Monday, December 22, 2008

Putting the puzzle together...

There were a couple of SEC filings just recently, the first was:


and it had the interesting news that Kevin Kennedy was leaving.  Interesting but not that much...  sure Kevin heralds originally from Cisco and has a tremendous background...but if you take into consideration that he's also CEO of Avaya..well...I can certainly understand him wanting to spend all of his time focusing on making sure Avaya is competing as hard as it can against Cisco.  

But, If you read the following SEC filing:


you'd read that Mike & Bob just updated their golden parachute clauses.  

Each not really alot interesting on their own...but here's my guess.  Kevin had to quit from the board because 1.  Avaya is in talks to merge with Tandberg  2.  Avaya is in talks to merge with Polycom.  or 3.  Polycom is about to merge with a competitor to Avaya.  

I've mentioned before that I expected Avaya to merge with Tandberg and I still see merit to that happening...but why would Bob & Mike change their golden parachutes?  do they suspect that if Avaya merges with TAA then it will put Polycom in play?  or is Polycom already in play?
I'm not sure who would buy Polycom...

They previously had spoken to Cisco but turned Cisco down.  I know they came very close just a couple of years ago to be purchased by Nokia...but they turned that offer down too.  I can't see it being Nortel...they have too many issues. I can't see it being Alcatel/Lucent...too many issues.  Siemens?  doubtful.  Maybe its Microsoft?  Not exactly their thing to buy a hardware company...but if MS was to compete with Cisco in the UC space, they'll need some hardware.

I'm not sure..but I do know that PLCM does own a lot of IP and has many patents.  They have cash in the bank and no debt.   The stock price is below what it was when I joined the company back in 2003 (it was 14 back then).  Their market cap is $1.07B!!!  Being even that they've lost tons of market share... they're worth more than $1.07B.  The balance sheet shows total equity (total assets - total liabilities) as $941M.  ($281M just in cash)  Heck...you could buy Polycom, fire eveyone, sell all of the assets, and just about break even.  Then start working selling off the 500+ patents...or, even better, become a Patent Leasing company and just work out licening agreements.

Or maybe its just all coincidental....



Saturday, November 29, 2008

At(?) the same, very...

At(?) the same, very impressed with how www.Jott.com works. It allows you to blog using your voice on a telephone.
listen

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Well I do have to say...

Well I do have to say that this new service called Jott at www.jott.com is extremely useful. It allows you to, from a phone listen

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Hi, this is a test of...

Hi, this is a test of using Jott to send a message to the videomonkey blog. listen

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Friday, October 24, 2008

Sage Advice

"Be fearful when others are greedy, and be greedy when others are fearful."

-Warren Buffet

Thursday, October 23, 2008

Polycom pre-announces 1080P

http://www.polycom.com/usa/en/company/news_room/press_releases/2008/20081020_2.html


Hightlights are:

New Polycom HDX 8006 (shipping in December)
Upgrade to the Polycom RMX2000 (Q1 2009)
RPX & TPX releases using the new 8006 (unknown, but in 2009)

Previoulsy Polycom had announced the 8004 would be upgradeable, but no announcement was made on that. As well, Polycom in the past has said the 9004 would be upgradeable. Oddly enough, this goes against previous marketing from Polycom that said that higher resolutions would first be requested in highly integrated codecs..but 1080P comes first to the 8000 line which is NOT designed for integrators.

Monday, October 20, 2008

Lifesize, how big are they?

With all the hoopla around Lifesize... its got me wondering...

how big are they?

I was at PLCM when they initially launched. I have to say... we intially were upset...then moved to a charge to take them on...released the HDX... then became complacent as we felt like we crushed them. Everyone felt like they were done with... we heard tons of rumors of people defecting. In truth...some Lifesize employees were ex-Polycom and some of them actually came back to Polycom. Anyway...

I have to think at this time, PLCM is paying alot more attention to Lifesize. So...really how big are they? They're not public...

On a side note, one of their VCs, Vab Goel, also on the board was quoted anonymously that they are VERY happy with their investement with Lifesize and thought it could end up being one of their best investements. Now...that statement makes you wonder how well they are doing.

Anyone want to pass on info, please email me.

Wednesday, October 15, 2008

Couple of notes on growth & issues from the Polycom call

2% q/q growth (Tandberg is 7.9%)

15% y/y growth (Tandberg is 27%)

60.2% gross margin (Tandberg is 65.9%)

21,126 group video units sold (Tandberg sold 17,487)

4% y/y network systems (Tandberg had growth of 111% y/y)
[of note...network systems did have 21% q/q growth]

$33.9M Sales of Network systems (Tandberg had sales of $39M of Network Systems)

There is significant weakness in Polycom's business. While they are still selling more units than TAA, they are selling them at a lower gross margin. Averaging out group systems, looks like TAA takes in $1k more per system. If PLCM could bring that up by $1K per system, it would be an additional $21M. PLCM just recently raised MSRP on their products; but if you look at their business they are discounting the heck out of their products to try to keep up with TAA. This will continue to erode the gross margin..my guess is that you will see it drop below 60% in the next 1-2 quarters. I think PLCM has figured this out...as Mike's guidance shows that PLCM should be between 59-63. PLCM will be at the bottom end of their own estimates which are considerably lower their major competitor. (as well, compare to CSCO as well at 65%)

There is also weakness on the audio side, I didn't note the numbers, but they were down. My guess is that Spectralink is the big downside...as most of the wireless handsets are being sold into the retail side.


