InfoAnda - Analysis: Polycom faces painful, but necessary, shift to software |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Moscow film festival bids to boost Russian cinema | | 19 June 2010
After Jobs Act, Case turns focus to immigration | | 6 April 2012
President Obama Meets Pakistani PM Gilani, Mentions His Trip Sans Secret Service | 12 April 2010

"Hurt Locker" producer punished for Oscar violation | 3 March 2010

Forum Views () Forum Replies ()

Read more with google mobile : Analysis: Polycom faces painful, but necessary, shift to software |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Anatole Kaletsky Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Frederick Kempe Christopher Papagianis Mark Leonard Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Olympics Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Dubai police chief warns of Muslim Brotherhood, Iran threat 5:40am EDT Spain not mulling seeking further EU help: sources 6:06am EDT Syrian forces pound Aleppo and Damascus | 12:34pm EDT Wall Street jumps on Draghi comments | 12:12pm EDT U.S. ban unites global sex workers at Indian festival 7:38am EDT Discussed 244 Mexico urges U.S. to review gun laws after Colorado shooting 158 Fourteen killed in Denver movie theater shooting 105 Penn State hit with $60 million fine, other penalties for Sandusky scandal Watched DreamWorks brings dragons to life Wed, Jul 25 2012 Satellites reveal dramatic summer ice melt in Greenland Wed, Jul 25 2012 Footage shows killer whale attack at SeaWorld 3:29am EDT Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Healthcare in Appalachia Remote Area Medical clinics bring free medical care to uninsured people in Appalachia and elsewhere. Slideshow A city destroyed Amid the ruins of the Syrian city of Homs. Slideshow Analysis: Polycom faces painful, but necessary, shift to software Tweet Share this Email Print Related News Microsoft posts quarterly loss but beats Wall Street Thu, Jul 19 2012 Microsoft revamps Office, looks to the cloud Mon, Jul 16 2012 Microsoft takes $6.2 billion charge, slows Internet hopes Tue, Jul 3 2012 Related Topics Tech » Media » By Sayantani Ghosh Thu Jul 26, 2012 11:57am EDT (Reuters) - Polycom Inc (PLCM.O) was a big beneficiary of the 2008 recession, as its videoconferencing products helped companies cut back executive travel, but the advantage has proven short-lived as cheaper rivals muscle in on its business. The company is working on new cloud-based software products but analysts warn of a rocky couple of years while it makes a transition from selling expensive hardware. Polycom is caught between Cisco Systems Inc (CSCO.O), which dominates sophisticated virtual conference rooms linking offices around the world, and free videoconference software such as Microsoft Corp's (MSFT.O) Skype and Apple Inc's APPL.O FaceTime. Earnings are already being crunched. Polycom reported Tuesday a 77 percent drop in quarterly net income, as Europe's woes hit its business. After two years when revenue growth topped 20 percent each, analysts see a 2.2 percent decline in sales this year, according to Thomson Reuters I/B/E/S. The shares hit a three-year low of $7.45 on Wednesday, taking their decline to 78 percent from an 11-year high of $34.30 last year after the appointment of a new CEO. The stock edged up in morning trade on Thursday to $8.04. "It's a tough time to be changing the company in this economy," said Ira Weinstein, an analyst at independent market research firm Wainhouse Research. "I believe they will make the transition, but it will take time. It's not going to be as fast as (CEO Andy Miller) wants it to be." The transition to a software-based model will pressure earnings over the next 12-18 months, Citi Investment Research wrote in a note on Wednesday. High turnover of sales staff at the company's key North American market has added internal pressure to the big change job. BIG CISCO Polycom faces a leaner, more competitive Cisco, whose TelePresence has become the dominant choice in the corporate sector with double Polycom's market share. "Cisco outnumbers them in every sales situation and has more brand recognition, so it's an unfair battle," said Weinstein. Polycom said in an email to Reuters that it gained market share over Cisco in the first quarter of 2012, according to market research firms including IDC, but analysts don't see a major advance on the dominant player in tough times with so many internal changes. "It's going to be very difficult to turn the company around with those headwinds hitting them all at once," Mizuho Securities USA analyst Joanna Makris said. Polycom must embrace a cloud-based model to fend off the likes of Skype, she said. "(Skype's) free. And in a bad macro, people like free," said Makris, who has a "neutral" rating on the Polycom stock. Competition is also intensifying from smaller, privately held rivals like Vidyo, which recently received funding from Juniper Networks Inc (JNPR.N). FIGHTBACK Polycom is fighting back. The company, which still gets most of its revenue from hardware-based systems, is