The Wainhouse Research Bulletin

ONLINE NEWS AND VIEWS ON VISUAL COLLABORATION AND RICH MEDIA COMMUNICATIONS Andrew will be away the first two weeks of July, searching for Irish wines, Irish pubs, Irish sunshine, and Irish conferencing companies while learning to use his new digital camera. So, we’re taking a bit of a break from publishing.

As always, please feel free to forward this newsletter to your colleagues. SUBSCRIBE NOW! IT’S FREE! To be added to our automated distribution list, simply visit www.wainhouse.com/bulletin. Andrew W. Davis, [email protected]

Spectel Intros New Audio Bridge Spectel has introduced a new audio conferencing bridge designed for small-to-medium enterprise (SME) deployment. The Spectel MeetingManager platform is an instant conferencing solution that will provide SME companies with in-house voice conferencing for up to 60 concurrent participants.

Designed for simple installation, the Spectel MeetingManager platform is a fully automated, plug- and-play solution that works with a business' existing phone system and supports global telephone system standards, enabling domestic and international connectivity from a single platform. A whenever, (on-demand) wherever voice conferencing platform, the Spectel MeetingManager is scalable from 24 to 48 (T1), 30 to 60 (E1), concurrent participants on a single Andrew got to practice his Irish at Collaborate East while conference or multiple simultaneous conferences. learning about a new audio bridge

All I’m allowed to say is that pricing starts below $21K. Most companies should see a pretty quick ROI. New Software from Octave Here’s What I Think Octave has introduced new software for its OCI 1000 audio bridge, extending the capabilities of the I think the time for enterprise deployments is rising as hardware, which has made its mark primarily as a conferencing infrastructure equipment gets easier to reservationless system, with new features for attended use, install, maintain, etc. The need for (audio) service conferences. The attended features are based on an providers will diminish. That’s the bottom line. This enhanced operator console with a medium-long list of box, which is about the size of an ISDN modem, and new capabilities. With the new software, the bridge equally attractive in its black shoebox shell, is about as now also supports PSTN and IP streams in a single plug-n-play as you can get. Click on the WR Forum chassis – connecting PSTN, H.323, and SIP endpoints link below (or send me an email) and let me know specific to Widows Messenger in the same conference what you think about in-house deployments and per or different conferences without the need for external port audio pricing. And so what if it’s ugly. gateways. [email protected] [email protected] (Nancy Pieretti) WR Forum: In-house audio bridge deployments, prices

The Wainhouse Research Bulletin Page-1 Vol. 3 #26, July 1, 2002 Compunetix Integrates with IM PUG Meeting in August At the Collaborate East show in Boston Compunetix The Polycom User Group (PUG) will have its next was demonstrating an interesting software annual conference, entitled “Virtual Communications: enhancement to their Context audio bridge. You can Charting Our Course,” Aug. 24 - 28, 2002 at Disney’s add the bridge to your IM buddy list (AOL or Yacht Club in Orlando, Florida. This event will bring Microsoft Messenger) and then use the IM application together PUG members and leading experts to discuss itself to call other people. There is another level of Polycom’s strategic vision, the product roadmap, best intelligence programmed in as well, so for example, practices, and the future of the collaboration industry. you can type in text messages like “call me,” or “call sam at 777-888-1234” or “call office” or “mute sam” The conference program includes a session on IP etc. The IM screen also shows the status of the call Deployment: Navigating Your Way to Success, which and if you are the conference host, you can see who is will review the decisions and steps required to migrate connected BEFORE you call in, saving valuable time ISDN conferencing networks to IP. The program for selected individuals. The bridge supports both on- includes a telecom industry panel including demand conferences as well as scheduled calls representatives from AT&T, Cisco, Global Crossing, (notification by email also supported). This seems like Masergy, and SPLIS. The panel also includes Andrew a pretty neat way to go and we’re hoping to give the Davis of WR and Ann Earon from TRI. software a spin here at Wainhouse Research. Check out www.pug.com I also saw a demo of the company’s video bridge in which an on-demand conference was started by dialing Sprint Shows eVideoconferencing in to a conference number and entering a pin. This was At Collaborate in Boston last week, Sprint was done by both a video terminal and a voice terminal showing a full complement of collaboration solutions, using the same dial-in numbers to join the same including attended and unattended audio, video, online conference. presentations, streaming, and IM. New to the mix was eVideoconferencing, a web-based service for launching videoconferences on demand. With this service, Sprint now offers unattended audio (running on Compunetix gear), unattended video (running on Polycom MCUs), and unattended (which we believe stems from a privately labeled, customized version of PlaceWare software). All of these are presented to the user through a conferencing portal. I saw a multipoint call launched on-demand that connected a few points over ISDN as well as IP – giving Sprint customers the ability to migrate slowly from ISDN to IP without a forklift user interface upgrade. It is refreshing to see a major carrier offer such a comprehensive audio-video- web conferencing capability (with MCUs and gateways nestled behind the scenes), integrating ISDN, POTS & IP. If only the service were priced for mere mortals.