Interesting things that Bob & Mike said:

"we've not seen budgets decrease, only sales cycles have increased" -Bob

Interesting comment since PLCMs largest customers are all financial. Being that many of them have evaporated, I'm not sure how this can be true.

"um....yeah..." - Mike

Looks like the street is punishing PLCM. PLCM's last trade was at $18.19...or down $2.66.. -12.76% for the day. I really hope Mike & Bob can figure out the mix here...they have great potential, but it seems that all the missteps that are being made, TAA and Lifesize are taking away business.

Polycom Results

Just started to read their 8K report...

http://phoenix.corporate-ir.net/phoenix.zhtml?c=112660&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTkyNTY2MyZhdHRhY2g9T04%3d

Super Impressesed!

I have to say "wow" over the new Lifesize 200!

http://www.lifesize.com/products/

A 1080P system for just $17K list. And then to come out with the "Conference 200" which is a 3 codec system. While not as sophisticated looking as a Tandberg T3 or a Polycom TPX or a Cisco 3000... the price is pheonomenal. I've read that list is $50k.

http://www.lifesize.com/downloads/pdf/datasheet_conference200.pdf

I have not physicaly seen them yet, but I cant wait. Lifesize definitely appears to be very focused on providing very very good value. I look at the Conference 200 and what I see is a telepresence system for the middle part of a company. Whereas the Polycom RPX, the Cisco 3000, T3, and Halo are such pricey systems, they're really sold for E-Staff usage. The Conference 200 certainly could hit mass usuage!

Good job Lifesize!

Tuesday, October 14, 2008

Tandberg Results

Tandberg just posted results...

It will be interesting to dive into it and compare to Polycom's as they come out:

http://biz.yahoo.com/bw/081014/20081014006206.html?.v=1

Tuesday, October 7, 2008

Shows

Ok, this post is really just for my own help. I'm just doing some planning on what shows I should plan on attending. Being that I work with several technologies...I need to go to several. I'm planning on going to:

VoiceCon (November in SFO)
http://www.voicecon.com/

NRF Big Show (Jan in NYC)
http://events.nrf.com/annual09/public/enter.aspx

Digital Signage Expo (Feb in Vegas)
http://www.digitalsignageexpo.net/

But... as far as AV and VTC conference go. I'm not sure which one I want to go to. Sure NAB is a blast..but its just not worth it if you're in AV or VTC. (but it is a cool show). There is Interop...but VTC is just a small portion (and theres no AV).

So...curious... who's going to what shows? which ones do you think are the flubs? and which is the best to go to?

thanks!

Thursday, September 25, 2008

Cisco moving forward

You might have seen the news today from Cisco:

http://newsroom.cisco.com/dlls/2008/prod_092408.html?POSITION=LINK&COUNTRY_SITE=us&CAMPAIGN=NewsAtCiscoLatestNewsfromCDCHP&CREATIVE=LINK1&REFERRING_SITE=CISCO.COMHOMEPAGE


But they just made a new set of announcements in the collaboration space.

I was going to make a post a few days ago..and as a blogger that discusses industry rumors, its interesting sometimes posting them. You can make your prediction or pass on the rumor and if it turns out right, you appear as the smarty pants in the room. If you miss it, you look like you're the dumbest. Well... I'll give you the rumor...even though it wasnt announced this week. (I still believe it will though).

The rumor is that Cisco is going to come out with a mid-priced video endpoint. It will be priced no more than a Polycom HDX and will be 1080P in quality. It will be a rack mount unit with a extneral camera and unlike all of the other Cisco telepresence systems, it will not ship with a monitor (the customer will supply their own). I havent been able to find info yet of whether or not Cisco developed this internally or used a partner. I do believe that it is NOT the same hardware architecture as the telepresence systems; i believe Cisco used its famous ability to get the price point of the hardware down so that they could crank these out at high margin to Cisco. (high margin to Cisco resellers is only dream... the typical Cisco reseller makes just 2% on the hardware)

So..thats the rumor... take it or leave it.

So...thoughts on the announcement they made. I would say...impressive... they are starting to tie together and putting on all the chrome they will need to compete with MS in this market. I found the announcement about Jabber pretty interesting as well:

http://blogs.cisco.com/ar/comments/cisco_to_acquire_jabber/

Of course all of us know the Jabber protocol as a fairly standard and widely used IM protocol. Its good to see these standards protocols being used. (although some would argue that SIP would be the better route)

The only thing I see missing is tighter integration to room system video.

But...one area that I was surprised to see was that Webex Connect is looking very much like Sharepoint. This is really interesting...not from a app perspective...more from a strategey perspective. Cisco is solidly jumping out of real time (synchronous) communications and moving into asynchronous communications. This is a point of demarcation really...and maybe the start of a new wider IT strategey for Cisco that moves them out of the Network or Telecom group in the sales cycle.

Wednesday, September 3, 2008

Video Consolidation

I've been spending a lot of time talking to channel partners as well as manufacturers and building upon my understanding of the greater market.

As we wait to hear the final news about TAA... it makes me think about why there isn't other consolidation?

This isn't short term..I wonder who's going to buy who this quarter..but more longer term thinking.

If you're in the video business and you've got engineers on staff with experience in building av i/o, a/v switching, UI, base platforms, audio codecs, or video codecs... why not look at greater value through scale? Why shouldnt a Polycom be merged with digital signage player such as Symon? Or why shouldn't TAA merge with a IPTV player like PRN? Or why doesn't PLCM buy up some other audio companies like AudioCodes, Digium, or I3? Or maybe Sony should buy Clearone?

