News & Viewson Real-Time Unified Communications

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Oracle has bought Taleo, a cloud-services-based maker of online human resources software, for $1.9 billion. Oracle will pay $46 a share for the roughly $309 million (2011 gross revenue) Taleo. This is technology behemoth Oracle’s second ever purchase of a cloud-related services company (the first was RightNow Technologies, a maker of web-based customer service software), and is seen by some as yet another validation that the cloud is here to stay.

What Alan Thinks: Did you know that Oracle offers its own real-time collaboration suite? Or that Taleo acquired hosted Learning Management System / web conferencing vendor Learn.com several years ago? When you consider that Salesforce bought dimdim last year, that Citrix (interviewed herein) now has API’s and is aggressively pushing its developer center, and that both WebEx and Adobe are still thrashing about with hosted services and efforts to create their own software ecosystems, you realize that the Trojan horse—enterprise software with embedded collaborative tools—remains a dark but viable horse sneaking up on the UC&C industry. Time will tell.

Radvision Q4 2011 Financials Andrew Davis, andrewwd@wainhouse.com

Radvision reported Q4 revenues of $21.8 million, the combination of the video and technology business units

Volume 13 Issue #04 16-Feb-12

Oracle Buys Taleo: Why Do You Care? Alan Greenberg, agreenberg@wainhouse.com

The Trojan horse— enterprise software with embedded collaborative tools —remains a dark but viable horse sneaking up on the UC&C industry.

RVSN Q4-10 Q3-11 Q4-11 Sequential Growth

Annual Growth

Products $22.6 $13.4 $18.1 35.1% -19.9%

Technol $4.0 $3.9 $3.7 -5.1% -8.2%

Total $26.6 $17.3 $21.8 26.0% -18.1%

NA $10.9 $6.2 $8.7 40.0% -20.0%

EMEA $8.8 $5.7 $7.8 37.5% -10.6%

Asia $6.9 $5.4 $5.2 -2.4% -24.3%

Op Inc. $1.50 ($7.40) ($4.40) -40.5% NA

Infrastruct $17.7 $9.1 $11.4 25.7% -35.4%

Endpoints $4.9 $4.3 $6.7 55.0% 36.0%

(VBU and TBU), turning around three straight quarters of declining sales. VBU revenues include both infrastructure and endpoint business, and were $18.1 million compared to $22.6 million in the same quarter of last year, driven largely by endpoint sales.

Beyond the data included in our charts below, the earnings call did reveal some interesting tidbits. 1) Cisco revenues were $3.2 million compared to $6.6 million in the same quarter fiscal 2010. Excluding Cisco, the VBU revenues were 7 percent below the same quarter of last year and 22 percent above the third

Radvision Quarterly Revenues by Geography

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In keeping with a theme emerging in this issue, cloud / hosted services, our first interview of

2012 explores just how Citrix Online became a top tier player in the web conferencing space. Lessons abide for the entire UC&C industry….

WRB: Citrix Online has come from nowhere to be one of the top players in web conferencing in the past eight years. What was the strategy that got you here (and I’m not just talking about your usual ‘SMB’s and ease of use’ answer—I mean the real thinking that went on at the beginning)?

Bernardo de Albergaria (BA): I have to reiterate: our philosophy of simplicity is the basis of our strategy. We saw an industry that was ripe for disruption, because of the complexity and user-unfriendly practices of this industry. We looked at what was broken. The core capability of our products, being able to see a screen remotely, was fantastic. But the user experience and pricing in the industry were both broken. The more one used web conferencing, the more one was penalized. And you had to be an

IT organization buying it through complex negotiations. Even the way it was promoted and marketed, with a long list of features targeting only the IT buyer, was an issue. We stayed true to the simplicity that was behind our success with GoToMyPC. So we needed the core user experience to be the same, and to be better than our competitors in terms of overall performance and speed of screen sharing. But also we created an experience that was delightful for end users, something simple for them to use. We felt if it was easy to use, then customers would use it and find value. And for pricing: users back then were penalized with per minute, per seat pricing, so we went with all you can eat flat-rate pricing so you could use the product as much as you wanted. This was great, as people find value the more they use it. It was disruptive. That’s also why we rolled out try-for-free versions and more recently an e-commerce capability. Finally, we were the first to use consumer marketing techniques to promote this service. That worked for us.

quarter. Radvision reported on its endpoint sales as well. Although the new SCOPIA XT 5000 we reported on in the last WRB is not yet shipping, Radvision’s endpoint sales were already about $6.7 million, which is 36 percent higher than the same quarter in Q4 2010 and 55 percent higher than Q3 2011. The TBU revenues were $3.7 million, down sequentially and annually. The operating loss for the quarter was $4.4M on a GAAP basis. Radvision ended the year with about $90.6M cash in the bank.

