Broadband: The second wave

Microsoft has recently re-embraced the ASP software-on-demand model with the announcement of Windows Live, providing consumer services via NineMSN, and Office Live, targeted at small businesses.

While details are scarce until at least the release of the Office 12 beta early next year, Office Live will offer advanced features to complement rather than replace desktop software, says Microsoft Australia partner group director Kerstin Baxter.

"We do not believe that Office Live services are going to displace our existing products or the existing channel models, either through our OEM partners or reseller partners.

"We fully expect those two communities to still thrive. In fact this just helps create a new opportunity to go back and talk to customers about how this can help them in their businesses," Baxter says.

"The technology will also allow resellers to increase productivity and become more profitable, because instead of having to go and install it, they can help the partner be better supported by being able to do it remotely. So they can focus more on getting the business functionality that is of higher value to the small business, and that’s typically a more profitable business."

Faster data links are also opening up markets for video over IP provider Broadreach Services, says channel manager Andrew Allsopp.

"We knew the big boys would get into voice pretty quickly, protecting their existing investments and customers. However, the video offers a lot of opportunity and, in many ways, is a more compelling application for convergence," says Allsopp.

He sees integrating video applications into Microsoft Office as more of an opportunity for the channel than just videoconferencing. As the move away from ADSL increases both available upload and download speeds, he says video-based applications will take off.

"What we do isn’t mainstream yet, but we’re definitely on the verge of that. There are a number of large organisations looking to deploy large scale video-based solutions."

IP-based video surveillance and video security — from home security to in-store surveillance — are also key areas the channel should examine, says Zac Swindells, managing director of wholesale internet service provider ispOne.

Email storage and archiving, as well EFTPOS over IP instead of over ISDN, also offer interesting opportunities, Swindells says.

"I believe you have to move into those areas to make a sustainable, viable business in the future. If anyone out there just relies on broadband they’re kidding themselves from a business point of view, because it’s not going to be a sustainable business in the next three to four years," he says.

"Broadband will become a commoditised product and the only ones that are going to win when you get a commoditised state are the biggest players. Once you build other drivers around it like email, VoIP and security, that’s where you can run a sustainable business. If you don’t think about it now it’s going to be very hard in the future."