I think there is so much unrealized value out there. Think about it... why should TAA spend time working on h.264 code and PRN do the same? Or PLCM spend time on some audio codec that I3 needs as well. Not to mention the back end business aspects that are redundant across so many companies.

Bob & Mike over at PLCM really need to take some action and show that they want to keep running the company or intend to sell it. If your competitor is going to merge with a telephony partner, should you? Does being "me too" get you to the finish line before everyone else? Only if you can execute better. Maybe taking a different approach might work? Most of the resellers of video conferencing also do AV work. They all have not only greater revenue streams at selling AV then they do at VTC, but also fatter margins.

A great example...in higher end VTC rooms, they typically install a AMX or Crestron controller. $15K or more can be spent just on that aspect of the room. (I really need to blog about my thoughts on why this is necessary...another time). I don't know the size ofthat market (might be good to research), but it appears quite rich.

Why not complementary technologies? Digital Signage for one. Its at least $2.7B in size. Its complementary technology (from the building block level). While, it might not complimentary on the sales side, it would give you scale on the engineering side. IPTV could be another, and so, on.

Thursday, August 21, 2008

Merger Mania

So, its all pretty widely known that Tandberg is in talks to be acquired.

http://www.reuters.com/article/mergersNews/idUSLD6502620080813

I've heard some strong minded Polycom folk actually think (or maybe want others to think) that Tandberg is the one shopping them selves out. (with the outrageous assumption that TAA is throwing in the towel). I think thats so far from the truth, its unbelievable. Cmon... TAA is taking market share daily from Polycom. Those in the lead, dont throw in the towel.

The truth is that its market consolidation time. The kings of voice need video as they've now all determined that end users are now ready for it. Several years of YouTube, Skype, and other applications have softened them up for the inevitability of having video right at their desk.

Tandberg will be purchased and merged into a voice provider. It could be several, but if you think of the players out there, I think the answer is obvious who it is.

I think that also puts others in play, such as Polycom. If one voice giant now has a fully integrated suite of video, the others will need it as well.

Nortel is already partnered up with Polycom and has large investments in demo facilities using Polycom RPX. But, Nortels balance sheet isnt rich enough to make this happen. It would have to be closer to a merger than a acquisition. I can't imagine Nortel wanting to do the Canada/USA split company again... remember when Nortel bought Bay Networks... what a mess.

Cisco does already have a small video conferencing portfolio... but they could certainly use the breadth of products that Polycom has. There is overlap in a few areas...but that fits well into how Cisco works.... let several development teams work on similiar technologies...then let the market decide who wins. Cisco traditionally likes buying small teams with ideas ready to pop.... Polycom would be more like a Scientific Atlantic acquisition as they are a more mature company... but, the plus is that Polycom is HQ'ed in the bay area, making a merger easy to pull off. (Polycom has one office right on First Street, a block from Tasman).

But..the question would be, what would derail the deal. Mike & Bob don't seem like they want to sell the company. I've heard through rumors that several companies have approached Polycom...including Cisco several years ago, but they deals never closed. I even heard about a deal with a Norwegian company (no, not TAA) coming close to buying PLCM prior. So, are Bob & Mike ready to sell? The recent actions to RIF 80 people across the company was obviously a move to improve EPS.

And what happens to some of the other players? Lifesize? Sony (Spire Global)? They certainly would have to change up their game to survive if the two largest players were merged into two telephony companies.

I've got a glass of Sauvignon Blanc and some popcorn popping and am ready to watch the show.

Saturday, August 16, 2008

ATTENTION KMART SHOPPERS!

Its a blue light special in Aisle 4.

Yes, the big news is that I've left Polycom. While a big change for me... it will also be a big change for this blog.

While I have all the best feelings for Polycom and hope the best for all my ex-co-workers, I now can post fairly independently.

First off, now that I've joined the many others that have also left Polycom over the years, I've decided to create a group up on LinkedIN for all of the Polycom Alumni. If you're interested in joining it, please go here:

http://www.linkedin.com/e/gis/166317

If you're curious about my new job, I've joined an up and coming company, Network Engineering Technology. Their website is here:

http://www.nettechnology.com/

I've taken on the role of Business Development for Technology Partners. I'm currently hunting down companies we can partner with. We are a technology services integrator that has expertise in providing nationwide field services. I'm really excited about not only the company change, but also the role change.

More to come....

I'm awake!

Sorry...it sure seems like I've been asleep over the summer. My apologies!

It does feel a bit like I was in a coma... but now it feels like I've woken up.

I'll start posting again!

Thanks for reading - Jeff

Tuesday, June 3, 2008

Incorrect

To: Tandberg/Codian (and any customer that was told the following)

The HDX when making a 720p call to a RMX2000 does support 30 frames per second.

Not 15, not 20... but 30. If anyone wants to see it, I'd be happy to arrange a demo.

I hear this one about once a week and its just not true.

Thursday, May 22, 2008

Difference #2

In continuing with thoughts on why the chipset is not the sole deciding factor (unless you believe the marketing of a competitor out there), I give you another feature that has made the difference in several conferencing applications.

Polycom can support external user and authentication databases. So, ok, so what?

Well...I can give you several customer situations where this made a big difference.

1. A large customer has 50+k users out there. In typical video mcu architectures, you would need to go create 50+k meeting rooms. Of course...most mcus can't handle that many meeting rooms. So, in competing designs, you would have to create shared meeting rooms. Which from a user perspective would be very confusing and probably create conference security issues.

