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ONLINE NEWS AND VIEWS ON VISUAL COLLABORATION AND RICH MEDIA COMMUNICATIONS
Happy Holidays to All from Wainhouse Research
This will be our last newsletter for 2001. It’s been a hectic few weeks back here in Boston – we’ve published
three new reports, two surveys, and are preparing to expand our consulting and publishing activities. Details
coming next month. 2001 has been successful for the WRB too – we began the year with 3,500 names on our
email list, and are ending the year at 6,500 – although the average number of bulletin downloads from our
web site is now over 17,000 per issue. We will return next year with expanded news and editorial coverage, a
new seminar series we will be taking on the road, more feature stories on all things conferencing, and
entertaining interviews with industry heavyweights and lightweights alike.
We would also like to extend a special thanks to the generous enterprises who have sponsored this newsletter
during 2001, our first full year of operation. Their support has been invaluable. You will see in our next issue
that for 2002 we have many returning sponsors as well as a cast of new sponsors.
As always, please feel free to forward this newsletter to your colleagues. To be added to our automated email
distribution list, simply visit www.wainhouse.com/bulletin. SUBSCRIBE NOW! IT’S FREE!
Andrew W. Davis, [email protected]
Polycom acquires ASPI Digital
Polycom has purchased Atlanta Signal Processors
Inc. (ASPI Digital), a manufacturer of voice system
products for $5 million. The acquisition is intended
to bolster Polycom’s voice product line by adding
custom-room environment and large conference area
technology to its existing table-top voice solutions.
ASPI Digital focuses on voice products for the
“installed” (I call this rack-mount) voice and
videoconferencing markets, with technologies such
as noise cancellation, multi-channel acoustic echo
cancellation and automatic microphone mixing for
large conference locations. ASPI Digital's product
development and marketing teams will remain based
in Atlanta and will continue working with and
supporting existing partners.
Here’s What I Think
There are at least three messages to be uncovered in
this announcement. The first is that Polycom is very
serious about the voice conferencing business.
Audio conferencing hardware today basically comes
in two categories – the table top products and the
The Wainhouse Research Bulletin
installed products – stuff that goes in behind the
scenes with lots of help from integrators, audio
consultants, and channel partners. Polycom has
been dominant in the first category but weak in the
second. The ASPI acquisition is a move to fix that
weakness. It also gives Polycom an integrator
product to complement its VS 4000 rack mountable
video product. Look for Polycom to move to
strengthen relationships with key consultants, room
designers, and A/V channels in general following
this acquisition through its new Alliance
Management Program.
Second, the acquisition demonstrates that Polycom
management continues to look for strategic financial
moves to complement those of its product
development teams.
Third, I think this could be a warning shot across
Gentner’s midships. Gentner dominates the installed
audio market and has been expanding into
Polycom’s table top audio and set-top video arenas.
Now the bullet is coming the other way. Polycom
has demonstrated over the years a mastery of
distribution strategies and tactics. Now give them
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Vol. 2 #48,December 18, 2001
some high end audio capabilities, throw in some
wideband technology coming from the PictureTel
side of the house, and couple that with Polycom’s
already dominant position in video, and things could
get very interesting for Gentner.
! [email protected] (Sunil Bhalla)
TANDBERG Shifts Management
TANDBERG has brought in a new president, Sverre
Kjenne, previously the managing director of Eterra
Norway. Bengt Thuresson, who has served as
TANDBERG’s president for the past five years,
returns to his previous role in TANDBERG as
manager of R&D and product development. I
haven’t met Sverre yet, but he joins a company that
has been on a market tear for the past two years.
And for those of you who can remember way back
when, Bengt is a master at getting ten kroner of
product R&D out of a 5 kroner investment. A
management change at TANDBERG – yes; a change
in direction, probably not; an increase in velocity –
probably yes.
we shall see who turns into real paying customers –
the real proof in the pudding.
In another vein, MVC continues its drive into all
phases of the conferencing market and has started a
Certified Video Engineer Program to provide
technical training for video and network
administrators. CVE will launch early in 2002 as a
two-week course covering both theory and practice
of all things videoconferencing.
The course
concludes with an exam certified by the German
chamber of commerce.
