NEWS & VIEWS: "Bundling media processing with IP routing is the next big thing"

In 2001, you opted for a rather unusual business model when you formed
Ittiam. How challenging and rewarding have these past years been?

We focused on the next step in the digital signal processing (DSP) value
chain, which was to provide the intellectual property around it. So if the basic
chip is like a site and the end product is like a building, then the IP is like
the design and the architecture.

I can tell you that we have successfully proven that the model is feasible by
establishing a strong customer base for our technology, a strong product base,
and a revenue base as well.

Vendors have launched more new products using our technology. One is in the
video IP phone area. With broadband connectivity, it provides the IP video
communication networking.

Our solution for the portable media player also took off very well. Lots of
products are out using our portable media player solution. We are now seeing
tremendous interest in the market for boxes based on our IP that can provide
services like video-on-demand and so on.

You do a lot of prototyping around your technology...

See, when you deliver IP only, it can be abstract. We want to show our
customers what kind of end products can be designed using that IP. This helps
them to reduce their time-to-market significantly. That is our basic approach,
but it doesn't take away the fact that we are primarily an IP company.

What are some of the key trends you have spotted and are working around?

Yes, we have been betting on a few trends. One thing in which we invested in
2001 and 2002 is based on the basic trend of entertainment moving to the hand.

Another major thing that we invested in is wireless LAN, That has also proved
to be a fairly good investment.

Now we are looking at some convergent spaces; for example, combining
entertainment with wireless capabilities.

Would you elaborate upon that?

Voice over wireless LAN is a potential new area. Video distribution in a
wireless network is another possibility.

From a network perspective, the videophone essentially suggests video routing
on an IP network. In other words, it's media processing on one hand and the IP
network on the other hand. That's the next major trend we are looking at.

Would you consider developing IP for routing, et al?

So far we have focused more on the client side because of a business model
of royalty per unit where you get higher volumes and higher revenues. But
technology-wise we can address the server side also. In fact, in wireless Lan we
provide a solution that can also address the access point or router in addition
to the client part. So we have done that. Combining these two areas, we may look
at some solutions that are suitable for the server side or the network operator
side. There we may have to come up with some slightly different models in terms
of revenue.

Deepak Kumar