Magyar Telekom Puts Collaboration Within Reach of Business

Cisco today announced that Magyar Telekom is offering Cisco TelePresenceTM as a managed service in three Central and Eastern European countries: Hungary, Macedonia and Montenegro. Customers can use Cisco TelePresence for virtual meetings internally, as well as for intercompany meetings with partners, customers and suppliers. Over the next several months, Magyar Telekom is planning to extend this service to additional countries in the region.

Additionally, Magyar Telekom offers Cisco WebExTM online meetings as part of its Virtualoso managed services package, designed for small and medium-sized businesses.
Key Facts / Highlights:

* The Cisco TelePresence experience combines innovative real-time video, audio and interactive technologies to give people a wide variety of face-to-face collaboration experiences. Users feel as though they are sitting in the same room even when the distance between them is hundreds or thousands of kilometers.
* For managed intercompany Cisco TelePresence services, Magyar Telekom is deploying Cisco TelePresence systems at the customers' premises and provides the network connectivity with a dedicated virtual private network (VPN) between the locations. The service is running on Magyar Telekom's quality of service (QOS)-enabled, high security Multiprotocol Label Switching (MPLS) infrastructure.
* Customers can choose from a variety of offerings in the Cisco TelePresence product portfolio to meet the needs of their organization, from a personal Cisco TelePresence system that can sit on a desk to a large virtual meeting room that can seat up to 18 people. New systems are also available for multipurpose conference rooms, reducing the need to set aside a dedicated conference room. Since this is a managed service, customers pay a monthly fee to Magyar Telekom, thus saving on initial capital expenditures.
* Intercompany services connect calls from a Cisco TelePresence room on one corporate network to another Cisco TelePresence room on a different company's network through a secure connection from the service provider. To enable service providers to offer intercompany Cisco TelePresence commercial services, Cisco delivers a fully validated reference architecture that facilitates calls between multiple enterprise networks to traverse the service provider network with no comingling of routes, addresses or data.
* For small and medium-sized businesses, Magyar Telekom is offering Virtualoso managed services, a set of cost-efficient and highly secure communication solutions. Virtualoso Meeting is based on Cisco WebEx, which enables meeting participants to simultaneously share files, carry out a telephone conference through a Magyar Telekom integrated audio bridge, connect via video, exchange chat messages, hold Web polls, and do all this in a highly secure online environment. Meetings can be accessed not only from inside the company but also by outside partners, vendors and customers, without the need to purchase additional hardware or software or set any specific configurations. The system can be used for training and education purposes, for help desk and customer service activities, as well as for online conferences. Customers are supported by a 24x7 service.
* KFKI, a subsidiary of Magyar Telekom and a Cisco Gold Certified Partner, as well as a Cisco TelePresence Advanced Technology Provider in Hungary, designed the managed service offering and provides system integration as well as the Cisco TelePresence meeting reservation software component.

Supporting Quotes:

* Istvan Papp, chief operating officer of Magyar Telekom, head of Business Services Business Unit (T-Systems)

"A paradigm change is taking place in IT: instead of the purchase of entire systems, the focus is shifting towards the lease of solutions and applications. The principal advantage of managed services is that companies do not need to make upfront investments and can use their innovation budget to develop and expand their own core activities."

* Otto Dalos, client executive, Cisco Hungary

"With supply chains characterizing most of today's economy, communication and collaboration is becoming a key business function for organizations. Magyar Telekom was early to respond to this need and is now one of the first service providers in Central and Eastern Europe to offer a complete set of intercompany-enabled collaboration solutions for any size company, be they virtual meetings via Cisco TelePresence or online collaborations via Cisco WebEx online meetings. "

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European Businesses Feel More Exposed to IT-Driven Market Disruptions

European business leaders believe their companies are more vulnerable to IT-enabled market disruptions than companies anywhere else in the world, according to a new research paper released today by McKinsey & Co.

