Polycom Launches Cloud Offering

A leading provider of video and audio conferencing equipment and related network infrastructure, Polycom, Inc. (PLCM - Analyst Report) recently launched its cloud service offering, Accordent Media Services. The application will be supported by Microsoft Corporation’s (MSFT - Analyst Report) Windows Azure platform, an Internet-scale cloud services platform hosted through Microsoft datacenters.

The service includes full-enterprise video content management capabilities (categorizing, indexing, retention management, real-time video streams etc.), publishing to customer Microsoft SharePoint 2010 solutions, and scalable delivery of live and on-demand content over the Windows Azure Content Delivery Network (CDN).

The use of Windows Azure CDN will ensure better performance and enhanced user experience for end users located remotely from the source. Deployment of such service will enable the firms not only to reduce cost but also to provide improved and secured video content management solution for all their video assets.

Polycom has a healthy financial position that may sustain its future ventures. The company is developing video conferencing application for smartphones and tablets. With the growing popularity of smartphones and tablets, Polycom will have huge growth opportunity going forward.

However, we remain concerned regarding the fiercely competitive nature of the video conferencing industryt hat results in cut-throat pricing strategy and the future business infrastructure spending by enterprises in the European regions. Cisco (CSCO - Analyst Report) is the main rival of Polycom, after it purchased Tandberg TV of Norway.

We, thus, maintain our long-term Neutral recommendation forPolycom, Inc. Currently, Polycom, Inc.has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

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