Nemertes Impact Analysis

Expert Insight On How Recent News Affects You

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Cisco Gets "Down and Dirty" Without SOAP

Cisco (NASDAQ:CSCO) announced "Etch", a new messaging protocol for
client/server and web services integration. Cisco positions Etch as a more
streamlined protocol than Simple Object Oriented Protocol (SOAP), and thus
better suited as an integration protocol between a Service-Oriented Architecture
(SOA) and unified communications. This announcement is in line with findings in
Nemertes benchmark, Service-Oriented Architectures and Applications, that
half the participants are integrating their unified communications applications
into their SOA.

Impacts:

Enterprises: Etch is one of many message protocols, including SOAP. Focus on
SOA as the framework to support whatever protocol is best for your requirements.

Vendors: Other vendors (i.e. privately held Avaya) have been promoting
existing protocols for SOA integration with UC. Market flux means vendors
developing interoperable products will need to support multiple protocols.

Investors: It's too early to tell if this is just YAP (Yet Another Protocol)
or something with investment impact.

http://www.nemertes.com/benchmarks/nemertes_benchmark_softwareoriented_architectures_and_applications
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9088338&source=rss_news50

Ted Ritter, Research Analyst

HS Up, Up and Away...

AT&T (NYSE:T) will complete its HSUPA deployment by the end of June,
making it the first national HSPA deployment. Delivering up to 800 Kbps uplink
and up to 1.4 Mbps downlink, HSUPA is a serious third-generation (3G) challenge
to CDMA technologies like EV-DO.

The Nemertes' Internet infrastructure study ,The Internet Singularity,
Delayed, notes wireless is increasingly becoming a viable alternative for
access, as well as a driver of access demand. HSUPA delivers access capabilities
comparable to wired serivices including DSL and cable.

Impacts:

Enterprise: Evaluate HSUPA as part of your wireless data access strategy,
look for opportunities to reduce costs by leveraging emerging technologies.

Vendors: Expect rapid development of 3G/4G networks, leverage opportunities
to deliver applications that can help enterprises take advantage of high-speed
mobile data access.

Investors: The 3G/4G wireless market is rapidly evolving. Keep abreast of
alternative 3G/4G providers, such as privately-held Clearwire.

http://www.nemertes.com/internet_singularity_delayed_why_limits_internet_capacity_will_stifle_innovation_web
http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25726

Mike Jude, Senior Analyst

Managing to Reduce Consumption: Tivoli Embraces Energy Data

IBM (NYSE:IBM) announced that IBM Tivoli Monitoring (ITM) solution can now
monitor energy data, including electricity consumption and temperature. IT
managers can use ITM to pull data from server management cards or from a variety
of sensors in systems, racks, or rooms.

Improving data center energy efficiency is a top requirement among
participants in the Nemertes' benchmark, The New Data Center. Nemertes
will further explore energy efficiency requirements in our upcoming
Virtualization benchmark.

Impacts:

Enterprises: Adopt energy management techniques and upgrades to integrate
energy data into network management systems.

Vendors: Make sure that energy data can be integrated not just numerically,
but visually, into your consoles.

Investors: There are lots of niches to fill in the energy monitoring space:
smart PDUs that can automatically match power draw to server, for example. Look
for emerging solutions from vendors, including privately held APC or AFCO, or
management companies like Avocent (NASDAQ:AVCT).

http://www.nemertes.com/data_centers/new_data_center_executive_summary_toc_vol_1
http://www-03.ibm.com/press/us/en/pressrelease/24244.wss

John E. Burke, Principal Research Analyst

ShoreTel Brings Scalable Video to the Masses

ShoreTel (NASDAQ:SHOR) released version 8.0 of its unified communications
system, bringing desktop video to ShoreWare Professional Call Manager users.

ShoreTel becomes the first vendor to support H.264/SVC (scalable video codec)
in a unified communications solution. H.264/SVC divides video transmissions into
layers, allowing the codec to adjust layer transmission depending on real-time
network performance, thus ensuring acceptable video quality even with high
latency or packet loss.

Nemertes continues to see growing interest in desktop video with 72% of
participants in Nemertes' upcoming benchmark, Unified Communications and
Collaboration, saying they are either using or evaluating desktop video
conferencing within their organization.

Impacts:

Enterprises: Consider desktop video to improve the ability of virtual workers
to collaborate

Vendors: H.264/SVC offers improved video quality over variably performing
networks, consider adding H.264/SVC support to your offerings

Investors: Follow companies, such as privately-held Vidyo, that are bringing
larger H.264/SVC video solutions to market

http://www.nemertes.com/ongoing_research/unified_communications_and_collaboration
http://www.shoretel.com/about/press_room/2008/05-19.html

Irwin Lazar, Principal Research Analyst and Program Director, Unified
Communications and Collaboration

You Will Be Breached. Make Sure Your Data is Worthless

RSA, EMC's (NYSE:EMC) security division has announced a joint development
with Brocade (NASDAQ:BRCD) to integrate encryption and key management into
Brocade's Data Center Fabric (DCF) storage architecture. This development
underscores Nemertes' finding in benchmark, Security and Information
Protection, that 35% of participants have experienced a data security breach
in the past three years. The next best defense to preventing a breach is to make
sure that breached data is encrypted, and thus worthless.

Impacts:

Enterprises: Implementing strong key management and encryption of all
archived data is the difference between an annoying misplacement of backup tapes
and the need to notify 50,000 customers of a potential identity breach.

Vendors: Storage vendors should look for joint ventures with encryption/key
management vendors, and vice versa.

Investors: Just as EMC owns RSA, look for additional storage company security
acquisitions. Potential candidates include: nCipher (LON:NCH) and privately held
CipherMax, GuardianEdge and SafeNet.

http://www.nemertes.com/products_services/research/benchmarks/nemertes_benchmark_security_and_information_protection
http://www.emc.com/about/news/press/2008/20080521-01.htm

Ted Ritter, Research Analyst