Google Acquires Marratech

Google has quietly acquired Marratech, a video conferencing start-up company based in Sweden. Marratech was incorporated in 1998, has less than 20 employees and does about $1M in revenue. They were originally a spin-off from the Centre for Distance-Spanning Technology at he Lulea University of Technology.

On a personal level, I always thought WebEx might be a great acquisition target for Google but as it turns out, Cisco beat Google to the punch with a $3.2 billion acquisition of WebEx last month.

The Marratech solution is not web-based but desktop-based and has basic functionality like video, chat, whiteboard, etc. The solution includes a freely downloadable client and a server, called the Marratech Manager. The latter is available as a free server (limited to 5 users) and a licensed server.

The Google Blog stated that the acquisition was to enable Google employees, "Googlers," to share documents internally. Rather than Google building their own internal colloboration solution, they decided to buy Marratech.

Financial details have not been released as of yet.

Thanks,
David Chao
The Web Conferencing Blog

Sales Sense...The 6th Sense

In my sales career, I have been fortunate to have worked with some of the best sales reps. It's always interesting to examine the characteristics of the very top performers compared to the average performers. What is the secret formula? Is it product knowledge, sales experience, vertical market expertise, asking the "right" questions, or having a defined sales process? Perhaps a bit of all of them is important, however, I think the 6th Sense, Sales Sense, is the differentiator between the very top performers and everyone else.

What is Sales Sense?

Sales Sense is having a sense of SELF. Understand who you are, what's important to you, what your goals are personally and professionally. Having a sense of self is critical since the projection of yourself is what buyers see and feel. Many people have often told me that people buy from people way before they buy a product, service, brand, or company.

Sales Sense is having a sense of OTHERS. Understand other people's feelings and listen to what they say as this will help you craft impactful value proposition statements and questions that draw out information as to what is truly important. Understanding how people think, process information, evaluate risk, and if they are in a position to buy. Often times, sales reps jump the gun and ask for the business much too soon, only getting a firm, "We are not ready yet." Having a sense of others enables the best sales reps to know when to close because they know that a "Yes," will follow. Realistically, any sales reps can trial close since it's not very hard to ask trial close questions, it's knowing to ask and knowing when all the right pieces are in place. You know this by having a sense of others.

Sales Sense is having a sense of SITUATION. This is all about paying attention to the little details and not overlooking anything. Everything the prospect says is for a reason so listen. It's your job to advance the sales process forward with subtle control...by asking questions. The more questions you ask, the more two way communication you get. Concentrate on the situation not how big your commission check will be if you close the deal. Focus on the situation, things you missed, potential risks, competition.

If you have Sales Sense, you will win your sales engagements and become a top sales performer.

Thanks,
David Chao
The Web Conferencing Expert

GoToWebinar's Limitations

GoToWebinar, an extension of GoToMeeting, has gained some buzz in the market, mainly because it's so cheap. Kind of makes you wonder 1) How Citrix is making money from it? 2) How good or reliable is the solution? The old adage, "You pay for what you get," certainly rings true with all the GoTo products and GoToWebinar is nothing short of this.

Example 1. When sending out email invitations to a webinar, the coordinator needs to manually forward the registration details and invites. Citrix recommends that you Bcc: all email addresses for added privacy. What if you forget to do this? Well, everyone just inherited a email marketing list that you spent years building.

Example 2: GoToWebinar lacks a custom registration page so the coordinator cannot track registration in stages: Pending, Rejected, Approved, Updated, etc.

Example 3: GoToWebinar forces you to use their outsourced 3rd party solution, FreeConferenceCall.com (Click here to read details about Cingular, Sprint, ATT battling this Citrix partner.) (Article 2) GoToWebinar does not offer Audio Broadcasting, Integrated VoIP, or dial-out to attendee capabilities. These three telco giants are looking to block all Citrix audio users from using FreeConferenceCall.com Do you want to be caught up in the chaos? Who do you think is going to win this battle?

Example 4: Speaking of block. GoToWebinar and GoToMeeting are notorious for "blocked URL's." Companies will block the GoTo URL's so their employees cannot join GoTo session, mainly because these GoTo sessions are not backed by any 3rd party security certifications which means companies run the risk of computer viruses, worms, trojans, etc.