! [email protected] (Stephan Fischer)
The Wainhouse Research Bulleting would like you to join
us in thanking our 2001 sponsors who help keep
distribution of the WRB free:
Collaborative Systems LLC
First Virtual Communications
Genesys Conferencing
Gentner
Global Scheduling Solutions
InView
Ivron Systems
PictureTel
Polycom
RADVISION
Ridgeway Systems and Software
TANDBERG
V-SPAN
VBrick
Zydacron
MVC and VNP in Europe
After having announced a strategic partnership with
Forgent in June 2001, MVC's software development
daughter MVC Business Solutions is now planning
to become a system integrator dedicated to video
network management with a strong focus on
Forgent's Video Network Platform. In fact, MVC
has already started a beta test program for VNP in
Europe at five major enterprises including auto
manufacturers, telecom providers, and one large
chemical concern. These companies of course have
been focused traditionally on ISDN networks, not
IP. My sources tell me some of the beta sites have
been using Forgent’s software to discover and
catalog ALL the nodes on the network, not just the
video nodes and to see how video network
management software works with classical network
management tools. VNP allows the video team to
apply real network management solutions, and the
distinct separation between both areas is clearly
becoming smaller. The video team is gaining IT
experience while the IT team is learning about
video. Both sides have been impressed by the
combination of discovery, alarm management,
statistics, SNMP browsing, and scheduling. Now
The Wainhouse Research Bulletin
The fine print: Sponsorship of the WR Bulletin in no way
implies that our sponsors endorse the opinions expressed in the
Bulletin. Nor does it imply that the Bulletin endorses their
products or services. We remain an equal opportunity critic.
One WR Bulletin Sponsorship
is still available for 2002!
See www.wainhouse.com/bulletin/sponsorship.html
SnowShore Introduces N20 Media Server
SnowShore Networks has introduced the N20 media
server with carrier-scale media processing power
and a native IP architecture, allowing the device to
support the scalable deployment of real time voice
and rich-media converged applications. Devices like
the N20 were discussed at the Wainhouse Research
Summit in Boston last July after a presentation by
SnowShore’s president Joel Hughes. The N20 is an
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Vol. 2 #48,December 18, 2001
IP-optimized media-processing platform that
accesses and manipulates dynamic web content
across the network and integrates it in real time with
voice services. The N20 media server also supports
the deployment and evolution of existing legacy
services from the PSTN onto IP networks. The
philosophy behind the N20 according to SnowShore
is that next-generation networks are only as valuable
as their ability to allow carriers to quickly and
economically shape and scale enhanced services that
meet
customers’
highest
service-quality
expectations.
SnowShore Networks has also
launched a partners program to get software
developed on and ported to the N20.
! [email protected] (John Gates)
More SMART News from Canada
SMART Technologies has been real busy lately.
Since our last newsletter (November 28) the
company has announced the In-Wall Rear Projection
SMART Board 2860, an interactive whiteboard that
simplifies in-wall installation and requires less
meeting room space; two new SMART Board for
Plasma Displays models for collaboration using
plasma display panels (PDPs); and SynchronEyes
2.0 for Macintosh, software that uses a TCP/IP
network to create a focused learning environment
where instructors can monitor and control up to 40
Macintosh workstations from a single computer
(important in many education applications).
SynchronEyes 2.0 is also available for Windows.
The plasma display product is an interactive overlay
powered by SMART Board Software that adds touch
control and annotation capabilities, transforming a
PDP into a powerful presentation and collaboration
tool.
! [email protected]
Virtela Communications & IP Video
Networks
I’ve just become of yet another IP network service
provider taking a stab at video communications.
Virtela is a new global managed IP VPN services
provider now offering a video service (VirtelaVideo)
within a fully-encrypted VPN environment that will
support 768 kbps at the standard level and 2 Mbps
on the premium level. The premium level also
includes bridging and gateway services; all services
The Wainhouse Research Bulletin
appear to be on a flat-rate monthly billing. The
company also offers an enterprise VoIP service,
VirtelaVoice.
