Convergence: Past and Future - Essay Example

Perspective of Convergence from the Past Ten Years and in the Future Digital convergence in the 21st century is forcing the three industries such as technology, media as well as telecommunication to flow more closely together. To create something new, for instance new product or service, new alliance, new value chain structure, or new economic model, two or more previously discrete lines of business are combined through convergence, which generates greater value for business and its customers.1 "Convergence is predicted to have a massive financial impact on TMT industries, over the next five years. Based on industry analysts' outlooks, between 2005 and the end of the decade, TMT practices of DTT member firms forecast the generation of at least a trillion dollars revenue from emerging convergence products as well as services. The Voice over Internet Protocol or VoIP is the most significant convergence service that is expected. It had been forecasted to generate $196 billion in 2007and by 2008, 20% of U.S. homes are expected to have VoIP telephones. Over $1 trillion in revenues through 2010 may be generated by aggregate VoIP revenue between now and 2010 alone. From a wide variety of business and consumer Internet Protocol appliances, convergence may also generate new revenue which includes next generation digital music players, home entertainment systems, home video phones as well as enterprise collaboration system. By 2010 the value of this market was forecasted to be worth almost $90 billion, over the next five years cumulate value will be $360 billion. Through 2010, other emerging products and services which would generate sizeable revenues include the following: enterprise collaboration software ($60 billion); Internet Protocol Television (IPTV, $55 billion); mobile phone content ($50 billion); network games ($35 billion); online music ($20 billion)."2 Network Convergence For the past decade, convergence wherein voice, video as well as data communications are supported by a single network has been an important future direction. As more legacy communications infrastructure is upgraded to integrated internet protocol (IP) equipment it will continuously give importance to future direction. Networking is simplified through network convergence, wherein instead of two three or more, it creates one infrastructure to operate and manage. All sorts of interactive as well as real-time multimedia applications and processes could conceivably be supported by converged network. When network convergence was first being proposed through Internet Protocol technology, about 10 years ago, it was a different age for communications and it was a time when in separate network universes, voice and data existed. Moreover, it was segregated by infrastructure which was designed to avoid interference. Internet Protocol eventually became the building block for singular pathway for all forms of network communications. For the past decade, network convergence has focused on voice-data integration in telephony through Internet Protocol technology. IP telephony session was held last week and a group of approximately 30 IT professionals including technical representatives from IBM Canada Ltd. As well as Cisco Systems Canada Co. assembled in order to discuss the driving business values of the technology. The discussion was focused initially on the most popular and proven of application of network convergence which eventually led to examining greater value of consolidating business networks into one.3 In the near term, the health region has a need for a revamped telephony strategy in order to replace its aging as well as costly equipment and services. However, over time, there is a plan to address a wide range of communications challenges. At an "end of life" condition within five years, the health region has a large number of single-purpose propriety networks. During his presentation, Mr. Beaurivage, states that "Converging these single-purpose networks onto one IP-based platform offers unique integration possibilities."4 A number of separate networks would be replaced by one converged IP network, which includes those that support nurse call systems, dictation systems, overhead paging systems, security camera systems, door-lock systems as well as various alarm and alert systems. Moreover, the converge network of the health region as well as the IP telephony application will underpin state-of-the-art contact centers and ultimately be used to enable mobile, remote and home based workers.5 Terminal Convergence Historically, devices optimized for one or few, specific tasks are terminals or particularly, traditional cellular phones. These terminals have been optimized over time, to provide the most elegant solution for the task at hand. In consumer electronics, as convergence takes place, a lot of functions are being combined into a single device. As technology advances as well as converged terminals are optimized to requirements of the end-user, they will become as usable as dedicated terminals for multiple critical tasks. Contents Convergence Competency models for recruitment assessment development and performance management, as well as the design and delivery of diagnostic and development programs for individuals and groups which ranges from graduates to managing directors and their top teams are designed by Content Convergence. For senior managers across a wide range of business sectors, they provide executive coaching and techniques such as work shadowing and 360 degree feedback tools are used to support the development process and improve the performance of individuals and teams.6 Traditional print content are not replaced by on-line content, but rather the online world and print mediums, will ultimately converge. At the intersection of this digital convergence content convergence exists.7 Service Convergence End user requirements as well as the service experience are