Case Study: Wildfire Communications

Judith Molka-DanielsenFeb.04.2003

http://www.wildfire.com

Lines of Business (LOB)

• CPE Wildfire (the original concept): This business unit was designed to develop the technology for relatively large businesses, which would implement Wildfire and make it available to its "Road Warriors.”

• Network Wildfire: This LOB targeted phone companies. Once the Wildfire equipment was installed in their systems, the phone companies would market Wildfire services to their customers.

• Personal Wildfire: Wildfire would license the technology to PC vendors, who would install it on their machines.

Wildfire productshttp://www.wildfire.com/faq.asp

• Wildfire Carrier Edition - WirelessWireless carriers are looking for ways to retain current customers, attract new ones and increase usage. Wildfire Carrier Edition helps wireless carriers by providing a voice-activated, hands-free solution that combines the key features mobile subscribers value. Click here to learn more

• Wildfire Carrier Edition - WirelineProviding valuable services can be a key differentiator for local, long-distance, and other telecommunications providers. Wildfire Carrier Edition provides an array of services to help retain and attract customers. Click here to learn more

• Wildfire Enterprise EditionStreamlining and simplifying communications is critical in today's corporate environment. Wildfire Enterprise Edition provides a complete voice-activated communications solution so employees easily stay connected to customers and each other. Click here to learn more

• WildTones™WildTones is a unique sing-your-own-ringtone service that enables wireless carriers to grow market share and drive revenue by letting their subscribers create highly personalized ringtones to match their individual personalities and musical preferences-with just their phones. Click here to learn more.

Major Competitors to the service CPE Wildfire

AVT CorporationThe company develops communications software that ties together faxes, voice messaging, and computer telephony. The company has formed alliances with Ericsson, Microsoft, and other software and telecommunications giants.

Products: Network-based fax server (65 percent of sales) / Electronic document delivery (30 percent) / Call answering, call routing and voice messaging system (5 percent)

Customers: Sells fax servers directly to small, mid-size and large businesses

CognitronicsProducts: Makes call-processing products that let phone companies manage theircall traffic with automated attendants, voice mail, call forwarding, call rejection, interactive voice response, hold music and messages, coin-deposit messages, voice-activated dialing, and other featuresCustomers: Small and mid-size businesses

General MagicProduct: Portico software (based on its magicTalk platform) that incorporates voice-interface and speech-recognition technologyCustomers: None, really

Competition to the service: Network Wildfire

Centigram CommunicationsProducts: Makes unified messaging and communications systems that combine different types of messages (voice, data and faxes) and then send or retrieve them via telephones, mobile phones and PCs. The company is looking to wireless application protocol (WAP) products for its future.

Customer: Centigram's primary customers are Sprint (16 percent of sales) and other wireless communications providers, as well as telephone companies such as the regional Bells.

ComverseComverse is growing through acquisitions. Its 1998 purchase of rival BostonTechnology made it the No. 1 voice mail/message system company.

Products: Makes telephone communication and recording systems, andtelecommunications software for processing information

Customers: Targets markets as diverse as telecommunications, law enforcementand intelligence. Customers include AT&T, Deutsche Telekom, Alcatel, Compaq, and Qualcomm. More than half of sales come from Israel.

Lernout & Hauspie Speech Products (L&H)Products: Speech and language software and servicesCustomers: Product enables manufacturers such as Hitachi and Lucent toincorporate speech and language functions into phones, set-top boxes, and otherdevices. L&H's software translates more than 15 languages and records dictation.

Registry Magic (ASP)Products: This company makes speech-recognition software products that lettelephone and computer users talk to the machines. Its "virtual operator" eliminatesthe need for touch-tone menus by enabling callers to request people or departments vocally, and its "magic calendar" works as a PC scheduler.Customers: Registry Magic also offers an outsourced service bureau that handlescalls on a per-transaction basis for such clients as Office Depot.

Competition to the service: Personal Wildfire

Active VoiceThe Seattle-based company, which is being acquired by networking giant CiscoSystems, makes PC-based voice-processing systems.