Wainhouse Research partner and senior analyst Andy Nilssen at Loudeye Takes Aim at Web Conferencing very-lightly-attended Collaborate East unraveling the secrets of ClearOne’s video strategy. Based on webcasting technology acquired in September 2001 when it gobbled up Activate, Loudeye The Wainhouse.com Web Link Database: Technologies is introducing a web conferencing Over 28,300 click-thrus served ! service to compete with the likes of Genesys, WebEx and PlaceWare, among others. While not yet Our categorized, searchable Industry Web Links announced, the product was being demonstrated at database now contains over 470 Internet web links Collaborate in Boston. Expected pricing around $100 Bookmark www.wainhouse.com/links. per month per user (unlimited use). Color us unimpressed.

The Wainhouse Research Bulletin Page-2 Vol. 3 #26, July 1, 2002 Pixion Takes Aim at Web Conferencing New Rich Media Conferencing Pleasanton, CA-based Pixion has introduced a hosted Resource Book Available services web conferencing solution. The company now Wainhouse Research has provides for enterprise software and web conferencing published the new “Rich services for Windows, Macintosh, and Solaris-based Media Conferencing Industry users. Whether being multi-platform is worth anything Resource Book 2002,” our today in the age of web-based interfaces remains to be guide to the market trends, seen. Also remaining to be seen is whether the web technologies, and vendors conferencing market, which we do believe will be driving the industry. huge, will really support all the vendors that are coming out of the woodwork. Written specifically with the enterprise user in mind, this Achtung: Sie Verlassen den Konferencing 235-page book includes over- views of the 75 leading Sektor vendors. What???? Just trying to grab your attention. Here’s the Price is $995; full details including a table of contents is story. Wainhouse Research is joining with German/ available at www.wainhouse.com/reports. UK reseller MVC to produce a dynamite set of one day seminars on the future of Advance Notice::: WR Summit 2003 conferencing applications and technologies, IP networks, and under- standing the issues for successful conferencing deployments. These seminars will be free to all attendees, who besides receiving a The Wainhouse Research Summit 2003 will take place free lunch courtesy of MVC, will get to meet yours July 23-24 2003 in Boston, MA. So start planning truly face-to-face while he practices his high school ahead. Agenda details will be forthcoming after the German and rides the German railway system. The summer as will info on the sponsorship program. current schedule looks like: The WR Summit has become the industry’s premiere September 9……… Dusseldorf. networking event, with conferencing professionals, September 10……… Hamburg. integrators, and vendors interacting over plans, September 11……… Berlin (ist eine Reise wert!) successes, difficulties, and future intentions in voice, September 17……… Frankfurt. video, and data conferencing products and services. September 18……… Stuttgart. September 19……… Munich. The 2003 event will be hosted at the Colonnade Hotel, Additional details will be forthcoming at the MVC web across the street from last year’s venue (and site and in the WRB, but feel free to write Denija at conveniently located atop an MBTA station). The hotel [email protected] for more information or to has recently renovated ballroom space with state of the sign up now. MVC is also interested in bringing on- art audio/visual technology – perfect for the Summit. board a few fellow sponsors for the event series. The independent hotel prides itself on its 285 spacious, detailed guest rooms with high speed Internet access. Enhanced Software from RADVISION The Colonnade is located in Boston's historic Back Upgraded software from RADVISION adds Bay, near the Copley Place and Prudential Center functionality and improvements to the company’s shopping complexes, the Hynes Convention Center, viaIP MCU and gateway modules. The MCU now and just steps away from fashionable Newbury Street, supports up to 16 simultaneous participants on a single Symphony Hall and Boston's museum and theater video screen, more speed-matching options, more district. WR has made special arrangements for screen layouts, and on-the-fly video changes and more. attendee room rates ($144/night) and the Colonnade The gateway enhancements include higher ISDN will be extending special rates to those who want to bonding rates, and automatic gateway registration spend the weekend in Boston or bring their families for following ISDN failure and recovery notification a little summer vacation.

