Videoconferencing as a technology has now started moving out of conference
rooms, where it used to sit traditionally. The industry is now taking its first
steps from group systems to desktop videoconferencing systems. Apart from large
enterprises, small and medium enterprises are adopting videoconferencing
solutions.
In FY 2005-06 the videoconferencing market size was at Rs 65.6 crore against
Rs 28.8 crore in 2004-05 and is likely to grow at a CAGR of 24.9% till 2011.
There is a growth explosion expected (30% for the next two years) in the
medium-term, beyond which growth rates will stabilize at 22%.
There Videoconferences The Polycom |
Vendor Stories
Polycom has a 59.5% market share in videoconferencing endpoint segment at Rs
39 crore followed by Tandberg with revenue of Rs 10 crore. Aethra distributed by
Siemens stood at 4.6 crore. Actis, a new entrant in the videoconferencing space
made around 4 crore from their sales.
Other players such as Sony, VCON, D-Link, and SamsungÂ
make 12.2% of market share. The widespread popularity of distance
learning and growing economy coupled with a stronger thrust on e-governance has
made India a promising market for videoconferencing equipment. Siemens
distributed Aethra and Polycom conferencing solutions; and its major deployment
for RBI this year at around 46 locations.
Polycom has grown four times in the past three years. In terms of sales,
Polycom registered much better growth than the industry. Apollo Hospitals, MKCL,
Mumbai Jails, Tele-Vital, and Andhra Jail are some of their customers in India.
Andhra Jails have adopted videoconferencing for the trials are conducted on a
regular basis ensuring safety of the inmate as well as of the general public and
also saving on transportation costs.
Targeting the corporate and government sectors, Polycom has aligned their
channel and distribution strategy to reach out to the SMB and SOHO segments and
chalked out a two-pronged retail strategy to make inroads into this segment.
Actis managed to garner a share of 6.1% at Rs 4 crore and plan to increase it
to 15% in the coming year. For
Actis, the year 2005 was significant as they were able to venture into the use
of videoconferencing such as telemedicine and distance learning.
Few of the major clients for Actis last year were SBI, General Atlantic
Partner, Lehman Brothers, Mahindra & Mahindra, Welingkar Institute of
Management, and Cushman and
Wakefield.
Actis has set up offices in New Delhi and Pune and has increased their
channel network across India, having a channel base of more than 500 members.
The Usage Pattern
Enterprises today, are looking forward to leading edge technology, flexible
conferences, flexible deployment, common management suites, highly scalable
solutions, secure VoIP conferencing, embedded multipoint options, and more in
videoconferencing solutions.
How |
||
Vendors |
2004-05 |
2005-06 |
Polycom |
18.6 |
39.0 |
Tandberg |
5.9 |
10.0 |
Aethra |
1.2 |
4.6 |
Actis |
NA |
4.0 |
VCON |
0.6 |
2.0 |
Others |
2.5 |
6.0 |
Total |
28.8 |
65.6 |
Source: DQ estimates CyberMedia Research |
||
Polycom remained the numero uno, and Tandberg maintained its number two slot. Actis, the new kid on the block is the one to watch out for |
Videoconferencing therefore, spells power of integration, bringing within
reach some inherent advantages. The system can be used for scheduled or adhoc
meetings and plays a crucial role in enhancing productivity. This in the long
run, is extremely important for swift analysis and decision making, bringing
products to the market, and gaining an edge over competitors.
The advent of broadband and the growth of the BPO industry have driven the
deployment of Web conferencing in the country.
In 2005, there's been a significant increase in the adoption of Web
conferencing in the enterprise market. Emerging businesses will increase the
adoption of this service as prices of hardware and bandwidth fall, and awareness
about the technology spreads in the market.
Even small cities such as Amritsar, Hoshiarpur, Bhatinda, Barnala, and
Malerkotla could not resist the lure of IT.
Videoconferencing (Web) in these cities clearly shows that this service is
not restricted to big cities and corporate clients only. Though this service is
in its infancy in smaller cities, with time it will gain popularity. Presently,
Reliance Infocomm is the only player in Punjab, offering videoconferencing
facilities through its Web Worlds. Seeing the potential, even Connect from HFCL
is planning to venture into the service.