Quinlan Eddy, CEO of StarAnalytics, switched from GoToMeeting/GoToWebinar to WebEx because his company had recurring issues where the companies they were trying to meet online with blocked the GoTo URL's. In one instance with Citibank, Citibank simply told them they were no longer interested in seeing the demo. Lost revenue???

Example 5: If you want to record your webinar, GoToWebinar requires that you have an input device like a microphone connected to your computer and then configured to the GoToWebinar audio settings. (I'm already getting lost with what this all means and how to set it up...) Click here for the full list of instructions. Wouldn't it be nice if you could just click "Record," and your webinar would be recorded?

Another thing to consider during the GoToWebinar recording. You are required to have 1 GB of available storage, download a G2M2 recording codec, and are expected to wait 45 minutes for a 60 minute recording to "convert." Citrix recommends that you do nothing on your computer during this 45 minute conversion since the recording/conversion process requires lots of CPU.

Example 6: GoToWebinar CANNOT support the following:

• Lead source tracking ID's
• Automated lead scoring
• Integration into CRM marketing campaigns
• Online calendar of events
• Custom enrollment email messages
• Production services
• Custom animations in PowerPoint
• Virtual whiteboard
• Video streaming
• Integrated VoIP
• File transfer
• Real-time communications as everything relies on their Citrix Metaframe Presentation Server

At the end of the day, with all the GoTo Products, you pay for what you get. If you are willing to risk a failed event, perhaps lost business, damaged reputation, it might be a viable solution. Otherwise, if you are like most companies who are looking to minimize their investment risk and want to do all the right things, go with a market leader, a trusted and proven solution.

Thanks,
David Chao
The Web Conferencing Expert

Cisco Buys WebEx (Podcast)

Cisco to Acquire WebEx: Enabling Collaboration in the SMB Market

March 15, 2007 - CDO Charles Giancarlo speaks on acquisition: The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications.

Listen to the podcast

Cisco Acquires WebEx

Earlier this week, Cisco (CSCO) entered a definitive agreement to acquire WebEx (WEBX) for $3.2 billion cash buy out. WebEx CEO Subrah Iyar must have had his negotiation hat on as he delivered a hefty 25% premium on the deal for all WebEx shareholders. It's interesting to me that Cisco is buying WebEx for $3.2 billion when WebEx's 2006 revenue was $380M. The numbers just don't add up unless there is some significant strategic valuations in play...the WebEx Connect Strategy perhaps???

WebEx will operate as an independent business unit with Subrah Iyar reporting to Charlie Giancalo, Cisco Chief Development Officer and President of Cisco-Linksys. Download Charles_Giancarlo_bio_3.2.07.pdf

More details on the story

PC Now 3.0 for Mobile Devices

Imagine having the ability to access your PC from either another remote PC or your mobile device, such as your cell phone!

Key Capabilities of PC Now 3.0:

• You can run any application and access the entire desktop
• You can access your email, files, folders and your computer's network resources
• You can transfer files to and from your remote computer
• You can print a document on the remote computer to your local printer without having to install any applications or print drivers

Key Benefits of PC Now 3.0:

• Avoid commuting and rush hour traffic by working from home
• Demonstrate software products without having to install them onsite
• Travel without taking your laptop - especially useful with the additional security these days
• Check your office email and schedules from an airport kiosk
• Forgot to copy a document or presentation to your laptop before a business trip? Just copy it across using WebEx PCNow.

Multiple Security Layers of PC Now 3.0:

• No need to open any ports in your firewall
• End to end SSL encrypted
• Two levels of authentication
• Unique phone authentication for very high security
• You can protect your privacy
• Blank the screen of the remote computer so no one can see what you are doing
• Lock the keyboard and mouse of the remote computer so no one else can interrupt it
• Logout or screen-lock the remote computer after your session is complete- WebEx PCNow will let you log back in
• You control what folders are setup for remote access and any access can be further protected by a unique password.

PC Now 3.0 is significantly easier to use then VPN or Microsoft Remote Desktop. There is no dependency of computers having to be on "the network" and there are no restrictions on what version of Windows you are running. VPN can be costly, time consuming to setup, require special configurations on the firewall, and are still very manual based.

