& cplSiteName &

Sources: Moto's Shopping for IPTV Middleware

Light Reading
News Analysis
Light Reading
11/9/2006
50%
50%

Motorola Inc. (NYSE: MOT) is shopping around for an IPTV middleware vendor to buy, according to several industry sources.

The sources, who requested anonymity, say Motorola has "kicked the tires" of several potential acquisition targets during the past few months.

The main motivation for Motorola's move, it seems, is to get itself on a par with its vendor rivals and give itself another foot in the door of potential carrier customers.

Many of Motorola's peers -- companies that provide integration and/or equipment for telco TV networks -- either have their own IPTV middleware system in-house or have formed tight partnerships with specialist players.

The most high profile of these is Alcatel (NYSE: ALA; Paris: CGEP:PA), which has a productive partnership with Microsoft Corp. (Nasdaq: MSFT) that has resulted in multiple carrier engagements. (See Wind, Telefónica Pick Alcatel, Alcatel, Microsoft Confirm IPTV Deal, and Alcatel Lands TDC IPTV Deal.)

But Alcatel is not alone. Nortel Networks Ltd. has forged a relationship with Minerva Networks Inc. , while Lucent Technologies Inc. (NYSE: LU) partnered with Orca Interactive Ltd. before more recently taking over development of Telefónica SA (NYSE: TEF)'s homegrown Imagenio middleware platform. (See Nortel, Minerva Find IPTV Partners, Lucent, Telefonica Team on IPTV, and Orca's Not Blubbering.)

In addition, Siemens AG (NYSE: SI; Frankfurt: SIE) acquired established IPTV middleware company Myrio Corp. , and Thomson S.A. (NYSE: TMS; Euronext Paris: 18453) bought Thales Broadcast & Multimedia, including the Smartvision middleware used by Orange (NYSE: FTE). (See Thomson Fuses VOIP & IPTV and Siemens Snaps Up Myrio.)

Meanwhile, Motorola and rival Cisco Systems Inc. (Nasdaq: CSCO), have, to date, remained relatively agnostic on IPTV middleware. (See Will Cisco Make an IPTV Middleware Move?.)

It makes sense that Motorola would be scouting for opportunities, says Heavy Reading analyst Rick Thompson. "There are still several major players out there that don’t have an IPTV middleware platform -- all those players are potential buyers and it would certainly include Motorola," says the analyst. "It's a long shot to assume it would try to retool its cable middleware product for telcos."

Thompson says a short list of possible acquisition targets can be derived just from identifying the current unattached players. "From a logical perspective you'd have to think of Minerva, Espial Group Inc. , Orca and a few other smaller players that are a little less visible, but that might pop up on the radar screen." (See Espial Joins IPTV Middleware Madness.)

Motorola erected the PR barricades when asked about any acquisition plans. "I can't give you a definite answer to that question either way," says Motorola spokesman Paul Alfieri. "I can't comment on any speculation."

"What I can say is that our current strategy is to partner with Microsoft where appropriate," Alfieri adds. Under that partnership, Motorola sells various set-top boxes to the customers of Microsoft's IPTV carrier accounts -- AT&T Inc. (NYSE: T), for example. (See AT&T Set to Expand Its U-verse.)

Asked if any service providers have asked Motorola to provide an end-to-end video distribution system including middleware, Alfieri says: "I can't commnent on customer conversations, but what I can say is that our play is the [set-top] box play."

It's easy to see how Motorola might benefit from owning its own IPTV middleware. Such a system could create "pull-through" sales of the vendor's video processing and infrastructure gear, insiders tell Light Reading.

Heavy Reading's Thompson shares that view. "Middleware alone isn’t a cash cow, but has a lot to do with owning the service and selling other equipment as part of the larger IPTV investment," he noted in a recent column. Operators may want to buy the middleware and the hardware from the same vendor because the two elements interoperate so closely, he stated. (See IPTV MiddleWARs: Far From Over.)

And service providers might think Motorola is an appealing supplier given its real-world video distribution experience. "Regardless of whether it’s a telco or a cable network, we do have that experience of how to get video from the head-end to the home," Alfieri points out.

Motorola already sells equipment at both ends of the IPTV distribution system -- encoders and VOD servers at the video head end, and set-top boxes and residential gateways at the customer premises. And the company has already added to its portfolio through acquisitions this year -- set-top box maker Kreatel Communications AB in January, and VOD server vendor Broadbus Technologies Inc. in July. (See Motorola Acquires Kreatel.) and Moto Buys VOD Vendor Broadbus.)

— Mark Sullivan, Reporter, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
Mark Sullivan
50%
50%
Mark Sullivan,
User Rank: Light Beer
12/5/2012 | 3:35:20 AM
re: Sources: Moto's Shopping for IPTV Middleware
Out of all the middleware players that remain unattached, Orca seems to be the most battle-hardened in larger deployments. Would this make a good buy for Motorola?
fRolin
50%
50%
fRolin,
User Rank: Light Beer
12/5/2012 | 3:35:16 AM
re: Sources: Moto's Shopping for IPTV Middleware
A big part of Motorola's business is the set-top box and Orca does not own any client middleware assets or has any expertise in this area, which probably does not make them a good fit. Also, in the last 12 months, Orca really seems to have disappeared from the market. Their recent revenue numbers confirm this also.

