Software Solutions, Economics Squeeze Video Conferencing Revenues: IDC
However, the analysts say business interest in video collaboration continues to grow, despite the mixed revenue figures.The video conferencing market continues to be impacted by an uncertain global economic environment and the trend toward lower-cost and software-only solutions, according to analysts at IDC. However, businesses still view video conferencing as an important and growing part of their larger collaboration efforts, the IDC analysts said in a recent report. That combination of a growing demand for video and a soft and changing economic environment fueled some mixed revenue results for video conferencing equipment in the third quarter, they said. Across all segments of the market, revenues were up from the second quarter. However, when compared to the same period in 2012, the numbers declined. "Interest in video and collaboration technology and applications helped the quarterly revenue numbers," Rich Costello, senior analyst of enterprise communications infrastructure at IDC, said in a statement. "But the lingering macroeconomic situation—including some softness in emerging markets, the recession in Europe, and the sequestration in the U.S. (i.e. budget cuts)—produced some cautionary IT spending that has impacted year-over-year video equipment revenue growth so far in 2013. In addition and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-centric products and offerings on the enterprise video equipment market."
During the third quarter, revenue for video conferencing equipment—including the immersive telepresence offerings—grew 8.2 percent to $576 million when compared with the second quarter, but fell 9.7 percent when compared with the third quarter of last year. That trend ran across all segments; for example, revenue for the multi-codec telepresence equipment grew 13.1 percent over the second quarter, while falling 16.3 percent year-to-year. Video infrastructure equipment, including multipoint control units (MCUs), grew 13.7 percent over the second quarter, but fell 16.7 percent from the third quarter in 2012.