low-cost communications.

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Market Penetration: One percent to 5 percent of target audience

Maturity: Emerging

Sample Vendors: Avaya; Microsoft; Popular Telephony; Skype

Recommended Reading:

• "Skype Makes Significant Contributions to the Changing Voice Market"

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Networking and Communications, 2006"

Analysis By: Katja Ruud

6.5 Hosted IP Telephony Definition: Hosted IP telephony solutions encompass two primary services: externally hosted IP-PBX and IP Centrex. IP trunking, a service in which internal IP voice traffic is converted to time division multiplexing (TDM) traffic to traverse the public switched telephone network (PSTN), has reached full maturity and been removed from the Hype Cycle.

Position and Adoption Speed Justification: The market opportunity for converting legacy switched voice to packetized voice is growing, but few service providers have standardized offerings or installed clients. Many end users will be unable to make an effective business case for hosted voice over IP (VoIP), due to the continued erosion of voice pricing and the incremental investments necessary to convert customer premise equipment to IP-enabled. Hosted IP-PBX, in which a service provider hosts and manages a client-provided IP-PBX off-site at an Internet data center, enables enterprises to continue developing and managing their PBX environments without the initial capital investment, or the ongoing operational maintenance of the server. IP Centrex enables enterprises, educational institutions, and state and local governments to purchase IP-based voice functionality on a shared platform without committing to a particular PBX platform, maintenance and support.

User Advice: Consider which component of hosted IP telephony will provide your enterprise with a positive return on investment and minimal risk; then plan a strategy to convert switched voice to that platform. Most users implementing IP telephony build it directly on the enterprise network with on-premise solutions. Managed solutions for on-site IP telephony are also an option, and IP trunking is the least-intrusive option. IP Centrex will meet the needs of legacy Centrex users as well as organizations that don't want to make the capital investment in a PBX. Hosted IP-PBX will enable enterprises to offload the day-to-day maintenance of the IP-PBX; simplify moves, adds and changes; and still retain a level of control over dial plan management.

Enterprises should consolidate their telephony into a common strategic supplier that's consistent with programs for e-mail, ERP, CRM and other business application software. Businesses should focus on telephony suppliers that can support all their geographic locations directly or through a network of systems integrators and value-added resellers.

Proceed with caution when engaging a service provider for hosted IP telephony services, because most product offerings don't have consistent pricing, customer support or service-level agreements.

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Business Impact: Cost savings will be the initial driver, but not the compelling reason to consider hosted VoIP. However, the capability to enable new applications, capabilities and business processes will eventually drive migration to hosted VoIP.

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

Sample Vendors: AT&T; Avaya; Covad; Qwest; Sprint Nextel; Verizon Business

Recommended Reading:

• "Large and Small Customers Can Benefit From IP Centrex"

• "Ask Five Critical Questions Before Moving to a Hosted IP PBX Contract"

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Networking and Communications, 2006"

Analysis By: Ted Chamberlin

6.6 Voice Verification Definition: Voice verification is a biometric technology that captures unique characteristics in the speaker's voice and compares those to a previously registered template. It can replace or augment other authentication methods.

Position and Adoption Speed Justification: There are still comparatively few commercial deployments of voice verification. Some work well when combined with other authentication techniques. Some clients have evaluated and rejected it because of difficulty in getting a good balance between false acceptances and false rejections.

User Advice: Gartner believes voice verification has matured sufficiently for companies to consider using it. However, you should be cautious, especially when deploying it in customer-facing applications. Internal staff-facing password-reset applications are a good place to start. Regardless of application, you should carefully select, evaluate and pilot any deployment.

Business Impact: Voice verification can be used in any application where it's important to verify the identity of the caller with high confidence. Consider applications where an automated identification and authentication would allow staff to be redeployed to higher-value tasks.

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

Sample Vendors: Authentify; Nuance; Persay; RSA Security; Vocent Solutions; Voice Trust; Voiceverified; VoiceVault

Recommended Reading:

• "Voice Verification Makes Big Strides, But It's Still Risky"

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

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• "Hype Cycle for Enterprise Speech Technologies, 2006"

Analysis By: Steve Cramoysan; Avivah Litan; Anthony Allan

6.7 Universal Queue Management Definition: Universal queue management is the capability to integrate single control and management of the contact queuing and routing for all contact center channels.

