Session 1 Competitor Report NA

Competitor’s Report : 

Competitor’s Report December 2002 D50160 rev 1.3

Competitive Analysis : 

2 Competitive Analysis TANDBERG in review Total Solutions Endpoints

Financial Results: Quarterly Revenue Growth : 

3 Financial Results: Quarterly Revenue Growth $ U.S.

Video Endpoint Market Share : 

4 Video Endpoint Market Share Note: Represents percent value of endpoint shipments; Polycom figures from Q2/3 2001 are estimated and include PictureTel. Source: Wainhouse Research, Q3 03 is unofficial estimate from PLCM and TAA financials

Geographic Sales Distribution : 

5 Geographic Sales Distribution Successful expansion in North America has created momentum for tighter global integration One TANDBERG Asia represents a key future opportunity 5

Total Solutions : 

6 Total Solutions TANDBERG in review Total Solutions Endpoints

Polycom Accelerated Architecture : 

7 Polycom Accelerated Architecture Components Polycom video endpoints PictureTel video endpoints Polycom Voice Phones Polycom Web Office Accord MCU Path Navigator Web Commander Global Management Software (GMS) Polycom Audio & Video Endpoints Global Management System MCU Gateway Gatekeeper Call Processing Server

Polycom Office Fails : 

8 Polycom Office Fails Dual Image technology Picturetel/Polycom not compatible Must have same kind in Accord call Native Resolutions PictureTel/Polycom not compatible Audio (Siren 14) Siren 14 not supported in non-iPower 60fps interlaced video PictureTel/Polycom not compatible More!!

Polycom Office Fails - GMS : 

9 Polycom Office Fails - GMS

Polycom Office Fails PathNavigator : 

10 Polycom Office Fails PathNavigator Conference on Demand Support iPower/ViaVideo dialing from phone book Does not support Viewstations dialing from phone book Must manual dial, same support as TANDBERG Accord must have Virtual Conference Suite option Expensive! $1000 per port on the MCU

TANDBERG ACE : 

11 TANDBERG ACE IP Phones MCU H.320 Room System Video Gateway Proxy H.323 Room System Gatekeeper Voice Gateway IP Phones Voice Gateway Desktop Video Voice/Video Conference Bridge The Integrated TANDBERG ACE architecture simplifies use, management, and deployment of today’s collaborative communication solutions. PSTN/ ISDN IP LAN/ WAN

The Real Power of One : 

12 The Real Power of One The most comprehensive and integrated conference management system for the enterprise TANDBERG Management Suite Colors denote different platforms

The Real Power of One : 

13 The Real Power of One Colors denote different platforms

The Real Power of One : 

14 The Real Power of One Single software platform for management and scheduling Reduce complexity, single interface into the solution Shorter learning curve Less maintenance costs! One server, not many Quicker problem resolution Single hardware/software platform for systems Common user interface Common feature sets across the solution Reduced time to market with new features Better return on investment (ROI)

Polycom Office vs. TANDBERG Meeting Place : 

15 Polycom Office vs. TANDBERG Meeting Place

Polycom Factor : 

16 Polycom Factor The Polycom Factor End to End solution Owns all of the technology Raising the bar through proprietary means The TANDBERG Factor End to End solution EcoSystem partnerships Raising the bar through worldwide standards

Endpoints : 

17 Endpoints TANDBERG in review Total Solutions Endpoints

Current Players : 

18 Current Players PolyCom (4 platforms) FX, VS4000 512MP, 128, V.35, H.323, DCP, SP384, SP128 Via Video 900 Series, 600 Series (PTEL) TANDBERG (1 platform) 8000, 6000, 2500, 1000, 880, 550, Educator, HCS Sony (2 platforms) PCS 1600 6000 Others: VTEL, Gentner, Aethra, VCON etc.

TANDBERG’s market share in value has increased 50% year on year : 

19 TANDBERG’s market share in value has increased 50% year on year $ *Polycom figures from Q2 2001 are estimated and include PictureTel. Source:

TANDBERG’s Success Formula : 

20 TANDBERG’s Success Formula Focus Videoconferencing is our only business Technology leadership Quality Ease-of-use Reliability Create natural end-user experience for the application being addressed

High End Systems : 

21 High End Systems TANDBERG 6000 Polycom FX PictureTel 970 Sony 6000 TANDBERG 8000

Basics – Connections, Audio and Video : 

22 Basics – Connections, Audio and Video

High End Networks : 

23 High End Networks

High End Presentations : 

24 High End Presentations

Visual Concert FX : 

25 Visual Concert FX Visual Concert FX Direct VGA connection Viewstation FX, VS4000 Scales to 4CIF – highest resolution possible with other vendors Off-board processor for PC images only Not enough horsepower on the main unit Afterthought

Why extra pods are a bad idea… : 

26 Why extra pods are a bad idea… Two interfaces for controlling your conference Remote control Visual Concert FX play and stop buttons Another piece to clutter your table Polycom already has: External PRI or V.35 or BRI module External power supply for PRI External power supply for Viewstation External power supply for Visual Concert FX And now a Visual Concert pod too? …Sounds like a lot of afterthoughts!!!

