The Wainhouse Research Bulletin

NEWS AND VIEWS ON REAL-TIME UNIFIED COMMUNICATIONS As always, please feel free to forward this newsletter to your colleagues. To be added to our FREE automated distribution list, simply visit www.wainhouse.com/bulletin. Andrew W. Davis, [email protected]

Lotusphere 2009 Highlights WR analysts Andy Nilssen and Brent Kelly carried the Wainhouse Research banner at the Lotusphere 2009 conference held in Orlando January 18 – January 22. One surprising tidbit was that attendance for the 7,000+ end users attending the event was up 2% over last year, which correlates with our recent WRB survey that spending in conferencing and collaboration, and IT in general is expected to be slightly UP over 2008 levels in spite of the current economic difficulties. IBM Lotus and its partners made many announcements including: ¾ LotusLive (www..com), a cloud-based portfolio of social networking and collaboration services designed for business. For those familiar with Bluehouse, IBM’s year-long beta of its services offering, LotusLive is the resulting commercial version. The current quick services list includes IM/Presence ( Sametime), web conferencing (), colleague networking (think Connections), activities (to-do lists, project tracking), file repository (with access control, revision tracking); email will be added shortly (based in part on IBM’s recent acquisition of ). Proving that LotusLive is going to be more than just what Lotus can muster (and, it turns out, to help get the word out as well) Lotus also announced LotusLive will integrate with the service offerings from LinkedIn (people search), (VoIP & video conferencing), and Salesforce.com – offerings that touch over 400 million users today. Pricing was not announced, nor was commercial availability other than 1H09. ¾ Lotus Sametime 8.5, which extensively reworks the Sametime Meeting client as well as the voice and video capability within Sametime. Sametime 8.5 supports a choice of either an abbreviated feature set for casual meeting participants using a pure HTML web browser client (Web 2.0- based, no Java or applet downloads), or a formally installed fully-featured, rich client for presenters and mainstream users (WR notes that Microsoft Live Meeting went the same way, though Microsoft’s rich client is limited to Windows desktops). Using either method, starting up a meeting is lightning fast – “as fast as a chat window”. IBM Lotus has also upgraded the Please take our ONE QUESTION poll. Results in next WR Bulletin Are your room or desktop videoconferencing systems integrated with your telephony system? { Yes, Avaya-based { Yes, Cisco-based { Yes, Nortel-based { Yes, Alcatel-Lucent-based { Yes, Siemens-based { Yes, other { No If you answered Yes above, would you be willing to talk to WR on the phone for 10 minutes, off the record. Yes, my email address is: Submit operates if you opened WRB in a browser. If not, visit www.wainhouse.com/wrbpoll

The Wainhouse Research Bulletin Page-1 Vol. 10 #01 January 28, 2009 Meeting client so that shaded backgrounds display flawlessly. Sametime 8.5 will also come with a SIP server and a SIP softphone client. Consequently, ANY standards-based SIP device will work. We saw Polycom SIP video endpoints connect with the new Sametime client (which supports H.264 video). ¾ We learned a lot more about the Sametime Unified Telephony architecture and deployment strategy. Voice is complicated, and SUT is a complicated product; it will be deployed only by IBM’s Global Technology Services Group. SUT’s availability date has been pushed out to the second half of the year to allow additional beta customer installs. SUT is compelling because it allows companies with heterogeneous telephony environments to provide collaborative capabilities independently of the telephony solutions a customer has deployed previously. ¾ Alloy, a joint software product built by IBM Lotus and SAP that connects Lotus Notes customers with SAP Business Suite. Think of Alloy as an elegant mashup that allows employees easy access to SAP reports, procurement, data and product life cycle management tools from within Notes. The product is extensible so that any widget or dashboard the user prefers can be created. ¾ New collaboration software and development tools for the RIM Blackberry. These new tools allow any Domino developer to immediately be a fully functional Blackberry developer as well. The Blackberry platform now supports IBM Lotus Domino Designer and XPages. The Blackberry Java Development Environment for Eclipse also plugs into IBM Lotus Domino Designer; this will enable Eclipse-based extensions and mashups to be added to business applications running on the Blackberry. In addition, the Blackberry will support the open document format so that documents from Lotus , IBM’s free desktop software suite that includes word processing, , and presentation capabilities, will display on the mobile handset. IBM’s social networking software, Lotus Connections, and its team workspace solution, Lotus Quickr, will now also run on the Blackberry. Here’s What Brent Thinks: [email protected] The IBM Lotus offering is impressive. What I like about it is that most of the collaboration tools are Eclipse-based, and they can easily be embedded within one another. For example, from within Notes, one can have the Sametime buddy list displayed, and you can also add widgets and mashups easily to any of these applications so that people can work how they choose within their own customizable environment. The Lotus conferencing and collaboration capabilities are also easily embeddable within other line of business applications. The ability to use standard SIP devices with Sametime is a good move on IBM’s part. IBM does not make its money off of devices or telephony systems, but off of software, servers, and services. The company has promised its technology partners that it will help them succeed, and this is engendering good will among the partner community toward IBM. That being said, IBM is still seen as a company for the large enterprise, and in order for its products to be more widely adopted, it is going to have to develop better strategies for the middle market. I see the Lotus conferencing and collaborative solution as a very compelling offering. Here’s What Andy Thinks: [email protected] While the already impressive mix of premise-based conferencing, collaboration, and social networking products from Lotus continues to march on – with well-thought-out, open, standards- based enhancements, to me LotusLive is the standout of this Lotusphere. I always thought that the Bluehouse team was in an enviable position: cherry pick the best Lotus technology and unleash it as a compelling SaaS offering to go after WebEx and Microsoft. What the team has done in a year is astounding: taken bits of Lotus stuff here, have the courage to mix it with technology from an acquisition or two (WebDialogs, Outblaze) when the in-house technology is not appropriate, run an open beta to get real customer feedback, and then get it out the door. What I did not expect is the level of integration (integration is “an overused word”, laments LotusLive marketing) not only between LotusLive components, but between SaaS offerings from

