HP My Networking Site

Are you looking for a single place for software or documentation for either A or E series?  HP now has a single repository for you at our new My Neworking site.  You can get there from here:

https://h10145.www1.hp.com/sso/Index.aspx

HP releases a suite of Video Conferencing products!

Wow...so I have stayed away from making posts, but this one was too interested to note make.  HP is now fully in the video conferencing business with its own Desktop to Telepresence room solution.  Its quite amazing!

http://www8.hp.com/us/en/business-solutions/visual-collaboration/index.html?jumpid=ex_r11155_us/en/large/tsg/go_visual-collaboration

Surprise

One thing to add..  I was pretty surprised by Bob also resigning as Chairman and as David DeWalt taking over.

Did Bob just decide to completely throw in the towel?  Did Bob get pushed out completely?   I don't have any bugs planted in the board room...so I certainly dont have the answers to these questions.

Andy Miller to succeed Bob Haggerty

http://phoenix.corporate-ir.net/phoenix.zhtml?c=112660&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9Njk0MjE2OSZhdHRhY2g9T04mc1hCUkw9MQ%3d%3d

If you read my blog (which I've been absent from lately), I predicted this a while ago.

Actually...even funnier...and I know you all know this..but LinkedIn is the best tool for identifying things are going on. I knew last year that Bob would leave...but it was reconfirmed about 45-60 days ago because Bob started spending tons of time on LinkedIn.  He was adding people to his network, sending messages, and updating his profile.  Funny..for most of us that are not multi-millionaires this is important stuff as we look for a new job...but what's Bob to do?  Maybe buy a few more cars (he loves cars)?

So..what will Andy bring?  we'll see.  

Polycom getting help from Morgan Stanley

Courtesy of Bloomberg...

(Adds analyst’s comment in ninth paragraph.)

By Serena Saitto

April 14 (Bloomberg) -- Polycom Inc., the maker of videoconferencing systems, is working with Morgan Stanley to study strategic options, including a possible sale, according to three people familiar with the situation.

Polycom is preparing for increased competition after rival Tandberg ASA was snapped up by Cisco Systems Inc. and as free Internet videoconferencing services such as those offered by Skype Technologies SA and Google Inc. gain popularity, said another person close to the situation, who declined to be identified because the company’s plans aren’t public.

A buyer would be able to challenge Cisco in a market that may more than double by 2014 as executives invest in equipment that lets them cut travel expenses. Based in Pleasanton, California, Polycom sells conferencing gear ranging from cameras attached to personal computers to large-sized screens.

“Polycom is the only significant independent provider of videoconferencing systems right now,” Marc Beattie, managing partner at research firm Wainhouse Research LLC, said in an interview. “They have some terrific audio and video technology that a larger organization would definitely want.”

Cisco, the biggest maker of networking gear, agreed to buy Tandberg for $3.2 billion last year to add less-expensive products that complement its larger videoconferencing systems. The deal hasn’t yet closed, though Cisco said it has the needed regulatory approvals.

Alyson Barnes, a Morgan Stanley spokeswoman, and Kevin Young, a Polycom spokesman, declined to comment.

Gores Talks

Polycom was in talks with Gores Group LLC last month and failed to reach an agreement because the Los Angeles-based private-equity fund wanted to merge it with its portfolio company Siemens Enterprise Communications, while Polycom wanted a cash deal, the people said.  *** Why? who would this benefit?

Frank Stefanik, a spokesman for Gores, didn’t return a call seeking comment. The Financial Times reported Gores had approached Polycom last month.

“There’s a buyer for Polycom if the price is right,” Samuel Wilson, a San Francisco-based analyst with JMP Securities LLC, said in an interview. “The problem may be that Polycom wants more money than buyers are willing to spend -- and that limits the universe of buyers.” He rates Polycom’s shares “market perform” and doesn’t own them.  *** Aint this the truth!  I've heard unofficial rumors about 4-6 offers to buy Polycom over the last several years.  Too much emotion or bad information has slipped Polycom up from really making this happen!

Polycom jumped $1.76, or 5.8 percent, to $32.31 at 4 p.m. New York time in Nasdaq Stock Market trading, the biggest gain in almost a month. The shares have added 29 percent this year.

Slipping Sales

Polycom’s sales dropped 9.6 percent to $967 million last year after gaining for the previous five years. Its profit declined 34 percent to $49.9 million.

To help reverse that trend, Polycom has signed strategic alliances with Hewlett-Packard Co., Siemens Enterprise and Juniper Networks Inc. this year to jointly sell its products. Juniper is the No. 2 maker of networking gear, trailing Cisco.