2. Say that large customer wants to deploy multiple MCUs to handle that load. If I was using competing boxes, I would either have to create all of these meetings rooms on all of the mcus...or I would manually split the meeting rooms across multiple mcus. Say, putting 1000 meeting rooms on bridge 1, the second 1000 on bridge 2, etc, etc, etc.

So... with external database support in Polycom mcus, I can setup the mcu to go off to a central database that holds all of the meeting room information. Now, this gives me lots of flexibility.

a. I can house the database on a clustered sql server for availability.

b. I don't have to create meeting rooms on any of the mcus. Nice...because if a mcu dies, i now have minimal rebuild time.

c. I can now also build a redundant mcu cluster where users can connect and I don't care which mcu they connect to. Of course...if you have load balanced mcus you also need to use another Polycom feature auto-cascade. But..if you are just going for a redundant (non-load balanced) solution, you don't need to deploy auto-cascade.

Really, you don't need 50K users to think about this feature. Even designs of under 1,000 would benefit.

We have one healthcare customer that enjoys the benefits of SSO (single sign on). With external database access, they were able to link meeting room creating to LDAP which allowed users to be authenticated and also managed from a single user database for every application (not just VTC) in their network.

Think about the user and think about the environment before you pick a video mcu. Just having he latest DSPs does NOT give you a solution!

Thursday, May 15, 2008

Personal "pc based" telepresence

Ok, that about takes the cake. I'm sure most of you that read my blog probably also read Wainhouse. Today's newsletter used the following combination of words:

"anyone wishing to do personal telepresence from their PC "

cmon guys! This whole telepresence terminology is way out of hand. Its not only damaging for the manufacturers as we're now confusing customers using the telepresence term on VTC systems... but obvioulsy we're degrading the market instead of enhancing. tsk tsk.

Monday, May 12, 2008

A triumph of Marketing over Substance

Did you see the news today? A couple of interesting press releases came out.



Cisco announced a CTS500 which is being billed as a personal telepresence system. Its a 37" display, 1080P HD codec, sitting on a pedestal stand.



http://www.cisco.com/en/US/prod/collateral/ps7060/ps8329/ps8330/ps9599/data_sheet_c78-468517-00.html









Whats interestingly non-interesting about it is that it looks like alot of products that other players such as Polycom and Tandberg have been putting out for years. At a price of $33,900, its actually down in the price arena of the rest of everyone. But... really, would you pay $34K or any number for a proprietary VTC system?









Simultaneosly Cisco appears to have created a marketing trend around the phrase "Personal Telepresence"... so much so that....

In another related press release, this time from Tandberg, they're annoncing that they've shipped their 10,000th personal telepresence system.

Interesting how you can hear about a term for the first time and then simulataneoulsy hear that someone else has shipped their 10,000th that same day. Thats marketing for you.

Which brings me to something I've been thinking about for a while. The fact that there is no agreed upon defintion of telepresence. Cisco started the change by pretty much suggesting that its anything that is 1080P in resolution. Tandberg has furthered the slide of the defintion by suggesting that its 720P (albeit not at 30fps...read my previous post on static macroblocks). Are we far away from Microsoft taking a Roundtable and sticking it on a 100" plasma and calling that telepresence?

Its no wonder there is confusion out there as the definitions vary. One definition is the remote operation of a robotic system with the aid of a immerseive human interface. There are several of these definitions and they deal with surgery, undersea work, and manufacturing. You can google around for a while and find lots of definitions. The one on Wikipedia is not bad:

http://en.wikipedia.org/wiki/Telepresence



To quote "Telepresence refers to a set of technologies which allow a person to feel as if they were present, to give the appearance that they were present, or to have an effect, at a location other than their true location."



So, I would have to agree that resolution does play a role. Having too little resolution can hinder the experience. But, this can be overcome, as there is a optimal viewing distance that the user needs to be at, no matter the resolution. If you get too close to even a 1080P plasma, you can see the pixels.

Screen size can also play a role, but it is also well known. But, this also can be dealt with by placing the user a set distance away from the monitor so as give the appearance that the body on the other side is the same size as they would be if they were present in the room.



Another aspect is eye contact, I'm sure all of you have been in a VTC and it appeared as if the people on the other side were distracted by something in the room. But, what typically happens is that the camera is not placed in line with the screen. Sometimes you get the "what are they looking at?" scene which tyipcally means the camera is placed way to the left or right of the viewing screen. Then you sometimes get the "God" view where the camera is placed way above the screen, and then the one least liked, the "crotch cam" where the camera is placed too low.

Sound and lighting are also critical. If the sound is not in stereo and not full range, people will not be tricked. If the lighting is not correct, too low, too bright, not even, or from the wrong direction, it will wreck havoc.


I think if you summarize, and if you follow the definition laid out in Wikipedia, you need as many factors covered to really consider it a telepresence solution:


1. Properly sized resolution and screen size. A minimum of 720p is needed. Screen size is really dependent on the depth of the room and the distance from the user to that screen. What we minimally need to do is show the person on the remote side and give them the appearance of sitting across the table from us. If you kept the view to above the belt, I think that puts you at least at using a 42-50" screen. Any smaller and you need to push the viewer further back...but as you push them further backwards to make the geometry work out, you start to lose the feeling of being in the room (as it would be abnormal to be sitting so far away in a meeting).

2. Geometry is very important! You cant put people too close or too far away from the monitor. And...most important, viewing angle and captured image has to be natural. Ideally I should look into the eyes of the person on the screen in front of me and they get the feeling that I'm looking at their eyes.

