Videoconferencing Continues Precipitous Decline

The videoconferencing market felt the pain in 2012's third quarter, as the unyielding economic climate saw businesses shun high-end telepresence systems from Cisco, Polycom and others.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Editor’s note: As part of our special editorial partnership, Channelnomics is publishing this recent article from CRN in the UK.

The videoconferencing market continued to feel the pain in 2012's third quarter, as the unyielding economic climate saw businesses shun high-end telepresence systems.

Related articles

According to IDC research, the worth of the enterprise video market contracted 4.8 percent during Q3, with market leaders Cisco Systems Inc. and Polycom Inc. posting annual sales declines of 14.7 and 15.2 percent respectively. Cisco remains way out in front, but its market share has shrunk five points to 43.3 percent in the past 12 months. Polycom accounts for about a quarter of the market.

The Latin America and Asia-Pacific market appears to be in rude health, with Q3 revenue in these regions growing 13.7 and 9.7 percent respectively on an annual basis. But it was a different story in the more mature markets of North America and EMEA, with market worth falling 11.5 and 10.8 percent.

The market for immersive telepresence systems plummeted 35.7 percent annually in Q3, while sales of other videoconferencing components, such as gateways and firewalls, took a 26.8 percent hit. Revenue from single-codec video products were up just 0.4 percent, while the personal videoconferencing market grew 8.7 percent and the video MCU space expanded 5 percent.

“As expected, a down year for the overall enterprise videoconferencing and telepresence market continued in 3Q12. This is mostly due to uncertainty stemming from macroeconomic concerns, and a continuing decline in high-end immersive systems,” said IDC analyst Rich Costello.

"We also feel that customers are considering more strategic approaches to deploying video technology and applications, leading to longer decision cycles," Costello said.

But Petr Jirovski, an IDC analyst focused on worldwide networking trackers research, claimed video adoption is still "being driven by video integrations with vendors' UC and collaboration portfolios". He added that the growing popularity of desktop, mobile and small workgroup video technologies will also boost the market next year.

"Video as a key component of collaboration continues to place high on the list of priorities for many organizations and we anticipate a return to positive market growth in 2013," said Jirovski.

For more UK channel coverage from CRN, visit www.channelweb.co.uk

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Want more articles like this?

 
More on Channel Business
newspapers

Today's channel rundown -12 February 2016

Daily tech news and analysis to know now, including CenturyLink's channel plans, Autotask's FileSync channel program, FBI's alleged hacker's arrest and more

newspapers

Today's channel rundown - 11 February 2016

Daily tech news and analysis to know now, including Avnet’s VMware partnership, CSC’s hiring spree, Qualcomm’s ultra-speedy mobile chip and more

kim-king-progress

Why VARs choose the wrong vendors

With the wrong vendor come various pitfalls for solution providers, says Progress Software's Kim King

newspapers

Today's channel rundown - 10 February 2016

Daily tech news and analysis to know now, including the IRS’s hack block, Cato’s new channel chief, Oculus’ first VR PCs and more

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
paul-zeiter-zerto

Vendor Q&A Series: Paul Zeiter, Zerto

The latest channel exec to sit in the new-look Channelnomics hotseat is Zerto's president

hundred-dollars

PSA pricing isn’t the big ill of managed services

Kaseya bought PSA vendor Vorex, saying the incumbent platforms are too expensive for too little benefit. Pricing isn’t as much of a problem as effective use of these systems and lack of business fundamentals

kim-king-progress

Why VARs choose the wrong vendors

With the wrong vendor come various pitfalls for solution providers, says Progress Software's Kim King

sdn-shout

Mainstream SDN: A question of mid-market and IoT

Channel players discuss lack of mid-market adoption of SDN and potential future opportunities