Response Point, a Microsoft-developed private branch exchange (PBX) solution for small businesses, will be available in North America in the second half of 2007. Initially offered by three hardware OEMs—D-Link, Quanta, and Uniden—the product could interest resellers and other potential OEMs thanks to a pricing model, voice recognition features, ease of setup and administration, and PC client integration that set it apart from competitors in this fragmented market. However, potential partners should note that the first version lacks integration with Exchange Server 2007 and Communications Server 2007, casting uncertainty over the product's future in Microsoft's voice strategy.

VoIP for Small Sites

Response Point, originally code-named Edinburgh, is designed for organizations requiring 50 or fewer extensions and consists of a base station and compatible handsets that use Voice over IP (VoIP) protocols, including the Session Initiation Protocol (SIP). The base station is a dedicated appliance built on Windows XP Embedded and uses flash memory instead of a disk drive for increased reliability. External inputs can be analog public switched telephone network (PSTN) lines, a T1 voice circuit, or Ethernet ports connected to VoIP services delivered over the Internet. Some OEM models will have analog PSTN or T1 inputs built directly into the base station hardware; other models will simply sport an Ethernet interface and require a separate gateway device.

Response Point does not use traditional telephone wiring—both the base station and the handsets plug directly into an organization's LAN via Ethernet connectors. Some models of OEM handsets will have a two-port LAN hub built in so a PC and a phone handset can share the same preexisting LAN wall tap. OEMs will also offer cordless handset models, but these models will use the frequencies of traditional cordless phones and will not use WiFi.

Major Features

Microsoft believes Response Point's pricing model, voice recognition features, ease of setup and administration, and PC client integration will distinguish the product.

Pricing model. Unlike many PBX competitors that have price "waterfalls" based on the number of handsets (e.g., separate base stations to accommodate 8, 16, and 24 extensions), Response Point base stations cost the same regardless of the number of handsets used. Furthermore, all features are included in the single fee; there is no extra charge for voice mail, speech recognition, or any other capabilities. Users can be added to the system for the price of an additional handset. Microsoft and its OEM partners have not yet announced pricing information other than to say Response Point systems will be "competitively priced" relative to other small business PBXs offered today, which likely means a Response Point system accommodating four incoming PSTN lines and including eight handsets will cost between US$2,000 and US$3,000.

Voice recognition. From a Response Point handset, users can issue voice commands by pressing a special function key and speaking a name rather than dialing a number. For example, a user can press the Response Point button on a handset and say "voice mail" or "transfer call to John Doe" to perform these common functions. Response Point also provides an automated attendant that uses speech recognition to connect outside callers to the correct extension and to respond to simple questions related to business location, driving directions, and hours of operation. Response Point will support only English at its initial release, and Microsoft hasn't announced plans for other languages.

Ease of setup and administration. Microsoft claims a Response Point system can be set up by a small business owner in an hour or so without the assistance of a reseller. Response Point automatically detects handsets connected to the network, so installing and moving handsets is simple. The base station appliance is managed from any PC on the network that has the Response Point management console software installed. It has a simple interface for tasks such as adding users to the system and creating aliases, such as "sales," associated with multiple extensions.

PC client integration. Response Point includes PC client software that provides users with on-screen notification of incoming calls (via a small pop-up window). It also provides software allowing users to upload their Outlook contacts or Windows address book information to the Response Point base station. After uploading personal contacts, a user is able to pick up his Response Point handset and say, for example, "call Rob Horwitz on his cell phone," rather than dialing a phone number. Also, on-screen notification of incoming calls will include the caller's name if the caller ID number can be matched with an entry in the recipient's contacts database.

Uncertain Strategic Fit

Response Point was designed and built by Microsoft Research, not the Unified Communications organization responsible for unified communications products, such as Exchange Server and Communication Server, Microsoft's instant messaging, voice, and conferencing product.

At launch, Response Point systems will not be able to interoperate with Exchange Server or Communication Server. In principle, Microsoft and its OEMs could upgrade the software to allow Response Point base stations to connect to Exchange or Communication Server without a gateway, deliver a separate gateway device themselves, or deliver a gateway through a telephony gateway vendor such as AudioCodes or Dialogic. However, Microsoft and Response Point OEMs have not announced such plans.

Integration with other products in Microsoft's unified communications portfolio is important for two reasons. First, it is necessary to convince potential resellers and manufacturers that Response Point is a strategic offering as opposed to a tactical product that could be phased out or replaced in the not-too-distant future. Second, integration provides an upgrade path for users who outgrow the capabilities of their Response Point systems and want to avail themselves of the more advanced features of Exchange and Communication Server. For example, customers might want to leverage Exchange's text-to-speech engine to read back e-mails over a standard phone, or use Communication Server's presence information to allow users to quickly determine whether others in their organization are available for conversation.

Microsoft's home page for Response Point is www.microsoft.com/responsepoint/default.mspx.