1. ©
Copyri
Video-Enabling Presence ght
Portals 2006
September 21, 2006 Nemer
Irwin Lazar
Principal Analyst, Nemertes Research tes
http://www.nemertes.com/ Resea
rch
© Copyright 2006 Nemertes Research

2. Agenda ©
Copyri
• The Virtual Workplace
• Presence as an Enabler
ght
• The Presence Portal 2006
• IP Video Conferencing Nemer
• Standards tes
• Beyond the Corporate Boundary Resea
• Recommendations
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2

3. The Virtual Workplace is
©
Here
Copyri
•
ght
58% of IT Executives considers their company to be
a virtual workplace.
• More than 75% of them report using real-time 2006
communications technologies today.
• 90% of employees work in locations other than
headquarters.
Nemer
• Between 40% and 70% of employees work in tes
different locations from their supervisors.
• Resea
The number of virtual workers has increased by a
whopping 800% over the past five years.
rch
3

4. What Real-Time Applications do you use?
120%
97%
©
100%
80%
80%
76%
Copyri
60% 54% ght
40%
16%
2006
20%
0%
Nemer7%
tes
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4

5. Convergence Timeline: ©
Copyri Advanced UM integration
Collaborative Applications; Contact Centers
ght Videoconferencing, wireless
Additional VOIP Deployments
2006 Add Unified Communications
Network optimization, management, security
Nemer
Troubleshoot
Initial VOIP deployment or pilot
tes
Upgrade WAN infrastructure (length of time depends on complexity)
Corporate buy-in
Resea
Decide on additional applications
Planning
12 rch 24 36 48
Months 5

6. Presence As The Killer App©
• Presence Drives
Copyri
Real-Time ght
Communications…
• And Bridges the
2006
Virtual Workplace Nemer
Gap
tes
• But the Value is
Hard to Quantify; Resea
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6

7. Presence Functional Model©
learning, location tracking, physical security)
Industry-specific (imaging, distance
Web Conferencing
Audio conferencing
Copyri
Unified Messaging ght Real-time
Communications
Instant Messaging Dashboard
Desktop Video
2006
Presence Nemer
IP Enabling Contact Centers
Wireless Voice Over IP/Mobility
tes
Room-to-Room Video Over IP Resea
Network optimization, management, security rch
7

8. Real-Time Communications
Dashboard ©
• Unifies
Copyri
– IM ght
– Conferencing (audio,
video, Web)
2006
– Voice (point-to-point Nemer
calling & related
features) tes
– Unified Messaging
– Presence
Resea
rch
8

9. RTCD Value ©
• Low current
Copyri
implementation, but ght
growing interest
• Average price
2006
customers willing to Nemer
pay increased from
$291 to $437 per
tes
seat. Resea
rch
9

10. Video Conferencing Evolution ©
• Video Conferencing Then:
Copyri
– Room-based
– Dedicated circuits or on-demand services such as ISDN
ght
– High bandwidth 768 kbps (128 kbps for single ISDN BRI) 2006
• Drawbacks
– Separate high-cost network Nemer
– Limited flexibility (what if you aren’t near a room?)
tes
– No ability to tie into other applications (e.g. presence/web
conferencing
Resea
rch
10

11. Video Conferencing Trends©
Copyri
• Video over IP (Trunking)
• Desktop video conferencing
ght
2006
– Allows workers to participate regardless of
location
Nemer
– Integration with web conferencing systems
and room-based systems tes
– Cheap - all you need is a USB camera, Resea
speakers, and microphone
rch
11

12. IP Video Provides Cost,
Productivity Benefits ©
• The next application
Copyri
organizations consider
after VOIP.
ght
Videoconferencing Costs
• Drivers: 2006
Average Hours/Month
Average Per-Hour Rate
80
$250.000
Total Monthly Cost
– Cost savings (travel) $20,000
– Improved employee Nemer
Average IP Video bridges
Operational Startup
$162,189
$68,000
productivity
Payback/months (ALL calls) 11.51
– Project tes
Payback/months (50% of calls)
Payback/months (30% of calls)
16.33
38.36
collaboration/branch-
office workers Resea
• Benefits (room-to-room)
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13. Video Plans on the Rise ©
Copyri
• 30% are using video over IP today
• 25% have plans to use room-to room
ght
video over IP 2006
• Nemer
37% plan to use desktop video over IP
• By 2007-2008, a growing number of tes
organizations will use both room-to-
room and desktop video conferencingResea
over IP rch
13