Virtela's core VPN service ranges in price from $300
to $1,500 per month for each U.S. site, including
local loop charges. International locations typically
cost from $500 to $4,000 per month for each site,
including local loop and the same features as
domestic locations. This replaces legacy (Frame
Relay) site-to-site connectivity, the need for separate
Internet access for each location, and ISDN for
videoconferencing. VirtelaVideo is an incremental
charge of $500 per month for each U.S. site for
unlimited use; $1,000 per month for international
locations. This fee includes all videoconferencing
hardware (including the TV), policy management
and 24x7 NOC support. VirtelaVoice is an
incremental charge of $200 per month for each U.S.
site for unlimited use (supports approximately 100
simultaneous calls within a T1 environment); $300
per month for international locations. Both
VirtelaVideo and VirtelaVoice applications are also
available independent of Virtela's VPN services.
Andrew is trying to schedule a demo for Wainhouse
Research.
! [email protected] (Jane Morrissey)
EDS enters Video Network Services Business
EDS has launched a managed video solutions
business based on FVC’s Click-to-Meet platform for
voice, video, and data collaboration and streaming.
According to the plan, EDS intends to leverage its
global presence and alliances with hardware and
software vendors and Internet Service Providers
(ISPs) to offer seamless video services to enterprises
of any size. The solution supports IP, ISDN and
ATM protocols and is endpoint independent and is
available with fixed monthly pricing.
T he Wainhouse.com Web Link Database:
Over 17,000 click-thrus served !
Our categorized, searchable Industry Web Links
database now contains over 375 Internet web links,
and if your favorite link isn’t there, submit it!
Bookmark www.wainhouse.com/links
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Vol. 2 #48,December 18, 2001
New Reports From Wainhouse Research
Just in time for the holiday gift giving season, Wainhouse
Research has completed volume 3 of Conferencing
Markets & Strategies (CM&S) - 2001, our comprehensive
coverage of the conferencing market. Volume 3 covers
the services industry – the audio, video, web & streaming
conference services and includes coverage of 30 leading
and 20 additional CSP companies, and a comprehensive
five-year forecast.
Our current set of reports now includes:
• CM&S Vol 1, Multimedia Networking Infrastructure
Products (Mar-01)
• CM&S Vol 2, Video and Web clients for Group and
Personal Conferencing (Oct-01)
• CM&S Vol. 3, the Conferencing Service Provider
Industry (Dec-01)
Polycom Charges into VoIP
Polycom has made several moves in the voice-overIP market in recent weeks. In the first, the company
announced the availability of is first standards-based
VoIP conference phone, the SoundStation IP 3000,
that integrates with the Alcatel IP PBS, the
OmniPCX 4400. In the second, Polycom announced
the availability of is SoundPoint IP 400 VoIP phone
for Artisoft’s TeleVantage IP telephony software
(softswitch). Relationships like this are key in the
VoIP market because customers want total solutions
that have been stringently tested and integrated and
that provide a rich set of features and reliability. So
the handset and the PBX have to be made by the
same vendor or “blessed” by the two vendors if they
are different. Polycom also has a role in Cisco’s IP
telephony phones as well.
For those of you who don’t know, Artisoft is a
developer of open, standards-based telephone
systems that bring together voice and data.
TeleVantage is designed specifically for small to
midsize businesses, corporate branch offices, and
call centers and enables remote and branch office
users to seamlessly interact with their TeleVantage
phone system at a corporate location using IP
technology. TeleVantage enables both traditional
circuit-based and VoIP switching on the same
system. This allows a company to add IP telephones
incrementally and only where needed rather than
throughout the company, reducing up-front costs in
the transition to VoIP. It also enables businesses
with multiple sites to reduce the cost of longdistance calling by routing calls inexpensively over
IP networks.
! [email protected] (Sunil Bhalla)
iPower Gains Embedded MCU
• Microsoft Messenger for Windows XP (Nov-01)
• Implementing IP Rich Media Conferencing –
A Pragmatic Guide for the Business Manager (Dec-01)
Complete details, including a free executive summary,
table of contents, and ordering information are available
at http://www.wainhouse.com/reports
The Wainhouse Research Bulletin
Polycom has announced a software MCU for the
iPower series of PC-centric videoconferencing
systems (900 Series only). The software option has
a list price of $3,000 and gives the endpoint a 4-port
multipoint capability (itself plus three remotes). The
bridge support IP only, not ISDN, and up to 768
kbps per port with either continuous presence or
voice activated switching. With the image share
device, all of the endpoints on a multipoint call can
see the live images, with motion.
