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Video Conferencing: Beyond the Boardroom

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DQI Bureau
New Update

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.

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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

was a gradual shift from audio meetings to web conferencing and desktop

video

Videoconferences

moved beyond corporates; the perceptible retail boom owed much to the

efforts of the Reliance WebWorlds.

The

government administrative sector, judiciary, distance learning, and

telemedicine drove adoption across the country

Polycom

still ruled though other players such as Tandberg, Aethra, and Actis

started making their mark

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.

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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.

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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.

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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

they Stacked up

Vendors

2004-05



Revenue


(Rs crore)

2005-06



Revenue


(Rs crore)

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.

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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.

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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.

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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

Lexicon

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

required

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. 





The
industry is moving towards multipoint videoconferencing and desktop

conferencing. There has been a conscious move from ISDN towards IP based

video

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

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