Try PC Now!!! ($12.95 per month per PC)

Thanks,
David Chao
The Web Conferencing Expert

SMB Predictions for 2007

The other day I was talking to a small business owner of an advertising agency in New York City with about 35 employees. We got into a lengthy conversation about how his company differentiates itself from all the other New York ad agencies, what some of the common marketing mistakes typical businesses make and what he wants people to think about when they hear his company's name.

What I found interesting is that even though his company is "small" and private, he views his company as an industry giant, as a company that is no different than an Omnicom Group.

"Yes I'm a small business but I have the same challenges and concerns as the big guys. I worry about internet security, bad New York weather, and believe it or not...I even worry about federal regulations. In fact, because I'm small businesses I need to address these things even more so because it could put me out of business! One federal penalty, for whatever reason, and I might not be able to recover from it financially. One computer virus could infect the network, infect customer data and equate to lost business. I can't afford that so I need to be proactive and forward thinking."

The conversation sparked my predictions for 2007 for Small Businesses:

1. Internet Security for the real life example listed above
2. Remote communications: wireless internet connections, smartphones, voip, Blackberries. Work smarter and more efficiently.
3. Web Collaboration Technologies like WebEx to increase corporate productivity, shorten sales cycles, increase market reach, improve customer retention and satisfaction while reducing travel time and cost. Do more with less.
4. Asset Utilization and Optimization. Leverage new technologies with strong integration capabilities. Reduce the number of siloed environments, create a seamless and standard platform where back end systems can communicate with one another.
5. Invest in SaaS technologies: zero implementation and deployment costs, minimal IT resources, not tied to a corporate VPN or corporate network since it's 100% web-based, global access, automatic updates, quick ROI, low risk.

It should be an interesting year for small businesses. Following a few of the predictions could be the difference between a good small company and a great soon to be industry leader.

Thanks,
David Chao
The Web Conferencing Expert

Best of Elearning! 2006 Awards

WebEx once again came out on top in the e-learning world capturing the two top industry awards by ELearning Magazine's Best of Elearning! 2006 Awards. WebEx won for Best Virtual Classroom and Best Web Seminar Solution.

Elearning! readers cited WebEx Training Center's reliability, performance, and ease of use as key components. Other big pluses were:

• Seamless integration with multiple learning management systems (LMS)

• Outstanding customer support

• Superior overall quality

WebEx Training Center enables users to instantly deliver interactive online training to employees, partners and customers anywhere, anytime through a standard web browser. Capabilities like Hands-On Lab, Break-Out Sessions, Integrated E-Commerce, Test Library, set Training Center apart from all other solutions.

WebEx Meeting Center was named the Best Web Seminar Solution and recognized for its superior customer service, ease of use and comprehensive set of features to help users present efficient, effective presentations. With WebEx Meeting Center, users can present information, share applications, and collaborate on projects with customers and co-workers around the globe.

Like all WebEx solutions, Training Center and Meeting Center leverage the WebEx MediaTone Network for the highest level of reliability, availability, performance and security. Read what the Credit Suisse Analysts had to say about MediaTone.

Thanks,
David Chao
The Web Conferencing Expert

Forbes Fast 25 for 5 years!!!

Demonstrating significant annualized growth, WebEx (Nasdaq: WEBX), the leader in on-demand applications for collaborative business on the web, has made the Forbes 25 Fastest-Growing Technology Companies list for the fifth year in a row. Only two other companies, both WebEx customers, have made this prestigious list five years running.

“Our continued success showcases the strength of the on-demand delivery model and the broad demand for our web collaboration services,” said Subrah Iyar, CEO, WebEx. “For 2007 we are focused on going deeper with our web collaboration suite and wider with our new WebEx Connect on-demand platform and partner ecosystem.”

The 25 technology companies were chosen based on revenue growth over a five-year period. To be eligible for the list, a company must have at least $25 million in sales, 10% annual sales growth for five consecutive years, profitability over the past 12 months and 10% estimated annual profit growth for the next three to five years.

