Its $3 billion purchase of Norway's Tandberg will give Cisco videophones that sell for as little as $1,495 to complement its high-end TelePresence systems
If ever a promising technology struggled to take hold, it was videoconferencing. For years, most of the systems that were sold collected dust in conference rooms and office closets, sidelined by hard-to-use controls, flickering video, and maddening audio delays.
But Cisco Systems (CSCO) helped give videoconferencing a new lease on life, when it released its slick TelePresence systems in 2006. Suddenly, it was possible to talk with colleagues across the globe in super-realistic resolution, with a click or two.
But if the world's largest maker of computer networking equipment made videoconferencing cool again, it did so for only a tiny slice of the market. Cisco's TelePresence systems, most of which ship as a specially configured room featuring huge screens, studio-style lighting, and massive bandwidth connections, started at $300,000. Since then it has come out with smaller systems that cost as little as $34,000, but these are still out of reach for all but the biggest, wealthiest corporate clients. "Cisco's approach was definitely going to hit a brick wall," says Andrew Davis, an analyst at Wainhouse Research. "There are only so many CEOs you can take out on the golf course and sell a TelePresence system to."
Melding Tandberg with Pure Digital
That's where Cisco's $3 billion purchase of rival Tandberg, announced on Oct. 1, comes in. The Norway company is the No. 2 player in the $1.5 billion-a-year videoconferencing market, with videophones that go for as little as $1,495. Mix those downmarket systems with Cisco's massive 20,000-person sales force, the largest in the field, and you get "a 9.0 earthquake that really legitimizes videoconferencing as the communication technology of the future for companies," says Davis.
Cisco won't sell videoconferencing in a vacuum. Cisco Executive Vice-President Ned Hooper says Cisco will meld Tandberg's product line with its own collaboration-related technologies, including IP phones and flip cameras acquired earlier this year when the company bought Pure Digital.
That way, workers could attend and contribute to videoconferences from various screens—portable devices, their desktop PCs, or high-def panels in a tricked-out TelePresence room—and be able to not only see other attendees but also share documents, hold chat sessions, and communicate in other ways. "Just as we have transformed the high end with TelePresence, we think the video and collaboration markets are hitting an inflection point," Hooper says. "And now we'll be able to cover the market, from the boardroom to the desktop PC." And of course, all those new heavy-bandwidth communications will need to travel over Cisco-built Internet gear.
Price-Cutting to Move Product
To succeed, Cisco will need to adjust its go-it-alone strategy. So far, Cisco's TelePresence products only work with other Cisco TelePresence systems. The company took this approach in part because it wanted to control the entire experience, like Apple (AAPL) with its iPod, to banish customers' memories of videoconferencing systems of the past.
But despite the company's huge marketing push behind the technology, so far it has fewer than 500 customers. Upstart Lifesize Communications in Austin, Tex., claims 9,000, by comparison, though its products carry a smaller price tag.
To win business, Cisco has had to slash the price or even give away TelePresence systems to customers buying other Cisco products, according to industry analysts and Lifesize CEO Craig Malloy. "That's a reason why they sometimes couldn't give TelePresence away—because it wouldn't work with anything anyone else had," Malloy says. Cisco denies this claim.
A System the Size of a Modem
Tandberg's products have no such problem, however. That means Cisco can now choose to adapt its current products or replace them with Tandberg's technology.
And there are other threats. By buying Tandberg, Cisco trails only Polycom (PLCM) in deployment of big corporate videoconferencing systems. But these remain complex, centralized systems that require users to reserve time and often require help from IT staffers.
At the same time, many workers—particularly younger ones steeped in social networking—are quite comfortable using Webcams on Macs and PCs. And on Oct. 5, Lifesize will unveil the Passport, which packs an HD videoconferencing system into a device the size of a modem—all for $2,400. By attaching it to any flat-panel monitor or TV, workers can launch a videoconference—whether from their cubicle or conference room at work, or their den or hotel room. And sources say Lifesize has struck a deal with Skype, so that users will be able to reach 500 million Skype users without having to know their IP address. "It's very clever, and potentially a very important product," says Wainhouse's Davis.
Cisco isn't going as far downmarket as that just yet. But by packaging Tandberg's tools with its widening panoply of communications tools, Cisco hopes to build an important set of video products of its own.
Burrows is a senior writer for BusinessWeek, based in Silicon Valley.
