Video-as-a-Service Bucks Recent Videoconferencing Trends

News Article - Friday, 23 November 2012 15:50

By: Kerry Butters Category: Connectivity

Competition in the Video-as-as-a-Service (VaaS) market has increased as vendors have realised that not all enterprises can afford their top-end videoconferencing solutions and so have introduced desktop and mobile solutions – Video-as-a-Service – on a pay monthly basis.

"I wouldn't say it's about pricing as it is around making sure that our customers can have a full range of products for whatever needs they have," said Gina Clark, VP and general manager of Cisco's TelePresence Cloud business group.

According to Infonetics Research, videconferencing sales overall have fallen globally to £396m, representing a 6% decline in Q2 2012. This is a slight improvement on Q1, when it fell 22% following a record high in the previous quarter.

However, it seems that this is viewed as a "short-term blip” as the Eurozone continues to struggle and there have been declines in public spending. Infonetics expects the market to pick up again and surpass 5bn by 2014.

"We view the current revenue slowdown as temporary rather than a fundamental decline in demand, as overall shipments of hardware end points are still up by double digits year over year, signalling (sic) ongoing strong demand for videoconferencing capabilities," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics.

The market watcher’s research concentrates on sales of "dedicated and PBX-based videoconferencing and telepresence infrastructure and end points (desktop, immersive telepresence, videophones, multi-purpose rooms).

Although videoconferencing may have come to something of a halt recently, this is sure to change within the next year or two as vendors produce more integrated solutions and enterprises further realise the importance of collaboration.

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