Google Goes VoIP
This move threatens revenue streams from long distance carriers, particularly cellular carriers. It also threatens UC equipment makers such as Microsoft, Avaya, and Cisco as well a slew of related industries such as soft phone developers.
It's been a big month for VoIP. On August 9, Skype announced its upcoming IPO, and then (unfortunately for Skype) on August 25, Google announced that Gmail can make calls.
Gmail is the gift that keeps on giving. Initially, it was just free email. Then came virus and spam protection, then came Office type applications, then Google Talk for instant messaging and presence. Google Buzz came via the Gmail launchpad, and now Google Voice makes an appearance.
Is Gmail Google’s launchpad? Gmail has 173 million users (other reports cite 200 million) that expect Google to continuously improve it. And that’s what Google did with its new function, whose official name is, "Call Phones in Gmail".
What did Google actually innovate? When it comes down to it, not a whole lot. However, they connected a few dots and suddenly became Skype-like--with better terms. Skype's worst fear realized: Google as a direct competitor weeks after the former announced an IPO--though Google's move really wasn't unexpected, and in fact it took quite a bit longer than I expected. By adding VoIP to Gmail, the Gmail client is a Skype alternative enabling its users to make and receive calls.
What Does Call Phones in Gmail Do?
Call Phones in Gmail is a blend and improvement of the existing services from Gmail, GChat and Google Voice. It's a new feature in Gmail that enables voice calling, and it is (or will be) available to all Gmail users--at least in the US. To access the feature, a voice and video plugin must be installed. Gmail's Contacts are integrated and contacts can be selected/searched or digits can be entered in the simple keypad.
The feature shows up in the chat portion of the Gmail screen as "Call Phone". No special hardware is required other than basic speakers and microphone, but a headset is recommended. Outbound calls will display the generic callerID of "760-705-8888", unless the caller is a Google Voice user, in which case it then displays the correct direct-dial Google Voice phone number. Anyone can make calls, but receiving calls requires a Google Voice number (available for free).
North American calling minutes are free, and international calling credits are available for pre-purchase at very low rates. Most rates are slightly lower than Skype's, which already live on the low end of long distance rates already. Graphic below courtesy of Google.
Significant Topics
First and foremost, the new service represents several changes in directions for Google. For one, Google Voice has been what's known as a virtual number service. That means it requires alternative phone service to use it. Simplified, virtual number services are call forwarding on steroids. It is a growing sector with unique benefits--but has always required the user to BYO dial-tone. That ends now with Google Voice--and users can make/receive calls to anywhere in the world using only Google services--no set up, no commitments, and no recurring fees.
It also marks a shift in Google's approach to cloud services. Google believes "the cloud" should be accessible to all users from any device with only a web browser. To utilize this feature requires an installed client that provides the function to convert voice to VoIP. Rumors of a Google Voice dialpad were squashed and attributed to Larry and Sergey’s desire to remain out of the desktop software market. Evidently a compromise was reached by making the desktop client a browser plugin.
