Cisco, Polycom Lead Dismal Quarter for Video Conferencing
Delayed customer buying decisions, lower-cost systems and more software-centric products were among the reasons for the poor performance.Total worldwide enterprise video equipment market revenue in the first quarter of 2014 reached $473.5 million, but the total number of video units sold in the period was down 13.3 percent quarter-over-quarter and 6.2 percent year-over-year, according to a report from IT research firm IDC. The company's Worldwide Enterprise Videoconferencing and Telepresence Equipment report again showed overall declining results for the first three months of the year, with video conferencing equipment revenue decreasing 20 percent quarter-over-quarter and 15.9 percent year-over-year. "As dismal as these quarterly numbers are, video as a key component of collaboration continues to place high on the list of priorities for many organizations," Petr Jirovsky, research manager for IDC's Worldwide Networking Trackers, said in a statement. "IDC believes that among the challenges customers are currently trying to work through are a market transition and determining exactly what, when and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape." While Cisco remains the leader in enterprise video conferencing equipment with a 40.1 percent share of the worldwide market, first-quarter results showed decreases of 27.8 percent quarter-over-quarter and 22.4 percent year-over-year in video-equipment revenue.
Polycom, which ranks second in enterprise video conferencing equipment with a 28.9 percent share of the worldwide market, saw a less drastic quarterly decline of 7.3 percent and a year-over-year decline of 8.4 percent.