Convergence & The Peer-to-Peer Revolution

March 21, 2005
Copyright Mediaware Infotech Pvt. Ltd.


The appeal of making free telephone calls, especially long distance is immense, even if it has to be made via the personal computer. With today's emerging VoIP software, you can call any other user like you were exchanging e-mail messages across the Internet. "Free of cost" (except for Internet connection & telecom cost). With no monitoring of time or distance. VoIP (Voice over Internet Protocol) is certainly not new. But vastly improving new software and ever widening reach of the Internet has resulted in huge popularity of such services.

The Peer-to-peer Revolution
The major technological developments during the past few years has been in the region of peer-to-peer connectivity over the Internet. Starting with the famous Napster.com who first used peer-to-peer technology for sharing digital music.

Then followed peer-to-peer software like "Kazaa" - superbly designed peer-to-peer software used as a basic technology platform that could be used for lots of different business areas, starting with music sharing a la Napster.

Incidentally Kazaa, with a download count of over 316 million is the one of the most downloaded freeware in the world. But, because it was absolutely free, Kazaa generated no revenue. To make matters worse, Kazaa had to face legal suits filed by large music companies. (Ultimately Kazaa' promoters reportedly earned $ 5,00,000 by selling out.)

Convergence
• In the beginning, the Internet appeared to promote "fat servers" - web-sites which "held" databases & applicatioins for communities. (Access to the Internet was not as ubiquitous as it is today.)
• This was followed by a slew of independent Web Sites for every type of service, some with the most imaginative business models. (This was when the Internet was becoming more accessible to more people around the world.)
• Then came the "software agent" concept which complemented the "fat servers". These agents undertook information processing at the user end, tying up with the "invisible" web servers whenever necessary. Search engines like Google were one of the first examples of software agents.
• The next major development was peer-to-peer technology : Inconspicous servers facilitated agent software installed in each user's PC - to form peer-to-peer private networks.
Today, the Internet is accessed via cable TV, telephone, mobile phones, palm tops and DTH TV - apart from the conventional computers. No wonder the Internet is viewed as much as an information distribution channel as it is for information databases.

Termed as "Convergence", major applications like tele-communications and television are steadily migrating to the Internet.

Circa 2010

It is estimated that basic telephony as well as mobile telephony will operate on Internet Protocol (IP). Meanwhile, Television will become totally digital and the distribution technology will be based on IP.

                                                                Motorola - Skype Tie-up

Skype is a VoIP freeware promoted by the original Kazaa team. Skype offers free basic telephony over the Internet, via its next-generation peer-to-peer software.

Rapid proliferation of broadband gives everyone around the world the option to make free, unlimited calls using an Internet connection with software like Skype. Simple to install, all it requires is a PC with standard mike & speakers.

Small wonder that, with little marketing, this free-of-cost software has already been downloaded 6 million times (March 2005).

Skype's business model is clearly to offer basic voice telephony free of cost - but to charge for premium services. Since many countries seem reluctant to regulate VoIP, the future of Skype's business model appears to have some substance.

Electronic major Motorola has recently announced a tie-up with Skype. If nothing else, Motorola's tie-up with Skype certainly gives credence to the future of VoIP as the alternate to conventional telecom.

Mediaware Infotech Pvt. Ltd.
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