Telepresence and Video Conferencing, Growing?

David Byrd : Raven Call
David Byrd
David Byrd is the Founder and Chief Creative Officer for Raven Guru Marketing. Previously, he was the CMO and EVP of Sales for CloudRoute. Prior to CloudRoute, He was CMO at ANPI, CMO & EVP of Sales at Broadvox, VP of channels and Alliances for Telcordia and Director of eBusiness development with i2 Technologies.He has also held executive positions with Planet Hollywood Online, Hewlett-Packard, Tandem Computers, Sprint and Ericsson.
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Telepresence and Video Conferencing, Growing?

When Cisco Systems purchased Tandberg, it signaled the beginning of a converged solution for video. One that combined video, voice and IP technologies into something that continued to move towards the promise of true video collaboration. Normally, this blog addresses the growth of Skype and Google’s Hangout. These are video applications that deliver good value to small businesses. However, larger companies are continuing to acquire equipment, albeit at a lower rate in 2012 than 2011. According to IDC, the worldwide enterprise videoconferencing and telepresence equipment market declined 8.6% year over year in fourth quarter of 2012. The full year total for 2011 was $2.71 billion versus $2.64 billion in 2012. The decline was attributed to global macroeconomics rather than businesses souring on the need for video solutions. In fact, good growth was seen in room based video conferencing (4.1%) and personal videoconferencing (5.0%). The segment demonstrating a continued decline was the high-end or multi-codec immersive telepresence segment, which declined 32.8%.

The leaders in the space continue to be Cisco (44.8%) and Polycom (23%) with Huawei showing strong growth in sales in the Asia and Latin America. Over the last two years Cisco has seen its market share rise while Polycom has seen a decline from its high of 35%.

The value proposition of video conferencing remains. Reduce travel and cut down cost of airfare, lodging and lost productivity. Improve communication and collaboration between organizations and geographically disperse employees. Environmentally, a recent study on human-to-human communication noted that driving an hour to participate in meeting uses the equivalent power consumption of 1000 video conferencing hours. Finally, live, video meetings provide participants much more visual information where facial expressions and body language can be used to better interpret meeting communications.

Video conferencing and telepresence provide other benefits as well and it is the collection of these that will keep video from faltering as it did in the 1990s. Enterprises will continue to expand their implementation of SIP Trunks and IP infrastructures to support telepresence and create special rooms. SMBs will continue to look to application service providers and carriers to build the necessary facilities and tools to support low-end video solutions. As these infrastructures are completed and cost begins to drop, demand will grow. May 2013 be better than 2012.

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