Microsoft Telecommunications Industry Newsletter | January 2020
Stephen Lawson briefing sheet 3 1 10LW
1. Monday, March 1, 2010, 9:00 a.m. PT
Outlet:
IDG News Service
Conference Details:
In-person at the IDG offices
501 2nd Street, Suite 600
San Francisco, CA
Contact:
Stephen Lawson
Senior U.S. Correspondent
San Francisco, CA
415.974.7485
stephen_lawson@idg.com
Overview:
o Stephen last met with Aruba last May regarding the VBN news prior to Interop Las
Vegas, so he will need to be briefed on Aruba’s latest news and developments
About Stephen Lawson:
Senior U.S. Correspondent Stephen Lawson, based in San Francisco, covers storage and wired
and wireless networks for the IDG News Service. He writes stories and video scripts, shoots
video segments and edits stories. Lawson's particular areas of interest include WiMax, wireless
spectrum, open mobile networks, and storage compliance. He has explored municipal Wi-Fi
projects, the scientific use of high-speed Internet, and changing roles in storage administration.
A former copy editor for IDG's InfoWorld, Lawson covered networking for that publication from
1996 until 1999, when he joined the News Service as its Hong Kong correspondent. There he
covered general IT issues in Hong Kong and mainland China, including mobile services and the
territory's brief dot-com craze. In 2001, Lawson returned to San Francisco, adding video
production to his responsibilities in 2006.
Outside the office, Lawson is an avid photographer and Western history buff and has studied
video production and marketing strategy.
About IDG:
For 20 years, The IDG News Service has served IDG publications as a dedicated daily source of
global IT news, commentary and editorial resources. The News Service distributes exclusive
news, features, videos, photos and podcasts to Computerworld, CIO, NetworkWorld, PC World,
Macworld and Infoworld – technology publications and web sites that account for more than 300
titles circulated in more than 85 countries.
News Service staff journalists report from Tokyo, Taipei, Singapore, Beijing, Bangalore, Paris,
London, Düsseldorf, Brussels, Dublin, New York, Miami, Washington, Boston and San Francisco,
and their stories are supplemented by contributions from IDG media worldwide. Each week day,
the News Service distributes more than 100 stories across IDG’s global network of technology
media outlets.
Relevant Articles by Stephen Lawson:
“Cisco-HP split may not be too painful for customers”
Network World
February 19, 2010
2. http://www.networkworld.com/news/2010/022010-cisco-hp-split-may-not-be.html
Cisco Systems and Hewlett-Packard probably won't force their mutual customers to take sides
after the end of their partnership, though the vendors are deadly serious about competing against
one another, analysts said on Friday.
Cisco said Thursday it would not renew its system integrator contract with HP after it expires April
30, which means HP will no longer be a Cisco Certified Channel Partner or Global Service
Alliance partner. The company said its relationship with HP had evolved from partnership to
competition. As a result, it isn't appropriate for Cisco to continue sharing road map information
with HP, among other things, the head of Cisco's channel program said on a webcast.
As a hint of the break to come, HP earlier on Thursday had said it would expand its own reseller
contract with QLogic for storage switches, a category of product that HP has resold from Cisco. In
addition, there were reports earlier this week that Cisco had halted work on a future product
called the Nexus 4001d blade switch, designed to fit into the Dell M1000e blade chassis. (Cisco
declined to comment on unannounced products and said Dell remains a reseller of several Cisco
products.)
The coming change announced Thursday only formalized a break that had been forming over the
past few years, analysts said. In the past, HP has resold many of Cisco's high-end enterprise
networking products while Cisco has used HP computing platforms, some as the basis for
network appliances. Each focused on its own areas of expertise, and though HP did sell
networking gear through its ProCurve division, that business was focused mostly on small and
medium-sized businesses.
However, as data centers become larger and more complex, especially with virtualization, the
largest IT vendors are trying to circle the wagons around complete sets of products for those
facilities. Cisco and HP are among the most active in this trend, along with IBM, Oracle and Dell,
according to industry analysts. Cisco shook up the industry nearly a year ago when it introduced
the UCS (Unified Computing System) blade server platform, entering a business where it had
never competed. That may have set off the conflict.
"When Cisco started selling servers, it was pretty clear HP had started to de-emphasize Cisco's
networking equipment," said analyst Steve Schuchart of Current Analysis. "This is the tombstone
on the corpse of the relationship."
In fact, HP is shaping up to be not just a competitor, but Cisco's biggest rival, Schuchart said.