The Wainhouse Research Bulletin Page-3 Vol. 3 #26, July 1, 2002 The Wainhouse Research Bulletin would like you to Wheeling & Dealing join us in thanking our 2002 sponsors who help keep distribution of the WRB free: Polycom has acquired the 90% of MeetU it didn’t Aethra AT&T Conferencing already own. The acquisition price was not revealed, but we believe the company was valued between $6 Compunetix First Virtual Communications and $12 million, making this a small potatoes cash Forgent Global Crossing Conferencing investment for Polycom, but a significant one in terms Gentner Global Scheduling Solutions of strategy and execution (our humble opinion). MeetU's product development teams will remain based InView Magicsoft in Israel and will continue working with and supporting MVC Polycom existing partners. The MeetU group reports in through RADVISION Ridgeway John Nye, Polycom’s vice president and general manager of Mixed Media Collaboration. Sony Spectel TANDBERG V-SPAN More Opinion ViCALL VTEL Polycom has stated its intention to be a supplier of The fine print: Sponsorship of the WR Bulletin in no way integrated, end-to-end solutions for converged voice, implies that our sponsors endorse the opinions expressed in the video, data and web collaboration. This is another Bulletin. Nor does it imply that the Bulletin endorses their example of putting their money where there mouth is, products or services. We remain an equal opportunity critic. though it pales in comparison to the huge bets they placed when they acquired Accord and PictureTel. So, New Seminar planned for Washington D.C. looking ahead, the interesting challenge will be Wainhouse Research will be working with Applied whether Polycom can integrate the various media Global Technologies to provide a seminar in the components into a user-friendly, intuitive environment Washington DC area that specifically addresses the (which they are dubbing Polycom Office) while trying government sector. For details on the July 24 seminar to keep each of the components “best-of-breed.” see www.appliedglobal.com/new/FedIPSeminar.htm. According to AGT, the event will be co-sponsored by France Telecom is trailing a telepresence wall TANDBERG; and will feature exhibits and a panel designed and developed by their R&D department to discussion with representatives from AGT, Virtela, let people communicate as if they were face-to-face, TANDBERG, RADVISION, Latitude, and VCON. including eye contact and life-like 3D synthetic images Andrew will be presenting for WR. Come say hello. of the other person. Polycom has added its video multipoint unit (MCU) and gateway to the Cisco AVVID Partner Program. In a totally separate announcement, Polycom has formed an alliance with MetraTech, a web services-based billing, customer care and revenue sharing software provider, to deliver unified voice, video and web collaboration solutions integrated with Web-based, real-time, multipoint billing. The combination will be targeted at service providers.

California-based videoconferencing integrator and reseller InConference has teamed with Masergy Communications to offer complete videoconferencing solutions over IP networks.

Friendly video network service provider competitors at People & Places Collaborate East discuss common dialing plans. VSGi (Visual Systems Group, Inc.), Rob Hughes, VP Sales.

