Video Communications: Options & Opportunities for the Channel

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Doug AllenBy Doug Allen

If you’re fascinated by the potential of high-end video conferencing and telepresence but aren’t quite sure what it is exactly, you’re not alone. That’s not stopping the runaway predictions for future growth, though; ABI Research pegs the telepresence global market at $568 million last year and $2.7 billion by 2015. Other estimates go higher, as integration with unified communications platforms and the extension of video to laptops and smartphones drives what continues to be one of the few markets to be unaffected by the recession.

And video conferencing is not just about saving on travel costs anymore. Businesses are using video to cut down on executive travel-induced wear-and-tear, so they can better focus on job efficiency, while also reducing their carbon footprint. Video enhances daily remote collaboration, which can be instrumental in bringing together geographically dispersed teams in research and development, especially in industries such as pharmaceuticals, aerospace and electronics.

It’s a technology that’s maturing quickly, thanks to key vendors like Cisco Systems Inc. via its acquisition of Tandberg, Polycom Inc.and LifeSize Communications Inc. These companies, along with a number of hosted or managed service providers, are offering a wide range of video conferencing systems that run the gamut from client-based desktop video all the way to fully “immersive" telepresence suites for businesses of all sizes. And for agents and VARs, the margin on these solutions can run very high indeed — up to 50 percent in some cases. Undeniably, video conferencing of some form will become an increasingly attractive sales opportunity for resellers, since most sales are driven by the indirect channel, not the vendor or provider.

Video Conferencing vs. Telepresence

But what is it? And which system — desktop or telepresence — makes the most sense for businesses? As you’d expect, the answer is "both."

Essentially, video conferencing and telepresence are both live video communications that at one point differed in terms of the quality of the video or “meeting" experience, with desktop video at the low end and telepresence the high. As ABI’s Dan Shey sees it, “Essentially the market is offering a continuum of products between basic video conferencing and telepresence." The differentiation lies in resolution, degree of eye contact between participants and sound quality.

Ira Weinstein, senior analyst and partner at Wainhouse Research LLC, one of the leading market analysis firms covering video conferencing, argued telepresence is not a product at all. “There is no such thing as a telepresence product. Instead, there are video conferencing solutions that provide the telepresence experience," he explained. “We define the telepresence experience as a visual collaboration session during which the remote participants appear to be in the same room. Note that this does not necessarily mean that they are in the same meeting room."

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