Who Will Buy Poly?
My insider radar is pinging around HP Poly. Last December, I gave a little history of Poly and its loss of momentum under HP. Now I think HP intends to sell the business.
In that post, I mentioned that Dave Shull has returned to lead the unit. Shull was the Poly CEO when HP acquired it and was promptly reassigned to other opportunities at HP. I also mentioned he had been named the leader of the newly created HP Solutions Group, which combined Hybrid Systems, Poly, and Advanced Compute Solutions. 
I was optimistic that Shull was returning. I felt that HP didn’t quite realize exactly what they had acquired, and that the company/brand was losing its way. It felt like Poly was becoming a PC company instead of HP becoming an A/V company. Shull knows the assets, people, channels, and Poly IP. But I’ve revised my assessment. I think it’s more likely Shull was named the leader because of one specific aspect of his experience: he’s the only one on the planet who has sold the company.
I can’t be certain what drove HP’s motivation to acquire Poly in 2022, but I assumed it saw synergy potential with meeting rooms becoming mainstream, especially Microsoft Teams Rooms (MTR). HP has enjoyed a mutually successful relationship with Microsoft for a long time. As an added bonus, HP could close its gap on headsets.
However, there isn’t much mojo in the HP-Poly-MTR relationship. HP Poly is just another videobar line in the MTR crowd. Both Logi and Cisco enjoy a strong relationship with Redmond. Logi is a major partner for Microsoft that includes mainstays like keyboards (now with a Copilot key), mice, webcams, and MTRs. Cisco has special concessions from MS that no other MTR maker has. I’ve written about this most-favored-nation status a few times, most recently in the EC25 Deep Dive.
Cisco is more complex. Microsoft carefully crafted its MTR ecosystem by selecting numerous partners to meet the nuances of global demand, then came Cisco and its global and comprehensive portfolio. The bottom line: something has to give. HP Poly appears to be the (first) biggest loser.
From the outside, it doesn’t appear that the HP-Poly acquisition has delivered any synergies for HP or Poly despite the potential. To be fair, there have been a few new products with combined technologies, but not many. Worse, the brain drain I mentioned in December continues. Beyond the RIFs, I’m referencing a steady stream of ‘So Long and Thanks for All the Fish’ updates on LinkedIn from departing HP Poly employees. Of course, I don’t see the ones that silently depart. Turnover is normal, but I haven’t seen any new arrivals.
Nor have I seen many new products or updates. It’s not the sector. We have seen a lot of innovation from Cisco, Crestron, Jabra, Logi, Neat, Yealink, and others.
Earlier this year, I attended an HP analyst event in NYC. It was filled with notebooks, keyboards, printers, scanners – essentially everything HP made before the Poly acquisition. The big news from Poly was a minor update to a mobile headset. IMO, the low-hanging fruit is with displays. By now, I expected a new HP display with a built-in Poly-powered camera and A/V. Such all-in-ones exist from Cisco, DTEN, and Lenovo.
I’d be surprised if we don’t hear any news about a potential divestiture in the coming months. But who would be a good fit to acquire Poly? My shortlist is Audiocodes, Jabra, and Barco.
- AudioCodes: The portfolios align nicely. AudioCodes makes excellent IP phones and video room systems. Headsets would be new. It has a strong relationship with Microsoft (Teams), and is expanding into Zoom and other SIP environments. It would be a sector consolidation and strategic expansion for AudioCodes.
- Barco: Barco reminds me the most of Poly. A specialized, engineering powerhouse. The Clickshare Suite connects participants and content in conference rooms. They have recently become a Teams partner. The company has lots of audio and wireless tech, and has recently expanded into video.
- Jabra: Jabra has been a head-to-head competitor in headsets for some time, and recently expanded into video. It doesn’t make phones (yet). A few years ago, Poly launched some USB speaker phones likely designed to take on the Jabra Speak saucers. Jabra + Poly might attract some antitrust concerns around headsets, so HP might have to keep that line or sell off separately, but I can see headsets surviving at HP, as they have broader consumer and prosumer plays.
All three of these companies play in the MTR ecosystem. All three are supporting MDEP, Microsoft’s version of Android. Poly pioneered Android meeting rooms, but it will likely have to be replaced with MDEP. None of these companies produces phone systems or video conferencing services that compete with partners. All three could benefit from the Poly brand as they expand into broader AV opportunities. Poly, Polycom, and Plantronics are great brands that likely won’t last much longer at HP.
Could these companies afford Poly? HP paid $3.3B in 2022. But it won’t get anywhere near that for the business today. The momentum and talent are significantly reduced. Also, I suspect HP is eager to exit. I suspect a creative deal could be structured.
Honorable Mentions: I did not include Yealink, Mitel, Wildix, or Neat on my shortlist. Yealink has a complementary portfolio, but it’s not a good time for a Chinese company to acquire an American legend. Mitel and Wildix make complementary products, but also offer platforms that compete with Poly’s partners. I don’t see Neat expanding into phones or headsets, and has built a competitive video portfolio without Poly.
I have followed Poly for a long time, and I hope to continue the journey. I would love to see what’s left of it fall into better care.
What are your thoughts? Am I connecting the dots correctly? Let’s discuss! #HP #Poly #TechIndustry #MergersAndAcquisitions #VideoConferencing #Cisco #Microsoft #BusinessStrategy #TechAnalysis #Predictions