1:1 Bernardo de Albergaria, VP and GM – Collaboration, Citrix Online Services DivisionAlan Greenberg, agreenberg@wainhouse.com

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The user experience and pricing in the industry were both broken….the more one used web conferencing, the more one was penalized.”

Bernardo de Albergaria, VP and GM – Collaboration,

Citrix Online Services Division

Radvision VBU & TBU Revenues and Operating Income by Year

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WRB: What are the synergies that you gain from being part of Citrix Systems, the non-virtualized, very real mother ship?

BA: It goes in many ways. Being part of the Citrix family, as Citrix is well known and respected brand in mid to large companies and IT departments, is positive for us. It gives us an additional level of awareness and sense of safety in terms of the buyer experience. So buyers do know there is a large IT organization behind us, ensuring reliability and security of service. We’re also starting to roll out enterprise sales programs with the corporate sales team, so that the Citrix virtualization sales team will now be enabled to sell our online services. That will start in the beginning of Q2, and is going to be a great way to expand our reach into a market with a proven sales force. And finally it’s the technology underpinnings: we use Citrix technology everywhere in our infrastructure. As an example, the ShareFile acquisition gave us a platform that will power both the follow-me data services available with the Citrix Receiver as well as GoToMeeting (G2M), GoToWebinar (G2W), etc.

WRB: You timed integrated Voice over IP and “HDFaces” pretty well. Which begs the question: where do you take an easy-to-use set of services like G2M and G2W and GoToTraining (G2T) without mucking them up?

BA: It’s very easy to look at competitors and try to imitate others. One of the things we want to stay true to is our “simpler is better philosophy” to be sure we don’t start bloating our products with additional features just because we can, or because a customer will buy only if we have a certain feature. GoToMeeting with Workspaces, which we announced in Barcelona in the fall, is a great example of how we think about our products: collaboration occurs around the clock, not just real-time. So Workspaces is our first way to let our customers collaborate easily and is a part of the workflow. We will maintain our leadership in real-time collaboration services by offering the simplest to use, most reliable and highest quality experience every time. We also want to make it easier for our customers to get in and out from their existing workflows that are already there, which will be accomplished through integrations. We’ll integrate real-time collaboration with additional services like Salesforce.com. It’s a great example: being able to engage in G2W or G2M or G2T with Salesforce.com. And we are constantly looking at how customers work and with what they use our products in concert to expand the value proposition. Workspaces is the first step in that direction.

WRB: Are you seeing HDFaces start to impact the traditional group videoconferencing vendors?

BA: Historically if enterprises wanted a group videoconferencing session, they had to choose a very expensive and complicated good experience, or they could use a service that was inexpensive or free but inconsistent in terms of quality. With HDFaces we’ve crafted an answer to that, so we offer not only high quality videoconferencing but also consistent ease of use for both organizer and attendee. When I sign up for some of the new cloud-based video services being offered, I’ve found it is not easy. There is no easy way to download software and start a session. I had to revisit websites and download, then create special rooms…and we believe it’s the overall experience that makes it work. Why we are winning is not just to have another web-based videoconferencing platform. It is by creating an overall experience. As an example, at Medibank Health Solutions in Australia, the IT arm of a national healthcare insurance provider, we had a happy GoToMeeting customer. When we showed them a demo of HDFaces, the customer looked up from his laptop and said “Wow, perfect, this is amazing, and great timing. I was just about to sign a purchase order for 6-8 room-based videoconferencing systems. This is crazy. For the same price of 6-8 rooms I can enable hundreds of our users and don’t have to come to our rooms to deploy.” It added no cost because HDFaces is included in the cost. HDFaces actually allowed Medibank to increase flexible hours for its workers who work from home and provide a more positive patient support experience.

WRB: Let’s talk about other market expansion efforts. You closed your acquisition of Germany’s Netviewer almost a year ago. What has it done for you in EMEA?

BA: Netviewer is accelerating our footprint in Europe.

