Cisco, Polycom Lead Struggling Videoconferencing Market: IDC
Video as a key component of collaboration still places high among priorities for many organizations, despite a weak first quarter for the market.Videoconferencing equipment revenue declined 13.2 percent year over year and 21.9 percent quarter over quarter, while total worldwide enterprise videoconferencing and telepresence equipment revenue stood at $563.4 million in the first quarter of 2013, its worst result since the second quarter of 2010, according to results from the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview. Cisco remained the worldwide video equipment market leader with 43.4 percent of the market in the first quarter of the year, down slightly from both the first and last quarters of 2012. Cisco's first quarter videoconferencing equipment results showed a 17.2 percent year-over-year decline in revenue versus the "particularly strong" first quarter of 2012, the report noted. From a market segment perspective, endpoints, which include multi-codec immersive telepresence, single-codec telepresence and personal videoconferencing, declined 10.7 percent year over year and video network infrastructure decreased 20.5 percent year over year in the first quarter of the year. Regionally, Latin America declined just 3.5 percent year over year, followed by the 9.1 percent year-over-year decline in Asia/Pacific and the 10.1 percent decrease in Europe, Middle East and Africa (EMEA). The report noted the North American market was a particular area of weakness this quarter with its 20.3 percent year-over-year drop.
"Videoconferencing vendors point to longer procurement cycles, the still challenging macroeconomic situation in EMEA, and a slowdown in IT spending in some key global markets such as China and India as reasons for the challenging first quarter results," Rich Costello, senior analyst for enterprise communications infrastructure at IDC, said in a statement. "No doubt these are certainly valid reasons for the recent quarterly decreases in video equipment revenue we are seeing. In addition, IDC believes that increasing customer considerations over more software-centric solutions, virtualization, cloud-based offerings, and real-time browser-based communications are beginning to challenge the video equipment market as well."