PKE. Business Introduction to WebRTC. Consulting LLC. Innovate Integrate Transform. Interaction Information Networks
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1 Innovate Integrate Transform Interaction Information Networks PKE Consulting LLC Business Introduction to WebRTC Session: B0-1 Phil Edholm President and Principal PKE Consulting 1
2 Session Presenters Chris Vitek Principal and Managing Partner WebRTC Strategies Dean Bubley Principal Disruptive Analysis Brent Kelly VP and Principal Analyst Constellation Research 2
3 Innovate Integrate Transform Interaction Information Networks PKE Consulting LLC WebRTC - GameChanger Phil Edholm President and Principal PKE Consulting pedholm@pkeconsulting.com 3
4 Three Big Trends Cloud Ubiquitous Bandwidth Devices 4
5 WebRTC GameChanger? WebRTC 5
6 Typical Client and Media Engine Components Audio Setup and control the hardware RTP, compression, encryption, statistics, etc. Produce low-latency audio from microphone Conceal loss, de-jitter and play audio from the network Cancel echo, VAD, reduce noise, etc. Manage codecs Video Render video, capture camera input Video processing (blue screen, gamma, etc.) Conceal loss, de-jitter and play video from the network Cancel echo, VAD, reduce noise, etc. Manage codecs Bandwidth Management Client/Media Engine Structure 6
7 Web RTC Puts the Media Engine into the Browser WebRTC Media Processing HTML HTML5 Visual User Experience Your Web App 7
8 Standardization IETF RTCWEB WG formed after BOF at IETF 80, April 2011 Focus on protocols and interoperability W3C W3C WEBRTC WG created May 2011 High level APIs and device control (mid, camera, network) PeerConnection API proposal originally proposed in WHATWG currently being discussed: tc.html 8
9 WebRTC Implementations Adding WebRTC to Any Web Server WebRTC as an extension to existing networks of servers (Carriers) SIP Web Server with WebRTC Control Vendor A UC Platform with WebRTC Control Vendor C UC Platform with WebRTC Control HTML & WebRTC API VOIP SRTP 9
10 Other WebRTC Enterprise Integrations Integrating a Media Server with WebRTC Enabling an Existing Contact Center product with WebRTC Web Server with WebRTC Control Contact Center Server Media Server VOIP Softswitch Media Server SIP Integration with RTP WebRTC and SIP Clients with Media Gateway Web Server with WebRTC Control Web Server with WebRTC Control Media Server HTML & WebRTC API VOIP SRTP Vendor Media Vendor SIP 10
11 Guest Portals: The Webification of Real-Time? Vendor A WebRTC Portal Vendor C WebRTC Portal
12 Guest Portals: The Webification of Real-Time? Vendor A WebRTC Portal Vendor G WebRTC Portal 12
13 Enabling Media Servers for Other Real Time Applications WebRTC Enabled Web Application Server Media Server 13
14 14
15 WebRTC Timing In base Browser Plans WebRTC in Chrome today Mozilla Firefox in general Beta in GA in weeks Ericsson bowser for mobile devices Opera this year Other browsers Open source plug-ins for IE and Safari Potential ios app in app store Promotion Community 15
16 Potential Barriers Microsoft may actively resist Contrary to Friends and Family strength of Lync and Skype Organizational shift may indicate probable support Apple is not committing Could block app in App Store Indications are they will support as a standard Open Issues Video codecs Security Open interface to camera/microphone could become an issue 16
17 Company Positions on WebRTC Committed Uncommitted /Following Telcos 17
18 WebRTC Benefits WebRTC Services Provider WebRTC enables any web server to deliver a unique real time communications experience, with simplicity and reliability, without dependence on service providers or other services. WebRTC Services Consumer WebRTC enables users to participate in a communications experience as delivered by any web site without downloads, registration or general cost. 18
19 Game Changer, Disrupter, Transformer? Core Technology Industry Disruptions Delivery General Market and Societal Disruptions 19
20 WWW, web, browser Impact Core Technology Industry Disruptions Delivery General Market and Societal Disruptions 20
21 VoIP Impact Core Technology Industry Disruptions Delivery General Market and Societal Disruptions 21
22 WebRTC Impact Core Technology Industry Disruptions Delivery General Market and Societal Disruptions 22
23 .and the world changed..and it will again. WebRTC 23
24 The Real-Time Web Application with WebRTC Control Vendor A UC Platform with WebRTC Control S.S w/webrtc Control Social System with WebRTC Control S.S w/webrtc Control S.S w/webrtc Control Application with WebRTC Control Vendor C UC Platform with WebRTC Control Application with WebRTC Control Social System with WebRTC Control Social System with WebRTC Control S.S w/webrtc Control S.S w/webrtc Control 24
25 WebRTC STRATEGIES Enterprise Use Cases Things Will Change Chris Vitek Principal and Managing Director WebRTC Strategies 25
26 WebRTc in the Enterprise: Customer Collaboration Enterprise Contact Centers 26
27 Customer Collaboration 27
