{"id":38183,"date":"2014-07-24T11:28:54","date_gmt":"2014-07-24T10:28:54","guid":{"rendered":"https:\/\/loopup.com\/resource-center\/\/video-conferencing-cloud-really-rising\/"},"modified":"2019-03-20T16:10:40","modified_gmt":"2019-03-20T16:10:40","slug":"video-conferencing-cloud-really-rising","status":"publish","type":"post","link":"https:\/\/loopup.com\/us\/resource-center\/blog\/video-conferencing-cloud-really-rising\/","title":{"rendered":"Video Conferencing: How High is the Cloud Really Rising?"},"content":{"rendered":"<p>I recently read an interesting article by <a title=\"Larry Dignan Twitter\" href=\"https:\/\/twitter.com\/ldignan\" target=\"_blank\" rel=\"noopener noreferrer\">Larry Dignan<\/a> at <a title=\"Zdnet.com\" href=\"http:\/\/www.zdnet.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Zdnet<\/a> which <a title=\"Video Conferencing Hardware Sales Slump\" href=\"http:\/\/www.zdnet.com\/video-conferencing-telepresence-sales-tank-7000030047\/\" target=\"_blank\" rel=\"noopener noreferrer\">discussed a slump in sales of hardware-based video conferencing systems<\/a>.&nbsp; Larry quotes findings from analysts IDC, who found that \u201csales of video conferencing equipment in the first quarter fell 15.9 percent compared to a year ago. Global enterprise video equipment revenue in the first quarter was $473.5 million and units sold fell 6.2 percent from a year ago.\u201d&nbsp; Larry suggests that this slump in hardware sales is due to a switch to cloud-based video conferencing as a service (VCaaS), saying that these hardware-based system providers are being hit by \u201ca big can of whoop ass\u201d by software and cloud-based collaboration tools.&nbsp; He is joined by other industry voices, including <a title=\"Wayne Mason Twitter\" href=\"https:\/\/twitter.com\/WayneMason75\" target=\"_blank\" rel=\"noopener noreferrer\">Wayne Mason<\/a>, who states in this <a title=\"Video Conferencing in the Cloud\" href=\"http:\/\/www.techradar.com\/news\/world-of-tech\/how-video-conferencing-in-the-cloud-can-transform-business-collaboration-1250490\" target=\"_blank\" rel=\"noopener noreferrer\">article on TechRadar<\/a> that VCaaS is an emerging force, allowing companies to make use of video conferencing without the infrastructure and maintenance costs.<\/p>\n<p>While it\u2019s not surprising that there is a slump in hardware sales relating to video conferencing, the data doesn\u2019t seem to indicate that this decline is due to a corresponding increase in VCaaS.&nbsp; The overall value of the VCaaS market has increased from $135m in 2012 to $150m in 2013, with a projected value of $185m for 2014 (Wainhouse, April 2014).&nbsp; This is a decent increase in percentage terms, but it\u2019s still a tiny part of the overall video conferencing market.<\/p>\n<p>As is so often the case with video conferencing, there\u2019s a lot of hype.&nbsp; The familiar refrain of \u2018this is the year of video conferencing\u2019 has simply been replaced with \u2018this is the year of VCaaS\u2019, without the evidence to back it up.<\/p>\n<p>In fact, I believe that the slump in hardware-based video conferencing systems, and indeed the still small market for VCaaS, can be explained not only by the usual factors that <a title=\"Video Conferencing Continues to Struggle: the Overlooked Reason Why\" href=\"https:\/\/loopup.com\/resource-center\/blog\/video-conferencing-continues-struggle-overlooked-perhaps-biggest-reason-why\/\" target=\"_blank\" rel=\"noopener noreferrer\">Steve Flavell has discussed in the past<\/a> \u2013 complexity of setup, interoperability issues and high costs \u2013 but because <b>everyday conferencing users fundamentally don\u2019t have a use case for video on the majority of their calls.<\/b><\/p>\n<p>The fact is that most people on conference calls just don\u2019t want to be videoed, especially on everyday calls when they may be peripheral to the action.&nbsp; While there are certainly business use cases in which video conferencing is very useful \u2013 interviews spring to mind, for example \u2013 &nbsp;these specialist use cases are greatly outnumbered by the everyday meeting use cases.&nbsp; On these calls \u2013 the daily team meeting, the weekly project call &#8211; it is neither useful nor desirable for participants to be on video, especially those participants who are on many such calls a day, and not central to the action on them all.<\/p>\n<p>Until people actively want to be videoed for these everyday calls, the industry will struggle to reach the level of adoption they hope to reach, no matter how many hurdles VCaaS may claim to remove in terms of simplification, compatibility, and cost.&nbsp; Until that day, I\u2019ll be watching the market with interest, and taking video conferencing supporters\u2019 claims with a pinch of salt.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I recently read an interesting article by Larry Dignan at Zdnet which discussed a slump in sales of hardware-based video conferencing systems.&nbsp; Larry quotes findings from analysts IDC, who found&#8230;<\/p>\n","protected":false},"author":4,"featured_media":38184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[424],"tags":[],"class_list":["post-38183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.2 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Video Conferencing: How High is the Cloud Really Rising? | LoopUp<\/title>\n<meta name=\"description\" content=\"Declining hardware-based video conferencing system sales have been attributed to an increase in cloud-based video conferencing. 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