Posted: 2/2002

Coming Together
Easier Interfaces, Affordable Rates Target Webconferencing's Sweet Spot

By Khali Henderson

At the same time that economic pressures and travel concerns have cast the spotlight on conferencing technologies, webconferencing service providers have rolled out next-generation versions of their collaborative meeting applications with user-friendly functionality and flexible pricing -- perceived barriers to widespread adoption of the newest of the conferencing utilities.

The number of webconferencing users was expected to double from 13.4 million in 2000 to almost 30 million in 2001, according to one estimate by IDC, an information technology research firm. IDC predicts the number of users will increase to 161 million by 2005. The firm's November 2001 conferencing survey of 573 enterprise conferencing administrators reveals online meetings are becoming the preferred meeting style regardless of industry or company size.

IDC analyst Robert Mahowald says businesses are holding more online meetings than ever. In part this is a way to cut travel costs, but he says the real story is in their acceptance as a replacement for most types of meetings.

To help tap this potential, service providers are actively seeking -- some for the first time -- agents and resellers for their collaborative meeting applications.

Growing Opportunity

Webconferencing, like many technology-based services, suffers an identity crisis. On one hand, it often is confused with webcasting, which is a streaming video presentation often accompanied by text chat for questions from a large audience. On the other hand, it sometimes is confused with collaborative software applications such as Lotus Notes.

Webconferencing is neither of these, but it does incorporate some of their respective functions. For example, some webconferencing applications will allow participants to submit text questions during a slide presentation. And all but the most lightweight offers feature collaborative tools, such as white boarding and application sharing -- often described as dataconferencing.

The primary differentiating characteristic of a webconference is that it is a real-time Internet meeting with audio, data and, increasingly, videoconferencing capabilities.

While all conferencing platforms -- audio, web and video -- are expected to grow substantially in the coming months, webconferencing promises the most opportunity because of the data transfer capability that is necessary within enterprises, Frost & Sullivan analysts report.

"Webconferencing providers have noted that awareness and interest levels have increased more than 100 percent since the (Sept. 11) terrorist attacks," says Frost & Sullivan analyst David Alexander. "File sharing, presentation and collaboration applications will be of tremendous importance as travel budgets shrink and concerns grow."

Well before the current stimulus in usage, providers were working on applications and marketing plans designed to attract new users and encourage repeat users -- to push their applications from formal to more casual use. Their strategies have been, first, to refine the packaging and pricing options and, second, to enhance the functionality by simplifying the interface, better integrating the audio and beefing up security features.

On-Target Positioning

Most of the changes that have been made to webconferencing services during the past few months have been driven in large measure to service providers having identified the "sweet spot" in the market and tailored their offerings accordingly.

Jerry McEleney, vice president of wholesale services for Genesys Conferencing, says his firm's research determined 70 percent of all webconferences consist of 7.5 people. This tracks with audioconferences, which he says, include seven to eight people and last for 55 minutes.

The simple conclusion that web collaboration most often is done in small numbers has guided recent packaging and pricing options among many vendors.

In Genesys' case, the company released Oct. 23 its Genesys Meeting Center integrated audio and webconferencing platform with a new pricing scheme specifically targeting online meetings of up to 15 participants.

McEleney says audioconferencing users, who pay 15 cents per minute, can buy unlimited usage of the webconferencing services for a subscription fee of $39.95 per month for up to 15 participants. (Since the audioconferencing features are available from the same platform as the webconferencing features, users also have the option of adding the webconferencing capabilities to an individual audioconference for 40 cents per minute rather than subscribing to the all-you-can-eat option.) This is in sharp contrast to traditional pricing for web conferencing, which has followed a per-seat, per-month license of around $250 to $300, McEleney says, noting a typical account supporting 10 to 15 users would be about $3,000 per month.

ACT Teleconferencing Inc. also introduced last fall a web conferencing product that targets small groups of less than 25. ACT's ReadyConnect Online is a complement to its reservationless audioconferencing product ReadyConnect, and it allows users to launch collaborative meetings with no operator and no reservations.

ACT Teleconferencing executive vice president of sales and marketing Emily Magrish says the new service was designed with a participant cap because web conferences with larger groups tend to wander off course without operator assistance. (A service for these occasions, which she calls "events," is expected to be released during the first quarter).

ReadyConnect Online also caters to small groups by not allowing for text chat, which Magrish says is superfluous and distracts participants who also are "chatting" over the telephone.

Magrish declined to disclose pricing for the service, but she said it also is per-minute per person to mirror the audioconferencing service.

Also in mid-2001, Premiere Conferencing introduced a small group (up to 48 participants) web collaboration solution as an alternative to its flagship VisionCast event-oriented service.

ReadyCast, an enhancement to Premiere Conferencing's reservationless audioconferencing service ReadyConference, offers on-the-fly online meeting service for 35 cents per minute, per person in addition to per-minute charges for ReadyConference.

While not targeting its service specifically to small groups, Raindance Communications Inc. has adopted the per-minute, pay-as-you-go pricing as an alternative to traditional per-seat licensing for its new of Raindance Web Conferencing Pro 5.0.