“Polycom is experiencing  tremendous opportunity in the evolving landscape of the visual communications market,” Polycom Chief Executive Officer Robert Hagerty said in an e- mailed statement, without commenting on a possible sale.

“There is significant momentum for the Polycom Open Collaboration Network both in terms of partner activity with leaders like Microsoft, H-P, Avaya, Siemens, IBM, Juniper and BroadSoft, as well as with customer acceptance. Our go-to-market approach is aligned with this strategy and we are capitalizing on the opportunities,” he said.

Premium Prices

Forty-one acquisitions in the U.S. networking product sector have been announced in the past 12 months. The average premium was 38 percent, including net debt, according to Bloomberg data. That average, along with Polycom’s enterprise value of $2.1 billion before today, suggests that Polycom may fetch $3 billion.

The global videoconferencing market accounted for $1.2 billion in revenue in 2009, according to Duxbury, Massachusetts- based Wainhouse, which focuses on collaboration and videoconferencing. That market will expand to $3 billion by 2014, according to Wainhouse.

Tandberg had 43 percent of the market last year, followed by Polycom’s 34 percent, Beattie said. Sony Corp. was third with 4 percent.

Last month, the FT reported that another private-equity firm, Apax Partners LP, had been trying to strike an agreement to buy Polycom. The deal, which could have valued the company at more than $3 billion, hit a snag over price, according to the newspaper. Apax spokesman Todd Fogarty declined to comment.

Polycom & HP Tie UP

http://www.reuters.com/article/idUSWNAB175220100319

I was half write in a post several months ago. I actually thought HP would buy Polycom...but its just a reseller agreement.   

As all of you know, I currently work for 3COM who is currently working on closing the merger with HP.  As I previously stated, I will not blog about 3com or about HP.  Being that PLCM is a partner of HP, and being that I'm not a HP employee yet, and I don't know their blogging policy, I'll probably not make any further comments.

I guess we'll wait and see how this plays out.  Its certainly very interesting...

Tandberg EX90

Damn... i thought the 1700 MXP was sweet hardware...but this just puts it to shame.  And who can argue with 1080p30?

http://www.tandberg.com/telepresence-products/personal-telepresence-ex90.jsp

I wonder how intuitive the touch panel is?   With how cheap touch screens are...if I was designing the hardware, I would have dropped the panel and made the whole screen touch aware.

Polycom taken private?

So, finally, something interesting.

http://www.ft.com/cms/s/2/99867380-3157-11df-9741-00144feabdc0.html

When I hear about buyouts like the above, I start to think about what one could do. Certainly, Apax could do some bundling with either companies it has investments in like Smart Technologies:

http://www.apax.com/en/investments/smart-technologies-inc.html

or, it could be the start of more purchases by Apax. Potentially, they'll look at a data company, a voice company. Maybe an Audiocodes, Broadsoft, or other switch providers.

Or...Apax could notice what I've mentioned to many, which is that PLCM has some unlocked value. Split off voice and sell it to a hardware manufacturer that can apply some scale and unlock extra margin. Or to switch only provider that would like to have their own phones. Take the patents and put them into a Patent troll company and go out and make some money just on royalties. Or... one thing I've said to many parties is become an OEM only manufacturer. And make products for others to put their name on. Why do I say that? Because.. PLCM has been a terrible sales company and a terrible marketer of technology and also has been short sighted on strategic goals....but they have been a good innovator and have had fairly good r&d.

Lots of potential here to be unlocked..which ever way it flies.

Sorry about my disappearance

Just nothing good lately to say... and no juicy rumors!

Cisco

Ok, this is just way to funny for to pass up (and will be one of very few posts about 3com & hp)

"Cisco has apparently put out an internal memo announcing that Cisco is dumping HP as a certified partner. Cisco plans to notify HP that it will not renew its partner contract which expires in April. "

http://siliconangle.com/blog/2010/02/18/bang-bang-cisco-dumps-hp-as-certified-partner-hp-returns-fire-with-deal-with-qlogic/

All I have to say is...what did Cisco really think was going to happen when they announced they were going to get in the server market?  duh!