Position and Adoption Speed Justification: Barriers to swifter adoption of a tightly integrated contact center include the following: the integration of channels is difficult; there is a lack of best practices; it will likely require a shift of routing to universal queuing and software-based control; organizational changes may be required as the Web and e-mail may be in a different line responsibility than telephony; and agent activity reports and compensation may need to change. Because of this, many adoptions will keep the call center and e-services separate.

User Advice: Eventually, consolidation of contact infrastructure, management, and routing rules will improve the user experience and better enable complex transactions that span time and channels. This will lead to more personalized and targeted services.

Business Impact: Supporting multiple channel interactions in a consolidated and unified way allows better integration of contact routing with business channels, better usage of resources, and clearer reporting.

Market Penetration: One percent to 5 percent of target audience

Maturity: Adolescent

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

6.8 VoIP WLAN Definition: Voice over wireless LAN is standards and technology to deliver voice calls and other audio over a wireless IP framework over a wireless LAN.

Position and Adoption Speed Justification: Voice over wireless LAN is receiving increased support from wireless LAN and cellular handset vendors, standards have been ratified, and the technology is being integrated into a growing number of IP PBX implementations.

User Advice: Voice over wireless LAN addresses the need for local mobility and voice communications. There are additional operating and capital costs for supporting voice, so idea of "free" service is not valid.

Business Impact: Voice over wireless LAN would be used by those companies with a local, mobile voice need. It works well as a replacement for expensive private mobile radio systems and is being adopted primarily in the healthcare, retail, education and manufacturing industries.

Market Penetration: Less than 1 percent of target audience

Maturity: Emerging

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Sample Vendors: Most Wi-Fi vendors

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Networking and Communications, 2006"

• "Hype Cycle for Wireless Networking, 2006"

Analysis By: Phillip Redman

6.9 Session Initiation Protocol Definition: Session Initiation Protocol (SIP) is an Internet Engineering Task Force-specified communications protocol. It’s the first to enable multiuser sessions, regardless of media content. SIP will enable a new generation of communications services across the Internet, as well as fixed and mobile IP networks. SIP allows communications of various types to be initiated and managed. Key communication channels include voice, video and instant messaging.

SIP has a number of key components. SIP user agents (UAs) are devices (phones, PCs, PDAs) that are used to establish connections. The SIP registrar server is a database that registers the location of all UAs within a domain. It also passes participant IP addresses and other information to the SIP proxy server. The proxy server accepts session requests made by UAs and queries the SIP registrar for the recipient’s address before forwarding the session invitation directly to the recipient. This enables peer-to-peer communication between UAs, where sessions are established or modified using Session Description Protocol (SDP).

SIP is already being used by some mobile applications to add authentication as part of the communication process. This process can replicate with all devices to ensure improved security of communications, especially via the Internet.

Position and Adoption Speed Justification: Standards and applications are still evolving, but it is clear that SIP will be the protocol for communications. It is widely adopted by leading vendors. However, there remain some differences between vendors, so portability is not assured and must be validated.

User Advice: Ensure that vendors offer SIP as a contact control option in their platforms, and ask vendors for what interoperability testing they have performed. This will make it more likely that different vendor SIP products will interoperate.

Business Impact: SIP allows communications to be integrated with each other and with business applications more easily. The result is communication-enabled business processes can be developed where the applications themselves initiate and control communication sessions. The result will be more-effective work processes and better usage of collaborative and multimedia applications.

Market Penetration: Less than 1 percent of target audience

Maturity: Adolescent

Sample Vendors: Alcatel; Avaya; Nortel; Siemens

Recommended Reading:

• "Achieving Agility Through Communication-Enabled Business Processes"

Appears In Hype Cycle:

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• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Networking and Communications, 2006"

Analysis By: Bernard Elliot; Bob Hafner

6.10 Chat Definition: Interactive Internet-based chat between client and agent using a browser-based applet or application. It involves direct communication, typing back-and-forth, as well as interactive behavior such as cobrowsing, screen or application sharing, and other types of direct interface methods.

