Cinco de Mayo: Cisco loses $45M telepresence deal to Polycom

Cinco de Mayo this year has not been kind to Cisco. How so? Well, more than 2 years ago Cisco announced with much fanfare that it was rolling out 50 public virtual meeting rooms deploying Cisco TelePresence technology for Regus Group PLC. Fastforward to Cinco de Mayo 2009, according to a PCWorld report:

"Regus, a provider of rented space and service for business, is getting set to deploy Polycom telepresence suites in at least 30 locations worldwide after a similar 2007 arrangement with Cisco Systems fell through. The deal, worth more than $45 million over five years, involves Polycom equipment and Cable & Wireless network infrastructure. The first suite is set to open in London this summer, Regus CEO Mark Dixon said."

What happended? Cisco TelePresence technology ended up being too hard to implement, according to Regus CEO Mark Dixon:

"It was not possible to execute, in terms of the equipment. Maybe too early stage, I don't know. There were technical hitches and all kinds of hitches. For us, it's ease of operation, we're a normal company. If we have things that are too complicated to execute on and to implement, then in a way, that defeats the object of why you're doing what you're doing. It's to simplify your life, not to make it more complicated. In the end, we didn't go ahead because life got too complicated. ... We moved on with our lives. ... We spent a lot of time on it, and it didn't come to anything."

Regus will be deploying the Polycom RealPresence Experience 210M system which has a list price of of $299K.


What's your take, is this a bad omen for Cisco TelePresence? BradReese.Com Cisco Refurbished - Services that protect, maintain and optimize Cisco hardware Contact: Brad Reese | Twitter: http://twitter.com/BradReese

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