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Polycom, Inc. (PLCM - Analyst Report) recently entered into a strategic partnership with IBM (IBM - Analyst Report) to incorporate its popular RealPresence video solutions technology with IBM’s interactive application called IBM Sametime and IBM Connections.

Polycom’s RealPresence video technology that host video conferences for enterprise clients are quite similar to IBM Sametime application, which facilitates Web conferencing and group chat within an organization. Hence, the integration of Sametime application with RealPresence technology will upgrade Polycom’s product feature.

The new integrated technology that supports High Definition (HD) quality video calling can be accessed through different touch points like web, email, IM clients and other social media sites, hence providing enhanced solutions to different organizations to improve its work efficiency.

The advanced technology will cater to different needs of the enterprise by means of conducting virtual meetings from different touch points like email, WiFi and 3G/4G network. It will also be beneficial for the healthcare industry where doctors will be able to provide medical assistance to patients living in remote areas, thereby improving the service qualities of healthcare industries. Furthermore, the whole system is highly secure and reliable and is delivered directly from the cloud or integrated within the devices.

Polycom is well positioned financially to pursue its future ventures. Increased demand for video-conferencing services mainly from India and China, coupled with overall improvement of marketing and sales service, will boost the company’s market share.

The company is currently making inroads in the retail consumer market by developing video conferencing application for smartphones and tablets, which we believe will create huge growth opportunities for the company going forward. We, thus, maintain our long-term Outperform recommendation for Polycom, Inc.

Currently, Polycom, Inc. has a Zacks #3 Rank, implying a short-term Hold rating.

Based in Pleasanton, CA, Polycom Inc. is a leading provider of video and audio conferencing equipment and related network infrastructure.

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