Position and Adoption Speed Justification: Organizations realize what they can do on chat and how to do it, as opposed to forcing a one-size-fits-all approach. Cost savings is no longer the expected return on investment for implementation; rather, it is improved operations.

User Advice: Similar to other electronic channels for customer service, don't implement it as a stand-alone solution; rather, make it part of a larger e-service suite of multichannel, multifunction operations.

Business Impact: Managing multiple channels and improving customer satisfaction. Ensure that all prior work done is leveraged by others.

Market Penetration: One percent to 5 percent of target audience

Maturity: Early mainstream

Sample Vendors: eGain Communications; Kana Communications; LivePerson; Proficient; Talisma

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Esteban Kolsky

7.0 Climbing the Slope 7.1 ERMS Definition: E-mail response management systems (ERMSs) handle inbound customer e-mail transactions, whether in an automated fashion or by providing the e-mail operator with an interface into existing customer management systems and knowledge repositories. This enables the operator to effectively answer questions quicker.

Position and Adoption Speed Justification: Growth of e-mail as a customer service channel, fueled by consumers' growing confidence with e-mail, makes ERMS an issue; maturity of the customer interaction hub removes the issue as single-channel management solutions dissipate to make room for a multichannel, multifunction solution, such as a customer interaction hub.

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User Advice: Do not implement ERMS as a stand-alone or independent solution from the rest of your customer service implementations. Only multichannel solutions should be considered — even if e-mail is the first step in installing a complete suite of multifunction, multichannel customer service. The implementation of e-mail should leverage what is already out there — or lay the groundwork to do so in short notice.

Business Impact: This impacts managing multiple channels, automating transactions, and increasing customer service and satisfaction.

Market Penetration: More than 50 percent of target audience

Maturity: Early mainstream

Sample Vendors: ATG; eGain Communications; Genesys; Kana; RightNow Technologies; Xtramind Technologies

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Esteban Kolsky

7.2 Natural Language Speech Recognition Definition: Natural-language speech recognition systems interpret a caller's spoken needs. Advanced techniques, such as word spotting and statistical models, are used to address the call in the most appropriate manner. The prompts are far less constrained, in contrast to directed dialogue, and callers can express their needs in their own words rather than be constrained to a limited choice or words as in directed dialogue.

Position and Adoption Speed Justification: There are now many proven applications with open prompts that allow callers to ask for a specific service in their own words.

User Advice: Consider natural-language speech recognition for call routing or service location applications, such as finding the right department to deal with a user's specific problem (such as, "I've been charged for a call I didn't make"). Early adopters include insurance and telecommunications companies. For transactions requiring multiple pre-defined pieces of information from the caller (such as a ticket purchase), a dialogue approach may be a more effective solution.

Business Impact: Natural language allows menu systems to be collapsed, enabling the caller to reach the service required faster and reducing call duration. They can be used for call routing in call centers, account inquiries, and other simple service or routing requests.

Market Penetration: One percent to 5 percent of target audience

Maturity: Emerging

Sample Vendors: IBM; Loquendo; Nuance; Telisma; TuVox; Voxify

Recommended Reading:

• "Create a Company-Wide Plan for Automated Speech Recognition"

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Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Enterprise Speech Technologies, 2006"

Analysis By: Steve Cramoysan; Bernard Elliot

7.3 IP Telephony Definition: Internet Protocol (IP) telephony is an application that provides telephony services that were previously delivered via PBX or Centrex to IP telephones or softphones.

Position and Adoption Speed Justification: Products are being shipped to enterprises and beginning to mature. Enterprise implementations have focused on replacement of traditional telephony on a one-for-one basis. Much of the enhanced functionality that will result in transformational changes in the enterprise has been slow to be adopted. This has resulted in enterprises waiting until established telephony systems age before upgrading to IP telephony, which has slowed the expected adoption.