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Vol. 2 #48,December 18, 2001
Brinckmann Launches IPNexus
Zydacron and XP
Brinckmann & Associates, a software developer
focused on enhancing IP-based multipoint
videoconferences, has introduced IPNexus, software
which the company dubs an Integrated Collaboration
Environment (ICE) – a term we have been using at
Wainhouse Research for two years – that integrates
instant messaging, application sharing, screen
snapshots with collaborative tools, sticky notes,
group polling, email and file distribution, and
launching of videoconferences and audio
conferences through an MCU in a secure,
controllable environment.
Zydacron has added Windows XP support for its
desktop videoconferencing products for both ISDN
and IP. Version 3.0 of the company’s software also
supports Windows 98, NT and 2000.
The IPNexus software is installed on a server located
on the company’s internal network. The application
can be isolated on an internal server or configured to
be accessible by the public Internet through a single
port assigned by the administrator.
Wheeling & Dealing
! [email protected] (Fred Tolar)
WebEx Goes Multilingual
WebEx Communications is now offering multiple
language interfaces for its Web conferencing
services. WebEx is the first Web conferencing
service to allow every participant within a meeting
to select a different language preference.
Compunetix has opened a Hong Kong office.
First Virtual Communications has established a
Japanese subsidiary, First Virtual Communications
Japan KK headquartered in Tokyo
Polycom announced that they shipped their one
millionth conference phone (they recently also
shipped their 100,000th ViewStation)
Our first Summit was a stimulating, exciting,
sometimes-controversial sellout, and has generated
strong interest in a follow-on event. The theme for
2002 is “Achieving Success with Rich Media
Conferencing” and will focus on end users of all
types who are deploying audio, video, and web
conferencing solutions and how they are using the
technology to gain advantages.
Wainhouse Research is looking for some interesting
end-user speakers from all types of large and small
enterprises, plus a select number of experts to shed
light on the remaining mysteries. We are happy to
report that sponsorships are SOLD OUT. Details on
the proposed meeting agenda are on our web site at
www.wainhouse.com/summit.
[email protected]
Applied Global Technologies reports that its
engineers recently returned from Kuwait where they
installed a Polycom Accord MGC 100 at Camp
Doha for U.S. forces stationed there. The MCU is
being used to support secure bridging of Army
Central Command forces in the Middle East. The
company is also supporting videoconferencing for
the Third Army operations center in Georgia which
enables the army to conduct real-time operational
conferencing 24 hours a day/ 7 days a week with
deployed forces in the Mid-East.
According to a report we ran into from Jupiter
Media Metrix, the use of Instant Messaging (AOL
IM, MSN Messenger, and Yahoo Messenger) is up
110% in the US enterprise comparing September
2001 to September 2000. 13.4 million users, up
34%, used 4.9 billion minutes. Imagine if we had
13.4 million videoconferencing users!
PlaceWare has raised more than $30 million in an
over subscribed private placement financing.
SnowShore Networks landed $5.6 million in
venture capital from international VC firm 31.
The Wainhouse Research Bulletin
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Vol. 2 #48,December 18, 2001
Centra has announced that Deutsche Telekom,
Europe's largest telecommunications company, has
standardized on its real-time Web collaboration and
eLearning platform to deliver interactive, online
training to thousands of internal employees.
VNCI announced recently that it intends to lay off
30% of its employees and to implement a 10%
salary reduction for all remaining employees.
Videoconferencing reseller MCSi Inc. has filed to
offer 4.5 million common shares and use most of its
proceeds to repay a portion of a credit facility.
The European Space Agency has chosen Aethra to
supply 24 videoconferencing systems in seven cities
in Italy, France, Germany, Netherlands, Russia, and
Spain.
Continuing its streak of acquisitions, Wire One
Technologies has acquired certain assets of the
technologies division of Axxis for just over $2
million in Wire One stock (321,000 shares). Based
in Louisville KY (home of the basketball cardinals),
Axxis will strengthen Wire One’s Midwest presence
in the enterprise videoconferencing solutions and
integration markets, complementing the recent
acquisition of AAC.
