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FMC: Enterprises aren't ready yet

Yankee Group report cites 'not now' attitude among potential users

      

During its short lifespan fixed-mobile convergence has gone from the greatest idea since bread was sliced to overhyped nonsense that will never happen. Along the way, it has still managed to maintain a small degree of respectability and potential.


Now, according to a report by The Yankee Group, one of the positives that FMC brings to the table—its cost-savings by moving mobile minutes off wireless and onto wireline devices— does not outweigh the trepidation of enterprise IT professionals and decision makers.

“We see it as something that will hit eventually but in the short term probably not,” said Brian Kotlyar, research associate with The Yankee Group and author of the report, “Productivity is the Prettier Face of FMC.”

Twenty-nine percent of the 302 IT decision makers surveyed for the report considered FMC a nice technology to have but not a critical application on their networking road map. Even more daunting, there is an adoption rate of less than 2 percent for the concept, the report said, so things aren’t taking off in that space even while it might be viewed as a positive.

“When we got the surveys back, cost is the biggest barrier to adopting but it’s a cost-saving technology so you know something’s wrong,” said Kotlyar. “People tell us it’s too expensive to deploy; it’s too complicated and they’re aware of it but they’re not motivated to buy it.”

The implications of 3G as a broadband alternative would seemingly impact FMC—especially as enterprises tried to control some of those mobile minute expenses by pushing traffic onto in-house networks—it’s not enough to drive adoption of the new merged package, he said.

“You’d think there’d be some interest in that, but the pricing’s not right,” Kotlyar said. “The enterprises came to me and said ‘There’s nothing wrong with this idea; from an empirical standard it’s great.’”

Those same enterprises, however, said they would hold off any purchase decisions until FMC became a free or inexpensive element of a bigger package of services. That, he said, is probably the longer-term road map as vendors start to make FMC part of a package of services.

“You get FMC today and then down the road they’re going to deploy something else that takes advantage of some presence information that’s going to come out of that. That’s the evolution that’s going to happen, but for now it’s just in its infancy,” he said.

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