Polycom Unveils Software Strategy to Drive Global Adoption of HD Video Collaboration Through Open Standards

PLEASANTON, CA–(Marketwire – Sep 14, 2011) – Polycom, Inc. (NASDAQ: PLCM), the global leader in standards-based unified communications (UC), today unveiled a software strategy to bring secure HD video collaboration to the broadest range of business, video, mobile, and social networking applications through standards-based infrastructure delivered on-premises, hosted, or with service providers from the “video cloud.” Polycom believes this strategy will redefine the unified communications market, accelerate the adoption of Polycom software (from infrastructure to the edge), and establish Polycom as the default choice of customers and partners for open UC and HD video collaboration solutions that work together seamlessly across any application, protocol, call control system, or end point. The software strategy is a key component of Polycom’s growth strategy with the objective of growing revenue from the company’s current run rate of approximately $1.5 billion to $3 billion in the next few years.

Polycom’s software strategy spans four key initiatives:

1. Deliver the Most Complete, Interoperable Software Platform for Universal HD Video Collaboration

2. Expand Partner Ecosystem and Bring HD Video Collaboration to Mobile and Social Platforms

3. Create the First Open HD “Video Cloud” Exchange with Service Providers

4. Continue to Set the Standard with Software Innovations that Deliver Exceptional User Experiences and Transform the Way We Work and Collaborate

Fundamental to Polycom’s strategy is a commitment to open standards-based interoperability across all of the elements in a communications environment, including multiple solutions, vendors, networks, and connection protocols. This gives customers the freedom to choose best-of-breed solutions for instant messaging, presence, call control, Web conferencing, video collaboration, mobile, and social video, from any of hundreds of different vendors, with assurance that the solutions will:

• Seamlessly interoperate within normal business workflows;
• Be backward-compatible with legacy investments and forward-compatible with new, emerging systems;
• Be protocol-agnostic and able to traverse signaling and media protocols such as H.263, H.264, H.264 High Profile, SIP, SVC, VP8, TIP from Cisco, and RTV from Microsoft Corp.; and
• Deliver the essential system scalability, reliability, security, and lifelike visual quality that define HD video collaboration experiences.

“Polycom is known for the innovative solutions that have been powering business communications for nearly 20 years and our software is at the core of enabling a highly differentiated customer experience,” said Andy Miller, president and CEO, Polycom. “Moving forward, Polycom software will be increasingly present in desktop, mobile, and social networking platforms as Polycom captures the fast-growing demand for HD video collaboration that is open, secure, and integrated into each customer’s work and social environment. From the cloud infrastructure, to group environments, to the fixed and mobile edge, customers who choose Polycom will have peace of mind knowing that Polycom’s software solutions are a living investment that adapts as needs change without requiring them to rip and replace entire UC structures. By putting the ‘unified’ in unified communications, Polycom offers customers open, best-in-class UC solutions that dramatically change the way they work, communicate, and collaborate.”

Deliver the Most Complete Interoperable Software Platform for Universal Video Collaboration
The first initiative of Polycom’s strategy is to orchestrate broad partner interoperability around Polycom’s open software platform, which has been ongoing for over a year. The Polycom® RealPresence™ Platform (formerly referred to as the UC Intelligent Core™) today delivers the industry’s only universal bridging software that supports up to 75,000 device registrations and 25,000 concurrent sessions (see related release, “Polycom Introduces Polycom® RealPresence™ Platform, the Most Comprehensive Software Infrastructure for Universal Video Collaboration”). The platform includes universal video collaboration, video resource management, virtualization, universal access and security, and video content management.

New Application Programming Interfaces (APIs) to Open the RealPresence Platform
Polycom already provides developer APIs for many of its devices, and will extend its APIs to the Polycom RealPresence Platform to enable developers, partners, and service providers to integrate business applications, billing, scheduling, directory, management, monitoring, and other functions with the platform. Through the APIs, customers can drive deeper integration into their environments, and service providers can differentiate their offerings by customizing solutions with Polycom. The Polycom Developer Program includes full API documentation, sample code, access to test and demo systems, and developer support. Field trials for the Polycom Developer Program are set to begin by year end, with availability projected in 1H 2012.

Expand Ecosystem and Bring HD Video Collaboration to Mobile and Social Platforms
Video is on its way to reaching similar penetration and user numbers as HD audio, and mobile video and social video will dramatically increase this trend. With video cameras embedded in tablets, PCs, and mobile phones, mobile video is already experiencing explosive growth with the number of people participating in video chats forecast to grow 14 times, from about 10 million today to more than 140 million by 2015⁽¹⁾. Social video such as on-demand video chat within business and consumer social sites — has the potential to be the next killer app for social networking.

Polycom’s second strategic initiative is designed to enable customers to communicate securely over video through mobile devices, tablets, and on social platforms. Leveraging the Polycom RealPresence Platform, customers can communicate over video with a tablet back into their enterprise video network to connect with co-workers, customers, or partners.