This division of Axxis
apparently did just over $10 million in business in
the past twelve months.
E.mergent, Inc., formerly VideoLabs, has retained
an investment banking firm to help it evaluate
strategic options, including the possible sale of the
company. The company does business in two
segments – a Products Division, which designs,
manufactures and markets a complete line of
peripherals that support core technologies in the
videoconferencing, audio/visual, identification,
education and medical markets, and a Services
Division, which is a full-service communications
integrator specializing in the design, installation and
support of meeting room technologies.
Holding its first worldwide reseller meeting since
the PictureTel acquisition, Polycom claims record
attendance at the Palms Springs meeting held in
early December with over 400 channel partners from
153 different organizations attending. Approximately half were from outside the US.
The Wainhouse Research Bulletin
Forgent (VTEL) Fiscal Q1
VTEL Corporation, doing business as Forgent
reported the results for its first quarter of fiscal 2001,
the three month period ending October 31, 2001.
Revenues were $8.466 million, down 5% from the
previous quarter’s revenues of $8.925 million.
Forgent is reporting revenues in two categories –
services ($5.6 million this quarter and $5.98 million
last quarter) and integration ($2.86 million this
quarter and $2.95 million last quarter.
The
company considers itself to be so different from
what it was last year at this time that it is not
comparing this quarter’s results to those of the same
quarter last fiscal year. I however, have taken the
liberty of going back to VTEL’s older earnings
releases where they reported revenues as product
revenues and service revenues, and have attributed
the service revenues to be almost the same as what
would be included in Forgent’s figures.
Forgent (VTEL) Revenues** ($M)
$14
VTEL Services Revenues
$12
$10
$8
$6
$4
$2
$0
Q4/00
Q1/01
Q2/01
Services
Q3/01
Integration
Q4/01
Q1/02
Software
Don’t misunderstand my graph. The first four
columns are the reported numbers for VTEL’s
services operation at the time of the earnings calls,
the last two column are the Q4/01 and Q1/02
numbers as reported by Forgent a few weeks ago.
Note that I have included a third category, software,
which is all zeros right now, but I expect to see
Forgent’s VNP software start to contribute to the
revenue line next quarter.
Hear WR on CNet’s AnchorDesk Radio
Hear Wainhouse Research’s Andy Nilssen as
interviewed by David Coursey on 12-Dec-01, topic:
Microsoft Messenger for Windows XP. Real Player
required; simply click here.
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Vol. 2 #48,December 18, 2001
People & Places
Compunetix, Sonia Soo, Regional Development
Manager, Hong Kong
Connex International, Bobbi Heyel has announced
her retirement as President, Debora Volansky,
President
SnowShore Networks, Sue Agopian, VP worldwide
sales.
SPL Integrated Solutions, Townley Meyer, VP
Sales for Strategic Markets
TANDBERG, Sverre Kjenne, President; Bengt
Thuresson, manager of R&D
Forgent, Roy Wilson, COO; Bob Seidel, VP Sales;
Nancy Harris, VP marketing; Sanjay Mishra,
Director of VNP Professional Services
Zydacron, Larry Hamilton, VP Engineering
Genesys Conferencing, David Rosenberg, E-VP
sales and marketing for North America; Kailash
Ambwani, Chief Strategy Officer; Kim Mayyasi has
resigned as CEO of North American Operations
WR Bulletin Techie Tip
Gentner Communications, Angelina Beitia, VP
Marketing; DeLonie Call, VP Human Resources;
Kevin Davis,VP Conferencing Services
• Then select
Edit # Preferences # General # Display
! Smooth Line Art (this is not the default)
Motion Media, Max Arafa, sales manager for
Europe; Fabien Letailleur, Country Manager for
France and Belgium.
Very nice.
Polycom, Geno Alissi, General manager of iPower
Video Communications Division
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Email to [email protected]. Free subscriptions are available at
www.wainhouse.com. Copyright 2001 by Wainhouse Research.
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Vol. 2 #48,December 18, 2001