The complete 2007 list is available on the Forbes.com site at: www.forbes.com/2007/01/25/fastest-growing-stocks-tech_cz_pmjr_0125fasttech_land.html

(Data and content provided by Colin Smith)

Thanks,
David Chao
The Web Conferencing Expert

Credit Suisse Initiates Coverage

The well respected Credit Suisse initiated coverage on WebEx (WEBX) with a neutral rating and a $50 price target.

Research Analysts, Jason Maynard and Bryan McGrath agree that, "WebEx is the premier player in the Web conferencing and collaboration market. In our opinion, the company boasts a vastly superior technology delivery platform and a pure On demand model."

Key advantages for WebEx:

• Tremendous market growth opportunities
• Pure On Demand Model
• Differentiated Technology Platform

" The WebEx MediaTone Network was built on more than $180 million in R&D investment, runs on 37 global clusters, and delivers five 9s reliability. This piece of technology would be extremely difficult to replicate and thus has a significant strategic asset value."

Other investment firms such as Goldman Sachs and Citigroup, now have their eyes on WebEx...

Thanks,

David Chao
The Web Conferencing Expert

Another Adobe Flaw!!!

Issues with Adobe applications are starting to become so common place it's scary. Again, why take on the much added risk with a solution that does not have any 3rd party security certifications? Though Adobe Connect and Adobe Acrobat are different solutions, the Connect solution is 100% dependent on Acrobat.

I previously mentioned that Adobe released a Security Bulletin in October of 2006 for Adobe Connect, which effected older versions of Breeze. Now problems have surfaced with newer versions of Adobe Acrobat. They released a patch for the recently discovered security flaw in their Acrobat software application to resolve the problems.

The company added that the flaw affected Acrobat Standard, Professional, and Elements in versions 7.08 and older. (Only a matter of time before these specific Acrobat issues manifest in Adobe Connect.)

Adobe further confirmed that the recently launched version 8.0 was not affected by this flaw and the users are not required to download any patch.

This flaw was related to a technique known as "cross-site scripting" which allowed hackers to mix malicious JavaScript with a link to a PDF file on a website. (Sounds like the same issues the older version on Connect had. Again, curious to see when the current version on Adobe Connect starts to see similar problems.)

Adobe Connect Security Problems
Adobe Connect History
Same Song and Dance

Thanks,

David Chao
The Web Conferencing Expert

SaaS Has Staying Power

The Software as a Service model is certainly here to stay. I think there is a misconception that SaaS is geared only for the CRM market. Sure SaaS has been successful in this space, as seen by a short list of CRM providers listed below, but we are seeing more and more successful SaaS-based companies emerge in other markets: supply chain, email marketing, recruiting, content management, etc.

SaaS has not been around as long as the traditional client-server model but over the last 5-7 years SaaS companies have made huge strides. WebEx, the leader in the online meeting market, now has close to 30,000 corporate customers and over 5 million users per month. Over 85,000 online WebEx meetings take place across 70 different countries per day! Salesforce.com has over 20,000 customers and about 400,000 subscribers. These numbers are not only impressive but will continue to grow.

The fact that many Fortune 1000 companies are also adopting SaaS technologies means that no longer is SaaS geared for only the small businesses. Large corporations can also benefits from the low start up costs, quick deployment times, and ease of use. Imagine being able to deploy a SaaS technology quickly and efficiently across a single business unit as a test piece and then rolling the technology out on an enterprise level once the technology proves itself out. Little financial investment, little IT resources during implementation, very low risk. Why not?

CRM:

• Salesforce.com
• Netsuite
• SugarCRM
• Pivotal
• Intacct
• RightNow
• Kinterra

Other SaaS Companies:

• WebEx: online web meetings and collaboration
• Taleo: talent/recruiting management solution
• ClickCommerce: supply chain
• OpSource: SaaS consultants
• Live Person: online customer interaction applications
• Sage Software:
• ExactTarget: email communications and marketing
• Clickability: web content management
• OpenAir: project-based management applications
• Vocus: corporate communications and PR
• Concur Technologies: expense management
• CrownPeak: website and content management
• Omniture: business optimization and web analytics solutions
• EmailLabs: email marketing solutions
• Intranets: document management and virtual web office solutions (Acquired by WebEx)
• DealerTrack: automotive retail solutions

SaaS has staying power and will not be going anywhere in the long term. It will continue to disrupt the traditional client-server model and revolutionize the way companies receive products and services in a real-time, cost-effective, scalable, and reliable manner.

