NEWS AND VIEWS ON REAL-TIME UNIFIED COMMUNICATIONS

LifeSize Embraces Skype Video Last week, became the first company to deliver room- based HD videoconferencing systems with support for Skype video. Skype support is limited to the LifeSize Passport product, a system first introduced in October 2009 and at that time included support for Skype audio. The Skype support comes with LifeSize version 4.8.0, now available. This software includes a setup page where users can enter in their Skype profile information; after that the Skype contact list will appear on the Passport screen and you have a standard “click-to-call” UI. If users are also logged in on a computer, both devices will ring and either one can answer the call. As is the case with any current Skype endpoint, users have no control over bandwidth utilization – bandwidth is managed according to Skype’s magic algorithms – and Skype calls are limited to 640x480 resolution. Passport devices can be registered to Skype and simultaneously registered to SIP servers or Microsoft OCS for example. At the present time, LifeSize’s Skype support enables Passport to make audio, but not video, calls to mobile phones running Skype. My Comments. I think we are moving from the days of dual-stack machine (SIP and H.323) to multi-stack videoconferencing systems where Skype is likely to be the third stack and others will follow. The key benefit is that Skype multiplies the number of available endpoints to call by orders of magnitude. Yes, I know, you can’t guarantee bandwidth, quality of service, or quality of experience, but the world seems to be moving beyond that and accepting the experience for what it is. We should remember, LifeSize is owned by , and Logitech also offers the Skype- certified Logitech B910 HD webcam (as well as other webcams like the C910) that supports 720p HD. Logitech has made several acquisitions in this space - SightSpeed in October 2008; LifeSize in December 2009; and Paradial in July 2010 and it is intriguing to try to decipher the company’s video strategy. And as evidenced by the details above, Logitech has a close relationship with The WR Bulletin would like you to join us Skype which competes directly in thanking our 2011 sponsors: against Logitech’s own VID service (which is embedded in the Logitech Revue platform for Google TV). I think the company is covering all of its bases – the

enterprise (Logitech and Microsoft Lync-optimized Get your company’s name & link here! Contact Sara. webcam firmware); the living The fine print: Sponsorship of the WR Bulletin in no way implies that our room (Revue at the low end and sponsors endorse the opinions expressed in the WRB. Nor does it imply that the Bulletin endorses their products or services. Passport at the high), and the We remain an equal opportunity critic. PC-based consumer (Skype).

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Polycom Kicks Butt

Q/Q Y/Y Polycom turned in record sales in PLCM Q1/10 Q4/10 Q1/11 Q1/11 with revenues reaching $344M. Growth Growth UCGroup Perhaps equally important, the results $178 $221 $229 3.6% 28.7% UCPersonal show a nice string of consistent growth $56 $63 $62 -1.6% 11.7% Infrastructure in the company’s core group $43 $55 $53 -3.6% 24.1% Total Rev. $276 $339 $344 1.5% 24.5% conferencing sales. The results are AMER $150 $181 $176 -2.8% 17.6% particularly impressive given what has EMEA $68 $86 $86 0.0% 27.3% to be a downturn in opportunities in APAC $59 $73 $82 12.3% 39.3% Japan (although travel inside Japan may be less attractive than ever) and a slowing down in federal government procurements last quarter as workers prepared for the shutdown that was not to be. As everyone born without a third eye knows, Polycom is engaged in a fierce battle against Cisco for the minds and wallets of the unified communications and videoconferencing core buyers. Based on these results, the company’s alliances with Microsoft and others appear to be gaining traction. But this isn’t really the ABC (anybody but Cisco) camp anymore; it is a product development and marketing machine that is taking enterprise communications to the next level. That isn’t to say that Polycom and its sisters aren’t benefitting from the internal snafus within Cisco and its channels, but to attribute Polycom’s gains strictly to Cisco’s missteps would be to underestimate the strength, bravado, diligence, energy, and competence of the Polycom team.

Polycom Revenues ($M) Polycom Revenues ($M) $400 $250 $350 $200 $300

$250 $150 Infra UCGroup $200 UCPersonal UCPersonal $150 $100 UCGroup Infra $100 $50 $50 $- $- Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11

News in Brief  As they often say, you can never have enough bandwidth. Comcast has started rolling out is Extreme 105 Xfinity Internet service, which promises download speeds up to 105Mbps and upload speeds up to 10 Mbps ($105/month). This is based on Docsis 3.0, the third generation of cable modem technology.  Mirial announced that Motorola Xoom and HTC ThunderBolt have been added to the list of certified mobile devices for Mirial ClearSea.  Vidyo announced VidyoMobile for videoconferencing users on iOS or Android-based smartphones or tablets. (This shouldn’t be a surprise to anyone: Vidyo’s communication and collaboration platform was licensed last year by Elisa Corporation of Finland which

