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WR Bulletin Vol 4 Issue #24 16-Jun-03

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The Wainhouse Research Bulletin ONLINE NEWS AND VIEWS ON VISUAL COLLABORATION AND RICH MEDIA COMMUNICATIONS Not much product news this week, but we are expecting some dramatic announcements later this month from one big player in the videoconferencing product space and another in the audio/web services space. Stay tuned. As always, please feel free to forward this newsletter to your colleagues. SUBSCRIBE NOW! IT’S FREE! To be added to our automated email distribution list, simply visit www.wainhouse.com/bulletin. Andrew W. Davis, [email protected] Wire One Set to Unload its Videoconferencing Equipment Division Wire One has entered into a definitive agreement to sell its videoconferencing reseller business to Gores Technology Group, the same company that bought a similar operation from Forgent six months ago. The transaction is valued a $23 to $25 million, including $22 million in much-needed cash. The sale price represents about 1/3 the revenue level of this operation. The Wire One operation includes equipment distribution, system design and engineering, installation, operation, and maintenance activities. Our understanding is that this business will continue to do business under the Wire One moniker, but be wholly owned by Gores, a private company. Remaining as a publicly held company and lead by Rich Reiss (see interview at end of this newsletter) will be a newly named company, almost certain to have the word Glowpoint in its name, that will focus exclusively on IP video network services. Here’s What I Think. You don’t have to be a genius to see that in tough times companies have to stick to their knitting, focus on their core competencies, etc. Yes, the pendulum is in full swing, and diversification is definitely out these days. Expect to see more of this in the conferencing and collaboration world over the next 12 months. Palm to Merge with Handspring While this isn’t technically a conferencing and collaboration story, the handheld PDA market is of interest to all of us in the conferencing industry because of its potential impact on future user interfaces, the meshing with mobile solutions, etc. I found the announcement of the Palm/Handspring marriage of interest from a business history point of view. Here is my “pictoral” of the corporate history. Palm USR 3COM 3COM 1992 1995 1997 PalmSource 2003 PALM 2000 Handspring Palm 1998 2003 The Wainhouse Research Bulletin Page-1 Vol. 4 #24, June 16, 2003 It’s another story of coming full circle. Palm was swallowed by USR, which was later swallowed up by 3COM. The management team left to form Handspring; 3COM later spun out Palm in a “return to core competency” thrust; and now Palm and Handspring are coming together again in an effort to fight off the PocketPC industry led by the evil empire in Redmond. 8x8 (remember them?) Intros New Videophone 8x8 has announced the production and general availability of the world’s first SIP videophone. 8x8’s DV325 Desktop Videophone works in conjunction with the company’s Packet8 voice and video service and enables plug-and-play high-speed, instant-on video dial tone service over any broadband internet connection (cable modem and DSL included). Like the company’s POTS videophone, the DV325 is an all-in-one desktop videophone system that includes an integrated camera and an LCD display. The DV325 is compatible with other SIP voice and video solutions, including Microsoft’s Windows Messenger. The DV325, $599, supports up to two external cameras and one external video display and features 10 speed- dial numbers and an integrated address book. The videophone, in conjunction with the Packet8 service from 8x8, enables users to make voice and video calls to IP endpoints and regular telephones anywhere in the world. Launched in November 2002, the Packet8 service enables anyone with high-speed internet access to sign up for telephone service at www.packet8.net. My Comments First of all, at $599 for a videophone, we are getting to the point where this market should be set to take off, finally. In the “old days,” videophones worked on POTS or ISDN, two networks that didn’t make sense for a variety of reasons, no matter whether you were a consumer or an enterprise. IP solves many of these issues. The Wainhouse Research Bulletin would like The Packet8 service, like those you to join us in thanking our 2003 sponsors available from Vonage and others, who help keep distribution of the WRB free: gives you an insight into the future of Aethra Polycom IP enhanced telephony. There are so RADVISION many features available with IP AT&T Conferencing telephone services that it makes your ClearOne ReView Video head spin (and also highlights the lack Compunetix Ridgeway of innovation in the wired, PSTN First Virtual Corp Scotty world over the past few decades). Forgent Networks Sonexis However, your telephone service is only as good as your network service. InterCall Sony