User Advice: Functional and cost benefits can be derived from IP telephony. Enterprises should have already begun to run trials of the technology and build appropriate business cases and deployment plans for the next three to five years.

Business Impact: IP telephony will permit new applications, capabilities and business processes.

Market Penetration: Five percent to 20 percent of target audience

Maturity: Early mainstream

Sample Vendors: Alcatel; Avaya; Cisco Systems; Nortel; Siemens

Recommended Reading:

• "Readying Your Network for VoIP"

• "Magic Quadrant for North American Corporate Telephony, 2005"

• "How IT Managers Can Make VoIP Networks More Reliable"

Appears In Hype Cycle:

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Government, 2006"

• "Hype Cycle for Networking and Communications, 2006"

• "Hype Cycle for Transportation, 2006"

Analysis By: Bob Hafner

7.4 Presence Definition: Presence is a foundation technology that provides an application, such as instant messaging (IM), with the indication of the availability and connectedness of contacts. It shows if users' devices are online. From that point onward, users can communicate directly with each other. Presence can sense things such as the users' addresses, the types of devices they are

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using, their geographic location via a global positioning system, the applications or documents they have open on their systems, the applications in use (for example, the "focus" in Windows) and the activity taking place (for example, "the user is typing").

Position and Adoption Speed Justification: Support for IM has grown in many organizations, with or without IT support. The core of IM is the presence engine that enables users to see who is available. Users find themselves more productive and engaged with distributed team members. Increasingly, vendors are adding presence as a feature with applications, tools and devices. Advanced use will see integration in decision models where users' preferences, location and devices will determine the best way to communicate.

User Advice: Exploit presence to improve processes where finding subject-matter experts is critical.

Business Impact: The business impact will be in cross-organizational and cross-industry scenarios. However, early adopters will include consulting services, manufacturing, pharmaceutical, financial services and media. Customer service agents, for instance, can use presence to see if subject-matter experts are available and determine the best way to contact them for problem resolution.

Market Penetration: Five percent to 20 percent of target audience

Maturity: Early mainstream

Sample Vendors: AOL; IBM; Jabber; Microsoft; Novell; Open Text; Oracle; SiteScape; WebEx

Recommended Reading:

• "Develop a Strategy for Presence Technologies"

Appears In Hype Cycle:

• "Hype Cycle for Collaboration and Communication, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for High-Performance Workplace, 2006"

Analysis By: David Mario Smith

7.5 Virtual Contact Centers Definition: Virtual contact centers allow multiple physical locations to operate as a logical center. Calls and other contacts are routed independent of physical location.

Position and Adoption Speed Justification: Virtual contact center use is spreading beyond very large centers into midsize operations. This technology can help integrate offshore centers.

User Advice: Consider virtual centers to get better return on the infrastructure.

Business Impact: Virtual contact centers will result in improved contact center operations.

Market Penetration: Twenty percent to 50 percent of target audience

Maturity: Early mainstream

Sample Vendors: Aspect Communications; Avaya; Cisco Systems; Genesys

Appears In Hype Cycle:

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• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

7.6 VoiceXML Definition: VoiceXML provides an XML, Web-based protocol for voice processing systems and applications in the telephony and speech recognition arenas. It is at release Level 2 and has significant support from a broad range of vendors on their current products.

Position and Adoption Speed Justification: Currently at VoiceXML 2.0, this standard has been available for several years, and many companies and service providers have developed applications. Independent certification of VoiceXML platforms is now available. VoiceXML creates greater flexibility for building capabilities and helping companies to consider new ways of sourcing solutions.

User Advice: Companies with proprietary voice response platforms should review the standards carefully and develop a strategy for migrating to a standards-based platform. Select an approach that fits with your preferred development environment. If selecting a VoiceXML platform, differentiate between claimed conformance and certified conformance.

Business Impact: VoiceXML provides an industry standard language for creating voice response and speech-enabled applications. This improves portability across different vendor platforms and creates a standard for independent software vendors to create packaged applications and components that in turn lower costs, speed up development and lower risk.

