Disasters drive videoconferencing

As the economy continues to tank and companies cut back on travel, Polycom, Cisco and HP hope to profit through video conferencing alternatives.

The speculation, according to Forbes, is based upon previous booms in videoconferencing after 9/11 and the SARS scare. Last week, Polycom said it would likely see 4Q revenues between $263 and $265 million - on par with last year's numbers. But Polycom reports the video end of the business grew "modestly."

High-definition telepresence suites built to look like one half of a conference room with big screens on one wall are what excites manufacturers.  A high-end Polycom four-seat setup costs $100,000, while a 28-seat theatre can easily cost $500,000 or more, plus the costs of bandwidth for running high-quality voice and video. It is equipment with a big price tag but it also offers the potential for large corporate savings over executive travel.

Polycom drinks its own champagne with 1,200 video systems for its own use in the 2,600 person firm. The company makes about 300 video calls a day with an average of four people on a call.

Cisco also says it is saving money by using its own equipment. It has paid for its first 110 internal video rooms in nine months just by reducing travel costs, and today has 321 video rooms in 135 cities across more than 40 countries. HP is making money by both selling gear and providing its own managed network to insure video quality, but the company is looking to run with Marriott to offer services inside of Marriott hotels.

For more:
- Forbes runs down prospects for videoconferencing in 2009. Article.

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