The Wainhouse Research Bulletin Page-2 Vol. 10 #01 January 28, 2009 three hi-stakes partners AND “click-to-cloud” from the existing Lotus on-premise offerings. IT departments everywhere will be able to mix on-premise and SaaS to match their particular needs. Besides the task of getting LotusLive actually out the door (it is not there yet), Lotus faces an enviable dilemma: is LotusLive an extension of the product line to SaaS targeted for large enterprise users? Or is it a new services offering for SMB’s ?? I think it is both, though two- mints-in-one presents quite a marketing challenge – perhaps one that, with a plan already in place to get in front of 400 million users, an aggressive $100B entity can actually pull off.

LotusLive web conference demo with (simulated) BlackBerry participant

Sean Poulley, VP online collaboration services, IBM Lotus, reveals the company’s strategy to instantly gain exposure to 400M people.

Starting a Skype conference call A Polycom video endpoint is just another SIP from within LotusLive device to newly-SIP-enabled Sametime 8.5 The Wainhouse Research Bulletin Page-3 Vol. 10 #01 January 28, 2009

The Lotusphere partners showcase displayed applications that integrate with the Lotus ecosystem

Andy Nilssen, WR, gets the latest Saturday Night Live alumnus Dan Aykroyd Lotus Sametime and Notes integration demo tells the Lotus faithful what team collaboration from Dan Demeis, Premiere Global means to him Tandberg Launches C60 Codec Your company name & link here! Tandberg has introduced the company’s latest HD Join the elite group of WR Bulletin videoconferencing codec dubbed the C60. This is sponsors for 2009 & get your word out! essentially a little sister to the C90 introduced half a Contact Sara Fargo, [email protected] year ago – same fundamental technology and The Wainhouse Research Bulletin would architecture but smaller 1U form factor, fewer I/O like you to join us in thanking our connections, and less cost. The essence of the product 2009 sponsors who help keep announcement is support for 1080p video (optional, distribution of the WRB free: with 720p standard), 20 kHz stereo audio, automatic Aethra Compunetix gain control and noise reduction, and an embedded 4- AGT Haedenbridge way, 720p bridge with individual transcoding (also optional). There are some powerful collaboration Cisco LifeSize capabilities as well (also optional) including support Talk & Vision for UXGA and full 1080p HD and the ability to The fine print: Sponsorship of the WR Bulletin in up to three multimedia sources simultaneously. The no way implies that our sponsors endorse the MSRP for the base C60 is $21,900; software options opinions expressed in the WRB. Nor does it imply that the Bulletin endorses their products or include Tandberg’s natural presenter (collaboration) services. We remain an equal opportunity critic. package ($4K), the embedded MCU ($6K), and 1080p resolution ($4k). The Wainhouse Research Bulletin Page-4 Vol. 10 #01 January 28, 2009