28 Customer Collaboration: Extending rich collaboration interfaces to customers. Create more intimate relationships. Solve problems more quickly. Offer the customers any interface that is convenient to them: PC, tablet or smartphone. Simple: No Downloads. 28
29 Customer Collaboration: Examples Patient Collaboration interface: Personalized address book. Document sharing. Anonymous availability. In-home care. Broker Collaboration: On-Line statement analysis. Investment opportunity analysis. Education: Distance learning. Student collaboration. Trade Contractor Maintenance: Sharing pictures. Scheduling maintenance appointments. M-to-M integration. Government: Permit completion and filing on-line with assistance If needed. On-line driver s license renewal. Document collaboration. PBX elimination. 29
30 Enterprise Contact Center: 30
31 Gartner Group Forecast: Marketing Technologists budgets will surpass CIO budgets within the next three years. Big Data marketplace will hit $57B this year and remain at that level for the next 3 years. Legacy Enterprise Telecom spend is on a downward trend and the market continues to fragment. 31
32 Enterprise Contact Center: Loyalty Vs. Satisfaction: Loyalty Satisfaction 100% 30% 80% 25% 60% 40% 20% 20% 15% 10% 5% 0% Low Effort High Effort 0% Satisfied- Plan to Leave Not Satisfied - Plan to Stay 32
33 Current Enterprise Contact Center Strategies: Move Transactions to the Web. Optimize Business & Management Processes. Survey and Improve Customer Satisfaction. Implement Micro-Targeting with Legacy Contact Center Context and Tools. 33
34 Why Not Use Existing Technologies? Chat is widely available. Document co-browsing has been available since Video integration is available from many vendors. CTI has been available since Mobile applications are available from many vendors. 34
35 Why WebRTC? Telecom Context Vs. Web Context Chat, Co-Browsing, Video, CTI and Mobile all are supported by a single technology. Licensing and Maintenance Cost are Higher with 5 Difference Vendors. WebRTC eliminates the need for IVR, legacy does not. No downloads. 35
36 Legacy Customer Interaction ANI & DNIS 36
37 Big Data: Contact Center Routing and Micro-Targeting: ANI & DNIS 37
38 Results in a 1,000 Seat Contact Center: Customer effort is reduced. Customer service labor expense reduction $6.6M/year (15%). PSTN reduction or elimination $800K/year. Survivability (Catastrophe Communications). More Secure. Enables Micro-Targeting. Improved loyalty impact on marketing budget: $30M/year (10% of marketing budget). 38
39 WebRTC Market Status & Telco Impact Dean Director Disruptive Analysis
40 Voice & messaging are fragmenting Convergence & standards Fragmentation & differentiation There will no new ubiquitous interoperable services
41 Voice Telephony Past: 2G / 3G / PSTN / UC Future: WebRTC, apps, APIs, 4G Voice Voice Telephony Telephony Voic Conferencing PTT Video Gaming, CEBP, surveillance, social voice, TV voice etc Copyright Disruptive Analysis Ltd Video, context, sense June 2013
42 For telcos, it s all very grim Downsides Voice & SMS saturation & cannibalisation Regulation & competitive impacts Weak content & VAS propositions Economic pressures Ecosystem competition Upsides Connecting the last unconnected Smartphones & data growth Better segmentation, pricing & promotion Innovative services & enablers Embracing & exploiting fragmentation Copyright Disruptive Analysis Ltd June 2013
43 Carrier strategies with or vs. OTT Telco- OTT Innovate on-net services Partner OTT & bundle Block / degrade / Charge Also: Exit & allow customers to BYOVoice Copyright Disruptive Analysis Ltd June 2013
44 Million WebRTC forecasts: 4bn devces Device base supporting WebRTC growing Zero 4bn in 4 years Source: Disruptive Analysis WebRTC Strategy Report, June 2013 & Q2 Update June 2013 Definitions & methodology in report - See disruptivewireless.blogspot.com for details Copyright Disruptive Analysis Ltd June 2013
45 For telcos, WebRTC is a magnifier Now With WebRTC Bigger opportunities Worse threats Faster speed Copyright Disruptive Analysis Ltd June 2013
46 WebRTC: fixed & mobile Most WebRTC on PCs will be inside the browser On mobile, it s much more complicated Native browser Natively in OS 2 nd browser 3 rd party SDK WebRTC is definitely not mobile-first. PCs about 18 months ahead Copyright Disruptive Analysis Ltd June 2013
47 WebRTC is a 3-legged, stable stool WebRTC Enterprise Telco Consumer Can survive even if one of the legs takes too long: especially as each area has 3-5 major subsets Enterprise Telco Consumer Copyright Disruptive Analysis Ltd June 2013
48 Which use-cases lead? Existing web services Extending via the web, blending web capabilities Adding real-time comms capabilities Existing realtime comms services? Copyright Disruptive Analysis Ltd June 2013
49 Lead WebRTC use-cases Live & commercial Early enterprise adoption Call me buttons Internal contact-centre (cheaper agent positions) Initial consumer web apps Remote 1-1 education/training Free standalone video-calling Pilots / precommercial Trials & demos Vertical niche solutions (finance, health) Corporate conferencing Developer APIs & SDKs Telco core/ims extension Entertainment & consumer electronics Full enterprise UC. Also M2M & data-centric apps Copyright Disruptive Analysis Ltd June 2013
