Not that long ago, telephone companies could make serious money by charging 10 cents a minute for long distance or 5 cents for each text message. For voice minutes, the ultra-low barrier to entry caused the market to very quickly saturate, and prices fell to the basement. The stranglehold that carriers had over SMS meant that it stayed profitable for longer, but now OTT players like iMessage, Skype, WhatsApp and Voxer are luring more and more users away. The old business models are crumbling and the current models for mass-market appeal are fiercely competitive. As an entrepreneur in the RTC space you have a difficult question in front of you: Why should any customer choose you? If you answered "price", you're going to lose. This presentation is all about solving that problem: how to create differentiated real-time communication services that allow you to charge your customers for the value you create, rather than for the minutes they use. Presented at the Illinois Institute of Technology's Real Time Conference - October 16, 2013

1. WebRTC:
It’s NOT
About
the Minutes
Wednesday, October 16, 13

2. CAN YOU SPEAK MAGIC?
2
Wednesday, October 16, 13

3. CAN YOU SPEAK MAGIC?
Ben Klang
2
Wednesday, October 16, 13

4. CAN YOU SPEAK MAGIC?
Ben Klang
2
Wednesday, October 16, 13

5. CAN YOU SPEAK MAGIC?
Ben Klang
2
Wednesday, October 16, 13

6. CAN YOU SPEAK MAGIC?
Making a buck
Charging by the Minute is Hard
3
Wednesday, October 16, 13

7. CAN YOU SPEAK MAGIC?
Making a buck
Charging by the Minute is Hard
...and Getting Harder
3
Wednesday, October 16, 13

8. CAN YOU SPEAK MAGIC?
THE PROBLEMS
4
Wednesday, October 16, 13

9. CAN YOU SPEAK MAGIC?
THE PROBLEMS
Price Minimization
4
Wednesday, October 16, 13

10. CAN YOU SPEAK MAGIC?
THE PROBLEMS
Price Minimization
Service Homogenization
4
Wednesday, October 16, 13

11. CAN YOU SPEAK MAGIC?
THE PROBLEMS
Price Minimization
Service Homogenization
Sexiness Boringization
4
Wednesday, October 16, 13

12. CAN YOU SPEAK MAGIC?
PRICE MINIMIZATION
5
Wednesday, October 16, 13

13. CAN YOU SPEAK MAGIC?
1995 PRICE-PER-MINUTE
6
Wednesday, October 16, 13

14. CAN YOU SPEAK MAGIC?
2005 PRICE-PER-MINUTE
7
Wednesday, October 16, 13

15. CAN YOU SPEAK MAGIC?
2005 PRICE-PER-MINUTE
7
Wednesday, October 16, 13

16. CAN YOU SPEAK MAGIC?
2015 PRICE-PER-MINUTE
0
8
Wednesday, October 16, 13

17. CAN YOU SPEAK MAGIC?
2015 PRICE-PER-MINUTE
0
*
8
Wednesday, October 16, 13

18. CAN YOU SPEAK MAGIC?
TODAY’S PRICE-PER-MINUTE
9
Wednesday, October 16, 13

19. CAN YOU SPEAK MAGIC?
TODAY’S PRICE-PER-MINUTE
9
Wednesday, October 16, 13

20. CAN YOU SPEAK MAGIC?
10
Wednesday, October 16, 13

21. CAN YOU SPEAK MAGIC?
SERVICE HOMOGENIZATION
11
Wednesday, October 16, 13

22. CAN YOU SPEAK MAGIC?
12
Wednesday, October 16, 13

23. CAN YOU SPEAK MAGIC?
13
Wednesday, October 16, 13

24. CAN YOU SPEAK MAGIC?
WHO’S WHO OF DEAD VOIP
14
Wednesday, October 16, 13

25. CAN YOU SPEAK MAGIC?
WHO’S WHO OF DEAD VOIP
•78 Companies Checked
14
Wednesday, October 16, 13

26. CAN YOU SPEAK MAGIC?
WHO’S WHO OF DEAD VOIP
•78 Companies Checked
•21 Websites Down/Gone
14
Wednesday, October 16, 13

27. CAN YOU SPEAK MAGIC?
WHO’S WHO OF DEAD VOIP
•78 Companies Checked
•21 Websites Down/Gone
•How many more silently failed?
14
Wednesday, October 16, 13