Tandberg also announced a new set of Profile systems powered by the C60. These systems feature a very slick Scandinavian design and are available with a single 42” LCD monitor, a single 52” LCD monitor, or double 52” LCD monitors. In all cases the camera is integrated into the display module and all cables are hidden. C90 C60 6000 MXP Video Optimal Definition Optimal Definition Optimal Definition up to 1080p30 up to 1080p30 up to 720p30 Collaboration HD Collaboration HD Collaboration HD Collaboration up to 12 HD sources up to 4 HD sources up to 2 HD sources (5 simultaneous) (3 simultaneous) (2 simultaneous) MultiSite HD MultiSite 1080p30 HD MultiSite 720p30 MultiSite up to 4 sites, individual up to 4 sites, individual up to 6 SD sites transcoding transcoding plus 5 audio Audio / Mics 8 microphones 4 microphones 3 microphones Base price, $32,900 $21,900 $18,900 codec + camera Here’s What I Think: The C60 is a strong addition to Tandberg’s AV integrator product line. It’s true that 1080p is rapidly becoming a mainstream buy in the consumer TV market, promoted by the TV vendors and supported by BlueRay DVDs. With today’s consumer TV market situation and declining prices, why not buy a 1080p system and future-proof your purchase? For enterprise videoconferencing however, the situation is a little different since 1080p requires more bandwidth and exceeds the capability of most multipoint bridges in the field. So, how practical is it today, we’re not sure. In fact, our research indicates that most 720p videoconferencing systems today are making real HD calls only a small minority of the time – for a variety of reasons. On the other hand, systems like the C60 give AV integrators a real weapon for supporting customers with high end systems that approach telepresence in experience while also providing room design flexibility. Not every customer fits into a three-screen-six chair box. Food for thought; what happens when you combine 1080p with a 75 or 85 inch (or larger) display and a wide angle lens on the camera? ' WR Forum: Tandberg Launches C60 Codec News in Brief ¾ ThinkEngine has filed for chapter 7 bankruptcy. The company’s two primary products were a voice services router and a network media server. Most of its revenues were from a few large service providers and cable MSOs. At the end of 2007, the company reported 36 employees. ¾ Avistar showed two new products at Lotusphere – significant to both the IBM Lotus community and anyone considering desktop videoconferencing deployments. Avistar C3 Conference powers multiparty videoconferences from the desktop, conference room or the road by providing industrial-strength multipoint capabilities through standards-based software. In other words, C3 conference is a software MCU. Avistar C3 Tunnel Server enables corporations to connect with people at any location across multiple firewalls. ¾ Aethra has signed up Videoconference Solutions to resell Aethra’s entire product line in Canada. The Wainhouse Research Bulletin Page-5 Vol. 10 #01 January 28, 2009 ¾ HaiVision Systems introduced the SHARE-HD Network Video Recorder — a network video appliance capable of recording up to 10 simultaneous streams of HD or WXGA content. SHARE-HD is designed for medical, military, and educational network video systems. In an unrelated announcement, the company reported that its low-latency MAKO-HD H.264 codec is being used by France's CRAN (Research Center for Automatic Control) to support the study of robot-assisted telesurgery. Ask your doctor if robot-assisted telesurgery is right for you! ¾ Avaya is joining the HP ProCurve Open Network Ecosystem (ProCurve ONE) to expand joint efforts in technology integration and innovation. ProCurve ONE is a multi-vendor alliance program that offers enterprises a choice of pre-tested interoperable solutions that run on the HP ProCurve Switch 5400zl and 8200zl series. ¾ With the help and cooperation of our friends from Netbriefings, we are able to provide any WRB readers with access to the Boston Summit presentations. Both the powerpoint files and the rich media archives are available at www.wainhouse.com/boston08/presentations. Enjoy. ¾ LifeSize has expanded its operations in India by opening an expanded engineering design centre in Bangalore, India. ¾ ShoreTel has initiated field trials of the ShoreTel plug-in for IBM's unified communications and collaboration platform, IBM Lotus Sametime. New Unified Communications Reports Available The Worldwide Unified Communications Services Forecast predicts significant growth through 2013, with market expansion coming from hosted voice providers ($18M in 2008 to $3.4B in 2013) and messaging providers ($1.3M in 2008 to $3.1B in 2013) branching into UC offerings. In addition, the audio conferencing services market is expected to see significant minute usage growth, but only small revenue growth due to falling average selling prices while hosted video bridging is not expected to grow in any significant way. By contrast, the growth rate of UC products is forecast to hover around 1%, hampered by stagnation in the telephony market, according to a companion report released by Wainhouse Research, The Worldwide Unified Communications Product Forecast. The Worldwide Unified Communications Service Forecast is available now by contacting Client Services Manager Sara Fargo at [email protected], +1 781 934 6165. The Executive Summary and Table of Contents for this study and others are also available at www.wainhouse.com/reports. WebMetrics Survey Describes Impact of Economy on Conferencing Usage Results from the latest WebMetrics survey panel indicate that the state of the economy, along with increased gas prices and the desire WebMetrics to go “green” are driving the increased use of conferencing technologies in the workplace. Of those responding, about 50% mentioned travel reduction as being the primary reason for their organization’s increased conferencing use, with the next most important factors being the economy and gas prices. For more details, check out the Executive Summary at www.wainhouse.com/webmetrics. And congratulations to these end user prize winners: Amazon $50 certificates won by Cindi W, University HealthSystem Consortium, Karen S, White Acres Realty, Bruce C, Acorn Systems, Marcel M, DSM, Becky H, Quikbook, Inc.; iPod touch, Scott R, Bayridge Volvo, and grand prize, Amazon $500 certificate, Evan M, West Pharmaceutical Services. Web conferencing users and buyers can join the WebMetrics panel here.

