Polycom Gains on Cisco in Video Conferencing Race

By Craig Galbraith Comments
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A new report says that while Cisco remains the market leader in telepresence and video conferencing, its revenue declined marginally in the second quarter, while Polycom's was up slightly.

Infonetics Research's Enterprise Telepresence and Video Conferencing Equipment report for 2Q13 tracks dedicated and PBX-based video conferencing and telepresence infrastructure and endpoints. The study found that the market totaled $735 million last quarter, up 6 percent from the first quarter and up 8 percent from the year-ago quarter.

"After a tumultuous 2012 that saw growth in the video conferencing market screech to a halt, sales returned to year-over-year growth in the second quarter of 2013," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

The report also noted that PBX-based video system revenue doubled compared to the second quarter of 2012 as businesses sought out cost-effective ways to deploy multimedia communication. Dedicated systems, meanwhile, continue to struggle.

Regionally, North America is growing again on a year-over-year basis, pointing to a turnaround, the researcher said. Results in EMEA (Europe, Middle East, Africa) over the past few quarters have been encouraging, and Infonetics believes the region could be a top performer in 2013 despite ongoing economic issues.

"While the long-term fundamentals look positive and will eventually drive renewed revenue growth, weakness in public sector spending and the move to lower-cost video solutions hamper a more robust recovery this year," Machowinski added.

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