3. Lighting has to be natural.

4. Sound has to be natural.

5. Motion has to be at least 30 frames per second.

6. Technology should be as hidden as possible. We want to take away all cues that its a VTC call.

So, with that I really dont think the CTS500 (or even the CTS1000) falls into this camp. They certainly hit upon resolution and potentially screen size. They fail in the geomtry requirement as there is no way to restrict how close or how far someone sits away from the unit. They also have camera issues as the camera is too high. In the lighting department, being that its a stand based system, theres not way to control the light. I think they do reasonbly well in sound, certain motion is good. They fail on #6...hey, it looks just like a Polycom Executive Collection system...something PLCM and TAA have been shipping for years. It looks like VTC.

The 1700 MXP fails on every bit of the defition. Size is too small. Geometry cant be controlled. Camera is in the wrong place. TAA sound wouldn't fool anyone. Lighting cant be controlled. Being that to do 720p, TAA has to use static macroblocks, its not doing 30fps. And lastly, the thing is ugly and certainly eeks of technololgy. No one would be fooled in front of one of these.


But...good marketing guys! A true triumph over substance.

Friday, May 2, 2008

Growing the market

Not sure if any of you watch CNBC (I'm a financial news junkie myself), but it was interesting to see them interviewing someone in the videoconferencing market! I am just amazed at how little press VTC gets in the general world.

We all know and have said for years the same things: VTC can speed up business processes and can help with topline growth of companies; VTC can help considerably with bottom line expenses by reducing travel; and VTC is a green technology that reduces energy usage and lowers Co2 emmissions. But, why, in these times of "recession" and a focus on greener technologies don't we see this more often.

For VTC to grow, the other 99% of the world population needs to learn about it and embrace it.

So, who was on CNBC??? Bob Haggery from Polycom. You can watch it here:

http://www.cnbc.com/id/15840232?video=728570898&play=1

Of course, I'm proud that the CEO of the company I work for was the one trying to grow this industry. I sure hope that other VTC company CEOs will get on their soap boxes and do the same. Although I believe and want Polycom to earn the right as number #1 supplier... above and beyond that I really want the whole indsustry to grow.

Interop

Interesting... booth attendees at Interop included:

Polycom
Lifesize
Vidyo
Cisco

I did not see

Tandberg

Tuesday, April 29, 2008

Difference #1 in a long series

There was a recent public post by a member of Tandberg's team on one of the video conferencing forums. A lot of people that read my blog also below to some of the VTC forums out there...so you might have seen it.

While I respect their opinion and of course they are both entitled to have it and to express it, I certainly don't agree with it.

And I'll tell you why...

Building out a VTC solution is not based on one factor... MCU horsepower. While Codian did do one good thing for the industry... and yes, I'm giving them kudos right now... they forced the market place (TAA, Radvision, and Polycom) to look at their mcu designs and simplify how mcu capacity is calculated. I'll agree.. the Polycom MGC was difficult to calculate how many people you could connect to it. Thank you Codian. You made us all sit up, take notice, and fix an issue we had.

But..we now have all moved on.. but Codian (now part of Tandberg) beats the same drum over and over. Guys, you are now hurting the industry and hurting customers. Instead of us focusing on customer problems and delivery solutions... we have to spend time talking about ports. And, for those that read the post they made, we actually are able to find lots of faults with your MCU. But...before I get into that... I will not dispute you have a "port is a port" design and I won't disput you built a mcu that has horsepower.

But...what I will dispute is that you have any depth of features to take VTC to the next level. Seeing that you haven't stopped to listen to customers deeper needs, you've missed the boat. Lets start to review those features. I'll try to post one as often as I can when I'm not stuck in a plane.

The first feature is Auto-Cascade. Auto-Cascade is a wonderful feature pioneered by Polycom for customers with geographically dispersed MCUs. Lets go through an example. A customer puts a MCU in NYC, London, and Mumbai. With auto-cascade turned on, if an end user wants to start up an ad-hoc call, all they have to do is inform the participants (email, IM, calendar, etc) to dial into their meeting room, lets say its 5678. Instead of having to call a central bridge, they call their local bridge, enter in meeting room id 5678. The system will automatically figure out that there is say 2 callers in meeting room 5678, one on the London bridge, and two on the Mumbai bridge. The system will cascade the bridges together. No scheduling is needed. No pre-definitions are needed. The cascade link is built automatically based on people being in the same meeting room. This feature makes the end user experience very easy...and it saves tremendously on network costs.

We even have the ability to define how the cascade is made (ip or isdn) and can even define primary vs. backup.

Far as I can tell, best Codian can do is have to manually setup the cascade for every call.

Answer on Cisco TP gateway

I just got back the official word from within Cisco. They do not support setting up a mulitscreen TP3000 to Polycom RPX or Polycom TPX using their telepresence gateway. I was also told that they do not have it on the roadmap at all right now. So... for now, Cisco's solution continues to be a shut world.

BTW... no surprise... the Polycom RPX and TPX systems can call Tandbergs telepresence solution.

Thursday, April 24, 2008

Question for all of you on Telepresence

Just in the middle of a customer presentation on RPX... the customer just came over from a demo at Cisco.

Cisco told them that their gateway now supports interop between Telepresence systems...for example from a RPX to a Cisco 3000. They couldn't demo it though....

Have any of you out there heard about this and can comment?