WR & UC+C Analyst Appearances & Events

21-24 February 2012Galveston, TX

WR’s Alan Greenberg @ Texas A&M Trans Texas Video Network Annual Conference, Moody Gardens

4 April 2012 Moscow,

WR’s Richard Norris @ Trueconf Customer/Press Day

17-18 April 2012 Brussels

WR CSP Spring Summit 2012, Marriott Hotel-Grand Place

17-18 July 2012 Philadelphia

WR Collaboration Summit

9 October, 2012Boston

WR CSP Summit, Hotel Commonwealth

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News in Brief EMEA

• Arkadin has introduced Arkadin Oneplace. Based on the Arkadin Connect technology platform (powered by Adobe Connect) and new Arkadin hybrid audio conferencing, Oneplace features audio, web, and video for meetings. It provides an all-in-one UC offering that ranges from small-group screen sharing to online trainings and larger, more complex interactive conferences. Oneplace includes IP and standard telephony in a single meeting room, high resolution videoconferencing with up to 100 simultaneous webcam displays, customizable layouts and UI for recording, polling, and Q&A, and connectivity over multiple mobile devices. As WR’s Marc Beattie put it, “Arkadin significantly strengthens their services in a new area we describe as ‘personal web-based collaboration,’ which includes HD video, integrated audio, and presentation/data sharing.”

• During ISE Oslo-based CeeLab introduced its CeeCloud HD Video Service, a monthly subscription-based service for point-to-point and multipoint video. CeeCloud includes 1 HD MCU port, 1 license for firewall traversal, software updates, access to a help desk, and 1 or 2 Mbps server bandwidth. CeeLab plans to distribute through certified channel partners; those interested should try the free trial at a free trial at www.cee-cloud.com.

• Netherlands-based Talk & Vision has introduced the Personal Video service, which enables low-cost HD-quality video calls from a user’s personal Windows or Mac desktop or laptop to any location. Personal Video supports SIP/H.323 interoperability and interop with Cisco / TANDBERG and Polycom telepresence rooms. It also includes address book access and content exchange via screen-in-screen functionality. Tablet compatibility / apps are still on the drawing board.

• CenturyLink will offer PGi’s GlobalMeet online meeting service, private-labeled as CenturyLink WebConferencing.

• Dimension Data has been recognized as a Cisco TelePresence Video Master Global Authorized Technology Provider (CTPVMGATP for short?), and is now certified to sell Cisco Telepresence solutions to its clients across its 49-country footprint.

• Whygo announced it has added 200 public videoconferencing facilities across Europe to its calendaring system that supports a network of more than 3000 public videoconferencing and telepresence venues worldwide.

• Zimbabwean operator Econet Wireless has begun offering videoconferencing facilities, based on the recent arrival of fiber-optic capabilities to that African nation.

Other News

• Dialogic Inc. has introduced a software-based Media Server for mobile, broadband, and cloud environments, branded Dialogic PowerMedia Extended Media Server (PowerMedia XMS). The PowerMedia XMS enables service providers to deliver standards-based videoconferencing features to create new—and to enhance existing—audio and web conferencing services and in particular to leverage the explosion of mobile devices and VoIP services. The software-based media server runs on

They already had a great presence in Germany with larger companies. They are a Citrix team now and customers are starting to be migrated to Citrix products. They love the ease of use of our products and love HDFaces. They like the fact that now they can have integrated VoIP and PSTN, which they did not have before. So this market is growing very fast for us and we are localizing the products in additional languages; we’ve just launched Spanish and Italian. Netviewer gave us an experienced team, highly respected on the technology and services side.

WRB: Sounds like business is humming. What keeps you up at night?

BA: I would say there are a lot of opportunities. We are executing well, our customers love our products. It’s very easy to start to be pulled in many directions when things go well. You think you are superman as a company when everything you touch turns to gold and we’ve been fortunate to have multiple successes. We need to focus on not trying to do too many things at the same time and also continue to focus on our core values and roll out additional features and products only when they mean something to our customers. We took our time with HDFaces to do it right. Entering the asynchronous collaboration space with Workspaces, we’ll focus on the same seamless approach, so it is high value for our customers.

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a wide range of physical and virtual computing platforms and is designed for service providers seeking to meet variable demand for conferencing and other value added services. PowerMedia XMS is equipped with SIP, Media Server Markup Language (MSML) and RESTful programming and control interfaces for multimedia call processing.

