How video conferencing can open new markets

Reaching out to home users of videoconferencing creates opportunities for businesses offering consumer-based videoconferencing services, such as distance learning, remote diagnosis, professional and community services.

Building a business case for the technology in the business-to-business market has taken longer. Call quality, reliability, integration with line-of-business applications, ease of use and proprietary standards have taken time to sort out. And it’s simply been too expensive for SMBs to consider.

With Cisco and other vendors dropping the price on hardware, the barriers to entry are lowering to let many more potential customers in the gate.

“Video is the new voice,” says Peter Hughes, manager of communications and collaboration for Cisco in Australia and New Zealand. “Every end- point, every phone, PC, mobile phone or tablet is going to be video enabled.”

Business videoconferencing will grow tenfold from 2009 to 2014, according to Cisco’s networking solutions whitepaper. Web-based videoconferencing will grow 180-fold over that time.

Business videoconferencing traffic is growing almost three times as fast as overall business internet traffic; 

and more than half of business videoconferencing traffic will travel over the internet by 2014.

“The market share in Australia was around 53 million in 2009,” says Hughes. “There has been 30 percent growth in the last couple of years. For us, it’s a $100 million (business) in the next financial year.”

Videoconferencing is not only about saving on travel costs, but about saving time and having access to expertise. “Businesses can have 10 people in a meeting rather than just sending two people travelling. Travel for a one-day meeting will take three days. My time out of action for three days is more expensive than a travel ticket to Singapore for a meeting.”

The SMB market is an untapped market for videoconferencing, says Simon Claringbold, Asia Pacific vice president at LifeSize Communications.

With their frugal technology budgets, vendors such as LifeSize have been working on making videoconferencing solutions more affordable.

“They want a solution that is easy to deploy and maintain, and has a quick return on their investment,” Claringbold says.

LifeSize won the job with interpreting and translating services company Oncall because of the high quality of its audio and video, value for money, and products that are easy to use and install, Claringbold claims.

Oncall installed LifeSize Express and LifeSize Networker units in both the Sydney and Melbourne offices, using the services of LifeSize’s partner, Black Box Network Services.