Brockmann_ValueofVideo_051308

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Brockmann_ValueofVideo_051308

  1. 1. The Value of Video Communications This report is brought to you by the financial support of these fine solutions providers: Brockmann & Company 11 Liberty Dr, Northborough MA 01532 T +1.508.904.0171 E peter@brockmann.com www.brockmann.com!
  2. 2. Table of Contents Executive Summary! 1 The State of Experience! 2 Business Collaboration Today! 2 Comparing Visual Communications to Business Travel! 3 The High Value of Local Collaboration! 5 Comparing Visual Communications to Mature Conferencing Options! 6 Comparing Visual Communications and Home Entertainment Experiences! 7 Brand Implications of Visual Communications! 9 Communications Choices Deliver a Message Too! 9 So What?! 11 Building and Defending The Business Case! 11 Analyzing The Travel Practices?! 12 Creating The Video Conferencing Demand Budget! 12 Appendix A: Our Sponsors! 14 Appendix B: Methodology! 17 Appendix C: Related Research! 18 About The Author! 19 The Value of Video Communications " i
  3. 3. Executive Summary Key Findings • 31% of respondents participated in an HD video conference last month • All classes of business travel are not the same; the substitutes have distinct Demand curves • Local collaborations over HD video conferencing are more valuable to users per hour than inter-continental collaborations over HD video conferencing • HD video conferences are 30 x more valuable than audio conferences • HD video conferencing invitations offers positive brand perceptions among customers HD video conferencing, personal video conferencing and immersive telepresence services have not yet leaped across the so-called ‘Market Chasm’ into mainstream business practice. Only 31% of our respondents participated in one or more HD video conferencing sessions in the past month. Only 11% had participated in at least one session of each of the three emerging services in that same period. As with most emerging products and services most companies struggle with two issues: how to determine the appropriate level of The Value Panel investment and how to justify that investment. This report offers 281 business users participated insights into those two issues through comparative valuations. This report also includes a method to predict the potential benefits of Followup communications high definition (HD) video conferencing products and services. 86% from Canada, USA and Mexico, 8% The report begins by reviewing the classic approach comparing the from Europe, Middle East and Africa service as a substitute for business travel. By looking at three distinct 36% are from organizations with less than classes of business travel - day trips, overnight trips and week-long 100 employees, 47% have over 1,000 trips - Brockmann & Company developed a Demand curve for each employees class of substitution. We then review the value of the service with respect to the more mature audio conferencing and web Key industries participating: 31% financial conferencing services. services, 21% telecom services, 8% software and IT services We also noted that two-thirds of respondents saw a link between invitations to participate in HD video sessions and improved brand 29% have IT responsibilities; 29% have perceptions. customer-facing roles (sales, marketing, service); 39% have management, finance, The proposed Demand-based method for developing an investment administration or HR responsibilities plan and approach is at the heart of the effective company business case. The Value of Video Communications " 1
  4. 4. The State of Experience Business Collaboration Today Figure 1 below shows the experience of the panel in the use of six collaboration technologies and the ‘no technology case’ of face-to-face meetings. As shown below, there are two groups - the lighter colored, mature services on the right and the darker colored, emerging services on the left. Separating the two groups is the Market Chasm, that any aspiring application needs to cross in order to reach critical momentum in market adoption. Face-to-face meetings with three or more participants are the most frequent interaction, the most widely experienced and the simplest technology. Of the mature services, audio conferencing is the next oldest and next simplest form. Users only need a phone to participate. Web conferencing needs a PC, a browser and an Internet connection since the specific software applications are regularly downloaded at session initiation. Figure 1 - Percent of respondents by type of collaboration opportunities in the past month. Mature Services Emerging Services 100% Market Chasm 87% 93% 75% here 69% 62% 50% 26% 27% 31% 25% Immersive Telepresence Executive Video HD Room Video 0% PC Video Web Conference Audio Conference Face-to-Face In terms of the emerging services, the distinctions along technology intensity does not apply. HD room video systems are the emerging service most widely experienced but executive video systems are simpler technologies. Executive video The Value of Video Communications " 2
  5. 5. systems do not place unique demands on furniture, lighting, monitor placements or acoustic engineering. Immersive telepresence is a growing phenomenon, yet will never gain the market acceptance of HD room video systems or executive video systems because of the very high cost of equipment and multi-megabit Wide Area Network (WAN) services these environments demand. Nevertheless, between 69% and 74% of the panel members did not experience one of the emerging sessions in the past month. There should be no doubt that this level of experience will grow quickly in the future, particularly as the vendors and service providers use the ‘seeing is believing’ tactic to promote the advanced network and user experience of immersive telepresence products and services. For example, one vendor used their telepresence offering on stage in front of approximately 2,000 VoiceCon attendees in March 2008 to deliver an interactive key note panel with speakers in San Jose California, Nashville Tennessee, Orlando Florida and London UK. 1 Another vendor delivered telepresence services to connect participants in Fortune Green Conference in Pasadena California with experts, speakers and audiences in Raleigh North Carolina, New Delhi India, Paris France and Frankfurt Germany. 