The McKinsey paper, 'Time to Raise the CIO's Game: A Call to Action for European Companies', found that 74 per cent of European business leaders believed their company was 'very' or 'extremely' exposed to IT-based market disruption, yet only 18 per cent of European IT executives believed their companies were very effective at introducing technologies faster and better than their competitors.

According to McKinsey, European companies need to grasp the opportunity to make bold, transformative moves to ensure their business continues to thrive in the 'new normal' economic environment. A significant number of businesses have recognised the need to adapt, with 31 per cent of European executives saying the development of new products and services in response to changing consumption patterns was a priority.

However, the McKinsey paper found that the attitude of European business leaders towards IT must shift. McKinsey notes that to date, European IT functions have achieved 'satisfactory' results by attaining some success in improving IT productivity, operational productivity, or innovation. However, in the 'new normal', the performance bar is much higher and 'IT must truly excel in all of these dimensions to support a winning company'.

Cisco's experience echoes the McKinsey findings. Cisco believes that reinventing the customer experience through new business models, value propositions and service delivery, coupled with creating a borderless organisation that overcomes cross-functional and cross-border barriers, is crucial for business success in the new normal economic environment.

To succeed in the 'new normal', McKinsey recommends that European companies:

* Align IT and the business
o Improve governance models to facilitate joint decision making and strategic planning between IT and the business
o Upgrade business skills of IT leaders
* Close performance gaps
o Fundamentally restructure the IT function to dramatically improve productivity
o Transform the company's operating model and cost structure with IT-enabled business processes
* Enable transformative moves
o Identify opportunities for IT-enabled innovations and be prepared to respond to competitors' disruptive moves
o Promote a mindset that fosters and rewards experimentation with new ideas

Key Facts / Highlights

* McKinsey says companies have begun to recognise that the current recession is 'not simply another turn of the business cycle but a restructuring of the economic order' and that they need to look beyond relieving short-term cost pressures to maximise their ability to respond to long-term change. The current economic environment should be treated as the 'new normal' conditions.
* The paper found that business leaders in Europe expect the operating environment to remain challenging despite recent data pointing to a bottoming out of the economic downturn.
* Despite pessimism from European companies about the economy, 31 per cent of European executives placed a priority on the development of new products and services in response to changing consumption patterns.
* CIOs tend to report to CEOs less frequently in Europe than they do in other parts of the world: Only 31 per cent of CIOs report to CEOs in Europe, as opposed to 56 per cent in North America. Seventy-one per cent of European IT and business executives told McKinsey that IT and business strategy should be tightly integrated, but only 27 per cent considered that to be the case at their companies. The data suggests a continued bias on the part of business leaders for IT to focus on back-office operations, rather than on leading strategy and growth.
* Some executives do not believe IT is a critical enabler of business success: a third of European IT and business executives in the McKinsey paper did not view IT as among the top three levers in creating a competitive advantage.
* However, business executives do believe there is room for improvement in partnering with business leaders to deliver new ideas or enhancements to existing processes and systems (81 per cent) and new business capabilities supported by technology (77 per cent).
* McKinsey found that using IT to support operational improvements in the business can provide up to 10 times the impact of efficiency programs in the IT function alone. Technology enablement allows companies to radically transform their operating models and cost structures.
* European CIOs must overcome not only performance issues similar to those faced by other CIOs around the world, but also structural factors in Europe that pose significant hurdles to pan-European productivity and efficiency. They include cultural, language, regulatory and legislative differences across countries, and the legacy of mergers and acquisitions activity that has left many organisations with complex IT environments / governance issues.
* The McKinsey paper finds that achieving closer alignment between IT and business requires improving governance processes and increasing the breadth of skills within the IT leadership group. McKinsey says companies must recognize that technical skills are no longer sufficient for leadership within the IT function and need to be supplemented with business skills.
* McKinsey research has shown that downturns are times when industry leadership often changes. Forty-eight per cent of global IT companies and 40 per cent of U.S. industrial companies that were leaders before the 2000-01 recession did not retain their leadership positions afterward.
* 74 per cent of European business leaders believed their company was 'very' or 'extremely' exposed to IT-based market disruption, yet only 18 per cent of European IT executives believed their companies were very effective at introducing technologies faster and better than their competitors.

