Gates Promises 'Magic' Transformation of Telecommunications Through UC
By Scott M. Fulton, III | Published October 16, 2007, 3:44 PM
"The milestone that we're at," announced Microsoft Chairman Bill Gates at his company's campus this morning, "is that we're finally bringing to this idea of trying to get in contact with somebody, knowing what number to call, knowing how to connect many people together, knowing when they're available...the magic of software." With those words, Gates officially launched his company's Unified Communications platform, which will include a new class of telecommunications server product whose objective is to replace the office PBX.
"In fact, this is a complete transformation of the business of the traditional PBX," Gates continued. "The PBX in some ways is almost like the mainframe was many years ago, where all of the functionality was there in that one piece. And the way that you add flexibility, add value, to customize, to bring in third parties, to do new things, it just isn't there in that structure. So by moving phone calls onto the Internet using the powerful industry standard servers, we've got a very different way of being able to do things. And that can lead not only to lower costs, but far more effectiveness in how your employees work within your company, or with customers and partners outside your company."
From the perspective of a communications engineer, Microsoft's UC platform is an attempt to crash head-first into an entrenched market, where the existing players are all huge and, in many extents, are at Microsoft's level.
But from the perspective of an IT professional, who's more intimately familiar with software - and who may be more familiar with Windows and Office than anyone might rightfully want to be - the UC move is a way to evolve Microsoft's own entrenched market, which includes the ubiquitous Outlook, lest a lack of development and innovation allows that market to languish at just the time it may start to see competition once again.
For nearly the first 40 minutes of this morning's launch presentation, neither audience members nor webcast viewers actually saw the products being delivered, although occasionally their brands were flashed onto the wall monitor. Office Communications Server 2007 will be at the heart of UC, as the key software driving Microsoft's replacement for the PBX. This software enables an otherwise common server cluster to handle voice communications, instant messaging, voice mail, and point-of-presence.
The Outlook user sees all of this from one window, which now in addition to e-mail and calendaring serves as the nerve center for direct communication, store-and-forward voice messaging, and remote meeting facilitation as well.
Office Communicator 2007 serves as the company's all-in-one messaging client, merging the texting and video capabilities of something on the order of Skype with the features of a full-scale business telephone. But let's not kid ourselves: OC is a feature of Outlook, and the two are designed to be well integrated with one another. And while Live Meeting is designed to function as a company's remote videoconferencing service, the capability to invite contacts, retrieve scheduling information from communications, and embed documents in messages sent to participants is obviously woven into Outlook.
And Outlook is Office, and Office is one of Microsoft's pillars of long-term revenue.
![]() |
![]() |
After repeating a demo many had seen before where Outlook Voice Access responds (or tries to respond) to his voice commands over a cell phone connection, Swift showed pictures of how the same capabilities to check contacts' presence and availability, to place phone calls in response to e-mails without checking the number, and to manage instant messages and document transfers between people in a phone call as the call is taking place, can be made portable to a new version of Outlook Mobile. Notice it's not being called "Office Communicator Mobile."
![]() |
The rest of that segment of the demo springs forth from information that was embedded in an e-mail visible from Outlook.
It was a reasonably convincing demonstration of a businessman using UC in an everyday scenario. It could perhaps have been made more compelling had the participants - likely other Microsoft employees posing as actors - had less obviously been stationed in an adjoining room.
Next: Searching for the 'proposition' part of UC's 'value proposition'...
![]() |
| Microsoft's Eric Swift demonstrates a video conference that was precipitated by an Outlook e-mail message. Along the right side is Microsoft's Office Communicator (OC)client, which contains the active contact list and which register's each contact's relative presence. In the middle is the conferencing window, which was launched through OC. However, it's still linked to Outlook because future e-mail senders can be invited in the same way OC clients can be invited in: through a drag-and-drop process. |




We looked at Cisco to replace our 10+ year PBX in 2005. The cost? $100K+ to upgrade network and get the hardware, software, phones. It couldn't transfer calls or let you see who was on other phones without add-ons ($$$). It was missing 20 of the most basic features our Panasonic PBX had, such as the ability to record time, advanced call transferring, etc. You could hire a programmer to add these features or get add-ons to the phones that would have added $50K to the cost.
We were ready to roll out when we realized our 10 year old PBX was 10x better than this system. And dumped it.
Score: 0
|Did you talk to someone from Cisco or was it a partner that told you all of that? Saying that you can't transfer calls is just plain wrong! What do you mean by the ability to record time?? You mean a timestamp on a call? How many phones were on your network that it required a $100k network upgrade to support it--was that including the phones? Just curious because it sounds like a key system rather than a full-blown PBX and usually you don't have many phones on a system like that. I highly doubt that system is better if you look at all the Fortune 500 companies that have Cisco IP Phones deployed.
Score: 0
|What is the purpose of screenshots if you can't see the details of how it looks?
Score: 0
|Is this product of Microsoft going into direct competion with CISCO's call manager, unity, and video telephone confrencing products?
So now if a company wants to upgrade there PBX they can choose between Microsoft and CISCO.
Correct me if I'm worng, I'm just trying to get my facts straight.
Score: 0
|It does sound that way.
Score: 0
|There are some parts that will directly compete and some pieces that they are missing that need to be augmented with 3rd party phones, etc. There's also tight integration between Cisco and MS with regards to presence info, and voicemail/email integrations. It will be interesting to see how this all plays out because both Cisco and MS are present in one way or another in about 90% of the market.
Score: 0
|Looks like there is a new kid on AT&T's block.
Score: 0
|I hope this is as revolutionary and useful as that universal plug and play thing they came up with years ago. I don't know what I'd do if I couldn't connect my microwave oven to my PC.
Score: 0
|I think that came out sooner then it was ready, down the road it will come back.
Score: 0
|Or your vibrator to it...
Score: 0
|Actually when you think about it stuff like that could be handy. Like the oven for example. Your bringing home say a frozen pizza. Just connect to your device and the oven is preheated whenever you get home. Not worth big bucks, but hey I wouldn't call it "totally" useless.
Score: 0
|Lets not...
Score: 0
|I think I would a bit afraid of having my oven turn on and preheat itself while I'm away. In fact that seems like a very bad thing. Suppose some grease inside caught fire or something. The idea of coming home to a smouldering pile of ashes where my house used to be isn't very appearling.
Score: 0
|