Executive Q & A: Why Does the Video Conferencing Market Remain Strong in This Challenging Economic Environment?

Strong market for video conferencing photo.

By Nina Parker

Why does the video conferencing products and services market remain strong, given the current state of the economy?.

That was the question posed to the IVCi executive team, and executives at video conferencing equipment manufacturers Polycom and TANDBERG. The following are the responses from these business leaders.

We are interested in your feedback — please e-mail us at to provide your answer to this question, or to let us know how video conferencing is playing a role in your company's reaction to the current market conditions. We will publish some of the responses in our next issue of Power Meetings Update.

"What we've seen historically is that video conferencing technology is embraced in times of economic downturn. Organizations are looking to limit expenses, and as a result many are cutting travel budgets. However, meetings still need to take place - so enterprises turn to video as an alternative to expensive flights, hotel rooms, and meals out. We are now seeing a growing awareness of the benefits of video. In fact, video conferencing is becoming such a popular alternative to travel that even executives without technical knowledge are coming to us for a managed video conferencing solution. I believe we will see continued interest in the video conferencing marketspace."
— Bob Swing, IVCi president

"In this challenging economic environment, customers are embracing visual communication for its ability to reduce operating costs, improve productivity, efficiency and effectiveness of workers, and actually expand what is possible for their businesses. When belts tighten, businesses look to do more with less and be more efficient. Visual communications allows them to do just that while also saving on the costs and carbon emissions associated with business travel."
— Joan Vandermate, Polycom vice president of marketing, video solutions

"These are interesting times. The first reaction of most companies to the economic crisis we are in is 'stop spending!' The second reaction is 'how can we reduce expenses?' The smart money is then spent on technology that can help cut costs. What we have seen in past economic downturns is a quick but very short slowdown in spending on video collaboration, and then a quick acceleration as companies buy, install, and utilize video technology. The result is a reduction in expenses based on improved productivity, and better utilization of scarce human resources. Large scale deployments of video are best implemented with a managed service provider like IVCi, because this allows companies to focus on their core business, while IVCi economically manages the video implementation and daily call management."
— Charles Macli, IVCi EVP sales & marketing

"During challenging economic times, customers are turning to video to help them reduce costs and stay competitive. Video has the potential to significantly reduce costs and offer a defendable return on investment, contingent on three conditions being met. First, there must be a complete portfolio for enterprise-wide deployment. Second, the ability to seamlessly integrate video conferencing and telepresence is required to maximize the benefits and usage of the deployment. Third, a global service and delivery capability will ease implementation and protect the investment."
—Fredrik Halvorsen, TANDBERG CEO

"Our managed conferencing services customers have shown a record increase in video conferencing usage since the severity of the financial crises has grown. In fact, some of our managed customers have tripled their video conferencing usage this year. Our reporting tools have shown that this increased usage of video has allowed these customers to reduce travel costs and cut down on carbon dioxide emissions. In addition, IVCi has maintained its industry leading video meeting success rate, even though our customers' video use has increased substantially. For example, last month one of our customers lost only 22 out of 220,000 minutes of video meetings. That's over 99.9% of video calls that are successful. This level of reliability has given our customers the confidence to increase their usage, and enjoy a better return on their video conferencing investment. That's critical in these economic conditions."
— Chris Böttger, IVCi SVP managed services

"Demand for our video conferencing and audio visual (AV) integration services remains strong because the conference rooms we design are equipped to be multi-purpose. This is imperative, because with the price of real estate, our customers need to maximize use of their limited resources. Instead of designing a dedicated conference room for video conferencing, training, or board meetings, AV integration allows more functions inside a single room. In addition, AV integration is central to the success of video calls; a conference room that is used for video conferencing needs special lighting, audio, and control systems. A properly integrated conference room allows our customers to achieve the maximum return on their investment in this current economic climate."
— Tim Hennen, IVCi SVP AV integration

For additional information regarding video conferencing and audio visual integration call 1-800-224-7083, or click here to have an IVCi Representative contact you.

IVCi's HD Video Conferencing Solution Enhances Transurban's Meeting Experience

Transurban conference room photo.

By Nina Parker

The challenge

Transurban Group is an international toll road developer and manager with interests in Australia and the U.S. The company uses video conferencing to hold board, executive, and project management meetings across corporate locations, including Virginia, Washington, DC, New York City, and Sidney, Australia.

The video conferencing system in Transurban's New York City location needed to be updated. Engineering firm Lilker Associates - TSG worked with Transurban to determine the new system's technical requirements, and design the audio visual (AV) components. IVCi was chosen to provide the customized solution.

The solution

IVCi provided a system that included a 4000 Lumens LCD projector, omni-directional microphones, ceiling mounted speakers, Tandberg Edge 95 high definition video conferencing system, natural presenter package (NPP) for sharing data such as PowerPoint slides and Excel spreadsheets, and an AMX touch panel for easy system control.

The results

IVCi's video conferencing solution enhanced Transurban's meeting experience. "We can really see a difference with our new high definition video conferencing system; the images are clear and crisp. We cannot discern any pixilation - the quality is excellent," said Transurban IT Support Analyst Scott Gemmell. "In addition, it is far superior to audio conferencing because we can see the other participants, so we experience a more personal, face-to-face interaction."

Mr. Gemmell said IVCi provided a system that was simple for anyone to use. "The solution IVCi provided is reliable and user-friendly - participants can just pick it up and use it. Before, we had four separate remote controls for everything. Now, all of the systems are integrated through the AMX touch panel, so that makes it a lot easier and less scary for the user."

When Transurban needs additional video conferencing installations, Mr. Gemmell said he would select IVCi to provide them. "IVCi was great; the team is friendly and responsive. The training was very helpful. We were walked through the whole installation process, and our IVCi project manager was always right on point with his answers to our questions. If we need more systems in the future, we will choose IVCi. I would recommend the company to anyone who requires a high quality video conferencing solution." End of article.

For additional information regarding audio visual and video conferencing solutions call 1-800-224-7083, or click here to have an IVCi Representative contact you.

All trade names, trademarks, and/or service marks herein are owned by their respective holders.

Invite IVCi to be your friend on Facebook. Follow IVCi on Twitter. Find out what's new in the worlds of conferencing and audio visual technologies at the IVCi Blog. Visit the IVCi YouTube Channel. RSS news feed from IVCi.
Find us on Google+
©2012 IVCi, LLC All rights reserved. All articles, trade names, trade and service marks herein are owned by their respective holders.