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Cisco Expands Digital Media Suite

Today, at the Digital Signage Show in New York, Cisco introduced new technology, partner program and service offerings for organizations interested in deploying network-based digital signage solutions to enhance customer experience, deliver communication and training, and accelerate sales. Cisco expanded its partner ecosystem and added new features and capabilities to its Cisco® Digital Signs solution with a focus on the creation, management, reporting and playback of digital media.

Cisco Digital Signs, part of the Cisco Digital Media Suite (DMS), is a complete digital signage system that integrates management software, network-based media players and liquid crystal displays (LCDs). Combined with end-to-end services and a robust partner ecosystem, Cisco Digital Signs delivers the most comprehensive digital signage offering.
Facts/Highlights:

* The new Cisco Digital Media Designer provides content creators with a simpler way to develop vibrant and compelling digital signage content with new layout features, enhanced image effects, new playlist capabilities and a library of templates.
* New proof-of-play content performance and screen status reporting deliver more sophisticated advertising capabilities to drive revenue.
* Interactive applications with touch screens and expanded support for wireless and music on network-based media player appliances build on the core functionality of the Cisco Digital Media Player 4400 Series platform.
* New application program interfaces (APIs) and software development kits (SDKs) enable partners to use Cisco technology to develop innovative digital signage solutions for customers, extending the benefits of digital signage to a variety of deployments.
* New platform interfaces, now accessible to developers via the Cisco Developer Network, enable customers to choose solutions from a community of technology developers who are building on the capabilities of the Cisco Digital Signs system.
* Cisco Digital Media Creative Services (DMCS) creates and transforms assets for digital signage to support communications goals and optimize the Cisco Digital Signs investment. Cisco DMCS fosters creativity within a disciplined yet flexible content framework and provides services that address each stage of a digital signage deployment.
* A key component of Cisco's Business Video portfolio of systems, Cisco DMS delivers a full spectrum of digital media applications to create powerful visual networking experiences. In addition to Cisco Digital Signs, Cisco DMS includes Cisco Cast, a business IPTV solution, and Cisco Show and Share, a new social video system to enable highly secure online video communities for the enterprise.

Supporting Quotes:

* Thomas Wyatt, vice president and general manager, Digital Media Systems and Media Processing Business Units, Cisco

"Cisco's digital signage business has grown five times as fast as the industry this past year, with thousands of customers deploying around the world. As we continue to grow our leadership in the digital signage market, we are partnering with our customers to drive innovation across the entire Cisco DMS product portfolio. The new offerings in this latest release of Cisco Digital Signs will complement Cisco's unmatched level of service and broad partner ecosystem to deliver a one-stop shop for digital signage."

* Wayne Willis, retail marketing and merchandising manager, CenturyLink

"At CenturyLink we use Cisco Digital Signs to promote our products and services in a customer-friendly environment, while adding a unique visual appeal to our retail locations. We are looking forward to Cisco's upcoming touch-screen capabilities, which will provide interactive functionality for our customers and retail service representatives."

* David Wible, CEO, Industry Weapon

"Cisco continues to show its commitment to the digital signage industry through its ecosystem partnerships."

* Brian Hudson, multimedia coordinator and producer, Sutter Health

"Cisco Services helped our Sutter Health team strategically plan, design and implement our digital signage deployment across our system office and some of our hospitals. In addition, the Cisco Academy of Digital Signage provided our content creators with a one-stop shop for understanding all of the possibilities in using this dynamic medium to meet our business objectives. With Cisco Services' focused support, we hope to maximize our return on investment and possibly expand our internal Sutter Broadcast Network across all of our Northern California hospitals, physician organizations and other health care service providers."

