IM Emerges From the Shadows

Although instant messaging can be a convenient way to communicate at work, just as often it seems to end up as a comedy of errors: misinterpretations of tone, sending a personal message to the wrong contact, and putting up with the terrible nickname the guy in sales, aka "Sultan_of_Sales," feels compelled to use.

While it's no secret that IM has been criticized for being intrusive, an increasing number of companies, including IBM, PeopleSoft, and Sun Microsystems, are starting to rely on IM for business communications and have standardized on a particular application in the process. Others have only started to think about where IM could fit into their organization, or support limited use of IM through free download clients.

Consumer Craze

"IM by and large to date has been a consumer phenomenon," explains Nate Root, senior analyst at Forrester Research in Cambridge, Massachusetts. "It has been something that people have adopted to chat with their friends and their relatives and it's something that has been accidentally co-opted for use within companies."

The most popular consumer platforms for chatting are America Online's Instant Messenger, Microsoft's Instant Messenger, and Yahoo's Instant Messenger.

In the enterprise market, Microsoft and IBM and the top two providers of IM solutions. The former offers its SharePoint Services Collaboration platform with an IM client that integrates with its Office Suite, while IBM has its Lotus Instant Messaging and Web Conferencing, formerly known as Lotus Sametime.

Slipping Into Offices

Throughout September and October 2003, Forrester surveyed about 1000 companies to see what their purchasing plans were for IM in 2004. Root says 25 percent of these companies already had some sort of IM up and running; about 50 percent didn't have any plans or didn't know what the company's plans were; and the remaining 25 percent were considering purchasing or piloting an IM product in 2004. Two-thirds of these companies had annual revenues greater than $1 billion, while the remaining 33 percent had annual revenues between $500 million to $1 billion.

"Right now it's kind of like the wild, wild west out there. The companies that are progressive are really going after [IM] and are trying to find solutions very quickly," Root says.

However, it is not easy for companies to get a handle on IM, Root says. Not only is it difficult to know who is using what, but enforcing draconian policies such as blocking ports so users can't download consumer IM apps is also very difficult. "Employees are very good at finding ways to use the collaboration tools they like," he says. "IM is very much a grassroots phenomenon. Once it has started it's hard to get the cat [back] in the bag."

IBM's Test Case

IBM is one example of an early adopter, but it also had the advantage of being a vendor of one of the most popular enterprise IM platforms. About five years ago, IBM embarked on an IM pilot project to determine the viability of its use for business. The company asked its employees to volunteer to participate in the program. The response was overwhelming. Expecting only a few thousand, nearly 65,000 employees worldwide said they wanted in, explains Amy Reuss-Caton, product marketing manager, real-time collaboration at IBM in Cambridge, Massachusetts.

The staggering interest shown in this pilot project spurred IBM to get serious about its IM platform. IBM kept at the pilot projects until February 2000, when it rolled out Lotus Sametime across the enterprise.

Reuss-Caton says IBM estimates that about 225,000 of its 300,000 employees worldwide use IM regularly and the CIO's office has reported peak concurrence levels of 165,000 users.

"IBM Global Services said it was the most successful technology rollout in the history of the company," she says.

Millions of Messages

Today, IBM's IM users average about 3 million messages per day, up from 2.5 million messages per day in 2002. The company has also seen a 4 percent reduction in telephone use, and a reduction in the load on its e-mail servers.

IBM employees communicate primarily with each other, but can also communicate with certain applications. For example, Reuss-Caton says there are several apps, including a dictionary and the corporate directory, to which users can send IM queries and receive responses. For example, if Reuss-Caton queries the database with an employee name, it would return all the employee's details, including presence awareness information telling her whether that individual is online.

IBM differs from some other large organizations with standardized IM because it does not limit who its employees can add to their buddy lists. However, users can determine who is allowed to see their presence information as available.

Early Adopter

Pleasanton, California-based software maker PeopleSoft is another early adopter. It standardized on Lotus Sametime in 1997. At that time, David Thompson, CIO of PeopleSoft, says employees had started to download ICQ and Yahoo IM on their desktops and they were starting to cause technology conflicts.

PeopleSoft chose Sametime because the product integrates with the corporate directory, which allows PeopleSoft to control the IM infrastructure. That means users have to be registered within the corporate directory, ensuring that users aren't duped into chatting with someone using a false identity. Thompson says PeopleSoft doesn't restrict its employees from using a public network IM, such as AOL, MSN, or Yahoo, but says the company is aware of the security risks and is looking into changing its policy. Right now PeopleSoft also uses a gateway that allows users to communicate securely with the Yahoo network.

Although Thompson acknowledges there are downsides to using IM, such as the security risks involved with users believing their conversations are private, he says the pros far outweigh the cons.

Sun's System

Indeed this sentiment seems to be the consensus among some other large companies, not just IBM and PeopleSoft.

For example, in early 2003 Sun standardized on its own IM product, Sun Java System Instant Messaging 6.0.

"Sun's product has been in development for three to four years, but prior to its existence we started to see IM in different departments through the public networks like AOL, MSN, and Yahoo," explains Jennifer Belissent, product line manager, communications software for Sun in Santa Clara, California.

"As use increased, Sun's IT department became more and more concerned with the security issues of using public networks. Since communications are transmitted across the open Internet, there is no session encryption to ensure the communication is safe and there is no authentication of users," she adds. However, Sun does not prohibit its employees from using public-network IM.

Within Sun, IM is popular during conference calls with press or analysts, so spokespeople can quickly get answers to unexpected questions. It is also commonly used during meetings with customers and with R&D groups in disparate locations.

No Need?

Despite the number of companies harnessing IM for business needs, there are still some companies that so far have seen little business value in real-time chatting tools.

PCL Constructors in Edmonton uses Microsoft's Windows SharePoint services for its collaboration needs, but doesn't widely take advantage of the IM capabilities. "It's not really an official part of our collaborative services, but we have pockets where IM is being used to work with folks internally and externally," says Shane Crawford, manager of infrastructure for PCL.

Right now, IM is being primarily used by the IT department and technical support folks. PCL does not restrict its IM users in any way but also does not see any particular value in IM as a business tool. "IM doesn't cut it when you're trying to conduct a business," Crawford explains. He says that IM doesn't provide PCL with the paper trail it requires for legal and auditing purposes involved with its business.

For example, if there was a problem on a construction site, and PCL asked the customer how to handle it, it would need to get an answer that was documented and trackable; IM wouldn't be formal enough, he says.

Love it or hate it, IM is fast becoming a part of the business world. Whether a company will find IM to be useful depends on the legislation concerning storing electronic transactions, its network infrastructure, and its security needs.

One thing is certain: Once a consumer IM client is pervasive on employees' desktops it is difficult to control it. This is one reason why organizations need to have clear, enforceable policies when it comes to the use of IM.

"You can attack corporate IM compliance with a carrot or with a stick," says Forrester's Root. "You can shut off IM ports, try to block traffic, and try to block people from downloading clients--basically use a stick to beat everyone into compliance. Or you can you use a carrot, which I think is better advised, and you can offer people better service and better tools they have now."

This story, "IM Emerges From the Shadows" was originally published by Computerworld.

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