28. CAN YOU SPEAK MAGIC?
SEXINESS BORINGIZATION
15
Wednesday, October 16, 13

29. CAN YOU SPEAK MAGIC?
SERVICE COMMODITIZATION
http://mspmentor.net/acquisitions/hosted-voip-acquisition-warwick-valley-telephone-buys-alteva
16
Wednesday, October 16, 13

30. CAN YOU SPEAK MAGIC?
SERVICE COMMODITIZATION
“Last year, the company made six acquisitions
related to cloud-based services.”
“The company executed three more buyouts early
this year. The aggressive buyout strategy of
the company will consolidate its global
leading position in the virtual PBX market.”
http://www.zacks.com/stock/news/97333/jcom-on-acquisition-spree
17
Wednesday, October 16, 13

31. CAN YOU SPEAK MAGIC?
GIVING UP
18
Wednesday, October 16, 13

32. CAN YOU SPEAK MAGIC?
THREE OUTCOMES
19
Wednesday, October 16, 13

33. CAN YOU SPEAK MAGIC?
THREE OUTCOMES
Buy or Be Bought
19
Wednesday, October 16, 13

34. CAN YOU SPEAK MAGIC?
THREE OUTCOMES
Buy or Be Bought
Tread Water
19
Wednesday, October 16, 13

35. CAN YOU SPEAK MAGIC?
THREE OUTCOMES
Buy or Be Bought
Tread Water
Give Up
19
Wednesday, October 16, 13

36. CAN YOU SPEAK MAGIC?
FOURTH OPTION:
20
Wednesday, October 16, 13

37. CAN YOU SPEAK MAGIC?
FOURTH OPTION:
INNOVATE
20
Wednesday, October 16, 13

38. CAN YOU SPEAK MAGIC?
INNOVATION
21
Wednesday, October 16, 13

39. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
21
Wednesday, October 16, 13

40. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
21
Wednesday, October 16, 13

41. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
21
Wednesday, October 16, 13

42. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
21
Wednesday, October 16, 13

43. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
21
Wednesday, October 16, 13

44. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
•“Fastest Deployment Time Period”
21
Wednesday, October 16, 13

45. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
•“Fastest Deployment Time Period”
•Specialization
21
Wednesday, October 16, 13

46. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
•“Fastest Deployment Time Period”
•Specialization
•Highly targeted products and services
21
Wednesday, October 16, 13

47. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
•“Fastest Deployment Time Period”
•Specialization
•Highly targeted products and services
•Vertical Integration
21
Wednesday, October 16, 13

48. CAN YOU SPEAK MAGIC?
INNOVATION
•Change Business Model
•Switch from selling minutes to seats
•Switch from selling seats to phones
•Focus on Being Different
•“The Customer Service Leader”
•“Fastest Deployment Time Period”
•Specialization
•Highly targeted products and services
•Vertical Integration
•Deliver things that others can’t
21
Wednesday, October 16, 13

49. CAN YOU SPEAK MAGIC?
Case Study
22
Wednesday, October 16, 13

50. CAN YOU SPEAK MAGIC?
CASE STUDY
23
Wednesday, October 16, 13

51. CAN YOU SPEAK MAGIC?
CASE STUDY
•Commoditized Market:
Home Remodeling
23
Wednesday, October 16, 13

52. CAN YOU SPEAK MAGIC?
CASE STUDY
•Commoditized Market:
Home Remodeling
•No players in market with more
than a single-digit share
23
Wednesday, October 16, 13

53. CAN YOU SPEAK MAGIC?
CASE STUDY
•Commoditized Market:
Home Remodeling
•No players in market with more
than a single-digit share
•Industry reputation for low quality,
poor service, unhappy customers
23
Wednesday, October 16, 13

54. CAN YOU SPEAK MAGIC?
CASE STUDY
24
Wednesday, October 16, 13

55. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
24
Wednesday, October 16, 13

56. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
•Automated processes for sales,
financing, product installation,
ongoing customer service
24
Wednesday, October 16, 13

57. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
•Automated processes for sales,
financing, product installation,
ongoing customer service
•Call center automation
24
Wednesday, October 16, 13

58. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
•Automated processes for sales,
financing, product installation,
ongoing customer service
•Call center automation
•Confirm appointments with consumer
24
Wednesday, October 16, 13

59. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
•Automated processes for sales,
financing, product installation,
ongoing customer service
•Call center automation
•Confirm appointments with consumer
•Match qualified reps with leads
24
Wednesday, October 16, 13

60. CAN YOU SPEAK MAGIC?
CASE STUDY
•Built 100% custom
ERP package
•Automated processes for sales,
financing, product installation,
ongoing customer service
•Call center automation
•Confirm appointments with consumer
•Match qualified reps with leads
•Click-to-call for agents
24
Wednesday, October 16, 13

61. CAN YOU SPEAK MAGIC?
CASE STUDY
25
Wednesday, October 16, 13

62. CAN YOU SPEAK MAGIC?
CASE STUDY
•$75MM in 2011
25
Wednesday, October 16, 13

63. CAN YOU SPEAK MAGIC?
CASE STUDY
•$75MM in 2011
•$172MM in 2012
25
Wednesday, October 16, 13

64. CAN YOU SPEAK MAGIC?
CASE STUDY
•$75MM in 2011
•$172MM in 2012
•130% three-year growth
25
Wednesday, October 16, 13

65. CAN YOU SPEAK MAGIC?
CASE STUDY
•$75MM in 2011
•$172MM in 2012
•130% three-year growth
25
Wednesday, October 16, 13

66. CAN YOU SPEAK MAGIC?
CASE STUDY
•$75MM in 2011
•$172MM in 2012
•130% three-year growth
25
Wednesday, October 16, 13

67. CAN YOU SPEAK MAGIC?
LET’S TALK ABOUT US
26
Wednesday, October 16, 13

68. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

69. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

70. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

71. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

72. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

73. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

74. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

75. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
27
Wednesday, October 16, 13

76. CAN YOU SPEAK MAGIC?
...BUT WE SELL THIS
28
Wednesday, October 16, 13

77. CAN YOU SPEAK MAGIC?
...BUT WE SELL THIS
29
Wednesday, October 16, 13

78. CAN YOU SPEAK MAGIC?
...BUT WE SELL THIS
29
Wednesday, October 16, 13

79. CAN YOU SPEAK MAGIC?
...BUT WE SELL THIS
29
Wednesday, October 16, 13

80. CAN YOU SPEAK MAGIC?
...BUT WE SELL THIS
29
Wednesday, October 16, 13

81. CAN YOU SPEAK MAGIC?
WHAT SHOULD WE BUILD?
30
Wednesday, October 16, 13

82. CAN YOU SPEAK MAGIC?
“Communicating isn’t going to be
what you’re doing - it’s what you’ll
be doing while you’re doing
something else”
- Geoff Hollingworth
Ericsson Head of AT&T Foundry
31
Wednesday, October 16, 13

83. CAN YOU SPEAK MAGIC?
Example RTC Apps
32
Wednesday, October 16, 13

84. CAN YOU SPEAK MAGIC?
Example RTC Apps
3 Examples
32
Wednesday, October 16, 13

85. CAN YOU SPEAK MAGIC?
1. Incident Response
33
Wednesday, October 16, 13

86. CAN YOU SPEAK MAGIC?
34
Wednesday, October 16, 13

87. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
35
Wednesday, October 16, 13

88. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
35
Wednesday, October 16, 13

89. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
35
Wednesday, October 16, 13

90. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
35
Wednesday, October 16, 13

91. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
35
Wednesday, October 16, 13

92. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
•Allow ad-hoc participants (“guest” parties)
35
Wednesday, October 16, 13

93. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
•Allow ad-hoc participants (“guest” parties)
•Federate with external services
35
Wednesday, October 16, 13

94. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
•Allow ad-hoc participants (“guest” parties)
•Federate with external services
•Incident recording/logging
35
Wednesday, October 16, 13

95. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
•Allow ad-hoc participants (“guest” parties)
•Federate with external services
•Incident recording/logging
•“Lessons learned” and process improvement
35
Wednesday, October 16, 13

96. CAN YOU SPEAK MAGIC?
INCIDENT RESPONSE
•Timely, Contextual Information
•Adapt for mobile vs. desktop users
•Group-based communication
•Inherit from existing organizational groups
•Allow ad-hoc participants (“guest” parties)
•Federate with external services
•Incident recording/logging
•“Lessons learned” and process improvement
•Links from/to issue tracking systems
35
Wednesday, October 16, 13