Visual Concert FX : 

27 Visual Concert FX ViewStation SP ViewStation ViewStation FX & VS 4000 √ √ √ √ √ Receive Data Receive Data Receive Data Receive Data Visual Concert PC Visual Concert FX Visual Concert DC

Visual Concert vs. PC Presenter : 

28 Visual Concert vs. PC Presenter OR Plug in standard XGA cable and select PC on remote TANDBERG PC Presenter

High End QoS : 

29 High End QoS

High End Security : 

30 High End Security

High End Embedded MCU : 

31 High End Embedded MCU

High End Pricing : 

32 High End Pricing

Mid-Level Systems : 

33 Mid-Level Systems TANDBERG 2500 Polycom 512MP PictureTel 680 Sony 1600 TANDBERG 880

Basics – Connections, Audio and Video : 

34 Basics – Connections, Audio and Video

Mid-Level Networks : 

35 Mid-Level Networks

Mid-Level Presentations : 

36 Mid-Level Presentations

Visual Concert PC : 

37 Visual Concert PC Visual Concert PC 2 versions – PC card or software only Viewstation 512 (MP, V.35, H323) Scales to 4CIF Off-Board processing for PC images Afterthought

Why PC Cards are a bad idea… : 

38 Why PC Cards are a bad idea… Interop issues Norton AntiVirus must be removed from the PC Installing/Removing the card may cause Windows to crash (source: Polycom FAQ) PC/OS dependent Performance is tied to PC performance, old PCs will be slow What about Apple Computers? PC cards are laptop centric What about desktop PCs? I need to do a presentation, who has the card? Someone is bound to walk off with the $799 card in their PC just when you need to use the system

Visual Concert FX : 

39 Visual Concert FX ViewStation SP ViewStation ViewStation FX & VS 4000 √ √ √ √ √ Receive Data Receive Data Receive Data Receive Data Visual Concert PC Visual Concert FX Visual Concert DC

Visual Concert vs. PC Presenter : 

40 Visual Concert vs. PC Presenter Plug cable from PC Card to Microphone Pod Plug PC Card into PC Select the PC icon on your PC OR Plug in standard XGA cable and select PC on remote TANDBERG PC Presenter

Mid-Level QoS : 

41 Mid-Level QoS

Mid-Level Security : 

42 Mid-Level Security

Mid-Level Embedded MCU : 

43 Mid-Level Embedded MCU

Mid-Level Pricing : 

44 Mid-Level Pricing

Personal / Small Group Systems : 

45 Personal / Small Group Systems Polycom SP384 TANDBERG 550 PictureTel iPower Executive Sony 1600

Basics – Connection, Audio and Video : 

46 Basics – Connection, Audio and Video

Small Group Networks : 

47 Small Group Networks

Small Group Presentations : 

48 Small Group Presentations

Small Group QoS : 

49 Small Group QoS

Small Group Security : 

50 Small Group Security

Small Group Embedded MCU : 

51 Small Group Embedded MCU

Small Group Pricing : 

52 Small Group Pricing

What’s Left? : 

53 What’s Left? No competition! VGA input using VNC Native Resolutions Improved NTSC (SIF) H323/H320 H320 AES/DES Encryption H323 DES Encryption RSVP T.140 Text Chat Wireless!! (802.11b) IPLR

Last 18 months in review : 

Last 18 months in review

Polycom FX/VS4000 - 2000 : 

55 Polycom FX/VS4000 - 2000

Polycom FX/VS4000 - 2001 : 

56 Polycom FX/VS4000 - 2001

Polycom FX/VS4000 - 2002 : 

57 Polycom FX/VS4000 - 2002

PictureTel iPower - 2000 : 

58 PictureTel iPower - 2000

PictureTel iPower - 2001 : 

59 PictureTel iPower - 2001

PictureTel iPower - 2002 : 

60 PictureTel iPower - 2002

TANDBERG - 2000 : 

61 TANDBERG - 2000

TANDBERG - 2001 : 

62 TANDBERG - 2001

TANDBERG - 2002 : 

63 TANDBERG - 2002

Questions? : 

Questions?