Skip to main content

Cloud Services will Disrupt the Videoconference Market

Online collaboration, and videoconferencing in particular, has been a significant catalyst for business productivity during the last decade. However, the demand for expensive telepresence systems and traditional room-based videoconference installations has reached its pinnacle.

Enterprise videoconferencing infrastructure and endpoint hardware revenues are forecast to be relatively flat through 2020 -- growing slightly at a 2.1 percent CAGR -- according to the latest worldwide market study by ABI Research.

Software solutions are becoming a more popular choice, with the ability to extend existing infrastructure and endpoints and lessen the need for installing new permanent hardware.

"With the current market focus on cloud computing and hardware virtualization, dedicated hardware sales will see little growth in all video delivery markets, including videoconferencing and telepresence hardware,” said Eric Abbruzzese, research analyst at ABI Research.

According to the ABI assessment, hardware-focused companies -- such as Cisco, Polycom, and Avaya -- will have difficultly seeing success in both infrastructure and endpoint sales if their products do not adapt to the virtualization-focused markets.

Each of these companies have already begun the transition, with their own cloud videoconferencing platform aimed at leveraging their existing products as the foundation for the new service.

The Asia-Pacific region -- more specifically China -- is forecast for stronger growth through 2020 (5.3 percent for infrastructure and 4.3 percent for endpoint), likely due to non-China based companies continuing to conduct business in China and require strong videoconferencing platforms.

ABI believes that consumer videoconferencing is continuing to see strong growth, with products such as Skype, ooVoo, and Google Hangouts expanding their global user base. Moreover, these free or low-cost services have already gained adoption in many businesses across the globe.

Small businesses, not interested in investing in large, permanent hardware solutions for videoconferencing, have the potential to instead choose these consumer-focused solutions, as they offer similar features to enterprise solutions.

With virtualization, newer companies -- such as Blue Jeans and Vidyo -- are able to offer fully featured, enterprise-focused services without the need for dedicated infrastructure and endpoints. Besides, new users of these services can start with little or no investment in video equipment.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of