Cisco roadmap for Tandberg

I'm looking forward to seeing how this will all play out as the merger completes:

http://www.crn.com/networking/222700495;jsessionid=URKTXISE02HZ1QE1GHOSKH4ATMY32JVN

RVSN and Aethra

Sorry for the lapse in posts..I'm quite busy in my new job and very little time to post...but I saw this one today and I had to post it:

http://www.marketwatch.com/story/radvision-to-acquire-selected-assets-of-aethra-2010-02-03?siteid=nbkh


On first glance, it makes sense.  Aethra currently oem's RVSN mcus.   RVSN is close to losing big OEM partners:  LS and CSCO.  (both should stop this year)  


Doing the deal is probably pretty good for both companies as it blends together and creates an end to end company. And, as well, since Aethra already knows how to sell RVSN, its pretty easy.  They are relatively close to each other:  Italy & Israel.  


The only issue is that the new combined company needs badly to put together a credible sales force.  They don't have the number of bodies that are needed to make it work.  

Skype & LifeSize

If you were at CES, you might have seen:

http://www.networkworld.com/news/2010/111110-skype-lifesize.html

This, of course, is very interesting as Skype and other like it could totally commoditize  address-book services and call control.  Honestly, its not that much of a loss to manufacturers and its a gigantic gain for not only customers, but also the whole industry.  While...Polycom might sell less CMA or Tandberg less VCS, in the long run they will both sell more endpoints as getting a endpoint hooked up and dialing someone will help considerably with wider spread adoption.   Something the industry should have pushed 6-7 years ago.

Notes of interest

James Altucher (not familiar with who he is) predicts that Dell could Polycom:


http://www.benzinga.com/general/80962/a-peek-into-the-takeover-market-in-2010-msft-goog-bbbb-orcl-vrsn-aol-java-dell-plcm

OMG....If Dell is smart...they wont go near this one.  Lifesize would have made sense..but not PLCM.  From an operational standpoint, I have to believe that would be an ugly merger.

But...one interesting tidbit I saw today was:

http://phoenix.corporate-ir.net/phoenix.zhtml?c=112660&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NjY4OTE0NSZhdHRhY2g9T04mc1hCUkw9MQ%3d%3d

If you want to skip the read, it says that Blackrock now owns 14+% of the outstanding shares of Polycom.
So, what does that mean?  Does that mean that Blackrock is think of a PE deal to take PLCM private and then do something with them?  Or, are they just hedging their bets that they believe PLCM will be bought by someone and they'll make a big pay day?  Or?

Interesting...

Skype announced 720P support & my predictions for the decade

If you didnt see it already, Skype is now support HD in their latest beta code, supporting 720P resolution:

http://news.zdnet.co.uk/communications/0,1000000085,39967077,00.htm


This is not surprising.  With the advent of lots of cheap horsepower in x86 chipsets, why would one need a DSP based system...much less a single purpose codec.

So..here's my simple prediction for 2010...  this will be the decade of video conferencing switching off of single purpose DSP driven codec designs.  This seems like a turn of events...i.e.  at the start of the last decade Picturetel moved to Windows based systems...and then by 2004, PLCM was abandoning the iPower windows based systems in favor the VSX line.  But... now that x86 has lots of power, software has gotten a lot better, and most people expect lots of functionality..you just cant go with a single purpose system.

So...long with that... I also predict that a ton of cloud based services will come out for conferencing.  Why should customers buy and operate the infrastructure when they can have it sit in the cloud, saving them both bandwidth, capex, and opex.

Wow...really deep predictions I know ;-)   .. but they do have serious consequences for hardware mfgs like PLCM and TAA.

Bold changes going on at PLCM

Today started out with several people returning happy from the holiday break and finding a pink slip on their desk.  I only have preliminary info so far, but for certain many in video product marketing were let go.

And in a bold move..or maybe a strange move...or lets just call it unexpected... marketing is now under Andy Miller. While I get the logic... i.e. sales needs full control over marketing in this very heated battle going on against Tandberg...  if you look at most companies, its not typical for marketing to be under sales unless you're at a less than $100M company.  So be it... its their strategy and hopefully they dont get distracted by it... if you know what I mean.

My condolences to those laid off.  BTW... I do run a LinkedIn group called "Polycom Alumni"...if you're a past employee, please join our group!

Google vs Apple

Happy New Year!

I know this is off topic..but it struck me as weird when I saw the following google logo this morning:

If you go there today and watch..the logo is animated and an apple falls off the branch down to the bottom of the screen.

So..do you suppose this is a funny little jab that the apple is going to fall from the tree.  I.e.  Google is going to upsurp Apple in the mobile phone business?  I'm also guessing that since Apple is long waited to release a tablet style device that maybe Google is going to upstage them by releasing one too.  Heck...its quite obvious that with Chromium OS that Google is going to go directly after Apple by releasing very simple, very fast, very cheap, very full function devices that are dependent on the cloud.

Should be interesting to watch this playout.