Orange Business Services Taking Video-Conferencing to the Next Level

| Jul 3, 2009 | Business Telecom Services | Competitive Intelligence Report

| Analyst: Brian Washburn

Current Perspective: Slightly Positive
Vendor Importance: Moderate
Market Impact: Moderate

Event Summary

July 1, 2009 – Orange Business Services has debuted a series of telepresence enhancements. Its Open Videopresence service accommodates customers dialing into the carrier's video exchanges regardless of the network (IP-VPN, Internet and ISDN) or visual communications vendor/equipment platform. The carrier also has launched concierge help-desk services; and Telepresence Community, a service to help companies find each other to schedule conferences across Orange's video exchanges. Orange Business Services issues guarantees for a successful visual communications

Analytical Summary

• Current Perspective: Slightly positive on Orange Business Services’ announcement of the Open Videopresence, Telepresence Community and associated features, because the carrier launches a network-hosted video exchange with inter-customer support based on the Cisco TelePresence System for now; plans service interoperability across legacy videoconferencing systems in the near future; and also commits to support telepresence platforms from Polycom and Tandberg in its exchanges. However, when it comes to launching a network-hosted telepresence exchange, Orange Business Services' announcement is six months or more behind major competitors.

• Vendor Importance: Moderate to Orange Business Services, because the carrier has racked up a wide lead among competitors in the number of countries where it has been Cisco TelePresence Connection certified, in addition to claiming sufficient capacity to offer services to 104 countries worldwide. Now that it also has video exchanges, the carrier can start to leverage its broad footprint to let enterprises on its network connect and collaborate, with support across Cisco TelePresence System now, and legacy video platforms in the near future.

• Market Impact: Moderate on global telepresence service providers, because Orange Business Services now has its own telepresence exchange, a foundation component that enables inter-company (and inter-carrier) telepresence services. Orange Business will launch legacy video support via its Open Videopresence exchange, while Telepresence Community serves as an inter-company exchange for Cisco TelePresence System customers. Service providers that have already deployed network-hosted telepresence exchanges will need to continue investing to enhance ease of use and develop their own new telepresence features, to hold onto their development edge.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Business Network Services - U.S. | More information
| Client access - Full report in Business Telecom Services - Europe | More information

Recommended Competitor Actions

• All global Tier 1 competitors in telepresence services can tout already having their network-hosted video exchanges launched and operational for many months, and position Orange Business Services as late to the game.

• AT&T, BT and Tata Communications can play up their inter-carrier trials with Cisco, publicized July 1, 2009. Though Orange Business Services participated in the event and is another key player for inter-carrier telepresence, it did not participate in that specific late June 2009 trial. These competitors can suggest that if and when inter-carrier telepresence capability does become better established, they expect to be first to bring these capabilities to customers.

• All global Tier 1 competitors can look for features and functionality they can demonstrate that Orange Business Services may not yet match. These mainly include public conference rooms and existing carrier interconnect agreements, though competitors may also have some small usability differences that customers might prefer.

• Verizon Business can tout that it supports both Tandberg and Polycom telepresence systems today (as well as Cisco), and that it already offers inter-platform compatibility between these two vendors in its video exchange, operated by Nortel.

Recommended End User / Customer Actions

• Global multinational corporations interested in telepresence services seem to tend to build separate, dedicated video networks to avoid conflicts with applications on their existing enterprise networks. After carefully considering what vendor platform(s) make the most sense, an open bidding process among qualifying carriers – Orange Business Services and others – seems to make the most sense, to see what deals are available.

• Enterprises should make sure to check whether their telepresence provider has video exchanges in the locations where they need them most. Verizon Business and BT claim regional exchanges worldwide, while others including Orange Business Services, may have just one or two exchanges in Europe/Asia/the Americas, with plans to build out more. A North American customer that wants to use a video exchange to tie in Central and South American destinations, for example, will not want route all its telepresence traffic through Europe or Asia.

• Both AT&T and Tata Communications have committed to building public telepresence rooms with global hotel chain partners in major cities worldwide. Enterprises can consider using public telepresence facilities if they are not ready to invest in private rooms yet or want to use telepresence to do business with outside suppliers, partners and customers.

• Enterprises that start to look at telepresence solutions right now are likely to need two to three months for selection, purchasing and deployment. Therefore, any customer that might be interested in Orange Business Services' Open Videopresence capability (which adds support for legacy video platforms), can begin acting on that information now. By the time the contract is delivered later in 2009, Open Videopresence should be launched.

• Finally, enterprises need to keep in perspective that telepresence as a commercial carrier service is still new, and in relatively early days of development. There is a lot of competitive noise around features in certain technology areas, where a carrier might be just months ahead of its peers. Unless a customer must have a specific feature immediately, it makes better sense to gauge the market trajectory and go with a provider they believe can deliver the service quality and support, proper price points, and features they need over the longer term of a multi-year contract.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Business Network Services - U.S. | More information
| Client access - Full report in Business Telecom Services - Europe | More information

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