Microsoft, Polycom Bolster Alliance to Combat Cisco

Event Summary

August 09, 2010 -- Polycom signed a multi-year, strategic global agreement with Microsoft to deliver integrated end-to-end unified communications solutions. Under the agreement, Polycom plans to develop and market standards-based UC solutions that span the enterprise, small-to-medium business, and government markets; will encompass software, hardware, networking, and services; and will enable customers to improve business productivity and reduce travel, telecom, and IT operating costs.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Polycom and Microsoft’s strategic alliance, because it formalizes recent R&D initiatives between the companies relating to unified communications and video conferencing product integrations. However, the two companies have provided little insight into what new solutions will be jointly developed, when they will be available, and precisely what new sales and marketing programs will be in place around them.

• Vendor Importance: Moderate to Polycom and Microsoft, because the strategic alliance helps both companies combat Cisco, their joint rival in both the video conferencing and unified communications market.

• Market Importance: Moderate on the markets for UC and video conferencing solutions, because in time, customers could see a rise in the number of service providers and systems integrators offering jointly developed Polycom and Microsoft solutions, while resellers are certain to have more programs made available to them by the partnered companies.

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