Use of video applications is still low in the UAE and is expected to increase only in the next 12 to 18 months, according to technology major Cisco.
In spite of the mobile subscriber base exceeding 200 per cent in the country, video today has still a long way to go as enterprises are focused largely on voice and data applications and solutions.
Video based solutions and products are highly used in the consumer segment rather than the enterprise, according to Wayne Hull, General Manager for Cisco operations in the UAE.
"Consumerised enterprise" is the future for large organisations in the country. As more consumers get their devices and applications into the enterprise environment, IT and telecom infrastructure will have to support an upgraded network. Hull says the role of Cisco has also changed from a mere infrastructure player.
The company is more involved now in providing IP-enabled networks for service providers, e-services for government, telepresence for healthcare and connected content for education.
He spoke to Emirates Business on how the company's focus has changed in making the UAE a "Connected Nation".
If the UAE has moved from the infrastructure build out to the communication era, how has that changed the market scenario for Cisco?
There is high level of connectivity available in the country but what is being done with it? The real change in the UAE is to move from connectivity to communication. This is where we see Cisco's role in the country.
In 2010 and next year we are talking about a connected nation. Therefore, our conversations are not limited to infrastructure and communication players but also government and business leaders. Currently, telecom regulators are more interested in communication and as the UAE is a hub this is an opportunity.
How does the role of the regulator and government change in such a scenario?
Regulators are more interested in communication and as the UAE is a business hub of the region this becomes an opportunity. Therefore, organisations have to connect anytime, anywhere in the world.
At the government level, citizen services such as healthcare, education, public safety and basic communication services are most significant. Dubai and Abu Dhabi both have been classified as world-class cities mainly because of the citizen services.
Dubai is also a particular type of city as there is a large transient population who don't live here enough to provide solutions to typical city issues. In most other cities, people are there for a long time and become part of the solutions and issues.
Therefore, as a regulator, an environment has to be created that is conducive to productivity. It is also a well known fact that network readiness, broadband penetration and mobile play a role in increasing global competitiveness for the country.
In such a scenario, service providers have to make sure that they roll out the right kind of services as it creates communication readiness in the public.
What are the main challenges in the UAE to attain this communication readiness?
The challenge is to acknowledge that high levels of connectivity for communication are required.
The opportunity today is that most people communicate based on data while the world is moving to video very quickly.
The younger generation in the UAE is using video at a much more prolific rate with the high amount e-mails and communication done via SMS. They are more into real time communication. At Cisco, we call this 'consumerised enterprise'.
Earlier communication activities happened at the enterprise level and then rolled out to the consumer.
The roll out of Youtube and internet browsing is so high in the consumer segment that they are using information on any device. This is a borderless network environment. It would be naïve to think that the consumer would not want this experience at office.
Therefore, it comes down to collaboration of voice, video and data. This gives consumers an opportunity to be completely mobile and borderless without being confined to one location. Certain level of tools and practices should be in place along with collaboration.
Cisco is moving towards this concept enabling the tools and practices required by the consumer.
Consumer behaviour must also change to understand the power of productivity by using these tools. It is possible to be productive without being face to face which was also done at Cisco.
During the recession last year, Cisco made a decision to cut down $1.5 billion (Dh5.5bn) out of operational expenditure by opting to work with such collaboration and online tools extensively. The combination of face-to-face and virtual became normal, as the same level of productivity is applicable.
Do you see an increase of use in video and video-enabled applications in the enterprise segment?
In the UAE today, broadband and mobile penetration is above 200 per cent. Use of video is low as the movement is just happening and connectivity costs are still high.
The introductions of mobile devices are accelerating in the UAE as there is a high appetite in the country for the latest technology.
In the consumer segment, almost 50 per cent of users use video.
Enterprise level adoption is low but I am expecting this to increase in the next 12 to 18 months. This is also because Opex (operational excellence) is being managed tightly but that is not a diet for a new way of life. It has to be managed differently and employees are demanding where and how they want to work today. Therefore, availability of connectivity and collaboration tools are high.
One platform converging voice, data and video will be able to achieve this scenario and Cisco's role is essential as it all runs on a common network. As a network provider, we should be able to provide any platform to communicate irrespective of the device, location or timeframe. A seamless environment will make an enterprise change.
Are technologies such as telepresence gaining popularity in both enterprise and consumer?
Video is getting popular in the form of VOD (video-on-demand), video conferencing, collaboration, home telepresence. Pricing is still a challenge in the country but between the service provider and the regulator that should be sorted out in the near future.
At Cisco, we foresee technologies like telepresence being used at the consumer level. There will be discussions in the future on which room should have the technology implemented for leisure and entertainment.
For consumers, the latest technology also has just rolled out and as it has been present in the enterprise for some time due to which high levels of penetration are seen in the market.
Companies are also realising that telepresence is only a catalyst while cutting costs and not a determining factor.
Does that mean Cisco plays a limited role as an IT infrastructure player?
There are multiple focus for the company today, as Cisco's Chairman John Chambers said, that the company will go into market transitions. If the market is moving towards voice and video we will enrich our position as a communication provider.
Cisco is already strong in infrastructure and therefore, it is now focusing on collaboration and applications, especially technologies such as virtualisation.
Information is being hosted in a virtualised manner, which is as important as collaboration. Even at the datacentre components of data communication are integrated enabling enterprises to work end-to-end.