Also, for legal and judicial purposes, where recently, Reliance WebWorld,
hosted a videoconferencing-where a subject expert in UK was consulted by a
judge and a panel of advocates sitting here in Chandigarh. Such instances are
gaining popularity.
There is an increased use of videoconferencing system for recruitment of
candidates, interaction with relatives settled abroad, reviews and meetings,
product launches, press conferences etc. Apart from this, videoconferencing isÂ
also used for matrimonial purposes.A number of universities abroad,
interview candidates over videoconferencing before giving them admissions.
Some of the other applications that are likely to grow in importance over the
next couple of years are in
healthcare, education, and government segments, as prices for hardware and
bandwidth reduces and awareness about the technology spreads in the market. At
present, most of the enterprises connect via ISDN. However, Internet based
connections are increasing in popularity and many conference facilities today,
is over IP network.
Factors such as cost of ownership, maintenance of infrastructure, and general
perception that people had about conferencing as a luxury is slowly dying. Also
with the wide scale adoption of ICT technologies, videoconferencing is headed
for a bright future.
Videoconference |
|||
VC Systems Features |
Desktop |
Mini Group |
Board Room |
Network Interfaces |
LAN/ISDN |
ISDN/V.35 |
ISDN/V.35/X.21 |
CODEC |
Software |
Hardware |
Proprietary Bus |
Input Video Camera |
Fixed |
PTZ/Slide |
PTZ/Slide/Document |
Output Devices |
VGA Monitor |
Single 29” TV |
Dual Monitor |
Control Interface |
Windows 95 |
System Based |
System Based |
Control Tool |
Mouse |
Remote Mouse |
Touch Panel |
Microphone |
Headset |
External |
Omni directional |
Speakers |
Headset |
TV Speakers |
TV Speakers |
Sharing of Data |
Integrated |
Separate External PC |
Application |
No of Participants |
1 |
3-6 |
>10 |
Be it the desktop mini group or the board room variety, all require coordinated functioning of a host of components |
There has been a continuous high adoption of videoconferencing by the
government (including defense). Successful attempts of telemedicine by leading
hospitals have resulted into heavy demand from the healthcare sector. In
addition, there has been drastic price reduction due to high competition that
has also resulted in the increase in market penetration.
On the technology front, the industry is moving towards multipoint
videoconferencing and desktop conferencing. There has been a conscious move from
ISDN towards IP based videoconferencing. Data transfer on video, on-line group
communication, and interviews on
video are the latest examples of the same. However, the availability of
broadband at competitive prices is a potential key enabler for a further wider
market adoption.
SP Partnership
Partnering with SPs is working out to be a rewarding model for the VC
players. Few leading players in the space are planning to tie up with retail
chains so that walk-in customers can buy their products. Today, a number of
telcos are setting up retail stores and will pave the road ahead for most
vendors. This will help them achieve both retail walk-in for applications and
retail walk-in for purchase.
For example, Polycom has tied up with Reliance, which has a network of 260
'Reliance WebWorlds' where customers can go and do video meetings and video
chatting-all these WebWorlds use Polycom solutions. One can pay something like
Rs 350 for 20 minutes of video call, which comes out to be cheaper than an ISD
calls.Â
|
Tandberg currently in discussions is expected to make announcement in
India-on a global level SPs are a very critical component for their go to
market strategy.
The recent advancements in video and collaboration tools is ushering in a new
era of video telephony facilitating easy access and usage of videoconferencing.
The migration to converged IP networks and the spread of IP telephony has also
provided a receptive platform infrastructure that can enable video to become an
integrated element within the telephony environment.
With broadband technologies making the Internet a viable option, Web
conferencing is further gaining ground among corporates. Companies are using the
technology for the launch of their products and carrying out campaigns.
Looking forward, drastic reduction in the average price of videoconferencing
equipment, overall improvement in network infrastructures and bandwidth
capabilities, migration of videoconferencing from ISDN towards IP based
videoconferencing are the few factors that will make sure that the
videoconferencing industry will see an exponential growth in the coming year.
Minu Sirsalewala
minuvs@cybermedia.co.in