2 And a third vendor imbedded high definition video conferencing into their trade show participation. 3 No doubt, these applications of high definition video conferencing will become commonplace and an effective method for time and travel-pressed speakers and executives. Comparing Visual Communications to Business Travel Brockmann & Company has analyzed the high cost of business travel in terms of three scarce currencies - cash, greenhouse gas and time. Modern video communications are well positioned to eliminate that cost, saving money, avoiding the hassles of modern air travel, improving work-life balance and creating time while reducing carbon emissions. Table 2 shows the basis of this logic and comparison for a typical day trip between Boston MA and Hartford CT. This analysis is dependent on the recognition of video conferencing as an effective substitute for face-to-face collaboration. But just how effective is it really? And, how valuable is it relative to actual business travel. Table 2 – Comparing the costs of a 1-hour face-to-face meeting 80 miles away (Boston - Hartford) with a 1- hour video conference. Feature Currency Drive Video Conference Drive 80 miles (return) Greenhouse gas 160 miles No Tolls in hometown $ Yes No Tolls in destination city $ Yes No Parking in destination city $ Yes No Carbon dioxide produced from driving Greenhouse gas 150 lbs 0 lbs Total time (4 hours travel time) Time 5 hours 1 hour Expense report required Time 0.25 hours No But there are other ways to value a product or service. With that in mind and to further the industry understanding of the value of video conferencing, Brockmann & Company presents a Demand curve showing the price at which a certain 1 Brockmann.com, VoiceCon: Cisco’s Al-John Demonstration, March 19, 2008 2 Brockmann.com, Telepresence in Executive Conferences, April 25, 2008 3 Brockmann.com, Interop: LifeSize Shows Off The Product, May 7, 2008 The Value of Video Communications " 3
  6. 6. percent of respondents would rather attend a video conferencing than participate in a business trip lasting the better part of a week, a business trip lasting overnight and the day trip consuming the better part of the work day. The three classes of business travel reviewed are: About Demand Curves • The week-long trip: the inter-continental trip, typically of 5,000 miles or 8,333 km each way and lasting at least three days of The market for every product or service can be represented in a Demand function which being away from the office with a typical business meeting of eight graphically is represented in a curve or line hours is described as a week-long trip. For example, to travel from Chicago IL to Berlin Germany involves a one-way trip of 4,405 where the x-axis is the price per unit and the y-axis is a metric representing the miles. number of units. In this case, the y-axis is • The overnight trip: the regional business trip, consisting of 500 miles, or 833 km each way and an overnight stay with a business the % of respondents. meeting of three hours is defined as an overnight trip. San Generally, at very low prices, Demand is Francisco CA to San Diego CA is 460 miles. very high. Similarly, at very high prices, • The day trip: the local trip, consisting of 50 miles, or 83 km and a Demand is typically very low. The Demand half-day of travel with to attend a meeting lasting only one hour is a function for a product or service is helpful day trip. Baltimore MD to Reston VA is 46 miles, for example. for marketers and product managers, because it can predict the overall effects on The Demand curves for each of these classes of business trip - the the market of various pricing actions such as price increases, or price decreases, and week-long, overnight and day trips - are shown in figure 3 below. its effect on total revenues since revenue = Figure 3 - Demand curves for the substitution value of high price x units. definition video conferences in lieu of different classes of business travel. Week-long trip Overnight trip Day trip 100% C 75% 50% D B 25% A 0% $0 $250 $750 $1,250 $1,750 $2,250 $2,750 $3,250 $3,750 $4,250 $4,750 $5,250 The Value of Video Communications " 4
  7. 7. To interpret the results of figure 3, consider the typical actual costs. In the case of the week-long trip, the actual cost of the trip is in the range of $2,800: approximately $1,900 for coach class airfare booked 7 days in advance, $700 for car rental, parking, tolls and hotel, and approximately $200 for meals over the three days. The actual cost of the week-long is a fair trade for only 12% of the research panel as shown by line A in figure 3. The actual cost of an overnight trip is approximately $700: $400 airfare and car rental, $300 hotel, parking, tolls and meals; corresponding to line B in figure 3, intersecting with the valuation of only 45% of the research panel. Of course, the day trip is the least total cost business trip class being in the $50 range, where the actual cost line is shown as line C in figure 3. This represents the valuation of nearly 90% of respondents. The percentages of respondents willing to pay the actual cost of the business trip are vastly different as shown in figure 3. This result shows that business travelers perceive greater personal benefit in the longer trips - longer duration and farther distances. Greater benefits in terms of enjoying the quality of the hotels, restaurants and even the joy of being unreachable for a time in our ‘always on’ work lives. In contrast with the day trip where the user will be driving in familiar territory, with easy access to mobile services and maybe even mobile email. It would seem that the user hasn’t really gone anywhere, but has the added administrative burden of actually submitting a travel expense form. In other words, when we review the purchase point at half the market (line D in figure 3): • For day trips the panel is willing to pay 6 x more for the video session than the actual cost of the day trip. • For overnight trips the panel is willing to pay about the cost of the overnight trip for the video session. • For week-long trips the panel is willing to pay 50% of the actual cost of the week-long trip. The High Value of Local Collaboration This perception of the greater benefit of the longer trip is also evident in figure 4 below, as the average value per hour of meeting time of video conferencing in lieu of travel is greatest on the shortest trip and least on the longest trip. Figure 4 - Average value per hour of meeting time of video conferencing instead of business travel by class. $400 $336.96 $300 $219.01 $200 $159.30 $100 Day Trip $0 Overnight Trip Week-long Trip Figure 4 above shows that greatest value to the research panel per unit of panel time is not in positioning against the classic week-long, long distance inter-continental business trip. The greatest value to the panel panel per unit of panel time is the day trip; the short-distance, cross-town or cross-state collaborations, where the personal costs of travel are greatest and the creature comforts and perks of inter-continental travel are absent. Although for most companies, the The Value of Video Communications " 5