Friday, April 11, 2008

Extra thought on network utilization

One additional point I wanted to make on the below post is that with the great amount of deployment of VTC for work @ home applications...there is a lot of advantage to the asymetrical approach of HD multipoint. For example, my home office internet access is 5mb down and 1mb up. With the approach of sending 4SIF to the bridge and receiving back 720p, makes a ton of sense. In fact with just 1mb up, I really can only send 768K because of the 20% overhead of TCPIP...it puts me at 920k. So, without this great feature, I wouldn't be able to take advantage of HD at my home office. Reduced upload is extrememly common on the majority of home internet plans.

Thursday, April 3, 2008

Network Savvy

One things I've been meaning to point out for a while in this blog...and an email I got today reminded me that I need to... was to talk about a key criteria for picking out a High Definition MCU. And that is, how smart is your MCU when it comes to bandwidth utilization. Lets look at two different ways to do it.

One way to do it is to have every endpoint send a 720P image to the MCU. Then, because a lot of people want a CP layout, the MCU has to take that 720p image and reduce it in size to be able to stitch it into new picture that is also 720P to send back out to everyone. So, for example, four endpoints send the MCU 921,600 pixels of information. Say, we've chosen a Quad split. (probably the most popular layout) We have to take 4 x 921,600 pixels and compress it down to just one 921,600 pixel picture to send back to everyone.

Another way would be for the MCU to request each endpoint to send less than 921,600 pixels. The next most popular resolution would be 4SIF or 704x480 or 337,920. pixels. With a smaller image being sent, the MCU doesn't have to spend compute time compressing the picture down to fit into one composite 720p image.

Both ways are applicable, but only one of them is network efficient. In the first example four endpoints each send 921,600 pixels...or a total of 3,686,400 pixels. We only need 921,600 to send out, so, tremdousely oversimplifying things, the mcu has to throw out 2,764,800 pixels... or essentially 75% of the information sent to it. In the second example, four endpoints send 337,920 pixels each for a total of 1,351,680...only oversending 430,080 pixels.

Even though bandwidth has gotten cheaper, I know that all network managers would certainly pick option 2, because it would reduce up to 75% of my inbound traffic to the MCU. Outbound would stay the same in both scenarios.

So, which MCU is smart enough to reduce network utilization? and which MCU doesn't needlessly have to shrink down 720p images down to 4SIF images? Only one, Polycom. Our main competitor Codian, takes the Mack truck approach of wasting lots of resources... while Polycom takes the Toyota Prius approach of using what resources are needed. I think most people would pick the more elegant, more network friendly approach.

Wednesday, April 2, 2008

Something to make you smile....


One of the cool things about the VTC market is that there are so many feel good projects one gets involved with. VTC really does change lives for the better. I just love this picture...

They new father was in Iraq while the mother was in the very rural town of Kearney, NE.

Monday, March 31, 2008

Hola!

Hola!
Sorry for no posts the last week. I was on holiday and certainly did not have video conferencing on my mind. More posts soon.

Adios, Jeff

Monday, March 24, 2008

Content ports




Just a quick note as I got an email asking to clarify Codian content & streaming ports.

Codian 4200 series: The 4200 only has video and audio ports. No content/streaming ports. If you turn on H.239 in a conference, it uses up a video port. If you turn on streaming in a conference, it uses up a video port.

Codian 4500 series: The 4500 has video, audio, and content ports. If you turn on H.239 in a conference, it uses a content port. If you turn on streaming in a conference, it uses up a content port. See the screenshot above from a Codian 4505. You will see it states that a 4505 has 12 content/streaming ports and two are being used. (one for content, one for streaming). Again, it really shows that its not truly a port is a port box and with other mcus on the market, you don't have to have extra ports to do H.239.
What has been very confusing is that Codian documentation has also mentioned video ports being used on the 4500. Luckily our previous post and some emails back and forth with Codian got they have found the mistake and have corrected their own documentation.

Thursday, March 20, 2008

Sorry... this blog is Hidden...

Just a quick legal disclaimer to TAA and other competitors... this is supposed to be hidden from you... its not really meant for you. ;-)

I got some emails from one such competitor today and I guess they don't like people poking holes at their products...i guess its not "fair". But...oddly enough I guess its ok if you put out competitive information on your competitor but you make it "hidden". Not sure I get that...if you're going to have a beef, why do it behind someones back?

A nice example... notice the "hidden" in the url... I guess that makes it ok for them to do it:

http://www.codian.com/hidden/Video/4500vsRMX-54.wmv

Static Macroblocks

You certainly dont hear customers bring up the term static macroblocks when you go visit them.

But...you certainly hear about its effects when you visit customers. If that customer is testing TAA & PLCM together, we constantly get comments about the video quality. Typically we'll hear TAA to TAA looks good, PLCM to PLCM looks great, but TAA to PLCM looks terrible.

So, why is that? Well, currently TAA "HD" systems can't do full out HD. They don't have the hardware. It takes 108,000 macroblocks per second to do 30 fps 720HD. All of the current TAA systems are incapable of this amount of processing and therefore only do roughly 30+K. So, at HD resolutions, it means they can only update 30% of the screen at any given second. So, either they need to do less resolution or less frames per seconds. Or... use a controversial feature called static macroblocks. You could roughly say that they freeze parts of the screen that have no movement and thus dont send updates for them. Clever... but unfortunately to work the other endpoint has to support it. You can read here:

http://www.polycom.com/common/documents/whitepapers/hd_video_conferencing_three_leading_contenders_face_off.pdf
http://www.codian.com/support/viewfaqentry.php?id=117&topic=&product=MCU%204200

Unfortunatley TAA doesnt point this out and why would they? it would highlight that their endpoint lineup is completely underpowered.

