MAGOR CORPORATION MGORF

MCC Value Proposition and $47Bill Big Ones market Opp

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Investor Update - December 2015 Magor’s Windows client now opens up $47B market

Magor’s introduction of Aerus™ Collaborate for Windows® software client for the desktop user provides a major opportunity for IT departments to accelerate their plans on the expansion of enterprise video and collaboration to the desktop.



Magor’s introduction of Aerus Collaborate for Windows software client for the desktop user provides a major opportunity for IT departments to accelerate their plans on the expansion of Enterprise video and collaboration to the desktop.

IT departments have correctly taken a conservative approach to introducing video services to the desktop. Imagine the adoption of video by thousands of desktop users in a medium to large enterprise or government department.

The more successful the adoption, the concern has always been the risk that the network completely fails, with expanded bandwidth needs of High Definition video overwhelming their current network resources.

Video to the desktop therefore has been held back from mass deployment until expensive network infrastructure resources are upgraded first or delayed indefinitely. It is generally accepted however that the use of video to enhance user interaction improves team collaboration significantly, which drives video interactions to become the default for users’ collaboration means. And there lies the rub – the need to improve significantly productivity, without the potential degradation of other high priority business process applications such as the ERP systems needed to run the company.

This more then anything has held back IT support for video to the desktop.

Magor’s architectural approach via the Aerus Service Delivery Platform (Aerus SDP), combined with unique video coding capability significantly reduces these network risks, creating an opportunity for the IT departments to now move to satisfy the growing demand to bring video and collaboration capability to the desktop users.

Magor’s recent release of both the Windows client and Aerus SDP cloud service support now allows Magor to focus on the massive enterprise collaboration market (MarketsandMarkets, a US based Global Market Research firm, forecasts the Enterprise Collaboration market to grow from $47.30 billion in 2014 to $70.61 billion in 2019.)

“Until the introduction of Magor’s Aerus Collaborate for Windows client, our sales initiatives were limited to meeting the demands of meeting rooms and the offices of senior executives, together with specific vertical applications - but that has changed and our sights are focused on this massive market opportunity, starting with our current large government accounts,” stated Ken Davison, EVP Sales and Marketing. “Based on the initial feedback received from our customers who are evaluating the Aerus Collaborate for Windows client, we expect to see a significant growth in this area in 2016 and beyond to drive our recurring revenues. For every 1000 users with the Aerus Collaborate for Windows client offering, we would expect to see Annual Recurring Revenue (ARR) of approximately $300,000. Success with this market in 2016 would provide the stable recurring revenue source needed to fund the companies growth.”

To help understand how Magor’s Aerus SDP architecture and video coding is able to provide such network friendly characteristics, consider the following three core attributes:

1. Using adaptive video coding, Magor’s software clients recognize when network links are becoming congested and in real-time reduce the resolution and if need be frame rate to support both the video needs and business software needs within the same network links.

2. Standard design practice to date for delivery of multipoint desktop video has been to use a centralized bridging architecture (traditional video conferencing Multipoint Control Unit). The Aerus SDP architecture eliminates the need for a centralized bridge for multipoint collaboration sessions, as each Magor user is directly connected to all other users without the need to send all video streams to a costly hardware-based intermediate bridge.

3.Magor’s Aerus SDP cloud service supports a distributed server architecture that utilizes “media switches” – software-based servers that run in virtualized cloud environment.

This server architecture can route video streams locally - for example within a campus. Campus-to-campus calls are additionally optimized with our ALM (Application Layer Multicasting) capability that eliminates the need to send more then one video stream to multiple sites by relaying the single stream at any intermediate points, multicasting only as needed at the final campus location. The resulting optimization of network resources allows IT departments to proceed with the deployment of Magor’s Aerus Collaborate for Windows clients onto the desktop knowing that other important data traffic will not be disrupted, while the real-time needs of the video streams are successfully met.

The additional benefit of Magor’s approach is integral UI support for sharing and editing of multiple collaboration streams during sessions, advancing the state of collaboration to the desktop as part of a full visual experience. "It is these capabilities that are now being evaluated and deployed by many of Magor’s existing customers as well as new ones. In most cases, the deployment of Magor’s desktop software is done as recurring revenue - both monthly and annual."


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https://www.magorcorp.com/documents/Magor-Investor-Update-Dec-2015.pdf