• Polycom is working with leading vendors in mobility, including Apple, Motorola, Samsung and HP, to offer enterprise mobile video applications on Android, iOS, and Windows Phone 7 platforms that allow users to participate in multi-point video calls across all open-standard video solutions and devices, including via tablets, desktop video systems, or immersive telepresence rooms.
• Polycom is integrating HD video solutions into popular social business platforms, and today announced a strategic relationship with Jive to integrate Polycom HD video solutions into Jive’s social business platform, enabling face to face video collaboration (see related announcement from today). The joint solution will allow Jive business customers to conduct live video chats, including group video calls, as well as record video meetings or messages for archiving, training, and ongoing collaboration.

Create the First Open “Video Cloud” Exchange with Service Providers
Cloud delivery of “video as a service” is another key trend driving further adoption of UC services, promising to generate a global network effect for mass video connectivity. Analysts project that 40 percent of enterprises will move to a hybrid cloud, which is a combination of on-premises applications and cloud-delivered services, by 2012. Polycom launched its video cloud initiative in June with:

• The release of the Polycom RealPresence Platform software that supports carrier-grade UC with the reliability, availability, security, redundancy, and massive scalability required for cloud-delivery.
• The formation of the Open Visual Communications Consortium™ (OVCC™) organization, a video cloud exchange started by Polycom and 14 of the world’s leading service providers, including AT&T, Verizon, Orange, PCCW, Telefonica, BT, Airtel, and Telstra. The OVCC is dedicated to solving the technical challenges of providing video as a service across multiple carrier networks and technologies, which today is not yet possible, through an open standards-based approach. The OVCC has successfully demonstrated a multi-vendor, high definition telepresence call across 12 service provider networks simultaneously, running on the Polycom RealPresence platform. Polycom and the OVCC organization expect to begin bringing open video exchange cloud services to market as early as mid-2012. The potential result is hundreds of millions of users worldwide connecting over video as easily as dialing their mobile. Additional service providers and value added resellers who provide managed services solutions are expected to join the OVCC group in the coming months.

Continue to Set the Standard with Software Innovations that Deliver Exceptional User Experiences and Transform the Way We Work and Collaborate
With more than 700 patents issued or pending worldwide, Polycom innovations in areas such as codecs, microphone arrays, noise suppression, voice detection, echo cancellation, UC integration, loudspeaker system design, content sharing, and system touch control have set the standard for HD voice, video, and telepresence for more than 20 years. Polycom innovations deliver an exceptional lifelike video collaboration experience that significantly boosts engagement and productivity.

As a recent example, Polycom just introduced the Polycom EagleEye Director, which orchestrates a groundbreaking group video collaboration experience by emulating professional video production techniques to focus on and provide close-up views of each speaker in a video conference using automated camera pan, tilt, and zoom. Polycom software technology inside the system makes it seem like each conference room has a Hollywood director in residence. In addition, the Polycom CX7000 system uses Polycom software innovations in combination with Microsoft to deliver the first room video telepresence solution custom-built for full integration with Microsoft Lync™. The solution takes the Lync experience customers are familiar with on their desktops and recreates it in the conference room to provide a higher level of business collaboration and productivity for room telepresence. As a result of joint development and tight integration between Microsoft and Polycom, customers get an intuitive interface, simplified UC experience, and a seamless HD video experience.

Polycom will continue to invest in delivering the industry’s most lifelike face-to-face collaboration experiences bringing new innovations to market that extend UC interoperability and HD video to new devices and platforms servicing the hundreds of millions of knowledge workers across industry and government.

More at www.polycom.com

This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 regarding future events, the future demand for and future availability of our products, and the future performance of the Company, including statements regarding Polycom’s software strategy and the future impact it will have on redefining the UC market, accelerating the adoption of Polycom software and establishing Polycom as the default of choice for open UC and HD video collaboration solutions; expected future revenue growth; future product functionality; the increasing presence of Polycom solutions in multiple platforms; Polycom as capturing the fast-growing demand for HD video collaboration solutions; the development of new APIs for the Polycom RealPresence Platform and the future availability of the Polycom Developer Program; the availability of future mobility solutions; the availability of future Polycom HD video applications on social business platforms; the availability of open video exchange cloud services in the market and new user video adoption and service provider participation in the OVCC; and continuing investment and innovation by Polycom. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including our ability to successfully execute on our software strategy, the impact of competition on our product sales and for our customers and partners; the impact of increased competition due to consolidation in our industry or competition from companies that are larger or that have greater resources than we do; potential fluctuations in results and future growth rates; risks associated with general economic conditions and external market factors; the market acceptance of Polycom’s products and changing market demands, including demands for differing technologies or product and services offerings; possible delays in the development, availability and shipment of new products, increasing costs and differing uses of capital; changes in key personnel that may cause disruption to the business; any disruptive impact to Polycom that may result from the acquisition of HP’s Visual Collaboration Business Unit; the impact of restructuring actions; and the impact of global conflicts that may adversely impact our business. Many of these risks and uncertainties are discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, and in other reports filed by Polycom with the SEC. Polycom disclaims any intent or obligations to update these forward-looking statements.

NOTE: The product plans, specifications, and descriptions herein are provided for information only and subject to change without notice, and are provided without warranty of any kind, express or implied. Polycom reserves the right to modify future product plans at any time. Products and related specifications referenced herein are not guaranteed and will be delivered on a when and if available basis.