Pricing for the service, which was launched in October, starts at 39 cents per minute for the standard version and 49 cents per minute for the seminar version that offers additional event-management features.

Raindance's COO Jack Blunt says the change was made to eliminate a primary barrier to adoption. He says the licensing model forces customers to predict the number of moderators and users as well as the volume of conferences without any historical data to guide them.

Raindance agent Scott Clague, director of indirect channel sales for Communication Management Services says new pricing has been a good closer. "When [prospects] see [the application], they say, 'It's going to cost me a ton.' The fact that it doesn't makes it an easier sale," he says.

Simpler Interface

In response to customer feedback, vendors also have made strides in simplifying use of their services.

Magrish says her company's focus groups list simplicity as a key factor in the participants purchasing and use decisions. Among the groups "laundry list" of requirements was being able to easily upload meeting content on the fly and to share applications without "mouse wars," i.e. when everyone is trying to control the collaboration at the same time.

After a year's search, ACT Teleconferencing selected software from MeetU to power its web collaboration product, ReadyConnect Online, which debuted Nov. 15.

Uniquely, ReadyConnect Online gives each conference chairperson a personalized web address, which services as a permanent virtual conference room where a webconference can be conducted. Functional controls and real-time status indicators reside on the side of the screen, while the center is reserved for document viewing, sharing and editing. Interestingly, visitors to this "room," can request a meeting with the chairperson instantly or leave a "business card" or documents in the room if the chairperson is out.

Raindance also had simplicity in mind when it introduced in late October the latest version of its webconferencing service, Raindance Web Conferencing Pro 5.0.

In addition to its new moniker, the version, which succeeds Raindance Collaboration 4.6, features a completely redesigned interface that replaces layered windows with a single frame with icon-based buttons for one-click access to the conferencing features.

Raindance's Blunt told PHONE+ the redesign was critical because "intimidation or a steep learning curve slows adoption."

In fact, he said the complexity of the previous version was intimidating to its agents and few sold it. They prefered the easier audioconferencing sell.

With the streamlined version, Blunt expects the company's agent channel to beef up sales.

CMS, an 11-year-old master agency, signed up in August with Raindance and hired Clague as director of indirect channel sales with responsibility for the new product line.

In December, Clague says his firm already sold nine accounts -- including a few very large ones, such as a trucking company -- in its first month offering the Web Conferencing Pro service.

"The single interface with all the tools on one screen is huge," Clague says.

Director of marketing for Raindance reseller InterAct Conferencing Leeann Morris says the improved user interface makes it easier to use and to sell. "The smoother the demos go, the easier the sale," she says.

Clague and CMS' subagents also conduct online demostrations of the service with their prospective customers. He says most don't realize these applications are available to them -- attesting to an untapped market. Once they do, they figure out ways it can change their business practices by enabling remote training, online sales demonstrations as well as collaboration with project teams, he adds.

Integrated Audio

Another key to simplifying operation of webconferencing applications is the integration of the audio and webconferencing platforms so that users can manage both environments from a single interface.

With the introduction of Genesys Meeting Center, for example, Genesys Conferencing has combined its TeleMeeting audio controls with its PowerShare webconferencing tools. McEleney says the unified platform eliminates the need to manage the audio portion of the call with DTMF tones.

Raindance Web Conferencing 5.0 also gives the conference moderator a single login for complete command of audio and web controls, participant lists, phone dial-out, muting, locking, etc. for up to 96 participants.

The company says a key advantage is customers have only one phone number, one conference ID, one tech-support team and one bill.

Security

While simpler pricing and ease of use will get many users on board, there are others that remain skeptical about its security features, fearing data are vulnerable when pushed outside company firewalls into the Internet.

One company, Sonexis, views this as such a great concern that it traded its service delivery model for a CPE model. This month, the company plans to roll out the first of a suite of products (as yet unnamed) that allow companies to run integrated audio, video and webconferences in house. The equipment hangs off the PBX and server and keeps information behind the firewall.

"The trend is for services to come in house," says Sonexis' president David Friend, noting that the migration is not unlike the movement from Centrex to PBX. "From an economic standpoint it also makes sense except for small users."

Service vendors PHONE+ contacted say they have addressed security concerns. Raindance's Blunt says that his firm's applications are run from a secure data center Raindance controls from end to end. Customers also can select optional 128-bit SSL encryption for added security on top of standard security features such as access control and user authentication.

"Our customers are very comfortable that we are doing a better job [of maintaining security] than they could," he says.

InterAct Conferencing's Morris says its system is PIN activated and allows users to change the security code for every call.

ACT Teleconferencing's application also allows for assignment of a password for each meeting. Further, says Magrish, the meetings can be "locked down" when all of the participants have arrived so that no others can eavesdrop. As an added measure, documents can be encrypted so only participants can view them. "One of our largest clients is a Big 5 accounting firm. They can use this [security feature]. All three make for a secure meeting," she says.