XO Launches IPfolio, Offering IP Service Enhancements and Simplified Pricing

On January 16th XO Communications announced enhancements to its IP service portfolio and the launch of a new service brand. XO has upgraded its XOptions Flex service to include 4.5 Mbps and 10 Mbps options, and it is rebranding the service as XO IP Flex. XO SIP has been extended to all 75 markets in XO’s national footprint, and the carrier has changed the pricing structure for its converged IP services to a model based on port size rather than the number of voice lines. XO is launching XO IPfolio as the banner under which XO SIP, XO One iPBX, XO MPLS IP-VPN, XO IP Flex, and XO IP Flex with VPN will be offered.

Recommended Competitive Responses

► AT&T and Verizon can emphasize their extensive track record in serving large enterprise users, as well as their global reach. Both carriers have broad network coverage that extends from the local and metro level to a blanket national presence and international destinations. They can also show off that their VoIP services are available with their line of IP VPN offers.

► Sprint Nextel can emphasize its lengthy track record in providing services to large enterprises along with its recently launched IP Voice Connect Service, which is delivered over the SprintLink Global IP network. Voice Connect includes a subscriber portal that supports click-to-call, integration with Microsoft Outlook, and many other features. Sprint can work with enterprise users in integrating mobile voice and data business services, including IP VPNs.

► Level 3 can emphasize its IP VPN services, which are offered over its national MPLS backbone. Level 3 offers support for multiple classes of service, enabling enterprise users to prioritize voice and data traffic over the VPN. The carrier offers a hosted VoIP solution for customers that wish to outsource their VoIP service.

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Perimeter eSecurity Strengthens Compliance for its Hosted Mail Portfolio with SECCAS Purchase

On January 15th Hosted mail services company Perimeter eSecurity acquired Secure Electronic Communication Compliance Archival System (SECCAS), an outsourced provider of e-messaging compliance to public and financial services companies. This acquisition complements Perimeter eSecurity’s existing portfolio of more than 50 on-demand security services.

Analytical Summary

► Current Perspective: Positive on Perimeter eSecurity’s acquisition of messaging compliance vendor Secure Electronic Communication Compliance Archival System (SECCAS), because the deal gives the software as a service (SaaS) provider a unique service for managing and storing instant messaging and other electronic records that will appeal to brokerage and other firms seeking a way to capture and retrieve electronic records both from historical archives and in real-time. This provides businesses in heavily regulated industries with a proactive way to manage compliance to meet Security and Exchange Commission (SEC) and other federal, industry and internal corporate mandates around messaging.

► Vendor Importance: Moderate to Perimeter eSecurity, because the SECCAS purchase gives the provider a key compliance solution that further bolsters its already extensive hosted secure messaging solution portfolio. The provider has been boosting both its profile and its mail and security offerings through a series of acquisitions including the 2007 purchases of USA.net and Message Secure. With the SECCAS buy, the company picks up a service that it can offer on demand which will appeal to both its traditional customers as well as brokerage firms that have not been part of the company’s traditional client base.

► Market Impact: Moderate on the messaging market, because in integrating the SECCAS messaging compliance service into its SaaS services set, Perimeter eSecurity becomes an even greater force as a supplier of managed secure mail services to the financial services industry as a whole as well as to companies in other vertical markets.

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CES 2008
Sprint Adds to the XOHM Ecosystem and Hints at Service Models

On January 8th Sprint announced new ecosystem partners for its XOHM mobile WiMAX service. In particular, it was announced that Amdocs was awarded a multi-year contract to support service activation, customer management and billing, with SwapDrive supporting online data backup applications, McAfee delivering online security products and eTelecare Global Solutions providing, “voice and e-support customer care.” Device support from ASUSTek, OQO and ZYXEL was also announced.

Analytical Summary

► Current Perspective: Slightly positive on Sprint’s further expansion of its XOHM ecosystem as the company is now bringing together a larger and more comprehensive set of vendors. Aside from the earlier infrastructure and device vendors already announced, the additional details regarding new vendors and devices (converged devices) as well as core network components (e.g., billing, security, apps) are welcome in order to enhance the view of XOHM execution and build momentum towards its commercial launch. In addition, more specifics on services were divulged, alluding to service models beyond the standard subscription approaches prevalent in the wireless industry today. Despite this, XOHM’s future is still in question as important details such as timing are lacking on a commercial (vs. soft) launch.

► Vendor Importance: High to Sprint as the company is still committed to a successful XOHM offering. As such, it needs to foster the WiMAX ecosystem that can help further its vision and shoulder the burden of marketing it to the buying public. Moreover, any positive XOHM announcements positions the company favorably as executing on a high stakes and controversial bet, while distracting people from the fact that Sprint’s commitment could be wavering or could be altered when new CEO Dan Hesse ultimately makes the ‘go, no go’ decision.

► Market Impact: High on the enterprise mobility segment, because Sprint is rolling along. One of the fundamental points that Sprint has pushed is that WiMAX provides it a competitive advantage in delivering mobile-DSL like speeds ahead of competitors. As LTE as a technology is still in development and at least two to three years away, any successful data service adoption will likely provide strong differentiation against other wireless competitors. Moreover, the promised new data service business models, if well-received, may set trends for other service providers, wireline and wireless.

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