Conferencing Technologies Here to Stay
By Harold German, Marketing Director, IVCi, LLC
Security World Magazine
12/23/04
For years companies have tried to implement conferencing technologies to optimize their business communication processes. For most of those years, audio conferencing has been the primary solution that companies have turned to. However, as the business environment becomes more challenging and higher efficiencies from companies, other solutions such as video and Web conferencing have enjoyed an increase in popularity. The aforementioned technologies have undergone considerable enhancements and the past issues with quality, reliability and security are all but gone. These improvements have come mainly from enhancements to the IP networks that these conferences are carried across, along with better fusion between the products and the network. As a result, a technology that was once only used as a way to supplement face-to-face meetings is now being used in various applications, from the very general to the very specialized; as in the case of Web-based seminars and telemedicine, respectively. Outlined below are some of the current industry trends:
An Alarming Shift Is Underway: ISDN to IP
Most companies using video conferencing conduct their meetings over dial-up ISDN lines (Integrated Services Digital Network). Although it has always been the most affordable medium for video communication, ISDN is plagued by performance, reliability and image quality issues. For the last few years, however, there has been a significant migration to IP networks, a medium that is much more robust and has become more affordable. Used almost exclusively by larger organizations to-date, Video over IP is rapidly gaining adoption among mid and small-sized companies. The image quality of the video calls is superior, the point-of-entry is significantly lower and the call connections are more reliable. Add in the general benefits of video conferencing such as: travel elimination, time and cost savings, and it translates into a technology that has became more relevant to many more people.
Industry-Standard Increased
Video call quality is constantly improving, with this trend continuing due to H.264, a newly ratified video compression standard by the Switzerland-based International Telecommunication Union. H.264 aims to cut the necessary bandwidth for sending video during a videoconference in half. This translates into improved call clarity/definition and an increase in simultaneous call capacity. It also means that there is a substantial reduction in the bandwidth needed to hold video conferences. This year a call placed over a 256k IP connection (substandard economy class) looks as good as if was placed on a 384k IP connection (quality business class) last year. This means that companies of all sizes can now enjoy the same quality only larger corporations had access to. Due to the fact that less bandwidth is needed to conduct better quality video calls, IT departments are more interested than ever since they can now devote less departmental resources and reduce the recurring operating costs associated with implementing video conferencing.
More Reliable
Users of ISDN service have had to deal with a widely known complication in video conferencing, dropped calls. Imagine being in the middle of an important board meeting with senior-level, international attendees and the call abruptly ends due to a service interruption. For this reason, large corporations accepted the initially higher costs of IP and enjoyed relatively uninterrupted service. With IP network services accessible and cost-effective for more companies, all users can now experience worry-free, uninterrupted video meetings. Some service providers even guarantee their network’s uptime. IVCi (www.ivci.com), a managed conferencing service provider, touts a 99.99% guaranteed network uptime behind flagship service IntelliNet, which is used by some of the nation’s largest (and smallest) companies.
Much More Affordable
With escalating international violence and terrorism still a point of concern for many business professionals around the world, conferencing companies realize that the technology is more relevant than ever, and with enhanced quality and reliability, demand will only continue to grow. For this reason there has been a collective push to make this vital service more affordable, making it easier for companies of all sizes to reap the numerous benefits of video conferencing. Entry-level products start at as little as US$400 and maintenance-free, unlimited-use services packages start at US$599 per month. One year ago, a simple package linking two offices in different geographical regions with the high-end IP service would have cost tens of thousands of dollars in set-up, network integration and maintenance. Today, the same package can be purchased for as little as four thousand dollars. Last year, a study by Wainhouse Research, an independent research firm serving the rich media conferencing and communications fields, showed that companies could expect to break even twelve months after implementing a video conferencing system, factoring in cost savings associated with business travel, lodging and dining. Today, companies can easily break even after two to three months after implementation.
