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| Deloitte: Digital convergence is finally here |
Extracted from The Star Online (16/11/2005) by Rachel Tan |
16 Nov 2005 |
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Almost a decade after its false dawn in the days of the dotcom boom, digital convergence ? the merging of voice, video and data ? is finally becoming reality, shifting the balance of power between current technologies and altering the basis of competition said a global technology consultant.
According a new study from Deloitte Technology, Media and Telecommunications (TMT) industry practice, digital convergence was driven by widespread connectivity and by the digitisation of all kinds of data, including text, voice, pictures, music, and video among others.
The report, entitled ?Digital Convergence: The Trillion Dollar Challenge,? said convergence is also driven by advances in the technology of the devices handling and communicating the data.
Robert Tan, Deloitte Malaysia?s TMT practice lead partner, said convergence became a buzzword during the dotcom boom, but it didn't deliver.
?The concept was based on future technologies and companies didn't stop to consider and understand what customers actually wanted and needed,? he said in a press statement last week.
The report noted that a wealth of convergence products and services is beginning to emerge and they satisfy a real customer need.
Some of these are voice over Internet protocol (VoIP) ? which analysts forecast as a US$1 trillion business by 2010; business collaboration software; IP (Internet Protocol) TV; mobile phone content; networked games; and online music.
?Businesses that leverage digital convergence as a competitive advantage have the potential to benefit greatly,? he said.
Tan however warned businesses that while they could benefit greatly from digital convergence, the phenomenon could also obliterate business models in a relatively short time.
?The extent to which convergence adds or destroys value is a direct function of the extent to which a company anticipates, plans for, and takes the lead in convergence,? he said.
What is technology convergence?
Taken from From Wikipedia, the free encyclopedia.
Technological convergence is the modern presence of a vast array of different types of technology to perform very similar tasks.
For example, in today's society one can communicate with a friend via mail, online chatting, cellphones, e-mail, and many other forms of modern technology. Though the forms of technology are all very different, they all essentially provide the same basic service: person-to-person communication. The notion of a one to many form of communication have since diluted.
The convergence can also concern the underlying communication infrastructure. An example of this is triple play, where communication services are packaged allowing consumers to purchase TV, internet and telephony in one subscription.
The term convergence is commonly used in reference to the synergistic combination of voice (and telephony features), data (and productivity applications) and video onto a single network. These previously separate technologies are now able to share resources and interact with each other creating new efficiencies. |
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