If you looked at middleware vendors that have a server and client middleware offering, they seem to be Minerva, Myrio, Espial and Microsoft. Microsoft and Myrio are out, which probably only leaves Minerva and Espial.
LightWarrior
50%
50%
LightWarrior,
User Rank: Light Beer
12/5/2012 | 3:35:15 AM
re: Sources: Moto's Shopping for IPTV Middleware
I don't know how you could really consider Minerva at this point. The system is entirely closed and though their recent re-write is a little better, their UI and service creation tools are very lacking. The other problem is Motorola needs something that can scale to millions, and Minerva is very unproven in that regard.

I also agree that Orca has dropped off the map. Their recent revenue announcement was very disappointing to say the least.

How about some other guys out there? There are some tiny little companies with new (and untested) products like Zignal and some others. Then there are all the browser-based products like Ant and GeoTel which are not a good fit for Motorola because the performance is slow and the products don't scale very well.

And as others suggested there is always Espial, who seemed to be everywhere at TelcoTV. But I don't see a very long list of possible acquisition targets for Motorola. I know they need something, because I heard the internal IPTV middleware efforts have come to nothing...

Mark Sullivan
50%
50%
Mark Sullivan,
User Rank: Light Beer
12/5/2012 | 3:35:14 AM
re: Sources: Moto's Shopping for IPTV Middleware
With regard to Microsoft: Do you think they still have the momentum they once had with large carriers? We're hearing that carriers are looking at a next generation of middleware products that are more open and developer-friendly.
SolitonWave
50%
50%
SolitonWave,
User Rank: Light Beer
12/5/2012 | 3:35:14 AM
re: Sources: Moto's Shopping for IPTV Middleware
Microsoft is expected to get quite a significant slice of this market with some important Tier1&2 wins. All the others are starting to lagg behind. Moto should stay with Microsoft or move Really fast. There are many options to buy but I'm not sure if any of them would give significant edge over Microsoft or Siemens (doubt it).
Mark Sullivan
50%
50%
Mark Sullivan,
User Rank: Light Beer
12/5/2012 | 3:35:13 AM
re: Sources: Moto's Shopping for IPTV Middleware
We too have heard that Orca has been struggling. But is that really a reason for Moto not be interested in it? Seems it would devalue the company somewhat and make it ripe for acquiring. Also, the Orca product itself is said to be pretty good relative to its peers.
litedope
50%
50%
litedope,
User Rank: Light Beer
12/5/2012 | 3:35:12 AM
re: Sources: Moto's Shopping for IPTV Middleware
Does OpenTV offer IPTV middleware on both server and client sides? If so, can this thing come to them?
Mark Sullivan
50%
50%
Mark Sullivan,
User Rank: Light Beer
12/5/2012 | 3:35:10 AM
re: Sources: Moto's Shopping for IPTV Middleware
Looks like OpenTV is just client-side middleware. From their Web site:

OpenTV middleware products include:
OpenTV Core: Flagship middleware client software driving todayGÇÖs most advanced digital TV services including PVR and interactive TV for cable, satellite, telecommunications, and digital terrestrial network operators
RTL Rules
50%
50%
RTL Rules,
User Rank: Light Beer
12/5/2012 | 3:35:10 AM
re: Sources: Moto's Shopping for IPTV Middleware
Where's MOTO getting their access equipment? The article mentions only headend and CPE equipment.

Where has MOTO gained real-world video distribution experience?

RTL
Honestly
50%
50%
Honestly,
User Rank: Light Beer
12/5/2012 | 3:35:06 AM
re: Sources: Moto's Shopping for IPTV Middleware
Mark, you are a smart guy so remember that Software is best left in the hands of software infrastructure companies. Just do not think you will see MOT, or CSCO get into this business. I think they both understand what they do well and know what they do not know. Microsoft is just running the table, like it, or not. I think Verizon is already feeling the pain of trying to replicate some IPTV software and they failed before with IOBI. It will cost them billions and they will still us Microsoft

I say, do what you know.
Page 1 / 2   >   >>
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
VeEX at ANGA COM

6|27|17   |     |   (0) comments


At ANGA COM 2017, Cyrille Morelle, president and CEO of VeEX, updates Alan Breznick with VeEX's new products and technology. This includes VeSion cloud-based platform for network monitoring, AT2500-3G advanced spectrum analyzer and MTTplus-900 WiFi Air Expert module. He also comments on DOCSIS 3.1 deployment and Remote PHY technology.
LRTV Custom TV
The Overall Objective Is to Win the Game

6|26|17   |     |   (0) comments


SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Does AT&T Deserve Time Warner?
Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.