With its acquisition of 3Com, expected to close by midyear, the company will have a fairly
complete lineup of both routing and switching products, though not quite the same breadth as
Cisco, he said. While Cisco had more than two-thirds of the Ethernet switch market in the third
quarter of last year, HP and 3Com were the second- and third-place vendors in that business,
with a combined 10.3 percent of the market, according to figures from Dell'Oro Group.
Both companies are likely to continue building their forces through acquisitions, UBS Warburg
analyst Nikos Theodosopoulos wrote in a research note. "We expect the competition between
Cisco and HP to be intense over the next few years," he wrote. They are likely to use aggressive
financing deals to win customers, he wrote.
As HP bulks up to take ground from Cisco, the latest development hurts it more, according to a
research note by Ovum. "It appears that HP needs Cisco more than Cisco needs HP, with the
3Com acquisition expected to still take some time to be completely integrated," the analyst
company said.
3. However, both Cisco and HP are smart enough not to let their rivalry hurt customers who bought
into the two vendors in happier times, analysts said.
"Customers will not be forced to choose between one and the other," Schuchart said. However,
"They might be asked," he added.
Both companies are likely to "strongly encourage" their customers to standardize on their gear,
said analyst Gordon Haff of Illuminata. The good news is that encouragement will probably come
in the form of financial incentives in many cases, he said.
For its part, Cisco said it will honor Cisco customer service contracts with HP customers and has
contacted HP about crafting a new agreement that better reflects the companies' new
relationship. "We will continue to work with HP wherever our customers expect it and where it
makes sense for our business," said Keith Goodwin, senior vice president of Cisco's Worldwide
Partner Organization, on the webcast.
Agreements under which Cisco resells HP products on an OEM basis will not be affected, a Cisco
spokeswoman said.
The consolidation of enterprise IT companies that helped drive Cisco and HP apart is likely to
affect customers of all major vendors but may not be all bad, the analysts said. The "re-
verticalization" of IT is the latest stage of the cycle that saw computing move from totally
proprietary systems such as mainframes and minicomputers to the decentralized, open
architectures of PCs and Ethernet LANs, Haff said. IT departments have benefited from the high
volume and falling prices of standard components over the past several years, but those parts are
increasingly hard to piece together into working systems, he said.
As vendors including Cisco, HP, IBM, Oracle and Dell try to supply all parts of a data center, on
their own or through tight partnerships, they will probably help to ease some of the pain of that
complexity, Haff said. This could be bad news for some third-party system integrators that have
done some of the heavy lifting, he said. And all is not lost from the era of "best-of-breed" IT, he
added. Anyone who wants to build their own systems in-house can still do so.
"We're not moving back to the old days, really," Haff said.
“Vidyo packages conferencing for campuses”
Network World
February 16, 2010
http://www.networkworld.com/news/2010/021710-vidyo-packages-conferencing-for.html
Startup Vidyo is now packaging its videoconferencing product for college campuses, which it
sees as a natural setting for a system that can bring together multiple participants even on
relatively thin network connections.
Vidyo offers videoconferencing based on lightweight software clients, using appliances based on
standard rack-mounted servers. It can be delivered from within a customer's own data center or
by an outside service provider, such as Google, which uses Vidyo's technology in its Google Chat
video feature.
Although Vidyo is capable of delivering high-definition videoconferencing, and the company sells
its own high-end room systems, it stands out by being able to offer multipoint sessions without the
expensive infrastructure typically required for meetings of many people, analysts said. In addition,
users don't need the latest PC nor a high-end Internet connection to join in. A Vidyo customer can
also bring in users of other videoconferencing systems based on the H.263 and H.264 standards
by using an optional gateway, said Marty Hollander, senior vice president of marketing.
4. With its new offering, VidyoCampus, universities can introduce this capability to their students,
faculty and staff without making any capital investment, Hollander said. Instead, they can buy site
licenses with prices based on the number of enrolled students. The smallest, a license for an
institution with 5,000 students, costs about US$50,000 per year. The offering is available now.
Northwestern University, in Evanston, Illinois, has installed many different videoconferencing
systems over the years but is now starting to use VidyoCampus, said Morteza Rahimi, vice
president of information technology and chief technology officer. The most important benefit of
Vidyo is that it's easy for users from Northwestern and their contacts around the world to start up
and participate in a session without help from the university's technology staff.
"Where videoconferencing (usually) fails is that I have to somehow get our videoconferencing
capabilities tied into somebody else's," Rahimi said. With Vidyo, all the IT staff needs to do is
provide the client software and a username and password to users inside or outside the
university. Those names and passwords can be cancelled when the user's privileges expire, such
as when a student graduates, he said.
