A leading provider of video and audio conferencing equipment and related network infrastructure, Polycom, Inc. (PLCM - Analyst Report) recently announced the launch of its new RealPresence CloudAXIS application.
RealPresence CloudAXIS will also allow the users to include friends and family members to join the video chat apart from their official clients on Skype, Facebook, Google Talk and other social interactive video applications from a browser via a hyperlink on a secure network.
The new software will be put on trial shortly and will be commercially available from the first quarter of 2013.
Polycom’s state-of-the-art software platform called RealPresence platform can interoperate among a variety of devices and other platforms. So inclusion of RealPresence CloudAXIS software will further enrich their cloud-delivered video offerings.
Addition of such value added services will not only expand subscriber growth but will also add to the creation of new revenue stream for Polycom. Moreover, it will also help the company to counter stiff competition from its close rival Cisco (CSCO - Analyst Report), which mainly dominates the corporate videoconferencing business.
At present, Polycom is in the midst of its transition from hardware-centric to cloud- and software-centric business model. The company has formed a consortium of open video exchange cloud with 14 leading telecom service providers across the world. Notable among them are Verizon Wireless, AT&T (T - Analyst Report) and Telefonica. This consortium will deliver business-to-business (B2B) video conferencing through the cloud network.
We maintain our long-term Neutral recommendation on Polycom, Inc. However, currently, Polycom, Inc. has a Zacks #4 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.