Webex Communications, Inc. - Conference Calls

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1-877-509-3289

307 West Tasman Drive

San Jose, CA 95134

www.webex.com

Sales

$189 million

Business Description

Webex Communications, Inc. develops and markets services that allow end-users to conduct conference calls, meetings and share software applications, documents, presentations and other content on the Internet using a standard web browser. Integrated telephony and web-based audio and video services are also available using standard devices such as telephones, computer web-cameras and microphones. Because Webex's services enable users to share voice, data and video with others in remote locations, the company believes it can enhance the quality and variety of real-time communications compared to traditional telephone communications. The company's conference call and meeting services enable users to engage in media-rich, interactive, real-time communications without the need to be in the same physical location, which Webex believes allows users to be more productive and efficient because, in order to achieve the same type of communication and interactivity meeting participants would be required to travel to the locations of the other participants. As of December 31, 2003 Webex had over 8,850 customers.

Webex sells their services directly to customers and indirectly through distribution partners. The company offers their services on a monthly subscription basis to direct customers and on a revenue sharing, discounted or pay-per-use basis through distribution partners. Revenue from subscription services consists primarily of monthly fixed fees, which are based upon either a fixed number of concurrent ports or a fixed usage-based minimum commitment fee, and initial set-up fees. Typically, ixed-fee contracts are for an initial non-cancelable term ranging from three to twelve months, and then automatically renew for the same period unless terminated by either party. In addition, the company obtains revenue from certain “per minute”, or usage-based, pricing arrangements consisting of the following: usage in excess of the usage commitment or the concurrent ports maximum, telephony, certain distribution partner arrangements and individual pay-per-use purchased directly from our website.

Services
• WebEx Meeting Center. WebEx Meeting Center is a service designed to enable the sharing of documents and applications on the Web and to allow business professionals to communicate more effectively and economically through interactive online meetings. WebEx Meeting Center is a service that can be easily provisioned with low start-up costs and without the need for the involvement of information technology professionals. Webex's basic service, WebEx Meeting Center Standard, allows users to give presentations, demonstrate software, view and annotate any document electronically, and includes integrated teleconferencing. An upgraded version of Meeting Center Standard, Meeting Center Pro, includes the full range of Meeting Center Standard functionality and some additional features such as record and playback, integrated video, the ability to edit any document collaboratively and the ability to share applications or a user’s entire desktop.

• WebEx Support Center service is primarily used by customer service organizations to provide remote hands-on support for system or software application problems. WebEx Support Center enables customers to enhance the effectiveness of traditional telephone-based customer support by allowing their service agents to support end-users through the web browser, with no requirement for preinstalled software on either computer. The service incorporates a custom user interface to simplify support interactions for both the support agent and the end-user.

• WebEx Event Center offers business managers and executives a professionally managed web conferencing service for communications events such as press briefings, product announcements and marketing events. WebEx Event Center combines WebEx’s interactive meeting capabilities with planning, training, logistics management and real-time support services to provide a comprehensive service that reduces the customer effort involved in hosting a web seminar. WebEx Event Center includes online confirmation, notification, and instruction, customized attendee registration, high-resolution text and graphics, the ability to demonstrate a broad range of applications in real-time, audience feedback collection via polling, white board interaction, guided web browsing, live chat, recording and archiving of seminars for on-demand playback, and end user reports.

• WebEx Training Center. WebEx Training Center is a web communications service that is designed for training and e-learning applications. With Training Center, users can coordinate training schedules from announcement to enrollment to follow-up, deliver live instruction from a variety of sources directly to learners’ desktops, and give presentations that include audio, video and interactive multimedia. Training Center allows users to administer comprehensive tests, organize multiple simultaneous breakout sessions, and record, edit, play back and archive entire sessions for future use.

• WebEx Enterprise Edition. WebEx Enterprise Edition is a service that integrates four of WebEx’s currently available web communications services—WebEx Meeting Center, WebEx Training Center, WebEx Support Center and WebEx Event Center—to create a single source for a customer’s enterprise communications.

- WebEx SMARTtech . The WebEx SMARTtech service enables customers to centrally manage and administer their company-wide computer networks through the use of a secure, Web-based remote access network provided by the SMARTtech service. SMARTtech is designed to allow a computer-support organization within a company to install upgrades, perform maintenance, troubleshoot problems, and engage in proactive support on hundreds or even thousands of computers without the need of the individual computer user to be present at the machine. SMARTtech’s Web-based, remotely-administered and centralized computer support capabilities offer companies increased efficiency in managing their computer networks without the need to invest in expensive software and hardware upgrades and without compromising network security .

• WebEx Presentation Studio. WebEx Presentation Studio is a service that gives customers the ability to create and deliver multimedia content for convenient, on-demand access via the Web. With Presentation Studio, users can create presentations that include, and integrate as desired, audio content, video content and digital presentation software content such as presentations created with PowerPoint software. For example, Presentation Studio enables organizations to create and distribute sales presentations to sales personnel, capture and track sales leads from marketing and promotional presentations and deliver e-learning and training presentations to employees. Presentations created with Presentation Studio can be viewed over the Web or can be downloaded to a laptop or a personal digital assistant .

WebEx MediaTone Network . The WebEx MediaTone Network is a private, global-switched, redundant network that is designed to deliver scalable, secure, real-time communications services to ustomers by capturing screen data from a meeting presenter’s computer, translating that information into a proprietary format, and routing that information through WebEx switching clusters to the meeting session participants. The WebEx MediaTone Network is based on MediaTone, our proprietary information switching technology. OMediaTone technology allows the WebEx MediaTone Network to handle high-speed data, voice and video communications, manage complex media types, and deliver advanced communications capabilities regardless of location, platform, operating system, device, browser and wired/wireless status. The WebEx MediaTone Network includes:

– a globally distributed network made up of dispersed communications switches, switching centers and dedicated network links designed to reduce latency issues and service interruptions even when participants are located in different countries;

– WebEx proprietary switches in data centers located across the U.S., Europe and Asia, in Webex facilities and at third-party co-location facilities;

– high capacity Internet connections for high-speed connectivity and redundancy;

– network operations centers where we manage and monitor the WebEx MediaTone Network 24 hours a day, seven days a week;

– the ability to add capacity at any facility and otherwise manage heavy network traffic during peak usage periods, enabling each WebEx switching cluster to scale to meet changes in user demand;

– online content that is transmitted, or “switched”, in realtime through the network rather than persistently;

– encryption of online content with Secure Socket Layer (SSL) technology to provide security;

– diagnostic software for troubleshooting and rapid problem resolution;

– the ability to create a personalized, continuous web meeting room, like a personal telephone number or an office extension;

– the ability to simultaneously share multiple documents and presentations at the same time and the ability to flip back and forth between them;

– the ability to support high-speed sharing of rich media content within Microsoft PowerPoint presentations, such as the sharing of embedded flash files, the sharing of streaming content such as Microsoft’s Media Player, and the sharing of previously-recorded WebEx meetings, in each instance with the ability to start, pause, stop, reverse and fast-forward the content;

– the ability to support video conferencing with just a browser and simple web cameras; and

– the ability to access or share information securely in a WebEx meeting even where the content or applications reside in an unattended remote computer.