Cisco TP in Australia

[MCN]

I have just read that Telstra have sold Cisco TP to the Federal Government of Australia also claiming the largest TP deployment to Government anywhere in the world.

What is interesting about the article is they say they have sold 370 TP units globally. Interesting as I have read other Cisco marketing that says they have sold 1000 globally. If they have sold 370 - I guess the other 630 have been deployed for free (including those installed within Cisco themselves).

It looks like Telstra has decided to get on board with Cisco TP. I wonder if this is a sign of things to come with the big service providers globally bundling up TP with network costs (similar to mobile phones). Maybe this is the demise of the typical AV or Systems Integrators as the Telco's bundle network and TP which means the other guys can't compete.

Is bundling anti competitive - or is just what we all want?

Any views?

[mrc102]

No - bundling isn't anti competitive at all.

This specific deal (Fed Gov) isn't a bundle at all - FYI.

Telstra does have another product which is a bundle. Basically, it is a video endpoint (Polycom Media Centre or HDX4000), and gives the connectivity, along with all the infrastructure services as well offered for a flat monthly fee with no CAPEX. It also offers B2B capability if you want it. While this is a bundle, it has gone through all the authorities to ensure that it isn't deemed anticompetitive. I believe this is the only offer of it's type in Australia - but there is nothing stopping anyone else from doing something similar.

The Fed Govt deal is pretty good for the industry - it gives cred to the telepresence concept regardless of the vendor. Watch TP sales go through the roof in the next couple of months.

Oh - Cisco have got 2000 out there world wide at the moment. Not sure where the figures came from in the press release. There are about 180 odd in Australia - of which Telstra has sold more than 50%.

[MCN]

Hi MRC102

Thanks for the reply.

You seem to be more well informed on Cisco TP sales then Cisco staff.
I take it you work for Telstra too.

If you look at what TP - it is really video conferencing with some furniture (immersive you might say).
The Cisco 1000 and 500 is a single codec / single screen - so it really does fit into the 'normal' video conferencing model.
According to Wainhouse - Tandberg and Polycom sold approx 140,000 normal video endpoints in 2008.

That being the case - if I use you numbers - then 3000x Cisco solutions (and mind you Cisco dont report actual sales - nor do they at any stage break up actual sales versus give aways / channel partner buy so these numbers are not really based on hard facts - more marketing)- We also don't know the break up of 3000 / 1000 / 500 units. They lump them all into TP sales.

so even if I take the 'best numbers' you have provided - a CTS3000 - which is made up of 3x codecs - then this is a total of 9000x codecs.

I am not sure what you mean by - 'watch TP sales go thru the roof'.
It would seem to me - that Video sales are already going through the roof - Cisco is simply making people feel that TP is not video - which is rather amusing when they have a 500 / 1000 product that look suspiciously like anyone else normal video solution but with furniture.

If Cisco are into immersive 'feelings' now (adding furniture to their network sales) - then perhaps they will start selling office desks with telephones - immersive audio presence.

Don't get me wrong - I think it is great Cisco are talking about video conferencing - it is helping all of us.
But to think TP is going to take off - come on - it is video with a different name.

I also think it is good if a telco like Telstra decides to start selling video. Video has for ever required a network. Makes sense the telco's start selling.

thanks

[mrc102]

I take it you work for Telstra too.

Correct.

it really does fit into the 'normal' video conferencing model.

I don't agree with this necessarily. I agree with you when you break away from the lifelike concept i.e. when the person isn't represented in full size - as in the CTS500. I don't believe that the CTS1000 and 3000 should be classified as 'normal' VC. IMHO.

I am not sure what you mean by - 'watch TP sales go thru the roof'.

I mean that you will see 'immersive' video conferencing i.e. Polycom TPX/RPX/Cisco/Tandberg T3 sales grow a lot faster than has happened historically. This won't necessarily detract from the percentage growth of 'normal' VC though, but can be seen to be as cream on the top of our industry's growth. Again, IMHO only.

then perhaps they will start selling office desks with telephones - immersive audio presence.

It would appear by this statement that you are either anti-Cisco or anti-Telepresence, which is fine. I would like to point out that the rest of the market is following suit with Cisco's position (and in some instances Cisco is following the lead of others who have been doing this for some time i.e. Destiny Conferencing who was acquired by Polycom).

I also think it is good if a telco like Telstra decides to start selling video. Video has for ever required a network. Makes sense the telco's start selling.

Telstra is Polycom's only Platinum Partner in Australia, and equally Telstra have a strong partnership with Cisco. Telstra have been selling video for many years already and have a great deal of experience in this area. Telstra are also one of the only companies in Australia who can deliver a true E2E solution for a customer. It surprises me that the other major carrier in Australia hasn't adopted a similar approach as yet, but I'm sure that it will come.

Regards,
MRC102

[smglass]

Can anyone post any legit information on this "Cisco holding largest market in the Fed Gov sector" that everyone keeps claiming?

I work in this sector in the US for VTC and I must tell you, TANDBERG owns it completely. Same with the Cisco commercial that shows a TP out in IRAQ or some other middle eastern nation. Again, TANDBERG owns this sector completely. Matter of fact, the only people who "may" have a bigger margin for the Mil aspect of Fed's is Skype (as crazy as that sounds). I can confirm that Cisco does not exist anywhere on Capital Hill or it's surrounding Fed buildings (not even as a phone system) and they don't exist in the Pentagon. They aren't on many of the Mil bases, with the exception of a small handful of office buildings using their extremely lower end phone systems.

Maybe they have a niche in the local or county governments?

Give me a heads up if you have any real information that is provable/trackable. I am trying to make sure that I stay with the more correct niche company for my contracts.