Cisco and Polycom dominate declining immersive telepresence market, says IDC

Firms expected to move toward lower-cost video conferencing alternatives

Cisco (Nasdaq: CSCO) and Polycom (Nasdaq: PLCM) are the two dominant vendors in the declining immersive telepresence market, with Huawei, Teleris, Avaya's Radvision and Vidyo tagged as other major players, according to IDC's first MarketScape report on immersive telepresence. 

For the MarketScape report, IDC evaluated vendors based on their ability to demonstrate a robust product portfolio, including the ability to support telepresence endpoints in collaborative applications.

Immersive telepresence is an integrated set of visual, audio and network conferencing technologies and services that deliver a life-like communications experience.

The top players, however, are competing in a market that has posted declining revenue for the last year-and-three-quarters, according to IDC. Because of the expense of immersive telepresence, its deployment is often limited to central locations for specific high-end use, which has led to market saturation as those large companies interested in immersive telepresence have already deployed the equipment.

This decline was reflected in figures published earlier this year by Infonetics Research. Revenues generated by the enterprise videoconferencing and telepresence market dropped to $644 million in the second quarter of 2012, a 6 percent decline, according to Infonetics.

IDC predicts firms will continue to turn away from high-priced telepresence equipment and toward lower-cost video conferencing alternatives that can be carried out on desktops and mobile devices.

Other vendors examined in the report, which were all identified as contenders, are Digital Video Enterprise, Logitech's (Nasdaq: LOGI) LifeSize and Magor.

"IDC MarketScape leaders and major players are well positioned to seamlessly meet the needs of enterprise users in both the near and long-term, while contenders can address some specific telepresence usage requirements," said Rich Costello, senior analyst for Enterprise Communications Infrastructure at IDC.

Costello advised enterprises who are considering deploying immersive telepresence products to examine how implementing this technology will affect their networks as well as how it will be integrated into their environment and critical applications.

For more:
- check out IDC's release

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