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 The web conferencing software and services markets and the videoconferencing endpoints market will undergo an expansion in 2007, notes a recently released Frost and Sullivan (F&S) report.

Promising Trends In Web Video Conferencing Industry: F&S
found at CXOtoday Mumbai, Feb 5, 2007
Video Conferencing The report states that demand for cheaper options, and increasing competition from premise based solutions is expected to result in a plunge in requirement for videoconferencing services

Videoconferencing endpoints will witness stronger sales from the group systems segment. The desktop conferencing was hindered by on going product innovation in the web video conferencing space and also with the new solutions offered in unified communications segment, says the report.

The report brings out that in Asia, large global organizations, manufacturing companies, educational institutions, hospitals, medical centers and also government departments are now being targeted for the Telepresence (a new prototype that has emerged in high level video conferencing) deals.

It is foreseen that prices will come down in the short to medium term, especially in the large addressable markets of China and India. The prices of end points are expected to decline further on the back of intensifying price wars, thus encouraging sales into the SME sector.

The dramatic decline in pricing per minute continues to weigh down on the profitability of providers of on-demand video conferencing services. Thus, these vendors would achieve better saleability by innovating and offering new features over simple audio, video and web conferencing services.

Meanwhile, on-going innovations from the web conferencing software market still hamper the demand for desktop conferencing. Vendors will release solutions as an all in one solution encompassing audio, video and web and even telephony facilities collaborated at the desktop. Prices of executive desktop conferencing solutions are also expected to see a decline.


The geographic spread of countries like India, China and Australia makes it a potent basis for companies to consider setting up videoconferencing as an internal communication tool.

According to the report, while there have been new developments in the unified communications space, integrating the disparate communication technologies to bring efficiencies in the business processes seems to be the key value proposition that the vendors are taking to the market.

Integration of video, audio and web conferencing to be sold as one entity would have a greater demand. Instant messaging and web conferencing solutions sold as a bundled package will see greater push from vendors.

Interest is also building up for SaaS (Software as a Service) applications in the web conferencing space and the uptake is expected to be significant. On the vendor front, this will enable players such as WebEx and Microsoft to push forward enhanced web collaboration services (including asynchronous collaboration services such as shared document folders, shared calendars, task management, shared database applications, discussion forums and contact directories) at more affordable prices.


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