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"When bandwidth is plentiful,
how would communications between people change?"
This was the
question that Kron's co-founders Unni Warrier and Anne Lam asked
themselves in early 1998. Their answer to that question led to the
founding of Kron.
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How Kron will dominate Communications Automation
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According to the Telecommunications Industry Association 2000 market review,
enterprise spending on communications integration is projected
to grow from $30 billion to $60 billion in four years. Kron
projects that the total cost and lack of personnel will lead
to automated solutions for managing communications services,
or communications automation. Communications automation will,
starting in 2000, rapidly penetrate 5% of the
communications integration market in four years, and 40% of
the market in ten years.
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The
Warrier-Lam thesis is that the number of personal communications
methods increases in proportion to the amount of bandwidth available
to carry that communications. They pointed to the emergence in the
past of bulletin boards, e-mail, chat and voice over IP as
direct functions of the growth of Internet bandwidth available to
people: from slow-speed modems to 56K to DSL and
beyond.
In the past, enterprises have addressed communications channels in
a one-off manner. Thus PBXs arrived to serve telephone
communications, e-mail servers emerged to serve e-mail communications and
Web servers for the Internet. The bandwidth explosion will spur a
continuing explosion in the number of such servers in large
enterprises. As customers and other stakeholders demand
responsiveness on each of these channels, enterprises are forced to
spend exponentially increasing amounts on equipment, transport and
support services for these services, driving up the total cost of
enterprise communications.
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According to Unni Warrier
and Anne Lam, the number of communications methods between
people increases in proportion to the amount of bandwidth
available to carry that communications. Optical
networking will exponentially increase the amount of bandwidth
available to enterprises. This, according to their thesis,
will exponentially increase the number of personal
communications methods available to people.
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According to
the Telecommunications Industry Association 2000 market
review, enterprise spending on communications integration is projected
to grow from $30 billion to $60 billion in four years.
Such integration costs can be reduced by deploying a
single infrastructure that unifies business communications and
integrates with business processes. The Kron Connected Action Network is such
an infrastructure that reduces the total cost of communications
while ensuring enterprise responsiveness across multiple
communications channels.
Kron projects
that automated solutions like the Kron Connected Action Network will, starting in
2000, penetrate the communications integration market at a rapidly
increasing rate, from 5% in four years to over 40% of the market in
ten years. The communications automation market is thus projected to
grow to $3 Billion in 2003, and over $30 Billion in
2010.
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Total Cost of
Enterprise Commmunications
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The table gives the breakdown of the total cost of
Enterprise Communications from the Telecommunications Industry Association
2000 Market Review. The percentages give relative spending in
the average enterprise. The big surprise is that the glamorous
spots in the industry, equipment and transport, account for
less than a third of the spending. More than 60% goes to
support services, the often overlooked area of the industry.
Kron focuses on efficiencies in this area to provide
immediate, tangible benefits to the top and bottom lines of
the enterprise.
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