Market Penetration: Five percent to 20 percent of target audience

Maturity: Early mainstream

Sample Vendors: AT&T; Avaya; Genesys Telecommunications; HP; IBM; Intervoice; Microsoft; Motorola; Nortel; Nuance

Recommended Reading:

• "New Speech Recognition Products Widen Self-Service Options"

• "Internet Standards Challenge Call Center Architectures"

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Enterprise Speech Technologies, 2006"

Analysis By: Steve Cramoysan; Bernard Elliot

7.7 VoIP Toll Bypass Definition: Voice over IP (VoIP) toll bypass uses TCP/IP data communications carriers to transport voice conversations between locations, thus avoiding standard telephone tariffs.

Position and Adoption Speed Justification: VoIP toll bypass is useful in some situations, such as when call centers in two countries must frequently exchange voice calls. The standard phone

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tariff between these countries is high, but by using toll bypass this tariff is avoided because the voice traffic travels over a nontariffed data link. However, VoIP toll bypass is not a steppingstone to IP contact centers.

User Advice: Consider VoIP toll bypass if telecom tariffs between locations is high. At the same time, consider IP contact center and virtual contact center approaches.

Business Impact: The use of this technology can reduce enterprise communications costs, especially where there are high tariffs, such as between different countries. Deploying this technology often does not require major changes to an existing PBX.

Market Penetration: More than 50 percent of target audience

Maturity: Early mainstream

Sample Vendors: IP-PBX vendors; network operators; PBX

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

8.0 Entering the Plateau 8.1 Speech Recognition for Telephony and Contact Center Applications Definition: Speech recognition technology is used for contact center applications such as call routing, commands for navigation, data entry and transactional self-service functions. Directed dialogue, whereby the system steps the caller through a series of questions, is the most commonly used and proven approach. A growing number of applications now support natural-language phrase recognition, where the user can respond freely to an open-ended question and the system routes the call accordingly.

Position and Adoption Speed Justification: Improvements in recognition rates, design tools and standards are driving the adoption of speech recognition technologies.

User Advice: The most critical factors influencing success and reducing risk are: properly identifying the application — some areas and demographics work better than others; proper design of the voice user interface (VUI); selection of the appropriate speech engine; selection of the optimal development approach and tools; and thorough ongoing tuning and evaluation. Typically, using professional services that are experienced in speech recognition technology is the best way to start a project. Once several applications have been deployed, bringing development in-house is significantly lower risk.

Business Impact: Speech recognition for telephony and contact center applications allows companies to build an automated service to allow call center callers to talk to get access to functions such as travel reservations, order status, ticketing, stock trading, call routing, directory services, auto attendants and name dialing. It is also used to allow staff to access and control communication systems such as telephony, voice mail, e-mail and calendaring applications, using their voice.

Market Penetration: Five percent to 20 percent of target audience

Maturity: Early mainstream

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Sample Vendors: IBM; Loquendo; LumenVox; Microsoft; Nuance; Telisma

Recommended Reading:

• "Create a Company-Wide Plan for Automated Speech Recognition"

• "Forecast: Speech Recognition Telephony Software, Worldwide, 2002-2010 (Executive Summary)"

• "ScanSoft/Nuance Deal Continues Speech Market Consolidation"

Appears In Hype Cycle:

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

• "Hype Cycle for Enterprise Speech Technologies, 2006"

• "Hype Cycle for Human-Computer Interaction, 2006"

Analysis By: Steve Cramoysan; Bernard Elliot

8.2 Call Center Definition: Gartner defines a call center as an environment for structured high-volume telecommunications. This would be used by multiservice customer and employee service and support centers, by inbound and outbound telemarketing services, by help desk services, by government-operated support centers, and by other types of structured communications operations. The interactions can be human-assisted or automated self-service. The channels for interaction are those that support live voice and include circuit-switched telephones, VoIP and Internet telephony. Key underlying technologies are automatic call distributor (ACD), computer-telephony integration (CTI) and interactive voice response (IVR). However, there are a large number of additional technologies that can be used to enhance effectiveness. These include quality assurance, workforce management, e-learning, analytics and performance management.

Position and Adoption Speed Justification: This is a mature technology.