So, why don't other endpoint companies do it? Well... first off, static macroblocks looks terrible unless everyone is motionless. Sure...that happens in some applications, but not many. And second, if your endpoint has enough horsepower to do real HD 720p at 30fps, why hurt your cusotmers by giving them poor video quality?

I think a common misconception TAA sales people leave cusotmers with is that PLCM is not standards compliant because we don't support Static Macroblocks. Its just not needed. And... its such a short term problem...as its fully expected that TAA will yet again replace their lineup of video endpoints and they'll finally have enough horsepower.

Monday, March 17, 2008

Funny email...


This post has absolutely nothing to do with VTC... but it is pretty funny...


I'm a long time Amazon.com customer...and if you are too, you know that they have an advanced engine for making recommendations for purchases based on your past purchases. The email (attached) goes like this:


"We've noticed that customers who have expressed interest in Configuring Cisco Voice over Ip by Elliot Lewis have also ordered Gerontology Nursing Handbook by Patricia A. Tabloski. For this reason, you might like to know that Patricia A. Tabloski's Gerontology Nursing Handbook is now available. "


Not sure how you can go from Voip to care for the elderly...but there you go... LOL!

Standards based? WTF???

So, the latest trend I'm seeing out in the field is customers, who had visited with a TAA sales team prior, are starting off the conversation with us wanting to know why we're not standards based???

Ok, cmon TAA, this is just ridiculous. Again, its just time wasted having to educate the customer and correct the FUD your throwing at them... we could be spending the time better by working through and helping the customer.

So, lets start to doucment all the funny stories I hear customers tell me in reference to standards compatability.

So first off... everyone... all products are based on standards. There are standards like MPEG1, 802.11, ITU G.722.1c, etc, etc

And there are standards based implementations.... for instance a standards based implemented video endpoint runs H.323, H.264, and G.722.1c.

So... just picking a standard like MPEG1 and putting it into your VTC system doesn't make it standards compliant...in fact, even though MPEG1 is a standard, it is not standardly implemented in VTC systems and can actually create problems if you put it in there.

Which leads me to fallacy #1 that I've heard lately from a customer that talked to TAA.

H.264 RCDO is not a VTC standard. If it was, you'd see PLCM, Sony, Lifesize, etc, etc implement it.

Friday, March 14, 2008

Codian Ports


Ok, I got contacted by someone at Codian today asking me to stop spreading the news about Content port usage in their boxes. Of course...if I'm incorrect, I'm happy to be corrected and will retract any incorrect information I'm posting up here. If you've been reading my blog..I am pretty disappointed about the continuous FUD that our competitors spread out there... so I certainly do not want to be a hippocrate.


But.. if they want me to retract the things I've pointed out, they should really prove the information is false. Here's the exact screenprint from the online help of the Codian 4500. Here it is black n' white. (click on the picture to see it fullsize so you can read it)


Wednesday, March 12, 2008

Correction

Sorry, I have a correction to some information I gave below. In going through how content/streaming is utilized on a Codian 4500... I used a model that Codian never did release, the 4503... a 6 port hd mcu. (the 4503 is mentioned in the manuals for the 4500)

The smallest system is a either a 10 or 12port which is the 4505. (I can't figure out which one it is because their data sheets conflict with the 4500 documentation)

So, the argument still holds true, even for the 12port. You can still get yourself into situations, where you can use up all the contents ports and still have audio or video ports available.

Monday, March 10, 2008

Value of VC relative to Economic Factors

One of the areas that really perplexes me is the relative value of video conferencing to economic factors. What do I mean? Well, if you look at say the price of PLCM and compare it to the DJI or Nasdaq, over the last size months, there is no correlation. Ok, why do I think there should be one?

Well, whats the basic premise of VTC? Its to allow people to solve business problems face to face no matter their geography? What are the classic reasons people by VTC? Either they do it to accelerate growth in their company or save on expenses. If the economy is good and business are trying to grow, they should want to buy VTC to accelerate their business. If the economy is bad like it currently looks like right now, people should buy VTC to decrease T&E.

So, why doesn't Wall Street see that correlation and relfect it in the stock price of VTC companies?

There are many socio-economic factors at play that could and should effect valuations of vtc companies.
  • Rising Oil prices which increases travel costs
  • Weak US dollar makes travel for US based employees travelling abroad cost higher
  • Increasing unemployment means that workers that are still there need to be more efficient
  • Increasing health care costs could be curbed with more use of telemedicine
Wall Street...please listen up... all of the VTC companies out there are making the companies you invest in more efficient. We help to lower T&E. We increase worker productivity. We decrease time to market for new products.

Wednesday, March 5, 2008

HP Halo

My sources tell me that HP is quitely shopping around the sale of its HALO video conferencing unit. Supposedly its for both the product and the service. I guess the pressure Polycom and Cisco has been putting on them, probably coupled with the recession, is making them think that its time to get out of the market.

I wonder what the value is of the HALO product? Its mostly off the shelf parts. HP is #2 in telepresence behind #1 Polycom. Its mostly just the customer list. Should be interesting to see how many customers start looking for a replacement when they hear that HP is getting out of the biz.

Monday, March 3, 2008

Dear Tandberg/Codian

I'm writing to all of you TAA/Codian sales people and engineers and I want to get something off my chest.

Both me and our collective customers are sick of hearing you walk into to opportunities and bad mouth Polycom and its products. Don't you have enough good things to say about your product that you have that you don't have to fill in the rest of the time scheduled by slinging dirt? Don't you feel comfortable enough with your products that they can stand on their own...that you don't have to compare them to ours? It really feels like you have an inferiority complex? We always finding you talkin about our products. I guess that says something.

