Unified communications, or UC, is a major portion of Microsoft's most aggressive and extensive launch of new software products in its 30-year history. Microsoft exemplifies UC in its world with collaboration/meetings through the Live Communications platform re-named as Office Communications (with its accompanying client, Office Communicator); unified messaging provided by the Exchange 2007 e-mail program; voice/video/web-conferencing; instant messaging (IM), click-to-dial from Office apps; and, ultimately, full enterprise voice communications. Microsoft intends to gain a significant position in enterprise business communications — an annual expenditure exceeding $100 billion — by moving beyond e-mail, IM and collaboration as singular applications.

But Microsoft is not the only large IT player to use UC as an umbrella to cover what some say is a fragmented — but others say is merely a much-segmented — enterprise communications space. Other vendors have also adopted UC strategies. Nortel Networks, a traditional “voice” vendor, embraced Microsoft's UC vision through an alliance. IBM has entered the fray by aligning with Avaya, Cisco Systems, Siemens and others. BEA, Oracle and SAP will certainly be heard from as well.

So what does UC mean to business users? First, it means the evolution in voice systems brought by voice over IP over the past few years now forms a basis for further transformation. The walls within IT departments between network and applications groups are about to crumble, just as IP caused walls between voice and data shops to evaporate. More specialized functional groups will need to collaborate on infrastructure, applications, deployment, management and support. The evaluations from a technical and financial perspective become more complicated as everything becomes more inter-connected.

Second, mobility and mobile endpoints will continue to grow in importance as vendors add mobility to their voice solutions. Smartphones are growing in importance to enterprises as well as mobile operators. The common practice of departmental vouchering of cell phone bills will likely be replaced as the mobile device becomes more connected and essential to doing business. IM, extending real-time communications to enterprise mobile endpoints over cell, Wi-Fi, WiMAX and other wireless networks will become nearly ubiquitous — maybe not all in 2007, but certainly appearing in plans before the decade ends.

Third, like mobility, video is an application that's been poised for growth since the IP revolution began, fueled by the commoditization and availability of higher-resolution and less-expensive HD video displays. Microsoft's Roundtable as well as recent video entries and extensions by Cisco, HP and traditional video players like Tandberg (now being acquired by Arris) indicate the growing relevance of video in the UC universe.

Fourth, service providers, while being distracted by the consumer push around IPTV, must find ways to avoid becoming just a pipe, delivering enterprise and other content.

Fifth, we will find out if open source solutions like Asterisk become major players in the UC world or are just another punctuation point on the road to UC.

Finally, UC might mean the end of the PBX as we know it. This is a possibility if Microsoft and Nortel win the day. If they are correct, enterprise voice becomes just another business application procured as software, running on standard commodity servers. That will toss many business models up in the air and severely challenge many enterprise IT careers.

There are implications for systems integrators, large and smaller enterprises and businesses, as well as public entities like governments, health care and educational institutions. All will see UC affecting the way they deliver services and meet their missions.

David Yedwab is a founding partner in Market Strategy and Analytics Partners LLC. He can be reached at (908) 879-2835 ordavid.yedwab@mktstrategy-analytics.com.