Companies Are Using All Types of Conferencing Technologies
Companies of all sizes are employing a combination of conferencing technologies, as each serves its own purpose. For instance, companies use video conferencing to supplement ‘face-to-face’ meetings, where the tangible elements of human presence, body language and eye contact are all active components of the meeting. This differs somewhat from Web conferencing, which companies are using almost exclusively to collaborate and share documents. In other words, video and audio conferencing are being used to make faster, smarter decisions, whereas Web conferencing is being used to get work done rapidly in a collaborative environment. This fast-increasing realization by many companies throughout the country has certainly been good for business. As you’ll see in the study, all types of conferencing technologies are being used and the company with experience in all areas benefits the most. IVCi’s financial growth (US$12 mil in 2001, US$15 mil in 2002 and US$24.4 mil in 2003) has shown us that people don’t want to fly to their meetings anymore, employers don—t want their companies to lose productivity, and as a result, usage is significantly increasing.
Technical Requirements
There are two main elements needed to engage any of the several conferencing technologies: the product and the network. In Web conferencing, for instance, you can use IVCi’s Centra Web conferencing products, but you’ll still need the conferencing network (i.e., the internet) that will carry the communication. For video conferencing, you can buy Polycom or Tandberg or Sony products from IVCi, but you’ll need the network (i.e., an IP network or ISDN) to make the calls. It was only a couple of years ago that revolutionary technologies like video conferencing were only available to large companies with equally large budgets. This has changed in the advent of the ‘consumeration’ of conferencing technologies. What is happening in the conferencing technologies space can be best described as a communications phenomenon; very similar to the ‘consumeration’ of the home computer. Two years ago, you could have expected to spend US$30,000 on two video conferencing units and many thousands of dollars on monthly network usage fees for a modest package linking two offices. Although big firms were happy to pay these prices to eliminate travel cost and productivity loss, the formidable upfront costs were a barrier to entry for smaller companies. However, times have changed. There are companies that have a new video conferencing plan aimed at small to medium-sized enterprises. Such a plan gives customers a new video conferencing system for a certain period, at no cost, with unlimited video conferencing usage for a low, monthly fee. These plans are making it easy for companies of all sizes to take advantage of the innumerable benefits of conferencing technologies.
Conferencing Technologies and the New Business Environment
Face-to-face meetings are vital to the success of all business relationships. However, conducting business in today’;s fast-paced, ever-connected world demands that business professionals be at all places at once. The only way to maintain this level of communication and collaboration without ringing up hundreds of thousands of dollars in travel costs and losing hundreds of valuable hours in productivity every year, is by utilizing video conferencing. Video conferencing is the new ‘face-to-face’ meeting. Wainhouse Research’s recent study, along with every other study that has been conducted recently on video conferencing, shows that people are now able to effectively receive all of the key elements present with in-person face-to-face meetings (body language, eye contact, hand movements, subtle gestures). The technology has improved so drastically that it’s literally like being in the room with the person you are meeting with. Polycom, the manufacturer of video conferencing products in the world, recently released a product called the VSX 7000, which touts television-like video quality and integrated speakers that deliver sound crisp enough to make you forget that your meeting participants are actually not in the same room.
Who Benefits and How?
There are numerous examples of implementations that have been very successful by companies, both large and small. Managed healthcare giant Aetna recently contracted IVCi to assist them in implementing a nation-wide video conferencing technology solution covering 54 core locations. Included in this work was the upgrading of their existing video conferencing equipment to more powerful and updated applications. IVCi also assisted Aetna in the design and upgrade of their video network from ISDN to a faster and more reliable IP LAN/WAN backbone. This example represents a scenario where a company had already used conferencing technologies in one region but now wants to embrace it across the entire enterprise to multiply the efficiencies. But these efficiency gains are not limited to large organizations. The TCI Group, a New York City-based supplier of custom optical components, is a small company that also utilizes video conferencing services. They were initially attracted to the technology as a way to reduce travel to their manufacturing plant in the Czech Republic. When they contracted IVCi for the implementation of a modest video conferencing solution, within two weeks the New York group was having face-to-face meetings with the Czech-based team. The installation was a complete success and TCI recovered their investment in the system in within a few months of usage. Chairman G. Rausnitz was so pleased with the installation that he purchased a video conferencing system for his own Long Island, NY home so that he could participate in the meetings without having to drive into his office at 2 A.M. (8 A.M. Czech time). The company has seen a significant increase in usage and a substantial reduction in travel to the European office. As the company grows, they expect this increase in usage to continue.
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