Honestly, I can take the trash talk. You remind me of another competitor I had in my past. Back in the '90s I worked for Cisco Systems. In the beginning of the ethernet switch wars, we had one favorite competitor, Cabletron. You guys remind me so much of them... as they employed the same techniques. Incessant mud slinging, fear, uncertainty, doubt, and sometimes, outright lies. We always knew Cabletron was there before us, as it was always the same stories. And as soon as they'd start asking questions, we were always prepared to set the truth. Interesting thing is that marketing campaign didn't work well. There isn't a Cabletron any more.

So, I ask a favor....

Please spend the time talking to the customer about their business problems. Please work with them to figure out their requirements. If you guys have the right gear that fits their business problem than we do, you'll earn the business. You'll also free me up to spend more of my meeting time with those customers working through business problems and solutions. Right now... I have to waste time in meetings rebutting silly product feature issues you throw at them. If I'm at a Healthcare company that does critical care... do you think they care what DSP you use in your MCU? or do they care if we can fit into their solution that makes their job of saving lives easier? I think the answer is obvious.

Thanks,
Jeff

Helping customers

Mid-last week, I was out on the east coast visiting a long time enterprise customer of ours. They own our video endpoints, but use an outsourced service for bridging. As they switch to IP, and to HD, they've realized the best thing they can do is insource bridging (as long as it does not increase their spend).

So, what I find interesting is that whenever our competitors show up, they spend so much time talking trash about Polycom that they don't sit there and ask questions of the customer and sit and LISTEN! When I go into to see a cusotmer, its all about them. No matter what the story is to tell...if I can get them to talk, we're so much the better in the account. Hey... Codian... if you were just listening you would have found out that this customer spends $440K a year on just audio-addons to video conferences. if you had listened, you could have spent time talking to them about insourcing their audio conferencing. You would have saved the customer money. You would have made them look like heroes. And you would have earned their busy.

Tuesday, February 26, 2008

RMX vs Codian

Check out my video comparing the Polycom RMX2000 to the Codian 4500.

Monday, February 25, 2008

Cisco

Just some quick thoughts...

but first, I should tel you about my job here. I'm Director of Business Development, and I focus on improving how we do business with our Infrastructure products. All that backend gear that makes a video network work. So...I get hit up constantly by lots of people at Polycom, our resellers, and our customers. Most of the time, its competitive in nature.

Today, I got a call from a sales rep in the midwest and he was trying to close some business at a customer. Only issue is that customer is a subsidiary of a larger company. John Chambers, god bless him in all the free advertising he does for us, had given away a bunch of their TP3000s to the parent company. So...that meant the subsidiary was going to have to have combatability with the Cisco gear.

Here's what Cisco told the customer when they found out they were looking at PLCM for a mcu. "Mr. customer, Polycom's solutions are not using the STANDARD SIP protocol for either their MCUs or endpoints". Which..this is quite funny. While true that Cisco uses SIP for their telepresence solution...and not true that we don't support SIP... but the real funny is that Cisco implementation uses custom extensions...so it essentially is proprietary. A data sheet standard..not a implemented standard.

So, it was quite fun rolling out to the customer that the Cisco solution entails the TP3000s, a Callmanager, a Cisco Teleprescence Switch, and a Cisco 3545 MCU. All that because Cisco is proprietary. See... their interoperable solution requires that the TP3000 bridge the call through a CTS which then cascades to the 3545 MCU which can then ip gateway call out to a standards based endpoint (EP). The cascade link is H.264, 768k CIF video and G.711 audio. Good motion handling...but poor resolution and poor audio quality. Cisco can't interop with standards based 720P or G.722.1c.

I wonder how easy it is to make that call?

Oh...don't forget...the CTS is a 36 port HD bridge... the cascade takes ups one of those ports. So...for every conference with non-Cisco video, you'll need to burn a port on the CTS. And... 36 ports is not much. Considering the fact that a TP3000 uses up 3 ports.. it essentially is really a 12 port bridge. LOL.

Nice design Cisco. ;-)

Ok, the real first post

Well, how does one start one of these out and not sound like just about any other blog starting out. I'd thought I'd start this blog because, blah, blah, blah.

Well, actually, the whole idea of this blog is to jot down all the miscellaney that I run across in my job here at Polycom. I've been here for just about 5 years. I came here because it looked like it held all the promise that Cisco did in the mid '90s. I was there too...but this blog is not to talk about that. Its five years hence, and it still holds all that promise. I'm kinda amazed that things didn't spool up as quickly as possible.

Everything seemed like the dam was about to burst. High speed internet bandwidth has been cheap and ubiquitus, silicon was fast enough to do high end video, the economy needed technologies to push productivity even higher, and everyone has gone green.

Its starting to happen...but the momentum is not there yet. But..everything still feels right and alot can happen. Right now its just when and how. I'll ramble on more about that as I have some thoughts in that area.

Saturday, February 23, 2008

First Post & Public Disclosure

Public Disclosure:

I'm Jeff Szczerbinski, a veteran of the communications industry. I've been working with commuincations products since 1987 where I started out rolling out campus Internet access (pre-DNS, pre-Web days) at the University of Wisconsin.

I've worked for many companies and I currently work for Polycom, Inc. I work at Polycom improving how we sell our infrastructure products in the US.

The comments in this blog are entirely my own. All Polycom information provided is all public information. All non-Polycom information I either pull from other internet sites, blogs, forums, and mostly over a glass of wine or a mug of beer from someone else.
 
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