The Wainhouse Research Bulletin Page-4 Vol. 3 #26, July 1, 2002 Letters to the Editor can be had in a high quality desktop video system for about $1,000 and a fully configured business PC for Andrew: In the latest WRB, you commented that under a grand, their $14,000 price tag seems even more Click to Meet is “very good, very functional, very daring. It leads me to some thought provoking interesting, but it isn’t business quality audio, video, or questions. web presentation”. It seems to be that this criticism would have been more appropriately directed not at Did Polycom actually hurt the industry by Click to Meet but at the variability of quality over the commoditizing video and removing the high profit public Internet. Sometimes it is very good; sometimes margins? Are we witnessing the beginning of the end it is simply awful. of the lower end 512, 128, SP models? Will the FX pricing be the new videoconferencing benchmark? FVC targets Click to Meet as an enterprise intranet Why would Polycom market an overpriced system solution where QoS can be much better controlled. In during a business downturn? Perhaps Polycom is fact you mentioned that you witnessed a demo over a simply trying to answer the TANDBERG “equivalent”. corporate LAN that seemed pretty good. However I don’t want to minimize the importance or capabilities [email protected] of using Click to Meet over the public Internet. This is On stock prices and reverse splits…. in fact one of its strongest points. Click to Meet can use email, , directory services or Andrew: You are correct, in most cases this strategy scheduling to invite virtually anyone into a web fails miserably. However there is one company that conference and they don’t need to have any comes to mind, not in the videoconferencing industry, conferencing equipment installed to join. They simply that successfully did a reverse split. Around Feb 01 J2 click on the “join” button in the email or IM invite, Global Communications (JCOM) did a 1 for 4 reverse install our web client plug-in on the fly (for free) and split to keep from getting delisted. A year and a half they are joined into the conference. And Click to later, the stock is at $15 (from around $2.50 after the Meet’s unique technology transcends most firewall and reverse split). Of course, operating performance is NAT issues which has been the biggest problem for what propelled the stock higher. But the reverse split traditional videoconferencing over the Internet. This did keep it from getting delisted. essentially extends the reach of conferencing to virtually anyone with a PC and an Internet connection. Bill Mauerman ([email protected])

I am sorry your first experiences weren’t great. I will Andrew: Many, many moons ago - 1987 or 1988 if say that FVC uses Click to Meet over the public my memory is correct - PictureTel (it was Pictel at the Internet exclusively for all our conferencing time) did a 10 for one reverse stock split. The rest is worldwide. In fact, I am currently running worldwide history! sales and marketing from my home office in Austin TX over a cable modem connection to the Internet (sorry Dianne Rizzo ([email protected]) neighbors). I find the experience is great - “business quality” great. You and I had a Click to Meet Editors note: speaking of reverse stock splits… as this conference last Thursday after you had written your is being written, Ezenia! stock has closed at 14 cents article which was as good as any I have had over IP or per share, giving the company a market capitalization ISDN. So a horse that can count to ten is a very smart of under $2 million. And so it goes. horse but not even a 3 megabit connection to the shared Andrew: On behalf of my colleagues here at TODD Internet can guarantee you consistently good Video Network Management, I would like to thank you conferencing - but your accountant will like it. for pointing out that a company like TODD might take Bob Romano ([email protected]) exception to Forgent claims. Fortunately relentless emphasis on our own business strategy and values have Andrew: I read with interest your comments in WRB kept us properly and quietly focused on delivering to about the latest Executive Video System from customer expectations, and not overly distracted by Polycom. When I saw this system and its price in a taking umbrage with press releases. flyer from IVCi, my first thought was it was a pretentious over-priced system. If you think about what While I have your attention I would like to provide some additional information: The Wainhouse Research Bulletin Page-5 Vol. 3 #26, July 1, 2002 - Our TC Reliance (TCR) Release 1.0 was successfully Interview with David Martin, installed in our first customer location, the Iowa Communications Network (ICN) in the Fall of 1998. CEO SMART Technologies This network was then and remains today the worlds largest (their claim) full motion, broadcast quality SMART Technologies is one of the hidden gems in the interactive video network. The ICN is now nearly a conferencing business, often overlooked because of its 1,000-site network transitioning to MPEG/ATM, with lack of flash. Like many of you, I didn’t realize they ISDN and IP. TODD has continued to evolve TCR to had computers in Canada, but David Martin has set me seamlessly manage this complex (launching over 200 straight. multi point calls per day) and heterogeneous network .

- While expanding TC Reliance Video Manager to encompass control and management of all compression and transport types, we have also developed TC Reliance Video Transport Manager and the Release 1.0 version was recently and successfully installed in the Bell (Canada) Nexxia network.

