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Video Capabilities Demand Sit At 'All-Time High,' But Businesses Don't Want to Spend

March 24, 2014 - News

Demand for video capabilities sits at "an all-time high," according to Infonetics Research, but there's one big problem for partners specializing in this area: businesses don't want to spend the money.

As a result, organizations are shifting from high-end telepresence suites and multipurpose room systems to less pricey software and video phones, said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

"This, along with lower selling prices due to competition, is hampering a more robust recovery in the videoconferencing market," he said.

Still, the global enterprise telepresence and videoconferencing market showed 5 percent year-over-year growth, reaching $3.2 billion in 2013 after a flat 2012, Infonetics found in its report on the sector. Video phones comprise the fastest growing segment of the endpoint market; shipments doubled in 2013, passing the 1 million unit mark, Infonetics said. The key growth regions include Asia Pacific and EMEA. Those territories both saw 8 percent growth last year while North America fell 2 percent. 

Overall, Infonetics predicts worldwide enterprise videoconferencing and telepresence revenue will increase at a 3 percent compound annual growth rate from 2013 to 2018.

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