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released the first commercially available mobile multipoint video conferencing service on the Samsung Galaxy Tab and smart phone.)  UK-based Audio Visual Machines (AVM) announced today that it has achieved the new TelePresence Authorized Technology Provider (ATP) status from Cisco.  HP today announced that Videocall, a UK-based telepresence and video collaboration provider, has been selected as the first European service provider to offer HP Visual Collaboration videoconferencing (SVC based services). Videocall joins Vantage, its Australian-based partner in Asia Pacific, in providing HP Visual Collaboration products to customers.  Just in time for Easter, Vatican City has selected Vidyo Videoconferencing to ease communications between offices of the Holy See. The Holy See is the episcopal jurisdiction of the Catholic Church in Rome, in which its Bishop is commonly known as the Pope. According to Wikipedia, the Holy See is not the same entity as the Vatican City State, which came into existence only in 1929, while the Holy See, the episcopal see of Rome, dates back to early Christian times. Ambassadors are officially accredited not to the Vatican City State but to "the Holy See", and papal representatives to states and international organizations are recognized as representing the Holy See, not the Vatican City State. Either way, scalable video coding just got one step closer to God.  Just days after acquiring Accordent, Polycom announced Polycom's Accordent Media Services – Powered by Azure, a cloud services offering hosted on the Windows Azure platform that enables organizations to rapidly and cost effectively deploy a single, secure, searchable video content management solution for their video assets.  Teliris and FuzeBox have formed a partnership to integrate Fuze Meeting’s collaboration capabilities with Teliris’ InterACT collaboration solutions and to incorporate Fuzebox’s broad VoIP capabilities into Teliris’ suite of video solutions  Microsoft has released the public beta version of Office 365, a cloud-based service that comines Office, SharePoint, Lync, and Exchange. Reportedly this will go commercial for $6 per user per month. Subscribers can also buy a client-side version of Office for $12 per user per month. This includes Word 2010, Excel 2010, PowerPoint 2010, Outlook with Business Contact Manager, OneNote 2010, Publisher 2010, Access 2010, InfoPath 2010 and Office Web Apps.

People & Places Glowpoint, Inc, Darren Podrabsky, Vice President of Marketing Liberty Mutual, Phil Ozek, Sr. Systems Administrator, Desktop & Mobile Video Solutions Starleaf, Hellene Garcia, Director of Marketing, Michele Durban, Director of Marketing (this is not a typo) Providea, Clare Ryan, Manager of Sales and Operations EMEA Talk & Vision, Monique Baas, Marketing Communication Manager Europe

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CSP Summit Europe - Brussels WAINHOUSE RESEARCH When: Monday - Tuesday, May 23 & 24 2011 Where: Crowne Plaza Le Palace, Brussels CSP SUMMIT Our 7th European CSP Summit is a unique opportunity EUROPE 2011 to get the latest market updates from industry experts and network with peers. This year’s agenda will focus on ‘Driving Growth of Collaboration Services’ and explore the opportunities that Wainhouse Research foresee in 2011 for European Collaboration Services Providers and their technology partners. Key presentations from WR analysts include:

Gold Sponsors Marc Beattie’s keynote presentation discusses the state of the current CSP market in Europe with a focus on local country dynamics; the intersection of consumer, UC, and traditional conferencing services; and the opportunities for service providers

Dr. E. Brent Kelly’s presentation, entitled "Traversing the Complexities of Hosted Unified Communications" will explore new services and accelerators for growth in the Unified Communications industry.

Richard Norris will address the state of the market as it relates to video services in "Video Managed Services are Finally Coming of Age". He will present his perspective on what drivers are motivating enterprises to adopt the next generation of video services.

For detailed information and to register, please visit www.wainhouse.com/cspbrussels11. For inquiries please contact the Events Director, Richard Norris, [email protected].

Conferencing & Collaboration Events

When & Where Who & What 16-20 May, Kona Hawaii IMTC SuperOP!: SIP, H.323, VoLTE, IMS, and TIP 23-24 May, Brussels WR CSP Summit Europe 13-15 June, Orlando, FL EduComm 15-17 June, Orlando, FL InfoComm 19-20 July, Philadelphia WR Collaboration Summit 10-12 October, New Orleans VCI-Group Annual Conference 11-12 October, Boston WR CSP Summit North America

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Collaboration Summit - Philadelphia When: Tuesday - Wednesday, July 19 & 20 2011 Where: Doubletree Hotel, Philadelphia, PA WAINHOUSE RESEARCH Our eleventh North American Summit will focus on COLLABORATION emerging technologies and solutions in both the SUMMIT 2011 product and services space and the business and technology trends that are shaping the industry. Unfolding details and registration are now available at www.wainhouse.com/philly2011. For general queries contact Richard Norris, [email protected] , for sponsorship opportunities contact Mark Gotta, [email protected]. Register for the July 19 event by May 4 and get not only the early bird discount, but also a free copy of our recently published report on videoconferencing and telepresence usage statistics. See how your company stacks up. Come hear these great presentations from real customers:

Ismayeel Syed Mauricio Vicente Charles Kazelik Aviva Insurance Language Svcs Assoc. Arizona State U Integrating From desktops to tablets Bugs Welcome - videoconferencing and and robots: Creating a moving VC out of the streaming with Video Interpreting classroom and into Microsoft Lync for Service Across the jungle. 50,000 desktops. Enterprise Boundaries Ben Fineman Brian Buck Internet2 Cardinal Health Mirril McMullen Opening the Lights, Camera, Action: Pfizer Floodgates: Visual How Social Video is Developing a Communications Positioned to Change videoconferencing With Unlimited the Face of IT and services strategy Bandwidth Corporate America

The Summit will be streamed LIVE and for FREE by the media services arm of our gold sponsor York Telecom. Stay tuned for information on how to register for the webcast.