Product: Its main product, Repartee, lets users access and manipulate telephones, faxes, and e-mail messages.

Customers: The company sells its products through dealers and resellers, but isplacing more importance on inking deals with Japanese technology company NEC (its largest customer, with 20% of sales), Siemens, and other telecommunications equipment manufacturers to incorporate its offerings into their products.

Major Companies Offering Similar ServicesEricsson, IBM, Lucent, Motorola, Nortel Networks, Siemens, Unisys

1. Throughout its history Wildfire was dealing with a volatile marketplace that wasextremely difficult to understand. This caused it to have difficulty focusing on a single business model. By 1999, it had focused on the network model, which implied that its target was large telephone network providers. How has this market changed since 1995, when it first started marketing Wildfire?

First, wireless (as opposed to wireline) networks are becoming an increasingly important part of the business.

Second big shift is that voice transmission is increasingly becoming a commodity business. Per-minute rates are dropping very rapidly for voice transmission Competition has slashed carrier margins and increasingly fragmented the wireline market. Today, the long-distance carrier market is characterized by industry-wide per-minute rates below 10 cents.

Additionally competitors to traditional phone companies, such as providers of free phone calls via Internet transmission, are emerging.

2. What are the implications of these shifts in the telecom market for Wildfire if it is going to focus on the network providers as its target market?

3. How has Wildfire adapted its strategy to these shifts in the marketplace?

4. The Wildfire rate of adoption in the late 1990s was disappointing. Are there competitors who were more successful in penetrating the telecom market with similar technologies? If so, what did they do differently?

Note: Today, these enhanced services include message-processing applications such as call answering, voice mail, voice-information services, interactive voice response, message delivery, virtual phone, message notification, integrated voice/fax/e-mail unified messaging, voice-activated services, short message service, and Web information services.

Comverse has created a lock-in effect through its platform strategy.

5. In the middle of 2000 Wildfire was acquired by Orange PLC. Do you think the initial Orange partnership has helped make Wildfire a "success"?

• www.media.orange.net

• www.orange.co.uk

In September 1999, Bouygues Telecom of France will offer the Wildfire Virtual Assistant, a speech-recognition-based service, which it will brand as "Lucie.” The service offer is at less than $12 a month. Supported a promotional campaignto support the launch. ("Bouygues Telecom Selects Wildfire Personal Assistant," RCR Radio Communications Report, September 20, 1999)•In July 2000, Wildfire Communications announces Bouygues Telecom willbroaden Wildfire's availability in France. Capacity for over 100,000 Bouyguesusers will be deployed. ("France," RCR Radio Communications Report, July 3,2000)•In November 2000, Wildfire Communications and Italian wireless carrier Bluannounce that Blu has chosen Wildfire to provide its mobile subscribers with theWildfire personal assistant. ("Blu Selects Wildfire to Provide Personal AssistantService to Mobile Phone Users Throughout Italy; Wildfire Partners With Blu toProvide 'Memory' to Blu Subscribers," Business Wire, November 8, 2000)

Orange links on Wildfire

• Results for: Wildfire• 12 results found, sorted by relevance • Orange.com - Wildfire™ - 03 Feb 03 [55% relevance]

http://www.orange.com/English/forwardthinking/Wildfire.asp - 27.6KB  

• Orange.com - forward thinking - 03 Feb 03 [49% relevance]http://www.orange.com/English/forwardthinking/default.asp - 26.7KB  

• Orange.com - milestones 1998-2000 - 03 Feb 03 [41% relevance]http://www.orange.com/English/corporate/milestones1998-2000.asp? UID=000000000030220031./0DN0&UAT= - 26.3KB  

• CONSOLIDATEDFINANCIALSTATEMENTS.PDF - 23 May 02 [35% relevance] ORANGE –NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 5 1. PRESENTATION OF ORANGE Orange S. A. (“ the Company”) is listed on Premier March?f ...http://www.orange.com/english/annualsummary/pdfs/ Notes to consolidated financial statements.pdf - 105.9KB

•  Results 1-4 more...

6. Would you invest in Wildfire as it stands today?

Yes:

No: