I'm Happy Polycom Didn't Become Mitel

Polycom is one of the most respected names in the communication industry and they were on the verge of being destroyed. I had fun competing against Polycom for over a decade, but I always had the utmost respect for the engineering team. Their history of bringing innovative products to market has been legendary. Somewhere along the way they seem to have lost their mojo. It just hasn't seemed to be as much fun as it used to be.

There have been plenty of opinions given over the last 10 months since the first rumors of a Polycom - Mitel mashup. I'm going to provide one more, but maybe from a different perspective.

The Lost Decade

Andy Miller's reputation preceded his arrival at Polycom in 2009. His true colors were on display when he was quickly exited from company in 2013 for what turned out to be falsification of hundreds of expense reports while galavanting around the world with friends and a girlfriend on the company dime. It made for great entertainment from the other sideline. The integrity of the executive team needs to be impeccable, long tenured and in it to win it. Prior to Miller, Polycom seemed just a little slow to the game which provided us ample room to build a new company. Since then, it seems as if they've just been going through the motions first with an interim CEO and then a protracted possible change in ownership. Despite it all, the product teams have been cranking along and improving the portfolio. Two steps forward, one step back. 

Microsoft's Little "Helper"

Somewhere along the line they went hook line and sinker to the Microsoft ecosystem. This is Logitech's playbook. Find a big ecosystem (hopefully more than one) and deliver standardized, low cost, high performing peripherals through a distribution channel that few can match. But is that the Polycom playbook? Today it's table stakes to have integration to Skype for Business. You can't be a serious enterprise play without it. But do the customers really use it (3rd party integration)? At scale?  At a level that justifies the investment? Logitech, yes. Acano, maybe. 

A few years ago, Tandberg was Microsoft's primary enterprise partner. Polycom was number two. It was simple then. The tax was pretty low. Cisco bought Tandberg, immediately elevating Polycom to the top spot. Lifesize entered in the backup position. The level of effort became more burdensome (Lync Room System, native Microsoft codec integration, endless trips to Redmond).. The ecosystem (and the customer engagement) was not proven yet. I saw similar things while at Alchemy as there were endless reference systems to build around emerging product categories that might be big someday (Windows CE based, media players, smart devices).

When the dust settles, will Polycom's place in the Microsoft hierarchy be intact. I'd guess that as soon as the acquisition rumors were substantiated, that a few other vendors were getting a phone call. It's intoxicating to be courted by Microsoft ... or Google ... or Apple.

What is it that they call the large group that has to do something to satisfy a small group? Answer: Tail that wags the dog.

Of course if the intention was to sell to Microsoft, then it's a brilliant strategy. Personally I'd like more control of the roadmap to build products that kick ass and delight the users.

What's That Big Sucking Sound?

Integration. I've been on both sides of the equation. Asking due diligence questions and answering them. Filling out worksheet after worksheet of integration tasks, integration team meetings, integration command office coordination. There needs to be a well thought out deal thesis on how any acquisition enhances the go forward strategy. Power and people decisions need to be sorted out quickly. Hopefully filling the key roles with enthusiastic people that truly want to see it be successful. 

It is exhausting and defocusing. And then boom. The deal is off the table at the last minute. What sort of damage has been done to the people? The customers? The products? Surely the product roadmap has been paralyzed a bit. By 6 months, by 12 months? Are the people that were enthusiastic, still enthusiastic or about to enter a passive aggressive mode? As to the new owner, what exactly does Siris want to see happen? How long does it take to articulate?

Who steps up as the leader of Polycom? Michael Dell took Dell private. Jobs came back to lead the biggest turnaround in corporate history. Dorsey back at Twitter. Malloy back at the helm of Lifesize. You get the idea. Somebody has to care and pour their soul back in.

The Grinch Stole Christmas from the Competition

Competitors should love big acquisitions. Even the best laid plans take a long time to implement and they almost always provide a lift to the competitors. An independent Polycom is more dangerous in the UC space. Again, it comes down to what Siris wants from their new asset and who steps up to lead. It's a long game and Polycom has always had the products, talent and customers to make a big dent. They just need to get the mojo back and get back to having some fun. It may take a little time. I think back to that epic Steve Job's 1997 fireside chat at WWDC. As important as the leader(s) are, don't forget about the first followers. The leader looks a little silly dancing in the field alone.

What's in a Name?

Polycom. What a great company name. Maybe the best in the industry. I'm glad the communication space is not losing it. I'm rooting for Polycom. The path forward continues with people and products. The private equity route will likely be rough at first, but keep showing up. Never before has the collaboration opportunity been greater as technologists reinvent how we work and play.