- We recently integrated TCR with Computer Associates Unicenter data network management pro- duct and thereby became a CA smart certified partner. By integrated we mean that through Unicenter, a NOC operator can control and manage the video portion of the network. This is not double-clicking our TCR icon and drilling into our components, it is using the capabilities in TCR directly in and through Unicenter. WRB: Well. Let's start off with a quick overview. Relative to your article on AGT, I would also like to What can you tell us about your company, SMART point out that in the Fall of 2001 we formerly released Technologies. what we call our Virtual MCU component to our TC Reliance (TCR) Video Manager Release 5.0. Similar to DM: Nancy Knowlton and I started SMART in 1987, the AGT Network Aware Scheduling, the TCR Virtual so we're just coming up on our fifteenth anniversary. MCU is capable of understanding all available MCU We started as the Canadian distributor for In Focus ports and then intelligently assigning ad hoc or Systems and then released our own products early in scheduled video calls to the most appropriate (per 1991. We've grown to about 400 people with three US network policies) "route". sales offices, offices in Germany and Japan and, of course, our two major offices in Calgary and Ottawa Lastly, I feel that it is worth pointing out that TODD Canada. We're best known for our SMART Board continues to focus exclusively on the creation, interactive whiteboards, but we also make other licensing and support of video network management complimentary hardware and software products. (VNM) software. TODD took a large, albeit calculated risk in exiting video systems integration in January WRB: What is the strategic focus of SMART? 2000. This had been our primary business for over 40 DM: We are focused on helping people have a great years; we also changed our company name. Our view collaborative experience whether they are in a meeting was that the complexity of developing and supporting room, classroom or boardroom. To do that, we focus the best possible VNM software was a large enough on hardware and software solutions for real problems. task on its own for a small company. It is interesting to note that after our name change and emphasis on WRB: Your company has been very successful. To “video network management” software few took notice what do you attribute that success. at the 2000 TeleCon West show. At the 2001 show, it seemed to be one of the hottest themes. DM: Well, the main thing that comes to mind is our tenacity in getting things right for our customers. In Kevin Erdman ([email protected]) doing so, we've pioneered whole new product

The Wainhouse Research Bulletin Page-6 Vol. 3 #26, July 1, 2002 categories. We were the inventors of the interactive WRB: What do you think are the major technology whiteboard category, and we continue to improve not and market trends impacting the classroom and just the hardware but also the software side of the corporate meeting room environment today? product. DM: Computers have long been installed in education. A lot of people call us earnest, I think in reference to Today, what's different is the mushrooming of content doing what we say that we're going to do. We're for those computers. Teachers are no longer handed a ethical, honest and direct, and I think that people like computer and left totally on their own to get their that in us. course materials. There's not as much content as is needed, but the situation is dramatically better than it WRB: How much of your business is related to was ten years ago. videoconferencing? Connection to the Internet has been important for DM: That's actually pretty hard for us to tell, because education. Many teachers are using the Internet every we sell through an indirect channel. I can say, day in every class, but what is more profound is not however, that increasingly our products are being only that children know how to use the Internet, they integrated with other manufacturers' products to expect to use the Internet in their classes. provide complete conferencing solutions. We hear a couple of things from our resellers about this. First, A lot of money has been poured into technology for the there are a lot of large installations that combine our classroom over the last few years. I think that there is products with videoconferencing systems in the works. a great level of uncertainty about the future availability For business, the costs and time associated with travel of funding given the shape of the economy and the have escalated to the point where companies are public tax base specifically. Just as trial projects are planning and implementing alternative approaches. successfully wrapping up, there is no certainty that And second, installations that started as trials are now there will be sufficient funding for a more broad-scale expanding as people have positive experiences with the deployment. combined solution. I think one of the negative elements in the push of People don't always get that they need good data along technology into the classroom is that products are with their video systems when they first install video. being purchased based on lowest cost. As we have We're also hearing from our dealers that they are learned in our own assembly operation, it's not always putting our products in after the video systems are the lowest cost in the door that yields the lowest Total installed because people want to do real work during Cost of Ownership. Customers need to get more their meetings. educated about the products and what vendors actually are selling. WRB: What are your major markets? In the corporate world, most meeting spaces are DM: Education is a very important market for us. In technology wastelands. Lots of productivity tools are fact, in the early days of showing our products it was available to workers at their desktops, but they have always educators who would immediately understand not been extended to the group spaces. There is a lot what they could do with our products in the classroom. of work remaining to be done here. They instinctively knew that combining our interactive whiteboard with a projector and computer would WRB: I've heard you talk about moving beyond the provide the energized learning experience that they PowerPoint age. What do you mean? were hoping to create in the classroom. The corporate marketplace has been slower to adopt technology in DM: We believe that the current thinking that people meeting spaces, so we don't have the level of do work outside of meetings and then go to the meeting penetration that we would like. But with and report on that work is a little out-dated. Going videoconferencing gaining a larger installed base in forward, we believe that great work can be corporations we think that our success in this space accomplished in the meeting. We call this will continue to grow at a strong rate. “transitioning to electronic work.”. As we think about this new paradigm, we realize that new tools and approaches are needed to support electronic work. These thoughts are driving our product development