International Business Machines Corp. (IBM: 117.0701, -0.3299, -0.28%) restated its earnings-per-share guidance on Tuesday, sending shares upward in premarket trading, before closing 39 cents lower at $117.07 on the New York Stock Exchange.
In a document filed with the Securities and Exchange Commission, the company said it had increased its earnings expectations to a minimum of $9.70 per share for the 2009 fiscal year, which compares to analyst estimates of $9.76 per share this year, according to Reuters.
IBM also said it is “well ahead of pace” for its projected 2010 earnings ranging between $10 and $11 per share. Analysts are expecting the company to report earnings of $10.68 per share, according to Reuters.
right leg 8: in JASO 4.62 just now, stop loss at 4.39; good luck, YMYD; -samqyang(Kingkong); 1.25 12:45 (#128405@43) Reply
4.39 is just 11 cents below the Friday's panic low 4.50$ (logically, it can not go down below this), due to the today's price should be bad most to around the panic but now far low; ) , good luck; -samqyang(Kingkong); 1.25 13:35 (#128419@43) Reply
especially for today; market down/up sharply, we don't know what it may go; but fine, the operations here is try to calm you down, if I wrong, market go down sharply again and JASO break the 4.39 (which is ~5% from my in 4.62) , I loss 5% only; -samqyang(Kingkong); 1.25 13:43 (#128424@43) Reply
and if not, the market choose to go up, then I will get at least 20% on this; let wait and see; YMYD; I will keep you posted if it can reach above 5.5$ which for me is around 20% in next 2 weeks of so; haha, too easy to be true; -samqyang(Kingkong); 1.25 13:45 (#128425@43) Reply
most of us can't hold stock when we should; due to we too scared when the index is down; we out too early when it just start up; so the best approach is let your strict operations to make decision for you; I am holding JASO firmly and happily; YMYD -samqyang(Kingkong); 1.25 13:50 (#128426@43) Reply
you should be no worries if you knew you have a 5% worst cap this time on this JASO; and due to it current TA, the chance to gain should obviously > than 70% from my personal 2 cents; good luck; -samqyang(Kingkong); 1.25 13:51 (#128427@43) Reply
JASO 4.84 now as we watching; the best entry point for short term may already passed; good luck; -samqyang(Kingkong); 1.25 14:55 (#128445@43) Reply
Thank you very much, followed @4.70. -flyingeagle(); 1.25 15:30 (#128454@43) Reply
haha, don't thank me yet; we still havent' reach the safe zone yet; e.g. for me is 5.08$, I will then lift my stop loss to stop gain 4.64 first if it reach there; good luck to us; -samqyang(Kingkong); 1.25 15:53 (#128455@43) Reply
haha, now is above 5.00$ already, we are now safer than yesterday; good luck; YMYD; -samqyang(Kingkong); 1.26 12:12 (#128590@43) Reply
haha, you will realize how low it's at 4.62 in days; it up/down big, I like it; happly hold; YMYD; -samqyang(Kingkong); 1.26 10:11 (#128548@43) Reply
JASO today's so far panic low is 4.71, higher than last 2 days extreme lows at 4.57, 4.50; most likely, I have 80% of chance to get at least 15% from my in price 4.62 in a week; let wait and see it patiently; YMYD; -samqyang(Kingkong); 1.26 10:36 (#128569@43) Reply
oh, goodness; now at 4.99$ already; ok, lift the stop lost to 4.69 $ become stop gain order, see how high it can go; good luck everyone; YMYD; -samqyang(Kingkong); 1.26 11:48 (#128588@43) Reply
adjust stop loss back to 4.47 per current close at 4.84; willing to risk 3% but don't want to be wash out by MM ; firmly hold; YMYD; -samqyang(Kingkong); 1.26 16:43 (#128646@43) Reply
NEW YORK (AP) -- A federal appeals court in New York has ruled that a lawsuit alleging that a Canadian energy company aided genocide in its pursuit of oil in Sudan was properly thrown out.
The 2nd U.S. Circuit Court of Appeals in Manhattan agreed Friday with a 2006 judge's ruling that found there was no credible evidence to support the claims against Calgary-based Talisman Energy Inc.
The company is Canada's biggest independent oil and gas exploration and production company.
A 2001 lawsuit seeking unspecified damages was brought by the Presbyterian Church of Sudan on behalf of current and former residents of southern Sudan who suffered injuries during six years of a decades-long conflict in the region.
Both the Canadian and U.S. governments had opposed the lawsuit.
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非常感谢！期待更多好文！
我觉得这个难度更高，更紧张！
高！
厉害