What You Need to Know About Enterprise Video What You Need to Know About Enterprise Video

ConferencingConferencing

Melanie Turek, Principal Consultant

Enterprise Communications

April 30, 2008

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Focus PointsFocus Points

� Move to Virtual Collaboration

� Key Developments in Videoconferencing

� Market Segmentation

� State of the Videoconferencing Systems Market

� Impact of High Definition & Telepresence

� Shifting Paradigms

� Best Practices & Recommendations

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The Virtual Workplace: The Virtual Workplace: Factors Driving Move to VideoFactors Driving Move to Video

Multiple market forces are coming together to produce a Multiple market forces are coming together to produce a communications market ripe for changecommunications market ripe for change

Growth in broadband Growth in broadband

accessaccess

Growth in consumer video Growth in consumer video

over Internetover Internet

Growth in unified Growth in unified

communicationscommunications

An increasingly mobile and An increasingly mobile and

dispersed global workforce dispersed global workforce

Growth in videoGrowth in video--enabled enabled

commercecommerce

Inflection Point for Videoconferencing is Here

Technology Technology

ImprovementsImprovements

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Q. Please indicate the implementation status of each at your organization?

% of respondents

70%61%

46%32%

26%

13%

24%

17%23%

33%

48% 50%

20%

16%

21%

Security Storage Conferencing (Video,

Web)

Unified Messaging Voice over WLAN

Currently Installed Plan to Introduce in Next 1-2 yrs. No Plans of Introducing

(N = 300)

Source: Frost & Sullivan

Rising Awareness Leads to Higher Deployments Rising Awareness Leads to Higher Deployments

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Key DevelopmentsKey Developments

� Enhanced value proposition: dramatic improvements in technology (HD) at lower prices

� Impact of telepresence

� On-demand/ reservationless videoconferencing

� Easy to deploy, cost-effective and supports the virtual workplace

� A clearer case for ROI - Videoconferencing is one area where ROI is becoming easier to justify

� 3-6 month payback is common

� Sometimes pays for itself in a single meeting

� IP making a huge cost difference

� Green initiatives are becoming big

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Global Videoconferencing Systems Global Videoconferencing Systems -- Market SegmentationMarket Segmentation

Software-Based

MCUs (Bridges)/

Gateways

Videoconferencing Infrastructure SystemsVideoconferencing Infrastructure Systems

Gatekeepers, Firewall

Traversal, Scheduling &

Management Tools

Standalone Bridges Built-in Bridges

H.323/H.320/SIP Hardware-

Based

Room Videoconferencing

Systems

Videoconferencing Endpoints Market

PC-Based VideoExecutive Videoconferencing

Systems

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� Focus on Line-of-Business & Enterprise Solutions

� Platform to Support End-to-End Portfolio

� Bridges Connecting Diverse Endpoints

� Extending Videoconferencing and Collaboration to Remote

Employees, Partners & Customers

� Support High Definition, Telepresence & Unified

Communications

State of the Videoconferencing Systems MarketState of the Videoconferencing Systems Market

Global Endpoints Market: $1.1 Billion in 2007 (29% growth)

Global Infrastructure Market: $287 Million in 2007 (23% growth)

Global Endpoints Market: $1.1 Billion in 2007 (29% growth)

Global Infrastructure Market: $287 Million in 2007 (23% growth)

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� Videoconferencing no longer “grainy” high-priced technology

� HD/Telepresence extending the reach of videoconferencing -upgrades and new installations

� Penetration in consumer market driving demand in enterprise

� Impact on pricing dynamics

� Challenges still remain

� End-to-end HD needs bandwidth/infrastructure upgrades

� Mixed installed base

� Interop/Integration

Impact of High Definition & TelepresenceImpact of High Definition & Telepresence

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Videoconferencing Videoconferencing -- Shifting ParadigmsShifting Paradigms

2-3 YearsToday

Premium technology used in

conference roomsMainstream video adoption

Point solutions

Standalone applications using dedicated networks

Primarily for internal company

meetings

Focus on Technology/ FeaturesFocus on usability and business process enhancement

Integration with Unified Communications

Ubiquitous tool for internal and external communications with customers, partners, suppliers

Leverages application aware converged IP Networks

Adopted by large enterprises Adopted by businesses of all sizes including SMBs

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Key Verticals and ApplicationsKey Verticals and Applications

Healthcare - Telemedicine

Education

Government

Corporate - Enterprise

Sales

Customer and Partner Support

Training and Human Resources

Research and Development

Teleworkers or Remote employees

Mobile Workers

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Best Practices: A Total Solution for Video SuccessBest Practices: A Total Solution for Video Success

• Management

• Network Control

• Firewall Traversal

• Future Proofing

• Endpoints• Room Based

• Executive

• PC Based

• High Definition

• Telepresence

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For Additional InformationFor Additional Information

Melanie Turek

Principal Consultant

Enterprise Communications

(970) 871-6110

melanie.turek@frost.com