The Wainhouse Research Bulletin Page-6 Vol. 10 #01 January 28, 2009 New (free) White Paper from WR Unified communications integrates presence, IM / chat, telephony, web conferencing, unified messaging, and desktop videoconferencing within a single user interface. However, most currently available UC solutions offer only limited visual collaboration capabilities. This white paper, sponsored by Polycom, provides insight into a next generation architecture for integrating high definition videoconferencing into UC deployments. Visit www.wainhouse.com/whitepapers to download your free copy. Don't Last Week’s WR Bulletin Poll Know 10% How does the current economic situation affect your Speed Up 34% enterprise’s (or your customer’s) 2009 plans for No Effect deployment of conferencing and collaboration solutions? 28% Have a question you’d like to see in the WRB? Send it along to [email protected] Slow Down 28% An Open Letter to our Government Leaders (a WRB Editorial) [email protected] As we all know, energy consumption today is a big problem. Burning carbon-based fuel has two very serious but very different drawbacks: 1) The process emits CO2 and contributes to climate change, and 2) it makes the US (and other countries) very dependent on unreliable sources of energy, thereby affecting our commercial interests as well as national security. Hence, lots of attention has been focused on ways to decrease energy consumption or to develop clean, renewable energy sources – developing fuel efficient automobiles, rolling out mass transit systems, installing offshore wind farms, planning new nuclear reactors, etc. It’s all high tech, and most of it is misguided…. misguided because these solutions will take billions of dollars and many years to roll out (the automotive initiatives being the most poignant example), misguided because most focus on creating more sources of clean energy and not on more conservation, and misguided most of all because these initiatives overlook a solution that exists now, that can be deployed within weeks or months, and that address many of today’s energy-related ills. Simply put, the best way to decrease energy use is to decrease travel. Towards this end, there is one set of solutions already available throughout the United States as well as in almost every country on the globe, already low cost, and already being used (however lightly) by some leading enterprises and non-profit organizations. These solutions can 1) reduce or eliminate day-to-day commuting and its impact on traffic conditions and local air quality; 2) enable employees to attend meetings, training sessions, or interviews without moving; and 3) provide information workers the ability to participate in national or global teams without the stress, time-wasting inefficiencies or environmental pollution associated with business travel. Unfortunately, these tools have been overlooked by most of the state, local, and federal government leaders planning our economic future. These solutions are widely-available products and services known as audio and video conferencing, web conferencing, IP telephony, and/or unified communications. In the United States alone, over 250 companies - including a small number of large enterprises like Cisco, IBM, and Microsoft, half a dozen billion dollar companies like BT-WireOne, Polycom, Tandberg, and InterCall, and scores of smaller vendors - offer solutions that cover a wide range of customers’ communications needs. While most of these vendors have been promoting their offerings for years as cost savings tools, it is only recently that their marketing efforts have included “green” advantages, energy-saving benefits, and the ability to have product teams and supply chain partners collaborate more effectively. Continued on Page 9 …