The Wainhouse Research Bulletin Page-7 Vol. 3 #26, July 1, 2002 and our corporate customer interactions. Don't get me WRB: Can you tell us anything about Simple wrong, PowerPoint has a place, but there are some Conference. The little I have heard tells me it could be benefits of teamwork that we have yet to fully realize. very disruptive to the conferencing market. This concept of electronic work can deliver those benefits. DM: We have had data conferencing in our blood literally from the start of the company. When we WRB: I've heard of a large development effort going introduced our first product we called it the SMART on inside SMART, dubbed Crossbow. Could you tell 2000 Conferencing System. In fact, in the early days us what Crossbow is all about, and why you thought you couldn't buy our interactive whiteboards without the development was needed. the data conferencing application. When Microsoft DM: Crossbow is all about enhancing our touch started to provide the NetMeeting data conferencing technology. When we started SMART we chose application free with the Windows OS, we felt that our resistive technology as the platform for some obvious market opportunity in conferencing evaporated literally reasons. It was finger-friendly - that is, no special tools overnight. are needed to make it work. It was also a stable Well, a few years later we now see that there is a new technology that we could make in volume. Resistive opportunity emerging in the data conferencing arena. technology has been a real workhorse for us - reliable People have used NetMeeting for a while and they and strong. Products that we put into the field as long have had some experience with other data as eleven years ago are still working. And resistive conferencing/collaboration applications. Our own technology continues to have an important place in our experience working at a distance mirrors that of our future plans. customers - simplicity rules. Our development team A few years ago we started to look at other technology really grabbed onto the concept of "simple platforms to accomplish the same thing. We had some conferencing" and they have delivered a product into pretty demanding requirements, the most important of testing that makes working with someone on another which was the finger friendly element. As we floor or around the world, well, simple. Of course, it surveyed the technology landscape we started to get works great with a SMART Board interactive interested in the developments in the optical field. whiteboard, but it could work at the desktop as well. Resolution was going up, prices were coming down, We will be releasing a simple conferencing product and cameras were being made smaller. later this year.

We put together a strong team of researchers to bring This simplicity of conferencing has also been built into this new technology to life. There were lots of hurdles our M-Path meeting productivity software. In this to jump over, but one by one the team knocked them application getting connected is as simple as selecting off. Crossbow has met all of our design expectations an online meeting - a user doesn't even have to think and will be going into production later this year. about making a connection. Then sharing screens and Perhaps more importantly, Crossbow will give us some applications is simple –in the same room or remotely. great opportunities to build new products for new WR Forum: Interview with David Martin – Your thoughts? markets yet another time. Hot Topics on the WR Forums Industry Reports From Wainhouse Research Provisioning “700” numbers Microsoft Messenger for QoS Experiences for H323 videoconferencing? Windows XP, Analysis and Implications for Rich Media Looking to move audioconferencing inhouse Conferencing Videoconferencing over DSL from SOHOs Implementing IP Rich Start your own WR Forum discussion topic!! Media Conferencing, A Pragmatic Guide for the The Wainhouse Research Bulletin is published by Wainhouse Research Business Manager LLC, 112 Sumner Road, Brookline, MA 02445. Tel 617-975-0297. Email to [email protected]. Free subscriptions are available at For complete details see www.wainhouse.com/reports www.wainhouse.com. Copyright 2002 by Wainhouse Research

The Wainhouse Research Bulletin Page-8 Vol. 3 #26, July 1, 2002