Video Conferencing Consolidation in Full Swing

Ever since I first covered Polycom (NASDAQ:PLCM) two years ago, I have speculated about consolidation in the sector. Videoconferencing has gained importance due to globalization, offshoring, the financial crisis and the attendant recession, and the need to save more in travel dollars. Now there is a flurry of acquisition activity and consolidation in video conferencing which began with Cisco’s proposed $3 billion acquisition of Tandberg (OSL:TAA). The bid has yet to be approved by Tandberg’s shareholders, but yesterday Logitech (NASDAQ:LOGI) acquired LifeSize, another videoconferencing player for $408 million. What are the implications of this trend? >>>

Online Roundtable For Entrepreneurs At 8 a.m. PST

Sramana Mitra’s next free, online positioning roundtable begins at 8 a.m. PST/11 a.m. EST/9:30 p.m. IST on November 11.  You can find more details and register here.  We hope you’ll join us!

HP Acquires 3Com For $2.7 Billion

There were several options for HP to combat Cisco in the networking arena, including Brocade and Polycom. It looks as though they have chosen to go after Cisco front and center by acquiring 3Com. The latter has done a marvelous turnaround in the past three years. The stock has moved steadily up, and now HP is paying a 40% premium to make 3Com central to its networking strategy ($7.9 a share).

3Com’s China cost-structure has got to be the biggest driver, making it attractive for HP to hit Cisco where it really hurts. HP’s global channel will give 3Com’s products an excellent reach into the heart of enterprise and SME networks, as companies look to reduce total cost of ownership across the board.

Cisco’s margins will take a hit as competition strengthens. HP’s move is the most definitive indicator of what is to come.

P.S. I also believe that HP will acquire Brocade and Polycom subsequently.

Deal Radar 2009: Sheet Music Plus

I have talked at length about the potential for Web 3.0. Today, we will look at a company that is doing well as a web 1.0 company, but can take its business a great deal further if it applied web 3.0 principles. SheetMusicPlus.com, located in Emeryville, CA, is the world’s largest online retailer of sheet music. In today’s digital era, this company supplies a paper product and is profitable even in the current poor economy. The site offers music from over 1,000 publishers spanning a multitude of music genres from the most specialized to the most popular for all types of musicians, teachers, and instruments. Its breadth of offerings ranges from classical to country, vaudeville to gypsy jazz and more. Clearly, an excellent identification of context. >>>

Broadcom, Qualcomm, Legal Battles

The two leading chipmakers, Broadcom (NASDAQ:BRCM) and Qualcomm (NASDAQ:QCOM) have recently reported their results. While Qualcomm is enjoying a more stable legal environment after ending its disputes with Nokia and Broadcom and extending its patent deal with Samsung, Broadcom is getting involved in a legal tug-of-war with Emulex. Let’s take a closer look. >>>

Window Into Web 3.0: Blinds.com CEO Jay Steinfeld (Part 7)

SM: How are you able to increase gross margins when prices and demand are going down?

JS: In a bad economy, if you are strong and well financed, you have an opportunity to talk to manufacturers who are hurting from decreased demand. We offer to pay them very quickly if they give us better prompt payment discounts. If we buy more from them, then we start getting better volume pricing. >>>

Deal Radar 2009: Eloqua

Eloqua, a provider of SaaS marketing automation platforms, was founded in 1999. Eloqua integrates direct marketing, interactive marketing, lead generation, and sales force automation to turn customer acquisition into a measurable process. There are now many companies in this space, but industry experts estimate that only 10% of B2B marketers use marketing automation systems, leaving the field wide open for Eloqua and its competitors. >>>

Clean Water Need Grows Ever More Urgent

Fortune magazine estimates the water desalination industry to be worth $30 billion and expects this figure to double by 2016. Another publication, Global Water Intelligence, suggests that we will need to triple global desalination capacity to meet the growing demand of potable water. Today, nearly 20% of the global population, or approximately 1.3 billion people, lack access to potable water. This number is expected to grow to one-third of the population by 2025. But even as demand increases, the water supply decreases. For example, the world’s two most populous countries, India and China, cultivate 15% of their grains using ground water – most of which is expected to dry out. Governments, keenly aware of the seriousness of the problem, are funding nearly $480 billion in water projects in the next two years. In this context, companies such as Energy Recovery, Inc. (NASDAQ:ERII), which offers highly efficient desalination solutions, will surely grow. >>>