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2006

AOL, WebEx Team Up For New AIM Services

February 16, 2006 0

Voice over IP, online presentations and multiparty video conferencing are under consideration.
America Online Inc. and WebEx Communications Inc. are teaming up to provide a business version of AOL’s popular AIM instant-messaging software.

In a partnership with Web-conferencing leader WebEx Communications, AOL plans to launch the tentatively named “AIM Pro” in the second quarter. One AIM Pro package will target small businesses and the self-employed, while another is intended to appeal to larger companies. Both will differ from the free AIM service by offering a customized interface, additional security, voice, video and Web collaboration capabilities, the companies said in a statement.

Some of the services AOL and WebEx are considering adapting includes online presentations, VoIP (Voice over Internet Protocol) communications, and multiparty video conferencing, an AOL executive said.

We are extremely pleased to be working with WebEx to offer at-work users a customized AIM experience that works in a professional environment and addresses today’s business communications needs, said Brian Curry, AOL vice president of Premium and Subscription Services.

Called AIM Pro, the business version will offer more security – communications, for instance, will be encrypted – and more features to help workers collaborate, using conferencing tools offered by WebEx, based in Santa Clara, Calif. AIM Pro users can communicate with those on the basic AIM, although not all features, including encryption, would be fully available.

AOL plans to begin testing some of these options soon, with an eye on having a more definitive plan early next year and possibly some concrete AIM/WebEx services for consumers at some point during the first quarter, said Curry.

We are looking at the WebEx ‘services’ we have on the business side and how they might be used on the consumer side, Curry said. We are going to run some user testing soon, looking at ways of bringing those kinds of functions into more of the consumer use paradigms that are out there.

Instant-messaging took off among home users first, but in recent years employees have installed the software, usually on their own, as an alternative to phones and e-mail.

AOL pioneered instant messaging more than a decade ago and owns 56 percent of the worldwide market share, according to the research firm, the Radicati Group.

But AOL has had to fend off increasing competition from the next two biggest competitors in the sector: Microsoft and Yahoo. The companies announced in October that they would for the first time allow their customers to communicate across instant-message platforms. The combined customer base of Yahoo and Microsoft equals 44 percent of the market.

AOL, a unit of Time Warner Inc. responded by developing add-ons such as teleconferencing and Web conferencing aimed at small businesses. AOL said AIM Pro goes further by offering standalone software built expressly with businesses in mind.

Business to Consumer
In June, AOL launched a suite of AIM services targeted at business users called AIM Business Services, including one called AIM Web Meetings, provided in conjunction with WebEx, which specializes in this area.

The challenge is to adapt and position the WebEx services, which are designed primarily for business users, in a way that is attractive and makes sense for AIM consumers.

The new service will bring business-class IM, online conferencing, collaboration, desktop sharing and advanced multimedia services to the global workplace, said Curry.

WebEx is a fairly sophisticated online tool. We are trying to figure out how much of that kind of thing to put in front of consumers, Curry said. Consumers may not need to be able to share editable documents back and forth and that sort of thing. You may just need some ability to do presentations. We are evaluating all of that right now.

The initiative to “consumerize” WebEx services is part of a plan that saw AOL this week position for AIM consumers and AIM voice conferencing service that it previously targeted for business users and was part of the June launch of AIM Business Services. The service, called AIM Voice Conferencing, is provided in conjunction with Lightbridge.

While it is easy to see how the voice conferencing service might appeal to consumers, the appeal of WebEx services is less clear, an analyst said. “Unless I’m missing something, I do not think there is a lot of appeal for something like WebEx directly for consumers,” said Michael Osterman, president of industry analysis company Osterman Research.

AOL wants to entice consumers toward this service and to do so is offering all AIM users 500 free minutes. Normally, the service costs 15 cents per minute per conference-call participant. Up to 15 people can participate in a conference call. The service is limited to the U.S. and Canada but could be expanded to other countries, depending on how it goes, Curry said.

Prices were not announced, but AOL said a monthly subscription fee is likely. Individual employees will be able to subscribe, or a company may order a version with centralized management controls for all its workers.

This is AOL’s latest attempt to cash in on the popularity of its AIM service. What remains to be seen is whether the new applications can entice companies to pay for instant messaging. Yahoo, Microsoft and Google also offer free IM services.

However, by positioning WebEx services for AIM consumers, AOL might be able to round up additional small and medium-size business users who may not be familiar with the AIM/WebEx offerings, Osterman said.