My cable modem reboots itself from IVCi Spectel time to time, and I know my cable Konftel TANDBERG modem service (I have two of them) MVC V-SPAN can’t go 24 hours without an outage, even if the outage is brief. So, I The fine print: Sponsorship of the WR Bulletin in no way implies that our sponsors endorse the opinions expressed in wouldn’t want to run my business with the WRB. Nor does it imply that the Bulletin endorses their an IP telephony service, not yet. But products or services. We remain an equal opportunity critic. wait till next year….. The Wainhouse Research Bulletin Page-2 Vol. 4 #24, June 16, 2003 Issue #2 of our new monthly e-zine covering all aspects of electronic conferencing and collaboration should be out by June 17. Download your copy at wainhouse.com/cb News in Brief ¾ IBM Lotus is renaming its Sametime product. The new name, which conveys instant recognition of functionality, but doesn’t exactly fit into small spaces, is “IBM Lotus Instant Messaging” and “IBM Lotus Web Conferencing,” although the two are currently bundled together. On-premise pricing (CPE) for Lotus Instant Messaging and Web Conferencing is $48 per registered user and includes first year maintenance. Maintenance after the first year is $12. The software is also available on a hosted basis from IBM, but the license is then based on a concurrent user (typically $70-80 per user per month). The hosted web conferencing does not include audio or video. We envision a big battle shaping up between IBM Lotus and Microsoft (with Greenwich) in this enterprise instant messaging and web conferencing space. How these two will do battle, and who will be caught in the crossfire, promises to be a story worth following over the next 24 months. ' WR Forum: Lotus (IBM) Sametime ¾ ViewCentral Inc. has announced the addition of audio conferencing capabilities to the company’s vConference and vClassroom applications (sold to users, not service providers). With this integration, customers will be able to use ViewCentral to manage the processes surrounding reserved audio-only conferences in addition to managing web conferencing processes. ViewCentral Conference Management Solutions (CMS) automate the scheduling, registration, payment, marketing, surveying, reporting and follow-up for in-person and virtual collaborative events such as earnings announcements, press conferences, and sales meetings. ViewCentral CMS is tightly integrated with the PlaceWare and WebEx web conferencing platforms, and with the NEW Report from Wainhouse Research new release, the company adds integration with MCI audio Comparing IP Video Network Service conference calling. Other audio Providers vs. the Naked Internet conferencing providers will be For organizations consider- announced soon. Event administrators ing IP-based videoconfer- doing pre-planned and large events encing, this report provides the background information can now coordinate the before and needed to select an IP video after processes surrounding in-person, network provider. Nine IP reserved audio-only or audio/web video network service pro- conferences through a single viders are covered including each vendor's corporate application with the flexibility of strategy and unique approach choosing the audio and Web confer- to the market. Each vendor's encing provider they prefer to use. network characteristics and ancillary services are ex- ¾ Virtela Communications is now plained in detail. delivering its IP virtual private The report includes detailed pricing data to compare the network (VPN) services via global entry, mid, and unlimited service plans from each supplier. DSL connectivity through relation- The 107-page report is available for $695 in hardcopy and ships with more than 150 access $995 in electronic (pdf) form. For full details and a free providers in 75 countries. executive summary see www.wainhouse.com/reports The Wainhouse Research Bulletin Page-3 Vol. 4 #24, June 16, 2003 ¾ Masergy Communications has teamed up separately with Expedite Video Conferencing Services and Crowner Technologies, Inc. to offer complete videoconferencing solutions with IP video network services. ¾ MCI is expanding capacity for its reservationless audio conferencing service with additional bridging hardware from Voyant. Summit Update: Seats are selling fast, and capacity is limited. This event promises to be THE conferencing and collaboration event for 2003. Register on-line. This year’s presentations cover audio, video, and web conferencing futures, as well as issues facing service providers and resellers alike. Highlights include four great interactive panel discussions that promise to shed heat and light on issues facing vendors, channel partners, service providers and end users alike. July 23-24, 2003 Colonnade Hotel, Boston, MA www.wainhouse.com/summit July 23 July 24 y Welcome: Andrew Davis/WR y Welcome: Andrew Davis/WR y State of the Conferencing Market: Audio, Video, Web, & y Issues facing VARs and Service Providers: IM.
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