"Once they have the client on a laptop, they can come in from anywhere," Rahimi said.
Northwestern has used Vidyo for sessions with research associates in China and the U.K., and
with colleagues across the main campus in Evanston, Illinois, or on the university's Chicago
medical campus. As the system is rolled out to students later this year, they will be able to chat
visually with their parents, he said.
Rahimi said he is happy that Vidyo offers more flexibility and ease of use and is no more
expensive than earlier videoconferencing systems Northwestern has bought
The system is being installed in the offices of many physicians at the medical campus, with video
cameras that can be repositioned with a remote to cover just the doctor or a conference table full
of people, said Frank Schleicher, IT director in the surgery department. He thinks Vidyo could aid
in responding to epidemics, allowing doctors to quickly set up videoconferences with colleagues
at the Centers for Disease Control, for example.
Vidyo's software can detect the processor, display and bandwidth characteristics of a given
participant's system and automatically adapt to those limitations, Hollander said. A key part of that
capability is the fact that is uses SVC (Scalable Video Coding), a part of the H.264 video standard
that was approved in 2007.
SVC's ability to deliver decent video quality over networks with packet loss and no guaranteed
bandwidth is a major advantage, according to Wainhouse Research analyst Andrew Davis. It may
be good not only for companies that rely on the open Internet for videoconferencing but also for
those with their own wide-area networks, he said.
"When you connect the New York operation with the Tokyo operation, a lot of times you have
wide-area connections that are not as robust" as the enterprise LAN, Davis said.
Just as important, SVC-based systems let more than two people participate in a conference with
much lower latency -- or much lower cost -- than do other platforms, according to Davis. That's
because videoconferencing systems typically need an MCU (multiconference unit), a specialized
hardware appliance that often is expensive and also can introduce processing delays, he said.
Vidyo isn't alone in using SVC. Radvision last year introduced an MCU that supports it, and
Polycom announced on Tuesday that it will introduce an SVC system next year. Davis expects
the standard to be widely adopted but believes big vendors will face a challenge in making SVC
products compatible with older systems. Polycom said it will solve that problem.
5. Analyst Michael Howard of Infonetics Research said the approach Vidyo is pursuing may be the
key to broad adoption of videoconferencing at last, including ad hoc sessions for purchase from
service providers.
"I've been watching this for some time, expecting some kind of personal videoconferencing to
have happened by now, but it hasn't," Howard said.
“Motorola will split up in Q1 2011”
Network World
February 11, 2010
http://www.networkworld.com/news/2010/021110-motorola-will-split-up-in.html
Motorola will be split into two publicly traded companies in the first quarter of next year, with one
focusing on handsets and home entertainment devices and the other on making enterprise
communications gear, the company said Thursday.
The company's two co-CEOs, Sanjay Jha and Greg Brown, will lead the two new entities. Jha
was named CEO of Motorola's Mobile Devices and Home businesses, effective immediately.
Brown was immediately named CEO of the Enterprise Mobility Solutions and Networks
businesses.
The company plans to carry out the separation through a tax-free stock dividend of shares to
current shareholders. The Mobile Devices and Home entity will own the Motorola brand and
license it royalty free to the enterprise business, Motorola said.
The board of Motorola supports the breakup plan, according to Motorola's news release.
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6. Analyst Michael Howard of Infonetics Research said the approach Vidyo is pursuing may be the
key to broad adoption of videoconferencing at last, including ad hoc sessions for purchase from
service providers.
"I've been watching this for some time, expecting some kind of personal videoconferencing to
have happened by now, but it hasn't," Howard said.
“Motorola will split up in Q1 2011”
Network World
February 11, 2010
http://www.networkworld.com/news/2010/021110-motorola-will-split-up-in.html
Motorola will be split into two publicly traded companies in the first quarter of next year, with one
focusing on handsets and home entertainment devices and the other on making enterprise
communications gear, the company said Thursday.
The company's two co-CEOs, Sanjay Jha and Greg Brown, will lead the two new entities. Jha
was named CEO of Motorola's Mobile Devices and Home businesses, effective immediately.
Brown was immediately named CEO of the Enterprise Mobility Solutions and Networks
businesses.
The company plans to carry out the separation through a tax-free stock dividend of shares to
current shareholders. The Mobile Devices and Home entity will own the Motorola brand and
license it royalty free to the enterprise business, Motorola said.
The board of Motorola supports the breakup plan, according to Motorola's news release.
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