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Polycom Strengthens Ties with MSFT

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Polycom, Inc. (PLCM), a leading provider of audio and video conferencing equipment and related network infrastructure, is offering a software extension. This will facilitate interoperability between Lync 2013, the latest application of Microsoft Corporation (MSFT), and Polycom’s popular platform, RealPresence.

The new software extensions to the Polycom RealPresence Platform will provide Lync 2013 interoperability across Polycom’s full portfolio of video, voice and content sharing solutions (inclusive of the new Polycom RealPresence Group Series, executive desktop video systems, mobile video apps and other endpoints).

The application will help customers to arrange video meetings through video endpoints, making video calls simpler and free of IT infrastructural support.

Recently, Polycom declared its fourth quarter 2012 results. The company’s bottom line missed the Zacks Consensus Estimate whereas the top line surpassed the same. However, revenue for the quarter declined by 8.6% year over year.

At present, Polycom is undergoing 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 Communication Inc. (VZ) and AT&T, Inc. This consortium will deliver business-to-business (B2B) video conferencing through the cloud network.

The corporate video conferencing business is mainly dominated by Cisco (CSCO). So, development of such a technology will help Polycom to improve its revenue growth and retain its market position going forward.

Currently, Polycom carries a Zacks Rank #3 (Hold).

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