VoiceCon Orlando 2009

ShoreTel Aims for New Opportunities with IP PBX Version 9.0

| Apr 1, 2009 | Enterprise Communications | Flash Analysis

| Analyst: Rob Arnold

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

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Event Summary

March 30, 2009 -- ShoreTel released ShoreTel 9, the newest version of its UC software. Highlighted ShoreTel 9 enhancements include Microsoft Active Directory integration, new N+1 ShoreGear switch failover capabilities, LLDP-MED and 802.1x support for secure network access and enhanced device management, SRTP/AES encryption for call privacy, expanded capacity of ShoreTel’s Contact Center Workgroup to support up to 256 groups (and up to 300 users in a group), and the ability for the ShoreWare Mobile Call Manager client to run on a broader range of mobile devices. ShoreTel 9 is available now in all of ShoreTel’s operating territories globally.

Analytical Summary

• Current Perspective: Positive on the latest upgrades to ShoreTel’s PBX, because the scalability, reliability, security, and other enhancements, as well as the company outlining the platform’s ability to integrate into legacy voice environments, will all help ShoreTel to market its solutions more widely outside of its core demographic of distributed SME environments. However, in order to truly break out of its niche and to be invited to bid for these new opportunities, the company must find ways to raise its visibility among enterprise buyers.

• Vendor Importance: Moderate to ShoreTel, because although many of the release 9 enhancements are aimed at expanding its addressable markets, the company moved its portfolio forward while remaining true to its stated value propositions of developing communications solutions that are reliable, offer low TCO, are easy to use, and achieve high customer satisfaction.

• Market Impact: Low to moderate on the enterprise communications market, because it has been no secret that ShoreTel aspires to expand its opportunities outside of the distributed, mid-market accounts in which it has been so successful to date. However, when facing off against ShoreTel, rivals will need to be aware of more diverse strategies that the company is employing as it strives for growth in new market segments.

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Current Perspective

Competitive Positives and Concerns

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