Garrett Smith from VoIP Supply wrote, "This service isn't all that new or different from the half dozen or so that already exists. There's either going to be a lot of M&A in video communications OR a lot of companies not making it." Garrett was referring to this TechCrunch article, Blue Jeans CEO Looks To Beat His Two-Time Acquirer Cisco With Low-Cost Video Conferencing. Krish Ramakrishnan says, "It's only a $700 million market." Yet he received $23.5 million in funding already. Why?
When you look at what Skype (and of course all the copycats) have done to the international long distance market, you have to wonder how the video conferencing market survives. I say that because it is rare that I ever participate in a video conference. In the last year there have been three video calls - one on Skype and two on G+ Hangout.
The low cost folks like Skype, Google, Vidyo, Apple's Facetime, even Webex is going to dilute that market. As more employees work remotely and mobile, some video chat will increase, but not likely through Cisco, Lifesize, or Avaya gear. More likely through the low-cost consumer services that make it easy for people to use.
In my experience, G+ Hangout was much easier to use than Skype or Webex due to no software download needed. Any gmail account or Gchat account means I can invite you and lets go. How does it get easier than that, Krish?