50 Very early forecast One viral app may accelerate this Copyright Disruptive Analysis Ltd June 2013
51 Main WebRTC strategies for SPs Extend on-net services, eg IMS Much enthusiasm but also complexity. Need to start work now Improve API relevance Enhance developer platform Turbocharge Telco-OTT apps Lower costs/complexity & improve reach & virality Upgrade hosted enterprise UC, conferencing etc Sell packaged WebRTC services to subscriber Copyright Disruptive Analysis Ltd Also: Enhance own CRM Invest & incubate June 2013
52 WebRTC gateways galore
53 E. Brent Kelly, Ph.D. President and Principal Analyst KelCor, Inc. Vice President and Principal Analyst, Constellation Research
54 Our Business Themed Research Portfolio A specialty research and advisory firm focused on incorporating disruptive technologies and innovative business models. Future of Work NextGen Customer Experience Matrix Commerce Big Data, Analytics, Performance Management Technology Optimization CoIT and the New C-Suite Digital Marketing Transformation Focusing on the board room addressing business problems first Our Business Themes and Practice Areas 54
55 Is WebRTC Innovative? 55
56 Let s Look at Three Litmus Tests for Disruptive Technologies Taken from the Innovator s Dilemma Remember: a litmus test is an indicator Litmus tests do not give exact magnitudes.
57 Test 1: The New Market Test Is there a large population of people who historically have not had the money, equipment, or skill to do this thing for themselves, and as a result have gone without it altogether or have needed to pay someone with more expertise to do it for them? To use the product or service, can people begin using it in a more convenient context? 57
58 Test 2: The Low-End Market Test Are there customers at the low end of the market who would be happy to purchase a product with less (but good enough) performance if they could get it a lower price? Can a business model be created that enables the new company to earn attractive profits at the discount prices required to win the business of these over-served customers at the low end? 58
59 59
60 Test 3: The Incumbent Test Is the innovation disruptive to all of the significant incumbent firms in the industry? If it appears to be sustaining to one or more significant players in the industry, then the odds will be stacked in that firm s favor, and the entrant is unlikely to win. 60
61 The Enterprise View of WebRTC Legacy Integration Specific Apps There is room for both view points 61
62 The Enterprise View of WebRTC Legacy Web Server WebRTC-to-SIP Border Controller SIP Control Data SIP-Based PBX SIP Control Data Border Controller Control Data Peer Connection (audio, video) Border Controller PSTN Cellular World Traditional Phones Phones or Video Units Browser Running HTML5 With WebRTC Browser Running HTML5 With WebRTC For any enterprises, WebRTC will need to integrate with existing infrastructure. 62
63 Peer Connection (audio, video, and/or data) The Enterprise View of WebRTC - Apps Browser Running HTML5 With WebRTC Peer Connection (audio, video, and/or data) Browser Running HTML5 With WebRTC Generally, Enterprises will not pay for IM/Presence Desktop video Web Server Peer Connection (audio, video, and/or data) Enterprises will pay for Voice Group video & infrastructure Audio conferencing Web conferencing Browser Running HTML5 With WebRTC Peer Connection (audio, video, and/or data) Browser Running HTML5 With WebRTC About half like these integrated and half will go best of breed. 63
64 When Should Organizations Adopt WebRTC? Another Lens to look through When it impacts one or more key drivers What generates the company s revenue What the company is best at What the company is passionate about Otherwise, ignore it Unless your competitors are adopting it, then adopt it to maintain parity 64
65 Low Hanging Fruit for WebRTC in Enterprises Engagement Sales and e-commerce (get the customer to buy or subscribe more easily) Some support applications, particularly voice and data sharing High value/high impact engagement (video) Don t count on WebRTC too much in regular support websites The trend for existing customers is toward self service and away from speaking to an agent (which costs money) 65
66 Market Size for WebRTC? It s still early days. Initially significant value in platforms and SBCs Think of WebRTC as you would HTML: what s the market size for HTML? Well, generally nothing. It s what people do with WebRTC that will generate its value. 66
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November 27-29, 2012 South San Francisco Conference Center Service Providers and OTT: WebRTC as a Game Changer? Dean Bubley Founder & Director Disruptive Analysis November 28, 2012 About Disruptive Analysis
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