Thanks,
David Chao
The Web Conferencing Expert

Adobe Connect Security Breach

It's important to know that web collaboration solutions are not created equal. Example, no other company, except WebEx, has 3rd party security certifications like WebTrust and SAS-70 Type I & II. With that in mind, buyers need to be aware of the risks of using un-secure technologies that have not passed stringent requirements from 3rd party security certification firms.

Case in point: Adobe Connect, formerly Macromedia Breeze and previous to that, Presidia.

Adobe put out a security bulletin back in October 2006. If you did not get the bulletin as a user, here is the link you can click on: http://www.adobe.com/support/security/bulletins/apsb06-16.html (Just follow the 10 Steps, hope that your private information was not disclosed on accident and hope that the directions make sense.)

Secunia provides real-time data on the latest security and vulnerability issues. Secunia viewed this Adobe Connect problem as "moderately critical" because of the exposure of sensitive and private information.

"A vulnerability has been reported in Macromedia Breeze, which can be exploited by malicious people to disclose sensitive information.

The vulnerability is caused due to an unspecified error when parsing URLs and can be exploited to disclose the contents of arbitrary files on the system.

The vulnerability has been reported in all versions of 5.0 and 5.1."

Again, web collaboration solutions are not created equal. Buying the best technology minimizes your risk and will save you embarrassment at your job.

More on Adobe Connect:
Another Adobe Security Flaw
Adobe Connect Security Problems
Adobe Connect History
Same Song and Dance

Thanks,
David Chao
The Web Conferencing Expert

Fast 50 Program

Deliotte & Touche named WebEx as part of their Fast 50 Program. From 2001 to 2005, Webex increased revenue a whopping 280%, earning them the #20th spot on the prestigious list.

To qualify for the Technology Fast 50, companies must have had operating revenues of at least $50,000 in 2001 and $5,000,000 in 2005, be headquartered in North America, and be a company that owns proprietary technology or proprietary intellectual property that contributes to a significant portion of the company's operating revenues; or devotes a significant proportion of revenues to the research and development of technology. Using other companies' technology or intellectual property in a unique way does not qualify.

Thanks,

David Chao
The Web Conferencing Expert

Yahoo IM Plug-In

WebEx released a plug-in that enables Yahoo instant messengers to "co-browse" websites at the same time. My wife and I actually used it the other day when she was showing me some XMAS presents she wanted to buy. In the past, she would copy and paste the URL's into IM. I would then have to click on the URL's and navigate on my own until I found the product she described to me over the phone.

With the new WebEx plug-in for Yahoo IM, we browsed the sites together. She navigated and I simply followed along and saw everything she did on the browser.

You can download the plug in here: www.webex.com/go/yahoo

Thanks,
David Chao
The Web Conferencing Expert

The Art of Listening

The other night I was watching the Will Smith movie, "Hitch." Will Smith plays a date Dr who promises any man that he can help woe any woman. Throughout the movie he provides some pretty clever dating tips. The one that stood out to me was when he said, "You need to listen. That way when it's your turn to talk, you'll have something interesting to say."

In sales, LISTENING is critical. Too many sales reps are so eager to talk, to get a turn to chime in, when in realty the best thing to do is ask thought provoking questions that draw out needs and motives and then sit back and LISTEN to what the customer has to say. If you can't master the art of active LISTENING, you'll never master sales.

