Instant Payback

Despite standards concerns, corporations look to unlock the value in instant messaging

by Joseph C. Panettieri

New Architect
March 2003

Think instant messaging is child's play? Reuters begs to differ. The London-based news and technology specialist is rolling out a custom instant messaging (IM) service to improve communications between thousands of buy-side and sell-side financial professionals.

Reuters isn't alone. From financial services firms to online retailers, businesses deploy IM software to strengthen communications with customers, hasten internal decisions and eliminate nonessential face-to-face meetings.

"We've always believed that instant messaging would evolve into a business tool and become as significant as the telephone and email," says Glen Vondrick, president and chief executive officer of FaceTime Communications, an instant-messaging company in Foster City, California. "Clearly, that transition is underway."

Such is the case at Reuters, which has partnered with an IM specialist that serves the corporate market. Its system (Reuters Messaging) includes communications hooks to MindAlign, an IM platform from Divine, a Chicago-based software developer. The MindAlign messaging window allows financial securities traders to type in suggested prices, trading flows, research information, and other comments about particular securities. "It's a powerful tool for real-time information sharing," says Amanda Jones, director of e-commerce solutions at UBS Warburg, a major MindAlign customer and the software's original developer.

Despite such praise, many businesses remain wary of instant messaging because consumer-oriented IM services don't communicate with one another (see the sidebar, "IM Standards Battle Drags On").