14. Vertical Breakdown ©
Room-to-Room Videoconferencing, by Industry
Copyri
Pr
of
So
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es
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ftw
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on
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ea
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re
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l
2006
25.0%
22%
20.0%
17% 17% 17% Nemer
Percent
15.0%
10.0%
9%
tes
5.0%
4% 4% 4% 4% Resea
0.0%
Currently
using
Currently
using
Currently
using
Currently
using
Currently
using
Room-to-Room Video
Currently
using
Currently
using
Currently
using
Currently
using rch
14

15. Desktop vs. Room-to-Room©
IP Videoconferencing, Desktop vs. Room-to-Room
40.00% Copyri
ght
37.20%
35.00%
30.00%
25.00%
29.50%
2006 29.49%
20.00%
21.79%
Nemer 17.95%
Desktop
Room-to-room
15.00%
10.00%
tes
11.54% 11.54%
12.80%
Resea
9.00%
7.70%
5.00% 6.41%
3.80%
1.28% 0.00%
0.00%
Using rch
Evaluating Planned for Planned for Planned for
2006 2007 2008
No Plans Unsure
15

16. Next Generation Video
Conferencing ©
Copyri
• High Definition - Telepresence
– “Next best thing to being there” clarity ght
– Examples: 2006
• HP HALO
• LifeSize
Nemer
• TANDBERG, Polycom tes
Resea
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17. HiDef Video Conferencing ©
• System Limitations Copyri
– Bandwidth (1Mbps up to 54 Mbps) ght
– Costs
2006
• HALO - $550k initial cost, $30k recurring cost
(per month, per room) Nemer
• PolyCom / LifeSize initial offerings at $12,000
for a room-based system, plus monitor tes
– Scalability
• HALO is only point-to-point Resea
rch
• Scalability of other systems limited by available
bandwidth 17

18. Network Impact ©
Copyri
• Video is bandwidth intensive
– Minimum of 128 kbps ght
– Codecs matter 2006
• Newer codecs such as H.264 and H.264 SVC
reduce bandwidth requirements Nemer
– But at the expense of increased computational
requirements
tes
– Troubleshooting is difficult Resea
• CPU issues, not just the network
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19. Typical Pitfalls ©
Insufficient No baseline
assessment
Copyri
Rushing
through
ROI project
ght
Narrow
2006Poor
design,
vendor
assessment
Failure! Nemer
engineering
tes
Low-quality
products Poor
Resea
Lack of
training
management
tools
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20. When do Standards Matter?©
• SIP/SIMPLE are the
Copyri
clear winners in the ght
standards battle…
• …but IT executives
2006
don’t really care Nemer
• What they want are tes
open products that
play well with others Resea
rch
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21. Architectural Issues: Today
and Tomorrow ©
Copyri
• Hosted vs. In-House
• Network Architecture
ght
• Security: Top Priority 2006
• Beyond the Enterprise Boundary Nemer
tes
Resea
rch
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22. Network Impact ©
• Re-architecting the Copyri
network to support
high-bandwidth, ght
any-to-any traffic
flows
2006
• No guarantees for Nemer
home users tes
Resea
rch
22

23. Beyond Network Boundaries ©
Copyri
• How to extend video conferencing to
partners, customers, suppliers? ght
– Direct peering model 2006
– Third-party peering services
Nemer
– Public services (SightSpeed/Skype)
• Likely a mix-and-match moving forward
tes
• Video is entering the mobile world Resea
rch
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24. Are You Ready for IP
Videoconferencing? ©
• Your staff is increasingly dispersed.
Copyri
• You find value in visual meetings with ght
partners, customers. 2006
• You have converged your network
Nemer
infrastructure to IP, QOS is in place, and
you’re already running voice over IP. tes
• You already use ISDN videoconferencing on
a limited basis. Resea
• rch
Staff is asking for desktop videoconferencing
24

25. Recommendations ©
•
Copyri
Like voice, it is inevitable that room-
based video will move to IP ght
• Determine ROI for desktop video 2006
conferencing
• Plan for extending video beyond Nemer
enterprise boundaries tes
• Integrate communications & Resea
collaboration planning
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26. Thank You ©
Copyri
ght
2006
Nemer
Irwin Lazar tes
Irwin.lazar@nemertes.com
703-468-4361 Resea
IM (AIM, Yahoo, Skype, Google): imlazar
SightSpeed: irwin.lazar@nemertes.com rch
26

27. Introductions ©
• About Nemertes Copyri
– Founded October 2002
– Research data comes from
ght
network of 2,500 IT executives 2006
willing to discuss their issues Nemer
and concerns at length
– Focused on analyzing the tes
business value of emerging Resea
technologies
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