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Cisco Extends Zero-Percent Financing in Europe

Cisco today announced that it is expanding the Cisco CapitalSM EasyLease zero-percent financing program in Europe to include all Cisco® products and solutions, while also doubling the maximum deal size up to £200,000 or €250,000 until the end of July 2010. By dramatically expanding its popular zero-percent financing initiative, Cisco is providing European small and medium-sized companies with an innovative financing option to acquire the technology they need to grow their business.
EasyLease Offer Details:

* Zero-percent financing is available to help businesses make technology investments where Cisco technology accounts for 70 percent or more of the total value of the solution.
* Zero-percent financing agreements run for a maximum term of 36 months (42 months in Italy), subject to terms and conditions, and are available for the financing of Cisco solutions ranging in price from £1000/€1000 to £200,000/€250,000.
* EasyLease financing is available through Cisco Certified Partners and enables partners to deliver a complete end-to-end technology solution to their customers.
* The offer is currently available in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom

Supporting Quotes:

* Tim Shockley, European director for Cisco Capital, said:

"Extending zero-percent financing provides customers with the opportunity to invest in technology today, helping to boost productivity and efficiency with the latest Cisco equipment. At a time when capital budgets are limited, we are enabling businesses to prepare themselves to emerge stronger when the economy recovers."

* Javier Aguilera, director, Aryse, Cisco Premier Certified Partner, said:

"One of the biggest challenges of operating in an uncertain economic climate is finding alternative financing options to allow our customers to implement new technology solutions. Financing through Cisco Capital helps alleviate budget issues while streamlining and simplifying the technology acquisition process."

* Thierry Drilhon, vice president of worldwide channels, European Markets, Cisco, said:

"Financing is a key component of Cisco's ongoing commitment to help its channel partners navigate the economic downturn and accelerate in the upturn. With the expansion of EasyLease, we are helping European channel partners unlock deals, grow sales and increase profitability."

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Cisco TelePresence Certifications and Cisco 360 Training for Voice Elevate Skills

In response to sharply increasing market demand for advanced telepresence and collaboration solutions, Cisco today announced an extension of its education program to ease the adoption of these networking technologies. Two new certifications validate the skills that professionals need to implement and support Cisco TelePresenceTM deployments. The Cisco® 360 Learning Program for CCIE® Voice provides relevant, role-based training to build expert-level skills and help participants prepare for the rigorous Cisco CCIE Voice Lab Exam.
Key Facts/Highlights:

* With its leading position in video and voice applications across business, government, service provider and consumer segments, Cisco is well-equipped to provide skills development training for mainstream IT professionals.
* Cisco TelePresence delivers immersive, face-to-face experiences for organizations around the world. Deployed in conjunction with eight global service providers, intercompany Cisco TelePresence services allow company personnel to meet with remote teams, suppliers and customers.
* Frost & Sullivan predicts the telepresence market may reach $4.7 billion in revenue worldwide by 2014.
* Analysis from IDC and Cisco indicates that the compound annual growth rates (CAGRs) for intercompany telepresence network services and multipoint telepresence network services are 209 percent and 154 percent, respectively.
* According to the Cisco Visual Networking Index: Forecast and Methodology, 2008-2013, Internet video is now approximately one-third of all consumer Internet traffic, and by 2013 the sum of all forms of video (IPTV, video on demand, Internet and peer-to-peer) will account for over 91 percent of global consumer traffic.

Cisco TelePresence Certifications:

* Cisco is releasing two specialist certifications that focus on Cisco TelePresence systems and solutions: the Cisco TelePresence Solutions Specialist and the Cisco TelePresence Installations Specialist.
* The Cisco TelePresence Solutions Specialist certification focuses on the job-performance needs of a midcareer voice specialist or networking engineer who seeks to specialize in the planning, design, implementation (PDI) and maintenance of Cisco TelePresence deployments. Tasks include assessing network paths for rich media, evaluating call-control design options and configuring interoperability functions. The CCNA® certification is a pre-requisite.
* The Cisco TelePresence Installations Specialist certification focuses on the job-performance needs of an installation technician seeking to master the physical deployment and construction of single-screen Cisco TelePresence Systems (the 500, 1000, 1100 and 1300 series). Tasks include assessing room readiness, tuning cameras/microphones and installing high-definition screens. While there is no pre-requisite certification, a working understanding of basic Internet-based device connections is highly recommended.
* Information about courseware and exams is scheduled to be available in early 2010 at https://learningnetwork.cisco.com/.