97. CAN YOU SPEAK MAGIC?
2. Medical Records
Management
36
Wednesday, October 16, 13

98. CAN YOU SPEAK MAGIC?
37
Wednesday, October 16, 13

99. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
38
Wednesday, October 16, 13

100. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
38
Wednesday, October 16, 13

101. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
38
Wednesday, October 16, 13

102. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
38
Wednesday, October 16, 13

103. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
•Verify with voice biometrics
38
Wednesday, October 16, 13

104. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
•Verify with voice biometrics
•Cross-check against caller location
38
Wednesday, October 16, 13

105. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
•Verify with voice biometrics
•Cross-check against caller location
•Call recording/transcription
38
Wednesday, October 16, 13

106. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
•Verify with voice biometrics
•Cross-check against caller location
•Call recording/transcription
•Medical advice given to patient
automatically added to patient file
38
Wednesday, October 16, 13

107. CAN YOU SPEAK MAGIC?
MEDICAL RECORDS MGMT
•Automate Medical Claims
•Secure Caller Authentication
•Reuse primary auth via website
•Verify with voice biometrics
•Cross-check against caller location
•Call recording/transcription
•Medical advice given to patient
automatically added to patient file
•Auditing/Service Quality Assurance
38
Wednesday, October 16, 13

108. CAN YOU SPEAK MAGIC?
3. Live, Anonymous
Matchmaking
39
Wednesday, October 16, 13

109. CAN YOU SPEAK MAGIC?
FunnyDate
http://funnydate.com/have-a-chat
FunnyDate
SHErlock
22
Female
Male
Oakdale
USERNAME
AGE
GENDER
SEEKING
CITY
Captain Beard
23
Male
Female
Springfield
Books, Moustaches, Puzzles
MATCHING
INTERESTS
Books, Moustaches, Puzzles
40
Wednesday, October 16, 13

110. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
FunnyDate
41
Wednesday, October 16, 13

111. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
FunnyDate
41
Wednesday, October 16, 13

112. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
•Strict anonymity
FunnyDate
41
Wednesday, October 16, 13

113. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
•Strict anonymity
•No need to exchange
phone numbers
FunnyDate
41
Wednesday, October 16, 13

114. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
FunnyDate
•Strict anonymity
•No need to exchange
phone numbers
•Low friction interface
enables users to connect in real-time
41
Wednesday, October 16, 13

115. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
FunnyDate
•Strict anonymity
•No need to exchange
phone numbers
•Low friction interface
enables users to connect in real-time
•Silly video tricks used to break the ice
41
Wednesday, October 16, 13

116. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
FunnyDate
•Strict anonymity
•No need to exchange
phone numbers
•Low friction interface
enables users to connect in real-time
•Silly video tricks used to break the ice
•...or even add more anonymity
41
Wednesday, October 16, 13

117. CAN YOU SPEAK MAGIC?
LIVE, ANONYMOUS DATING
•Safe Introductions
FunnyDate
•Strict anonymity
•No need to exchange
phone numbers
•Low friction interface
enables users to connect in real-time
•Silly video tricks used to break the ice
•...or even add more anonymity
•Negligible operating costs relative
to traditional telephony
41
Wednesday, October 16, 13

118. CAN YOU SPEAK MAGIC?
Find your niche
42
Wednesday, October 16, 13

119. CAN YOU SPEAK MAGIC?
Deliver what people want
rather than billing for what
they don’t
43
Wednesday, October 16, 13

120. CAN YOU SPEAK MAGIC?
WE HAVE THE TOOLS
44
Wednesday, October 16, 13

121. CAN YOU SPEAK MAGIC?
STOP BUILDING THIS
45
Wednesday, October 16, 13

122. CAN YOU SPEAK MAGIC?
BUILD THIS
46
Wednesday, October 16, 13

123. CAN YOU SPEAK MAGIC?
adhearsionconf.com
47
Wednesday, October 16, 13

124. CAN YOU SPEAK MAGIC?
@bklang
bklang@mojolingo.com
http://mojolingo.com
@MojoLingo
48
Wednesday, October 16, 13

125. CAN YOU SPEAK MAGIC?
@bklang
bklang@mojolingo.com
http://mojolingo.com
@MojoLingo
48
Wednesday, October 16, 13