Watching the movie got me thinking about common phrases and what they actually mean. For example, in a Classifieds Ad, when you hear "Must be self-motivated," that really means "must work your butt off with very little direction or guidance." Sure there is some sarcasm here but you get my point. Then I thought about this across sales. Here are a few phrases I thought of:

* Not Interested = "You have said nothing of value."
* Not a Priority = "You have not shown me any reason that this should be a priority."
* Management Did Not Give the Go-Ahead = Your fault for investing time and selling to a non-decision maker who could not effectively sell management on your behalf.
* Price is Too High = "You have not differentiated yourself, your company, your process or your product compared to your competition."
* Price Objection: an opportunity to demonstrate value, indicates buyer interest
* Lowest Price = Lowest Profit, Lowest Value

In my opinion, any question from the customer is a buying signal. It's the customer's way of saying, "Tell me more. Clarify this a bit more for me. Help me understand." The key is to LISTEN carefully and translate what they mean since everything the customer says is a clue in helping you unlock their needs and win the sale.

The most successful sales reps are those that can master the many complex components of a sale, one of the most important being LISTENING skills.

Thanks,
David Chao
The Web Conferencing Expert

Lehman Brothers and WebEx

WebEx will be making a presentation to investors at the Lehman Brothers Global Technology Conference on Wednesday, December 6.

A webcast and replay of each presentation will also be available on the company's investor relations website. Click Here to View the WebCast

Thanks,
David Chao
The Web Conferencing Expert

Genesys Lay-Offs

Confirmed by a close insider, last week Genesys laid-off a large part of its sales team and executive management team, mainly VP's. The reason...Genesys needed to shake things up since the company was not hitting the revenue target goals.

Today's stock price for Genesys (GNSY) = $1.45 a share

I presume the numbers below played a large part in the lay-offs:
Profit Margin: 0.30% [Lack of Profitability]
Return of Assets: 6.47% [Lack of Effective Management]
Return on Equity: 2.82% [Lack of Effective Management]
Quarterly Revenue Growth: (-5.50%) [Lack of healthy Income Statement]
Quarterly Earnings Growth: (-97.60%) [Lack of healthy Income Statement]
Total Cash: 8.54M and Total Debt: 44.18M [More debt than cash]

Thanks,
David Chao
The Web Conferencing Expert

Microsoft Vista

With the new Vista Operating System, Microsoft has once again proven that is stands behind it's traditional fat-client business model. Considering that Windows and Office account for more than 60% of the companies revenue, I suppose it make sense to stick with what has worked in the past. Only problem is that ultimately it's the customer that suffers in the end with the hefty annual fees for the upgrades.

I am still a huge believe in the Software as a Service model simply because of the benefits that the customer immediately realizes. Low risk, low cost, zero implementation.

Thanks,
David Chao
The Web Conferencing Expert

Adobe Connect Re-Run

In the "World Web Conferencing Market Report, 2006, Chart 1.15, by Frost & Sullivan, Breeze/Adobe Connect was listed in the "Others" category for market share meaning that Adobe Connect has less than a 0.3% market share in the on-demand space. WebEx has a 60%-plus market share in the same report. More on Adobe Connect

Many people do not know that Macromedia originally acquired the Breeze technology in 2003 from now defunct, Presidia. Then in 2005, Adobe acquired Breeze from Macromedia and rebranded it Adobe Connect and launched it as a new Adobe product offering. Most analysts have expressed their concerns that Adobe Connect is now part of a much larger product family which could hurt Adobe Connect in terms of resources, budget, and R&D.

According to the TMR Report, Q2 2006 by Helen Gallagher, Breeze received 2 our of 4 stars for ease of use. "Breeze is a challenge to learn, even for those with experience with other synchronous tools. Breeze does not have the ability to create breakout rooms and does not have an e-commerce capability." Overall, WebEx received 4 our of 4 stars, the highest mark of all solutions evaluated in the same report.

In NetworkWorld's recent test of web conferencing products, Breeze was ranked 9 out of 11 competitors, suggesting that the Breeze performance might not be at the same level as some of its peer products. More on Adobe Connect

An interesting comparison might be to look at the number of companies Microsoft has acquired and how many of the technologies generate revenue for the company compared to Adobe. After looking at the list, you'll agree that most of the listed companies and their respective technologies are ones you have never heard.

List of Microsoft Acquired Companies

My suspicion is that something similar with happen to Adobe Connect when compared to Adobe Illustrator, Photoshop Suite, Dreamweaver and Flash, etc, it will eventually fall into the abyss of forgotten products. More on Adobe Connect

Thanks,
David Chao
The Web Conferencing Expert