Cisco 360 Learning Program for CCIE Voice:

* The Cisco 360 Learning Program for CCIE Voice provides experienced network engineers with an effective and job-relevant program to build expert-level skills and to prepare for the rigorous and continuously evolving Cisco CCIE Voice Lab Exam. Candidates should have already passed the CCIE Voice Written Exam before beginning this program.
* With flexible 24/7 access to labs and content, and expert-level mentoring and training from the IT industry's elite instructors, 360 Training for CCIE Voice strengthens the students' command of technical topics and develops the skills necessary to tackle the types of expert-level configuration and troubleshooting challenges that appear in real-life unified communications networks.
* This program has proven to be the best path for experts to adopt if they are trying to maximize their hands-on knowledge and troubleshooting skills. It was created using Cisco's own deep knowledge as well as that of leading experts around the world.
* The new program is scheduled to be available through Authorized Learning Partners on Dec. 7, 2009.

Supporting Quotes:

* Jeanne Beliveau-Dunn, general manager, Learning@Cisco, said:

"As network environments become more complex and sophisticated, incorporating the latest collaborative technologies can help businesses expedite decision making, enhance productivity and improve relationships. The implementation of these advanced technologies requires highly trained IT professionals to manage escalating end-user needs for real -time collaboration. Cisco authorized training and certifications provide organizations and individuals with the technical knowledge and expertise needed to capitalize on the evolution of networking technology."

* Cushing Anderson, program vice president for IDC's IT Education and Certification research, said:

"The rapid evolution of video and voice collaboration technologies provides a tremendous opportunity to change the way the world communicates and represents a complex addition to the skills and capabilities of network and voice administrators and developers. Market-focused education and certification programs for new job roles such as video, voice and telepresence specialists are essential to assure the return on enterprise investments in these new technologies is fully maximized."

* Irene Kinoshita, president, Ascolta, said:

"Video and unified communications are fundamentally changing the way our business operates. By providing job relevant training and certification to support these converging technologies, Cisco is opening the door for network engineers to further their careers, provide value to their employers, and deliver unprecedented opportunities for collaboration around the world."

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Cisco Disclosure of TANDBERG Share Acceptances

With reference to the announcements made on October 1 and October 12, 2009, regarding the voluntary public cash offer to acquire all outstanding shares in TANDBERG, Cisco® (NASDAQ: CSCO) has received acceptances representing 7,919,338 shares in TANDBERG (OSLO: TAA.OL). Following receipt of these acceptances, Cisco holds rights to acquire 10,493,298 shares in TANDBERG, representing 9.37% of the shares and voting rights in TANDBERG.

Save as set out above, Cisco and its related parties do not hold any shares or rights to acquire shares in TANDBERG. This information is made subject to the disclosure requirements acc. to §4-2 (2) of the Norwegian Securities Trading Act (Verdipapirhandelloven).

Soon after expiration of the extended offer period on Wednesday, November 18, 2009, at 5:30 pm CET, Cisco will announce whether the 90 percent condition for the offer has been met. If not, Cisco will evaluate whether or not to withdraw the offer.

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Cisco Extends Acceptance Period for Recommended Offer to Acquire TANDBERG

Cisco is extending the acceptance period for its recommended public cash offer to acquire all outstanding shares in TANDBERG (OSLO: TAA.OL). The extended offer period expires at 5:30 pm (CET) on November 18, 2009.

The terms and conditions set out in the offer document remain in place during the extended offer period. The offer document has been sent to all registered shareholders of TANDBERG as of October 2, 2009, and is also available on Carnegie's web site: www.carnegie.no.

As announced on October 1, 2009, the board of TANDBERG has unanimously recommended that shareholders accept a voluntary cash offer for 100 percent of the shares of TANDBERG. A cash consideration of NOK 153.50 will be offered per share, valuing the total share capital of TANDBERG at approximately NOK 17.2 billion.

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