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  • Report: European Videoconferencing Endpoints Market

    Videoconferencing has proved to be a viable solution for companies that are reducing their travel expenditure, thereby boosting the European videoconferencing endpoints market growth, says Frost & Sullivan.

    New analysis from the research group, European Videoconferencing Endpoints Market, finds that the market earned revenues of $383.6 million in 2009 and estimates this to reach $1.03 billion in 2015 at a compound annual growth rate of 18.0 per cent.

    According to Frost & Sullivan, the major growth factors of the videoconferencing endpoints market in Europe include the need for companies to decrease travel expenses, search for alternative ways to meet their workers and clients and the stringent environment policies imposed by the European Parliament.

    Additionally, videoconferencing is stepping up the decision-making process and enhancing teamwork in the more-than-ever dispersed workforce.

    "The videoconferencing endpoints market has been witnessing a slow transformation in the recent years, largely attributed to the introduction of high-quality products, such as high-definition conferencing and telepresence, the market’s shift towards converged audio, video and web conferencing solutions, and integration with other existing collaborative applications," states Iwona Petruczynik, Frost & Sullivan Research Analyst.

    However, the report says, the European videoconferencing endpoints market is restrained by several factors. For example, the misconception that videoconferencing services are communications tools used only by large enterprises is hindering the adoption among small and medium businesses.

    Moreover, new communications and collaboration vendors are delivering videoconferencing as a part of a unified solution, creating a one-stop-shop for their customers; however, this is hampering the growth of standalone videoconferencing providers. Poor infrastructure and low bandwidth, especially in the Central and Eastern Europe (CEE), also have adverse effects on the videoconferencing endpoints market growth.

    "The two main challenges with which the market is constantly battling are – the long-standing belief that videoconferencing is a complicated tool, reserved only for the top level management in large enterprises, and the rise of unified communications (UC), where audio, web, and video-conferencing tools are converging," said Petruczynik.

    Analyst claims that overcoming the first barrier is a constant challenge for vendors. However, with the recession spurring the growth of videoconferencing, these collaboration tools and their benefits have been brought to the fore, especially their increasing ease of use.

    “Videoconferencing vendors should be able to proactively address their clients’ needs and evolve constantly in this market. The trend of shifting towards UC is leading to an increased attention to the adoption and usage of visual collaboration in business,” concluded Petruczynik.

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  • SAP to Acquire Sybase for US $5.8 billion

    SAP and Sybase announced that SAP’s subsidiary, SAP America, has signed a definitive merger agreement to acquire Sybase. SAP will make an all cash tender offer for all of the shares of Sybase common stock at $65.00 per share, representing an enterprise value of approximately $5.8 billion.

    The per share purchase price represents a 44% premium over the three-month average stock price of Sybase. The transaction is expected to close during the third quarter of 2010.

    The companies claim they both will benefit from synergies across product lines and markets. SAP expects to accelerate the reach of its solutions across mobile platforms and drive forward the realization of its in-memory computing vision. This can drive higher user adoption of SAP software and unlock significant business value out of existing customer investments.

    In addition, Sybase’s mobile platform can connect all applications and data (SAP and non-SAP) and enable them on mobile devices. SAP, Sybase and their customers will be able to tap into Sybase’s messaging network to reach 4 billion mobile subscribers through 850+ operator relationships worldwide and engage their consumers via alerts, transactions and promotions on their mobile devices.

    For Sybase, SAP in-memory technology can provide the opportunity for performance improvements to its analytic processing capabilities. Sybase can also be able to bring its event processing and analytics expertise, which was built in the financial sector, to customers in other industries, markets and product areas in which SAP has a complementary, strong presence.

    Finally, Sybase’s core database business can be enhanced by SAP in-memory technology to deliver integrated transactional and analytical capabilities. At the same time, SAP reinforced its dedication to customer choice by stating that it will continue its commitment to supporting database vendors.

    “With this transaction, SAP will dramatically expand its addressable market by making available its market-leading solutions to hundreds of millions of mobile users, combining the world’s best business software with the world’s most powerful mobile infrastructure platform,” said Bill McDermott, co-CEO of SAP and member of the SAP Executive Board.

    “This is a game-changing transaction for SAP and Sybase customers, who will be better able to connect their employees with key functionality and information from anywhere and make it easier for companies to make faster, more informed business decisions in real time. With SAP’s customer-centric approach, we are resolute in our commitment to support Sybase customers to be best-run businesses,” he added.

    SAP said it will continue to support each organization’s product road map while enhancing products to help customers derive additional value from existing investments.

    It also stated that both companies’ development organizations would remain intact, with the opportunity to cross-collaborate to increase innovation for customers.