User Advice: Call center technology should be considered anywhere in the enterprise where you find high volumes of phone calls.

Business Impact: Call centers provide ability to provide consistent service over the phone. Service areas include customer service and support, help desk, telemarketing, and collections.

Market Penetration: More than 50 percent of target audience

Maturity: Mature mainstream

Sample Vendors: Contact center vendors.

Recommended Reading:

• "Magic Quadrant for Contact Center Infrastructure, North America, 2006”

Appears In Hype Cycle:

• "Hype Cycle for B2C CRM Technologies, 2006"

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

• "Hype Cycle for Business Process Applications for the Enterprise, 2006"

• "Hype Cycle for Contact Center Infrastructure, 2006"

• "Hype Cycle for CRM Customer Service and Field Service, 2006"

• "Hype Cycle for Enterprise Communication Applications, 2006"

Analysis By: Bernard Elliot

9.0 Appendices 9.1 Hype Cycle Phases, Benefit Ratings and Maturity Levels

Table 1. Hype Cycle Phases

Phase Definition

Technology Trigger A breakthrough, public demonstration, product launch or other event generates significant press and industry interest.

Peak of Inflated Expectations

During this phase of over enthusiasm and unrealistic projections, a flurry of well-publicized activity by technology leaders results in some successes, but more failures, as the technology is pushed to its limits. The only enterprises making money are conference organizers and magazine publishers.

Trough of Disillusionment Because the technology does not live up to its over inflated expectations, it rapidly becomes unfashionable. Media interest wanes, except for a few cautionary tales.

Slope of Enlightenment Focused experimentation and solid hard work by an increasingly diverse range of organizations lead to a true understanding of the technology's applicability, risks and benefits. Commercial, off-the-shelf methodologies and tools ease the development process.

Plateau of Productivity The real-world benefits of the technology are demonstrated and accepted. Tools and methodologies are increasingly stable as they enter their second and third generations. The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market. Approximately 20 percent of the technology's target audience has adopted or is adopting the technology as it enters the Plateau.

Years to Mainstream Adoption

The time required for the technology to reach the Plateau of Productivity.

Source: Gartner (June 2006)

Table 2. Benefit Ratings

Benefit Rating Definition

Transformational Enables new ways of doing business across industries that will result in major shifts in industry dynamics

High Enables new ways of performing horizontal or vertical processes that will result in significantly increased revenue or cost savings for an enterprise

Moderate Provides incremental improvements to established processes that will result in increased revenue or cost savings for an enterprise

Low Slightly improves processes (for example, improved user experience) that will be difficult to translate into increased revenue or cost savings

Source: Gartner (June 2006)

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Table 3. Maturity Levels

Maturity Level Status Products/Vendors

Embryonic In labs None

Emerging Commercialization by vendors Pilots and deployments by industry leaders

First generation High price Much customization

Adolescent Maturing technology capabilities and process understanding Uptake beyond early adopters

Second generation Less customization

Early mainstream Proven technology Vendors, technology and adoption rapidly evolving

Third generation More out of box Methodologies

Mature mainstream Robust technology Not much evolution in vendors or technology

Several dominant vendors

Legacy Not appropriate for new developments Cost of migration constrains replacement

Maintenance revenue focus

Obsolete Rarely used Used/resale market only Source: Gartner (June 2006)

RECOMMENDED READING

"Understanding Gartner's Hype Cycles, 2006"

"Hype Cycle for Networking and Communications, 2006"

"Hype Cycle for the Telecommunications Industry, 2006"

"Hype Cycle for Collaboration and Communication, 2006"

"Hype Cycle for Consumer Mobile Applications, 2006"

"Hype Cycle for Media Industry, 2006"

"Hype Cycle for Contact Center Infrastructure, 2006"

"Hype Cycle for Enterprise Speech Technologies, 2006"

"Hype Cycle for CRM Customer Service and Field Service, 2006"

"Hype Cycle for High-Performance Workplace, 2006"

"Hype Cycle for Business Process Outsourcing, 2006"

"Planning for 2010: Key Issues for Managing Business Processes"

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© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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