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IPTV World Forum 2008

Harmonic Once Again Achieves Microsoft IQ Lab Approval for an Encoder Product

| Mar 13, 2008 | Digital Media Infrastructure | Show Update

| Analyst: Ron Westfall


Current Perspective: Positive/Neutral
Vendor Importance: Moderate/High
Market Impact: Low/Moderate

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Event Summary

March 11, 2008 -- Harmonic announced that its new DiviCom Ion AVC standard-definition (SD) encoder has completed encoder conformance testing for the Microsoft Mediaroom Internet Protocol TV (IPTV) and multimedia software platform. Microsoft administered the test as part of the Microsoft Mediaroom Interoperability and Qualification Lab (IQ Lab) program, which is intended to enable the ongoing interoperability and compliance of encoders used in deployments of Microsoft Mediaroom. A Microsoft Mediaroom ecosystem partner, Harmonic powers the video headends for a majority of Microsoft’s IPTV customers. Harmonic delivers over 5,000 broadcast video channels around the world to more than four million IPTV subscribers, and it counts more than 100 telco operators as its customers.


Analytical Summary

• Current Perspective: Slightly positive on Harmonic securing an interoperability seal of approval from Microsoft’s IQ Lab for the DiviCom Ion AVC encoder product, because it re-affirms the ongoing technical and co-marketing alliance between Harmonic and Microsoft, but the announcement lacked customer breakthrough revelations specific to the DiviCom Ion product line and will not compel rivals to adapt sales and marketing responses specific to the announcement.

• Vendor Importance: Moderate to high to Harmonic and Microsoft, as Harmonic needed to unveil the successful conformance testing for its DiviCom Ion AVC encoder platform to complement the similar Microsoft IQ Lab test approvals for the DiviCom Electra 7000 HD MPEG-4 AVC (H.264) encoder and the Electra 5400 SD H.264 encoder products as well as sustain its marketing motif of extending any-to-any video processing to customers. Microsoft needed to show its IQ Lab testing regime continues to focus on best-of-breed products for complementing the Microsoft Mediaroom platform.

• Market Impact: Low to moderate on the video headend segment of the overall digital media infrastructure market, as Harmonic is one of the top vendors within the nascent IPTV head-end segment and Microsoft’s channels compel rivals to at least consider re-stating their recent channel and marketing efforts in relation to Microsoft (whether for or against Microsoft).



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