the focus of service convergence. The concurrent delivery of all media types which include voice, data, and video to an easy-to-use graphical user interface, with mobility and access as well as device awareness, is its primary goal. A number of services such as person to person, person to content, and content to person can be provided to the same user over different access networks as well as to different devices. Due to globalization, end user behavior, based on research is rapidly changing, and there is an increased value that was placed on individuality, emerging tribalism, new pattern of social networking and communities as well as increasing nomadic lifestyle. To be always connected in the best way, the consumer as well as enterprise user, from service perspective, expects convenience, ease of use, reliability, security and support. A variety of services can be developed, once the needs of the user are understood, within this demand framework which includes convergent voice, efficiency applications, alternative communications method as well as entertainment. In addition to that, it is important to note that there will be significant differences between the needs of the end-user and the ultimate consumer's converged services and enterprise users. 8 In operator's network, full service convergence is the last phase. The operator seeks to enable the convergence of voice as well as data services, with full service convergence, to provide new capabilities that are not currently available to end-users. A better user experience for the subscribers is provided by service convergence and services are made easier to use. For instance, with a single contact list that spans all of their services can be provided top the users so that to have one contact list for email, another for messaging and so on are no longer needed. Greater integration of disparate services is implied by full service convergence. Like for example, a subscriber on a VoIP call with another user would be able to launch a multimedia session with that other user to enable the shared viewing of video.9 Business Convergence In business systems information technology, and in specific delivery mechanisms such as broadcast control rooms, transmission towers as well as fibers, investments were made. With the unusual degree of technological investment, a burst of innovations was created and with the market convinced that by using technological convergence as a tenet for business convergence, huge opportunities will arise. Total capital investment in technologies, as viewed over ten year period from 1994-2004, shows that there is increase of spending by content, distribution, as well as technology sector companies outpaced financial services by fifty-one percent, and marks the first time that any sectors have invested much on total technological capital. The supercharged fuel of convergence is technology investment which makes this the moment when business convergence can finally occur. Part of the business convergence picture is the transactions of Merger and Acquisition (M&A) and it continue at a steady pace. 2006 will top deal making of 2005 in both number and value, with total value of $72 billion in entertainment and media sector alone. Within all three sectors, from 2004-2005, of the largest deals, there were 44 transactions of $1 billion or more each, with a total value of $244.6 billion.10 Since 2001, enormous growth in alliance is evident and the most active alliance builders are large technology players such as Cisco, IBM, Microsoft, Hitachi, as well as Philips. Numerous alliances have been formed between media, technology and distribution companies. They are the Fox's and Microsoft's sports on MSN which drove up online usage of News Corporation Content, Walt Disney Company and HP, NBCU and Apple computer, and Yahoo! and AT&T. In wireless industry, numerous alliances have been also made, and some have the potential to greatly influence the market. Intel, Microsoft, Motorola, Modeo, Nokia, as well as Texas instruments have announced in January 2006, the formation of an organization called Mobile DTV Alliance, which is intended to promote the growth of Digital Video Broadcasting-Handheld, an open-procedure standard for broadcast digital TV reception on mobile devices. On mobile Business in 2007, the broadcast mobile TV that differs from streaming services is expected to have a major impact. The economist Intelligence Unit in cooperation with PricewaterhouseCoopers conducted a survey and conservative estimates built on the responses of a global survey suggest that, 46% of companies in the technology, content, as well as distribution sectors anticipate new alliances, partnerships and related collaboration in the next three years.11 Works Cited Breaking down walls: How an Open Business model is now the convergence imperative. PWC Advisory: Performance Imperative. PricewaterhouseCoopers LLP. 2006. pp.5-6. "Convergence in Context." The Trillion Dollar Challenge: Principles for Profitable Convergence. p.4 Hays-Nowak, D. Content Convergence, Content Convergence Inc.2008 "Introduction: the Trillion Dollar Challenge." The Trillion Dollar Challenge: Principles For Profitable Convergence Delliotte: Technology, Media and Telecommunications. p3. "Overview of Service Convergence." Nokia Standard Document Template. p. 3 http://www.3gamericas.org/pdfs/convergence_July2005.pdf "Publishing Media Change Consultant: Clive Purchase." Content Convergence. Content Convergence Inc. 2008. "Service convergence." Nokia Standard Document Template. p.30 http://www.3gamericas.org/pdfs/convergence_July2005.pdf Statement of Mr. Beaurivage during his presentation in last week's IP Telephony Session. "Telephony a Tiny Piece of Big Convergence Picture." TQ@Work. Canada: CTVglobemedia Publishing Inc. retrieved 22 January 2008. "Telephony a Tiny Piece of Big Convergence Picture." TQ@Work. Canada: CTVglobemedia Publishing Inc. retrieved 22 January 2008. Read More