• Stryker Communications has announced it will integrate Glowpoint’s cloud-based Virtual Video Room into its ConnectSuite IP Video platform, enabling ad hoc, multipoint videoconferencing between hospital operating rooms. Stryker also will add Glowpoint’s webcasting capabilities to ConnectSuite to enable live broadcasts from within operating rooms to reach remote viewers.

• Verizon and BT have announced a new agreement —much like others recently announced by AT&T and others—by which their Cisco Telepresence customers will be able to communicate via intercarrier interop.

• Wellesley, MA-based Datamart has announced it will now offer cloud-based LifeSize Connections.

• Broadsoft, which recently acquired iLinc, announced that its Green Meter Technology, a dashboard for calculating carbon emissions and dollar savings from utilizing iLinc, has generated $1 billion in cost

savings, 10 billion miles in travel eliminated, and 4.5 billion pound reduction in carbon emissions for iLinc customers. If that’s the case, think about what the rest of the industry is doing for the environment….we’re talking trazillions.

• MeetingBurner, a new service founded by brothers John and Paul Rydell—who have roots in the CRM software industry—has been launched as a webinar service designed to compete with WebEx Event Center and GoToWebinar. MeetingBurner Free includes up to 15 participants in online meetings with integrated audio, email, and no ads. MeetingBurner Pro supports up to 50 participants, full telephone support, recording, and encryption for $39.95 a month. And MeetingBurner Premier runs $99.95 a month, and includes everything in Free and Pro plus up to 1,000 participants, telephone support, “autopilot meetings” (apparently the ability to pre-record meetings and then deliver them later), PayPal integration, analytics, and more. WR notes that other than the no-ad approach to the freemium model, the pricing is not out of line with that seen from other service providers.

• CENIC, the Pacific Northwest Gigapop, and Internet2 have announced a major long-term collaboration to deploy 100 Gigabit per second networking capabilities across the entire West Coast of the U.S.

Introducing one of the WR Bulletin Sponsors

AVI-SPL is a global leader in audio video communications technology, providing comprehensive solutions and services for professional AV installation, telepresence and video conferencing, digital media systems, control rooms and network operations centers, hotel rental services, event staging and production. Headquartered in Tampa, Fla., AVI-SPL has highly-trained and certified system engineers throughout 32 U.S. offices and an international network of solution providers in 30 countries.

Please visit www.avispl.com for more information or connect with AVI-SPL on

Twitter, Facebook and LinkedIn.

The WR Bulletin would like you to join us in thanking our sponsors:

Get your company’s name & link here! Contact Sara.

The fine print: Sponsorship of the WR Bulletin in no way implies that our sponsors endorse the opinions expressed in the WRB. Nor does it

imply that the Bulletin endorses their products or services. We remain an equal opportunity critic.

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© 2012 Wainhouse Research34 Duck Hill, Duxbury, MA 02332 USA Tel +1 617.500.8090

Editor: Alan Greenberg: agreenberg@wainhouse.comComments and PR news to: wrb@wainhouse.com

Feel free to forward this newsletter to colleagues. Free subscriptions: www.wainhouse.com/bulletin

People & Places• ACT Conferencing, Jerry Heucke, Sales Director• African Center for Economic Transformation, H.O.

Beca, Independent ICT Consultant

• Betterbuy.co.za, Clinton Cronje, Managing Director

• Bloomfire, Craig Malloy, CEO; David McCann, CTO

• ClearOne Communications, Mario Rimini, Sales Director EMEA South & South America

• Polycom, Eric Brown, EVP, CFO & COO; Mike Kourey, R&R and best wishes; Greg Prindle, AVP Enterprise East / Peter Elmgren, AVP Enterprise West / Joe Vranicar, AVP Enterprise Central / Dean Ash, AVP Enterprise South Sales; Ashan Willy, VP Worldwide Systems Engineering

• RevoLabs, Marc Cremer, COO; Tim Root, CTO

• Solutionz, Thomas (Brad) Johnston, COO

• Starleaf, Nicole LoConte, US Sales

WR Webinar on Integration

The Whys and Hows of Integrating Web Collaboration into Business Processes and Applications, Tuesday February 21, 2012 at 11 AM PST, 2 PM EST. Join this webinar to hear WR’s Andy Nilssen and Alan Greenberg explain how integrations can help streamline your business and improve productivity. If you are an end user, developer, or just someone interested in integrations, this webinar explains why integrations are essential to your business, how modern web

collaboration is evolving, and what’s needed behind the scenes for strong integrations. This event is sponsored by Citrix Online and registration is free.

Andy Nilssen

Alan Greenberg