Spending on video conferencing and telepresence technologies will grow as businesses look to drive down costs and increase productivity. Right now, Cisco and Polycom are leading the charge.
Revenue in the
burgeoning video-conferencing and telepresence market grew 18 percent, to $2.2
billion, in 2010, and will hit the $5 billion mark by 2015, according to market
research firm Infonetics Research.
The trend is
being driven by enterprises that are looking for better ways to communicate to
their employees, particularly as workforces become increasingly mobile and
distributed, according to Infonetics analyst Matthias Machowinski. Businesses
also see video conferencing as a way of driving down travel expenses, a trend
that became especially acute during the global recession, when companies were
looking for any way to shave costs.
via video continues to be one of the top trends in telecom, as evidenced by
strong growth in the enterprise video market," Machowinski said in a statement.
"Businesses worldwide are looking for richer means of communications with their
employees, partners and customers, and enterprise video conferencing and
telepresence solutions are a natural fit. The biggest winners in the enterprise
communications market will be those who offer solutions that are multi-modal,
visual (e.g., video-based) and support the collaboration requirements of
globally distributed organizations."
the March 24 report, Cisco Systems-particularly after its $3.4 billion acquisition
of telepresence rival
Tandberg last year-is the top provider of video-conferencing and telepresence
technology, garnering about half all the revenue in 2010. Polycom is solidly in
the second spot for revenue, but leads in units shipped, according to
companies have aggressively built out their video-collaboration offerings and
have expanded their reach through both new products and partnerships. Cisco in
February expanded its video-conferencing offerings
host of new and upgraded devices, with company officials saying that
enterprises will continue to embrace video collaboration as they look to
increase employee productivity and reduce travel costs.
eliminate travel? No," Guido Jouret, CTO of Cisco's Emerging Technology Group,
said in an interview with eWEEK at the time. "Will it take a significant bite
out of it? Yes."
officials have predicted that by 2014, more than 90 percent of all Internet
traffic will be video-based, and that video will play a significant role in an
online-collaboration market that they say could hit $30 billion.
actively pursued partnerships as it looks to expand its reach in the market. On
March 22, the company announced a partnership with Motorola Mobility to bring
its personal telepresence technology to Motorola's Xoom
PC. In recent months, Polycom has also announced new or expanded partnerships
with Microsoft, Shoretel, Ericsson and Samsung.
report, Infonetics analysts also said that multi-purpose room systems-due to
their versatility-would account for most of the enterprise video-conferencing
equipment businesses purchase. In addition, immersive telepresence systems will
have the highest growth rates of all video-conferencing equipment.
report came out about the same time as a study by Forrester Research, in which
analysts said that enterprises as well as small and midsize businesses are investing in collaboration technology
video conferencing and telepresence systems-but are not yet seeing the full
benefits from the products. According to Forrester analyst T.J. Keitt, the
businesses are seeing reduced travel costs and improved communications, but
need to more closely align their collaboration technologies with business
processes to get more benefits, such as improved project management and faster
The Forrester study
found that 29 percent of enterprises surveyed are investing in new or upgraded
room-based video-conferencing systems, a trend that would bring the total
number of implementations to 62 percent of businesses in the next couple of
years. That, combined with the growth of desktop video deployments, illustrates
the emphasis businesses are placing on video, Keitt said in the report.
percent of respondents to Forrester's survey said they plan to implement