The Wainhouse Research Bulletin Page-7 Vol. 10 #01 January 28, 2009 MEGATRENDS: Come See Us In Berlin, Network With Colleagues Collaboration Futures Summit – Berlin 2009 Our annual April event at the Steigenberger Hotel in Berlin will feature an all-new format. After a half day mini-conference focused on the CSP industry, the Collaboration Futures Summit agenda will explore the major technologies and applications that are driving the future of the industry. The two-day program will cover the future of audio, video, 21 April 2009: CSP Summit (1/2 day) and web applications and the social and 22-23 April 2009: Collaboration Futures Summit environmental factors forcing changes at work, as well as the networking and computer technologies fundamental to enterprise unified communications. Wainhouse Research summits are unique experiences for attendees to learn interact with industry experts, technology leaders, WR analysts, and fellow conferencing, collaboration, and IT managers. Visit www.wainhouse.com/berlin09 for the first round details on this international conference. The registration web page is now live. If you would like to sponsor and speak on one of the megatrends, please contact [email protected] . Megatrend: Mobility and the Collaboration Future Mobility is on everyone’s minds these days. Forward-looking thinkers envision a work environment where mobile collaboration is critical to any organization’s successful communications strategy. Not just mobile email and text chat, but the ability to participate in business meetings with a full range of easy-do-use tools. Jerry Pompa, Compunetix VP and Communications Systems Division Manager, will cover these and other mobile issues as a Megatrend presenter at the Collaboration Futures Summit. Jerry will cover how the industry is redefining “Mobile Collaboration” and how the next generation of 3/4G mobile devices will support wireless, real-time, synchronous collaboration applications that include audio, video and data sharing. This presentation will examine the next generation of mobile operating systems, the devices and capabilities that are likely to emerge, and the impact to both customer enterprises with growing mobile workers and to wireless and collaboration service providers looking for new growth opportunities.

2009 Collaboration Futures Summit Sponsors

2009 Berlin CSP Summit Sponsors

The Wainhouse Research Bulletin Page-8 Vol. 10 #01 January 28, 2009 An Open Letter to our Government Leaders (a WRB Editorial) … Continued from Page 7 What We Need To Do The collaboration industry does not have a lobbying arm or a powerful industry association. Nevertheless, the time is right for government action to stimulate the adoption of conferencing and collaboration technologies that address so many of our political and economic concerns. Tax incentives to encourage behavior changes or industrial investments are a time-honored American tradition, particularly in the communications sector: remember land grants for railroads, rural electrification programs, and the Interstate highway system. Now is the time for US (and European) government programs that encourage the commercial sector to adopt telecommuter / remote worker programs and travel / energy reduction initiatives. Barack Obama’s call to improve the nation’s broadband infrastructure (the USA is now 15th in broadband penetration) is really just the foundation for competitive advantage; it is not the endpoint. We already have applications like telehealth, distance education, team collaboration workspaces, video and virtual contact centers, teleworker support modules, and e-government solutions that run over the broadband Internet; we need incentives to have corporations and agencies large and small adopt these applications. In addition, we need an educational program to facilitate cultural change in mainstream America. Each plane, train, or car trip we take has a negative impact on the environment. While some leading-edge enterprises are comfortable with a dispersed employment base and remote management, most supervisors (and workers) today are focused on face-to-face management and uneasy with the idea of remote or at-home workers despite evidence that these employees can be more productive and happier than those tethered to an office. The impact of turning the United States (or any other country) into an e-nation with an extensive telecommuting program could be sensational in turns of its high return, low cost, low risk, and immediate effect. Replacing 20M automobiles (a fraction of what is on the road today) with hybrids would cost approximately $500 billion while the investments to enable 20M telecommuters would be on the order of $2.5B. Taking 20M cars off the roads on a daily basis would save on emissions while also lightening the load on our nation’s highways. Who Will Benefit Besides the vendors in the conferencing and collaboration and Internet-access industry that will obviously benefit if more of their products and services are consumed, the entire United States economy stands to gain from reduced traffic congestion, declining consumption of energy in general and gasoline in particular, and reduced emissions. Past experience has shown that enterprises adopting a collaboration culture can lower their overall operating costs while also benefitting from speedier decision making, shorter innovation cycles, and higher worker satisfaction levels. A recent study by Cisco on their use of videoconferencing and collaboration applications concludes that the company has improved its sales success rate, reduced its sales cycle, lowered travel costs by $166M, gained $62M in productivity savings, and avoided over 90,000 metric tons of CO2 emissions in just two years. Tandberg has placed a video system on every employee's desk, which has resulted in 75,000 video calls being made per month. The company claims it has saved over $10M in travel expenses and avoided 5,000 metric tons of CO2 emissions per month Yes indeed, companies can make money by going green. A federal-government lead effort to become a “collaboration nation” should go a long way towards ridding our dependence on foreign oil and liberating our foreign policy, improving the environment, and helping the United States regain its leadership position in the global economy. ' WR Forum: Andrew’s Open Letter to our Government Leaders

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The Wainhouse Research Bulletin Page-9 Vol. 10 #01 January 28, 2009