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Tickers in this Article: MSFT, PLCM, T, CSCO
A leading provider of video and audio conferencing equipment and related network infrastructure, Polycom, Inc. (PLCM), will boost Microsoft Corporation’s (MSFT) popular Lync server. Polycom will offer 360-degree, panoramic 1080p HD video support through Polycom CX5500 and CX5100 Unified Conference Stations.

The Polycom CX5500 or CX5100 arranges for a 360-degree panoramic view of the room. They also track the conversations at 30 frames per second through 1080p active speaker video, improving clarity.

An innovative user interface and design facilitates the launching or joining of a call from Lync. To use the facility, users will have to connect Polycom CX5500 and CX5100 to a computer running Lync, through an USB.

Lync server offers instant messaging, voice and video creating a great platform to conduct meetings. It also facilitates Skype connections. Polycom is already offering its 40 different video, voice and file sharing solutions to Microsoft’s Lync.

The CX5100 technology is expected to hit the market in September while CX5500 will be available from the fourth quarter of 2013. However, Lync customers can easily avail these new apps from August.

In Jan 2013, Polycom entered into a strategic agreement with AT&T Inc. (T), to offer cloud-based video conferencing services to different organizations. According to the company, the collaboration will mobilize and virtualize video meetings, thereby easing video communication. Earlier, the company had entered into an agreement with Dr. Reddy’s Laboratories Limited to offer RealPresence Experience (RPX) to the India-based pharmaceutical company.

In Mar 2013, Polycom also launched a HD voice technology called SoundStation Connect technology, which provides sound clarity during a meeting by eliminating background noise.

The corporate video conferencing business is mainly dominated by Cisco (CSCO). So, we believe that the development of such groundbreaking technologies coupled with the strategic alliances will help Polycom to improve its revenue growth and retain its market position.

Currently, Polycom carries a Zacks Rank #2 (Buy).

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