WR Summit 2011 – Philadelphia – Gold Sponsors

WR Summit 2011 – Philadelphia - Silver Sponsors

One on One with the Blue Jeans Network’s Krish Ramakrishnan WRB: Blue Jeans Network is a relatively new entry into the videoconferencing space. Not many people have heard of you yet. In 30 seconds, can you tell us who you are and what you do?

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KR: At Blue Jeans Network, we’ve built a cloud-based video conferencing service that makes it easy to host high quality video meetings with many participants, using many different devices, with many combinations of video conferencing endpoints (Cisco, Lifesize, Polycom, Skype, etc.) Modeled after traditional audio bridging services, our solution finally makes video meetings easy, interoperable, and economical. Each Blue Jeans customer gets a private "meeting room" in our cloud that she can use to schedule, and host her meetings. Participants join the meeting by simply dialing a number or clicking on a url. All that our customers require is a video endpoint of their choosing, one or more other parties that they wish to conference with, and a Blue Jeans account. For many, the ability to host meetings that connect their Polycom, Cisco, or Lifesize conferencing rooms with partners, customers, or remote workers using Skype or GoogleTalk from desktop or mobile devices is the key value proposition of our service. WRB: What end points do you support? How were you able to make them all work together? KR: Currently we support H.323 systems (e.g. Polycom, Lifesize, Cisco, etc), Skype, and SIP audio for PSTN callers. In a few weeks we’ll be adding GoogleTalk, and after that we have plans for SIP video, enabling other endpoints like Microsoft Lync. To make all these endpoints work together, we’ve essentially built the world’s largest MCU as a distributed cloud based service. This distributed architecture makes it possible for us to deliver high quality audio and video, bridge between the various endpoints, and to scale the service economically. WRB: H.323 is a standard. How did you handle Skype? KR: We’ve worked closely to license proprietary technology from Skype and other key partners. WRB: I've heard about a partnership with Deutsche Telekom, can you elaborate? KR: I can confirm that we have signed an agreement with DT that would allow them to resell our service in select markets in Europe. This is strong validation for a service like ours to have one of the largest service providers in the world as a partner. DT has also done a lot to help us mature, refine, and scale the service. WRB: You're currently in the midst of a free beta trial. How long have you been in beta? How is it going? How are customers using your service? What's the feedback been like? KR: We’ve been in beta since the beginning of 2011. Up till now it has been a “closed beta” meaning that we were extremely selective with invitations. While we can't provide specific beta customer names, we can say that our current beta customers represent a good cross section of large and small enterprises, educational institutions, partners, and value added resellers. So far, the beta program has been very successful and the feedback has helped us to improve features, functionality, usability, and overall quality. WRB: Can you comment on what you’ve seen in terms of use cases. KR: Sure. Some of the most common use cases include:  People expanding the reach of their existing videoconferencing rooms by including remote participants on Skype in their meetings. A common use for this is staff meetings that allow

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remote workers, telecommuters and travellers to be active participants over video rather than second-class citizens with just audio.  People leveraging the simplicity, security, and privacy of a “meet me” service for B2B applications like recruiting, legal deposition, partner meetings, and sales calls. By allowing different parties to be on different devices, not requiring either party to dial in to the other’s network, and not needing parties to become “buddies” with one another we make it a lot easier and safer to meet over video.  People taking advantage of the added reach of video endpoints on mobile devices like iPhones, iPads, and Android-based devices. We’ve seen use of these devices to communicate with parties in central room-based systems creating new use cases in distance learning, telemedicine, law enforcement, and field service. WRB: What’s the beta status today? KR: We are now opening the beta program to the general public. Anyone who wants to try the service for free can sign up today at www.bluejeans.com. We are looking forward to expanding the service and getting even more customer feedback as we get ready for our commercial launch. WRB: When will that be? KR: We expect to launch the service commercially sometime in the next two to three months. We have a few more features and a few more network points of presence (POPs) we are planning to roll out before the launch to ensure an optimal customer experience. WRB: Finally, I have to ask,... why the name Blue Jeans? KR: There are actually several answers to that question. Pick your favorite.  Like a pair of Blue Jeans, our service is designed to be easy, comfortable, and familiar. We believe that those attributes are key to helping video conferencing to proliferate.  Our service is the “fabric” for the next generation of video communications allowing all kinds of endpoints to seamlessly come together.  We are a Silicon Valley company, and true to the stereotypes, we hate dressing up. With a name like Blue Jeans, we have the perfect excuse for never having to.

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