    Headquartered in Dublin, California, Sybase delivers a range of solutions to ensure that customer information is securely managed and mobilized to the point of action, including enterprise and mobile databases, middleware, synchronization, encryption and device management software, and mobile messaging services.

    The two companies announced that Sybase will operate as a standalone unit under the name “Sybase, an SAP Company.” Sybase’s management team will continue to run the business. The SAP Executive Board plans to propose to the Supervisory Board to appoint the Chairman and CEO of Sybase to SAP’s Executive Board.

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  • Everything Everywhere Joint Venture by Orange and T-Mobile Unveiled

    Everything Everywhere, the joint venture that is claimed to be Britain’s biggest communications company, has been unveiled by Orange and T-Mobile.

    The new company has a customer base of 30 million people: over half of the UK adult population. Orange and T-Mobile promise to transform the industry and give UK consumers” the best coverage, devices, service and communications experience possible.”

    Everything Everywhere is the name of the company that runs Orange and T-Mobile, and the company that all 16,500 employees will work for. The company will be officially integrated on July 1.

    Orange and T-Mobile will continue as brands in the market, with each brand having its own shops, marketing campaigns, propositions and service centers. However, behind the scenes, the two brands will be run by one company, with “one team and one vision.”

    As the companies said, their ambition is to combine both the Orange and T-Mobile networks, cut out duplication, and create a single “super-network.”

    Later this year, customers will experience the first benefits of the merger, with the ability to roam across both networks at no additional cost.

    According to Orange and T-Mobile, the new company intends to propel itself beyond mobile communications, with a greater focus in developing new revenue streams based on the way customers will use their devices in the future. With greater scale, the company intends to develop new revenue streams in adjacent markets, such as mobile advertising and mobile commerce.

    With the company’s new coverage and scale, it also intends to ramp up offers to the business market, as the companies informed.

    There is also a new leadership team for Everything Everywhere, with key personnel from both Orange and T-Mobile. The team is led by Tom Alexander, Chief Executive, and Richard Moat, Chief Financial Officer and Deputy Chief Executive.

    “We are on the verge of a communications revolution. Up until a few years ago, mobile was just about voice and text – not now. Multimedia phones have already started to change the way our customers access the world – for entertainment, education, information – wherever they are, whenever they want,” said Tom Alexander.

    “That is why, through our scale and Britain’s only super-network with its unsurpassed coverage and capacity, we will be leading this revolution, giving customers instant access to everything, everywhere,” he added.

  • NPD: Android Shakes Up U.S. Smartphone Market

    The Android OS continued to shake up the U.S. mobile phone market in the Q1 of 2010, moving past Apple to take the number-two position among smartphone operating systems, according to NPD.

    NPD’s wireless market research reveals that based on unit sales to consumers last quarter the Android operating system moved into second position at 28 percent behind RIM’s OS (36 percent) and ahead of Apple’s OS (21 percent).

    “As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” said Ross Rubin, executive director of industry analysis for NPD. “In order to compete with the iPhone, Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones.”

    Strong sales of the Droid, Droid Eris, and Blackberry Curve via these promotions helped keep Verizon Wireless’s smartphone sales on par with AT&T in Q1. According to NPD, smartphone sales at AT&T comprised nearly a third of the entire smartphone market (32 percent), followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

    “Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices,” Rubin said. “Carriers continue to offer attractive pricing for devices, but will need to present other data-plan options to attract more customers in the future.”

    The report also shows that the continued popularity of messaging phones and smartphones resulted in slightly higher prices for all mobile phones, despite an overall drop in the number of mobile phones purchased in the first quarter.

    The average selling price for all mobile phones in Q1 reached $88, which is a 5 percent increase from Q1 2009. Smartphone unit prices, by comparison, averaged $151 in Q1 2010, which is a 3 percent decrease over the previous year.

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  • NPD: 75% of US iPhone and iPod Touch users Download Apps and Games

    The NPD’s "Entertainment Trends in America" update reveals three quarters of iPhone and iPod touch users are connecting to the Web to download entertainment content and apps.

    According to the latest update to the NPD’s tracking survey, 16 percent of Americans age 13 or older are using devices other than their home computers to download software applications, music, video, and other entertainment content from the Web.

    Based on NPD’s entertainment market research, 75 percent of iPhone and iPod Touch users are connecting to the Web to download entertainment content and apps, compared to 19 percent of game console users and 17 percent of Blu-ray Disc set-top product users.

    “It’s not surprising that Apple users are ahead of others when it comes to downloading Web-based content, given the breadth of the company’s app catalog and the head start iTunes had selling music for the iPod,” said Russ Crupnick, entertainment industry analyst for NPD.

