Whilst videoconferencing is set to be the next big thing as
faster connections and more collaboration takes place, market leaders Cisco,
who in Q2 last year held a 49.3% market share, have reported a loss in revenue,
despite increasing interest from enterprises.
This is due, it has been reported, to the "uncertain global economy
and reduced spending in the public sector”, which according to IDC is driving
down revenue in the market. This has fallen overall by 6.9% in the first
quarter of this year.
Analysts IDC says that the immersive telepresence space also
took a hit, falling 38.4% "from the same three months last year”.
"Several of the video vendors pointed to the currently
difficult macroeconomic situation, as well as a cutback in spending in key
areas such as the public sector, including government and education, as reasons
for the weak quarterly results," IDC’s Rich Costello said in a statement.
"Although these factors are expected to persist and
influence results somewhat in the second half of 2012, interest in video
continues to grow among organizations, especially those with good use-case
However, not all vendors had such a bad quarter, IDC point out,
competitors Polycom saw a rise in revenue, although growth was down 4.3% from
the second quarter of last year. The lack of stability in the market could be a result of
shifting trends, such as those presented by BYOD, meaning vendors are having to
concentrate more on software, especially that aimed at tablets and smartphones.
the overall weak 2Q12 performance in the worldwide enterprise video
conferencing market, we still see adoption being driven by video integrations
with vendors' UC and collaboration portfolios, and with the increasing use of
video among small workgroup, desktop and mobile users," Petr Jirovsky,
senior research analyst for IDC's Worldwide Networking Trackers unit, said in a
as a key component of collaboration continues to place high on the list of
priorities for many organizations."
However, IDC expects the market to ultimately expand and
predicts an annual growth rate of 14.6% by 2016.
Fremeijer, EMEA senior research analyst for unified communications and
collaboration at IDC, said: "Given the trending of an increasingly
distributed workforce within a globally interdependent economy, the business
case for videoconferencing has never been clearer."While the key driver for investing in
videoconferencing has initially been the need to reduce travel costs, we find
that increasingly companies are interested in the benefits of enhanced team
collaboration and effectiveness of meetings."