using a software solution to target smaller businesses, including videoconferencing apps for mobile devices. It has made a slew of small purchases to boost its web presence, including ViVu, a maker of software to embed videoconferencing in websites and the videoconferencing business of Hewlett-Packard Co (HPQ.N). The software model has potential as companies can only afford a few expensive videoconferencing rooms but a software-based solution could be used to equip thousands of employees. Videoconferencing companies, used to shipping hundreds of thousands of units for thousands of dollars, will have to get used to shipping tens of millions of units for much less each, Gartner analyst Scott Morrison said. "That's not an easy transition to make for any organization and Polycom is not unique," he said. As well, Polycom, as a standalone videoconferencing firm, will always be dependent for corporate sales on partners including it in their telecommunications offerings. That introduces more risk, as Skype-owner Microsoft is a key user of Polycom products in its Lync corporate video, email and messaging product. Polycom hasn't disclosed how much it gets from Microsoft but has acknowledged in its annual report the risk that its products could be replaced by Skype. "If Microsoft integrates Skype into Lync then it is really game over for Polycom," Makris said. The Mizuho analyst said in a post-earnings note that Polycom's outlook was disappointing and reflected a product and organizational changes that would take several quarters to execute. Polycom said Tuesday it continued to restructure its North American business after appointing four new area vice presidents earlier this year. It said David Ruggiero, its president for North America, would be leaving and it would reorganize its U.S. government sector units into a new "public sector" business. (Editing by Anthony Kurian and Rodney Joyce in Bangalore) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Thursday, 26 July 2012
China's hawks gaining sway in South China sea dispute |
Colombia's Santos adamant security hasn't deteriorated |
Turkish forces kill 15 Kurdish rebels in southeast |
U.S. presses China on deteriorating rights conditions |
Seven coal miners dead after explosion in northern Mexico |
Russia's Putin tells flood victims help on the way |
Mexico's new president faces long grind on poverty |
Apple says Samsung patent royalty demands unfair |
Amazon courts software developers for apps and games |
Zynga slashes outlook as shares plunge |
Apple releases Mountain Lion Mac software |
Google, eBay, Amazon, Facebook back new lobbying group |
New data pricing from Verizon, AT&T may complicate family life |
Kristen Stewart, Rupert Sanders apologize for affair |
Paparazzo charged with crime in Justin Bieber chase |
Hollywood remembers Medical Center actor Chad Everett |
Life Is Good for Nas at No. 1 on Billboard album chart |
Seinfeld back on Thursdays this fall with NY live shows |
Strong quake hits off Mauritius |
North Korea confirms mystery woman is leader's wife |
Iran accuses Israel of plotting Bulgaria bus attack |
Taiwanese vegetable vendor among Asia's Nobel winners |
Chinese city in $130billion economy stimulus plan: paper |
Homemade South Korean satellite to go boldly into space |
After GDP shock, Cameron pledges to do more |
Malaysia's Petronas unit shuts part of methanol complex over fire |
Bulgaria government survives no-confidence vote |
Nokia scraps new mid-range software project: sources |
Apple's invincibility fades on iphone miss, global woes |
Hacking experts find new ways to attack Android phones |
Apple says Samsung patent royalty demands unfair |
Logitech Q1 misses forecast, says revamp on track |
LG Display in red for 7th straight quarter after price-fixing |
Zynga takes axe to outlook, spooks Facebook investors |
Michael Jackson's mother denies kidnap in family power struggle |
Kristen Stewart, Rupert Sanders apologize for affair |
Russell Brand charged in New Orleans over iPhone toss |
No autopsy planned on The Jeffersons actor Sherman Hemsley |
China indicts Bo's wife for murder |
Syrian forces pound Aleppo and Damascus |
Dubai police chief warns of Muslim Brotherhood, Iran threat |
Mozambique boom draws investors
Ghana's ruling NDC to name Mahama as election candidate |
Crime wave hits Sao Paulo, with political effects |
OSCE rights watchdog warns Ukraine on language bill |
U.N. urges Kenya to probe violence after 2007 elections |
North Korea leader's wife can teach him about the enemy |
India discusses possible drought, monsoon rains poor |
Facebook shares pressured by Zynga ahead of results |
Twitter suffers widespread outage |
Analysis: Polycom faces painful, but necessary, shift to software |
Zynga shares slump on fading Farmville fortunes |
SK Hynix, LG Display tie fortunes to Apple as economy slows |
China's millet phone maker hits nearly $1 billion in first half sales |
Malick and De Palma in competition at Venice film festival |
Organist Jacobs: playing the loneliest instrument |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01