    “Like other groups of early adopters, consumers downloading entertainment content are mostly younger and male; however, as app stores expand beyond Apple, as connected devices become more commonplace, and as connectivity is simplified we expect to see more activity on other devices and platforms,” he added.

    According to the report, among iPhone and iPod Touch users who downloaded content, free apps were the most popular download category, followed by video-game apps, and music downloads.

    Among consumers who connected via game consoles, game add-ons were far and away the most popular category, followed by purchased downloads of entire games, and movie rentals.

    In addition, one-third of Blu-ray Disc consumers who actually connected via their BD reported downloading a movie rental.

    “Music now competes with games and other apps for share of device, share of wallet, and share of time,” Crupnick said.

    He says that entertainment companies need to start to thinking of apps in broader terms, not only as a way of garnering direct sales from downloads, but also as a pathway to paying for additional entertainment content.

    “For example, an app that reviews movies could also be a direct channel for purchasing DVDs, BDs, or digital forms of video,” Crupnic concluded.

  • 300,000 Petabytes of Storage Capacity to Enterprise Datacenters and Clouds

    According to new research from IDC, HDD shipments for enterprise applications will increase from 40.5 million units in 2009 to 52.6 million units in 2014.

    Moreover, the HDD industry will ship more Petabytes for enterprise applications in the next two years than it did in the preceding 20 years.

    Several ongoing trends will continue to impact enterprise HDD market revenue over the forecast period, including a continued shift away from higher cost performance-optimized HDDs to lower cost capacity-optimized solutions and solid state drives (SSDs) to complement HDDs in storage systems.

    HDD revenue derived from enterprise markets will grow at only a 1.7% CAGR during this time. Additionally, there will be an increased effort among end users to better utilize existing storage system assets.

    "We’re definitely seeing intensive cost cutting measures among end users striving to bring more efficiency to current solutions," said John Rydning, research director for Storage Mechanisms: Disk.

    "The employment of technologies such as data deduplication, thin provisioning, storage multitiering, and storage virtualization are all contributing to reducing end-user costs."

    Other key findings from IDC’s research include the following:

    * The transition from 3.5in. to 2.5in. performance-optimized form factor HDDs will be complete by 2012

    * Growing interest in new storage delivery models such as storage as a service, or storage in the cloud is likely to put greater storage capacity growth demands on Internet datacenters

    * The price per gigabyte of performance-optimized HDD storage will continue to decline at a rate of approximately 25% to 30% per year

  • China TV Market to Enjoy Solid Growth in 2014

    The China television market, already a dominant force on the world stage, is expected to perform strongly once again in 2010, led by an overall rise in the production of television sets as well as surging demand for LCD-TVs, according to iSuppli.

    As the world’s top TV manufacturer, China will produce an estimated 95.5 million TV sets in 2010, up 11.3 percent from 85.8 million in 2009 when the country accounted for 42 percent of total global TV shipments. This year’s anticipated rise is also a bigger increase than the 5.3 percent gain made during the 2008-2009 period, iSuppli figures show.

    LCD-TV shipments alone this year will increase 40 percent to 80 million—or nearly 84 percent of overall China TV shipments—far outpacing the 13.6 million CRT-TVs and 1.9 million plasma sets to be produced in 2010.

    By 2014, iSuppli forecasts that TV production in China will rise to 128.1 million units, translating into a Compound Annual Growth Rate of 7.6 percent for the forecast period.

    LCD-TVs Take Center Stage
    The strength in China’s TV manufacturing can be attributed to the brisk expansion of LCD-TV production capacity as well as to the growing demand from both the domestic and export markets. In particular, Chinese LCD firms are investing billions of dollars in set-production lines, panel fabs and component factories, becoming more competitive with the global brands in the overall LCD-TV arena.

    Of the total China LCD market in 2009, local Chinese OEMs accounted for three-quarters market share, beating out their foreign-based counterparts that had pulled back on marketing in the country because of the global economic crisis. Chinese OEMs were also helped by their deep penetration in the rural market, along with support from the government’s subsidy program offering rebates to consumers who buy TVs and other consumer goods.

    In addition to the encouraging factors above, China’s LCD-TV market will receive a boost from consumer interest in new flat-panel TV features, such as higher 120/240Hz refresh rates, LED backlighting and Internet-ready capabilities, further cementing the dominance of LCD technology in the world’s most populous country, iSuppli projections show.

  • IDC: Mobile Phone Recovery Continues with Nearly 22% Growth in Q1

    The worldwide mobile phone market grew 21.7% in the first quarter of 2010, a strong rebound from the market contraction in Q1 2009. Growth was fuelled by increased demand for smartphones, and the global economic recovery.

