NXTcomm08

Espial Latches Onto Motorola’s Coat-Tails

| Jun 17, 2008 | Digital Media Infrastructure | Show Update

| Analyst: Erik Keith

Current Perspective: Positive/Neutral Vendor Importance: High Market Impact: Moderate/High

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Event Summary

June 13, 2008 – Espial, a provider of TV middleware and applications, announced that the company has signed a software license and distribution agreement with Motorola. According to the terms of the agreement, Motorola will be able to resell Espial's Evo® TV service platform to operators worldwide.

Analytical Summary

• Current Perspective: Slightly positive on Espial’s strategic agreement with Motorola, which gives Motorola license and distribution rights for Espial’s Evo-TV middleware solution. Although Motorola, as a Tier 1 digital video systems (and cable infrastructure) vendor represents a very strong channel opportunity for Espial, this agreement is no guarantee that Espial will generate additional customer/market traction via its new coat-tail relationship with Motorola.

• Vendor Importance: High to Espial, which needed to expand its potential market reach with additional sales/channel/distribution resources; to this end, again, Motorola’s position as a key, leading supplier in the digital video market gives Espial a strong boost in this regard, as Motorola supplies high-end set-top boxes (STBs) to both Tier 1 cable operators and Tier 1 telcos, e.g., Verizon’s FiOS TV customers.

• Market Impact: Moderate to high on the IPTV middleware sector, as Espial has established a solid, global market presence with well over 1 million client middleware licenses shipped to date. However, the impact of this relationship is tempered by its lack of a customer endorsement and non-exclusive nature. For example, even within the Motorola partner universe, Espial must contend with rival solutions, i.e., Motorola has done extensive work with Microsoft and their joint service provider customers, facilitating the integration of Microsoft’s Mediaroom middleware solution with Motorola’s STB and related digital video enabling-technologies.

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Current Perspective

Competitive Positives and Concerns

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