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PBX-Based Video Keeps Conferencing Market Afloat

By Craig Galbraith
June 19, 2014 - News

It’s been a rough year thus far for the video conferencing and telepresence market.

Infonetics Research reports that the market fell 22 percent last quarter from the previous quarter. Demand for video-conferencing capabilities is strong, but buyers don’t want to spend money on the more expensive systems, which is hampering revenue growth.

The bright spot is PBX-based systems, which were up 32 percent in the first quarter compared to the year-ago quarter.

"Video conferencing revenue experienced a strong seasonal decline in the first quarter of 2014, but it remains positive on a year-over-year basis. The dedicated systems market continues to struggle as companies look for more cost-effective video solutions. This dynamic is driving the PBX-based video market, which is delivering all market growth," sais Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

The report also found that videophones were once again the fastest growing segment of the hardware endpoint market, with unit shipments increasing 48 percent in the first quarter from the same period a year ago. Asia Pacific is expected to be the strongest performing region for video conferencing sales in 2014, despite the fact that growth there is slowing as well.

Infonetics says global enterprise telepresence and video conferencing revenue will only see growth in the single digits for at least the next three years. 

Follow senior online managing editor @Craig_Galbraith on Twitter.

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