    According to the IDC Worldwide Mobile Phone Tracker, vendors shipped 294.9 million units in the first quarter of 2010 compared to 242.4 million units in the first quarter of 2009.

    The report shows that growing demand for smartphones helped Research In Motion move into the top 5 vendor rankings for the first time. RIM, which replaced Motorola in the top 5, tied Sony Ericsson for the number 4 position in IDC’s 1Q10 vendor rankings.

    RIM shipped 10.6 million units in the first quarter while Motorola, which had been a top 5 vendor since the inception of IDC’s Worldwide Quarterly Mobile Phone Tracker in 2004, shipped 8.5 million units.

    Motorola, the number 2 overall vendor in 2004, registered a fifth place finish last year by virtue of its overall strength in the lower-growth traditional mobile phone category. Motorola has steadily lost share since 2004 when the market started its shift toward higher-end feature phones and smartphones.

    "The entrance of RIM into the top 5 underscores the sustained smartphone growth trend that is driving the global mobile phone market recovery," noted Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker.

    "This is also the first time a vendor has dropped out of the top 5 since the second quarter of 2005, when Sony Ericsson grabbed the number 5 spot from BenQ Siemens," he said.

    IDC believes the worldwide mobile phone market rebound will continue in 2010, though not at the same growth rate as the first quarter.

    "It should be noted that the market’s first-quarter growth, while impressive, is relative to one of the worst quarters in mobile phone industry history (1Q09)," noted Restivo.

    He said that the market’s growth should not be taken as a proxy for future quarters nor annual growth. “In fact, the results essentially match our first quarter projections. We are still expecting growth of 11% for 2010," he added.

    Top five mobile phone vendors according to IDC:
    1. Nokia
    2. Samsung
    3. LG Electronics
    4. RIM
    5. Sony Ericsson

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  • VoIP Helps HBBs Survive

    In the current economic environment, home-based businesses (HBBs) in the U.S. are increasingly turning to the web to boost business. According to a report from AMI-Partners, VoIP is playing an increasingly prominent role in the survival of the HBB.

    The implementation of VoIP communication system is among the areas that improve efficiency and reduces cost of HBBs. The report finds that the number of U.S. HBBs using VoIP technology has increased by 48% in 2009. The need for HBBs to cut costs thereby maintaining an adequate cash flow has directly hit the areas of telecommunications and business travel.

    “VoIP providers such as Time Warner, Optimum Lightpath, Verizon, to name a few, are offering very attractive bundled VoIP and broadband internet access packages. Current penetration of VoIP technology is still incipient, but strong interests by U.S. HBBs suggests a vast opportunity for VoIP providers in 2010,” said Yuki Uehara, Research Analyst at AMI-Partners.

    “On the business travel front, video capability over instant messaging (Skype, AOL’s AIM, and Yahoo’s Messenger) and web conferencing (MS Live Meeting, WebEx, etc.) will continue to help defray the cost of staying in contact with clients and vendors in the HBB market in 2010,” he added.

    According to analysts, HBBs are realizing the advantages of investing in technology that improves their business and brings tangible results in the short run. For IT vendors and service providers, it is vital to pin-point the needs of U.S. HBBs and target the HBBs that are proactively investing in those technologies.

    “In the past HBBs had focused on more improving internal efficiency such as IT security, data backup & management (back-office functions). Presently we are seeing a shift to reaching out to clients and prospects and communication (front-office functions) to keep baseline revenue and/or catching every possible sales opportunity,” said Uehara.

  • HP to Acquire Palm for $1.2 Billion

    Although a week ago Palm’s CEO Jon Rubinstein still believed that “Palm can survive as an independent company” (FT), Palm was already up for sale and it was pretty obvious they would quickly find a buyer.

    And they did. The company announced that it has entered into a definitive agreement with HP, under which HP will purchase Palm at an enterprise value of approximately $1.2 billion.

    The transaction has been approved by the HP and Palm boards of directors.

    “The combination of HP’s global scale and financial strength with Palm’s unparalleled webOS platform will enhance HP’s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets,” according to the press release.

    The companies claim that Palm’s webOS will allow HP to take advantage of features such as “true multitasking” and “always up-to-date information sharing across applications.”

    Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger.

    The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm’s stockholders. The companies informed that the transaction is expected to close during HP’s third fiscal quarter ending July 31, 2010.

    Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.

    According to HP’s executive vice president Todd Bradley, Palm’s OS provides an ideal platform to expand HP’s mobility strategy and create a “unique” HP experience spanning multiple mobile connected devices.”

    “And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market,” he said.

    Jon Rubinstein said: “We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS.”