  8. 8. international travel might represent the greatest cost reduction opportunity, figure 4 shows that for users, the greatest value impact will be in facilitating local collaboration without leaving the office or cubicle. Comparing Visual Communications to Mature Conferencing Options In order for a collaboration service to achieve a modicum of widespread adoption, the basic technologies - terminals, software and networks - must first be widespread. In the case of audio conferencing, this happened a decade or more ago with the widespread availability of telephones, networks and finally the conferencing servers. Web conferencing services reached a critical mass well within the past decade. The PCs and the Internet have been around for nearly two decades but the web conferencing service required stable client and server software elements to enable critical mass to be achieved. Similarly PC video requires fast PCs that can perform effective compression, quality web cameras and high speed Internet services. It is the degree to which one, two or three of these elements - terminals, software and networks - is not present that the collaboration service that depends on that particular combination of elements will struggle to achieve sizable market penetration and thereby cross the Market Chasm of figure 1. Of the three emerging services described as being on the right hand side of figure 1, HD room video conferencing seems to be the most likely to cross the chasm separating the two groups of services. The necessary high speed IP networks are readily available in a variety of appropriate configurations to suit privacy and performance needs of the business users. In figure 5, we show the average value of an HD video conference as compared to the audio conference and web conference of equal duration. Respondents were asked how much more they would pay per session to attend a 1-hour HD video conference instead of an audio conference, and how much more they would pay per session to attend a 1- hour HD video conference instead of a web conference. Figure 5 - Average payment for attending an HD video conference instead of attending various other conferences. $100 $82.13 $80 $75.27 $60 $40 $20 Audio $0 Web The Value of Video Communications " 6
  9. 9. The audio conference metric is 9% higher than the web conference metric, which is not to say that audio conferences are more valuable to users than web conferences. It is higher because the interval between the value of an audio conference and the value of an HD video conference is larger. This result also shows that web conferences are approximately $0.11/minute more valuable than audio conferences alone, which is surprisingly consistent with competitively priced web conference offers. Probably the most important statistic to emerge from figure 5 is that an HD video conference is considered to be 30 times more valuable than the equivalent audio conference (audio conferences are typically 5¢ per minute). In the Brockmann & Company report, A Guide to Choosing a Web Conferencing Service, the evolution of web conferencing is predicted to move towards an integrated presenter-audience visual collaboration. Today, seeing the presentation and hearing the presenter is helpful, but a significantly more valuable option is to more completely emulate the ‘live’ in-person meeting by incorporating a presenter and audience video with the presentation. That way, the presenter can more easily accept non-verbal cues from the audience and the audience can capture non-verbal inflections with the presenter. Our human ancestors have been communicating by listening and seeing each other for 50,000 years 4. It’s only in the past 130 years that people have been able to share ideas in real-time without benefit of simultaneously seeing the content deliverer. This is the value in seeing one another while sharing ideas. It becomes a true human-human encounter, and not a minimalist experience. Comparing Visual Communications and Home Entertainment Experiences Figure 6 - Purchased or 12 month plan to purchase advanced consumer entertainment products. Plan Own 80% 32% 60% 16% 40% 32% 20% 47% HD TV 40% 14% Dolby 5.1 or 7.1 Receiver 19% 0% BluRay DVD Player 15% AppleTV or Windows Media Center One of the central vectors behind the momentum in video conferencing adoption discussed in The Perfect Storm: Why Video Conferencing Will Dominate Business Communications is users’ expectation. In that report, we argued that the consumer experience with researching, sourcing, deploying and operating home electronics such as BluRay DVD 4 http://dienekes.blogspot.com/2007/03/evolution-of-human-speech.html The Value of Video Communications " 7
  10. 10. players, High Definition televisions and advanced audio processing receivers and speaker systems sets the baseline for their satisfaction or non-satisfaction with the corporate video communications experience. In this study, Brockmann & Company tested this vector in the development of the understanding of the comparative experience, using the home entertainment experience as the baseline. Our findings are that HD TVs are the most popular of the appliances considered and are the critical factor, since no more than 24% of respondents that did not own an HD TV did own another of the components such as Dolby 5.1 or 7.1 receiver, a BluRay DVD player, an Apple TV or Windows Media Center. Figure 6 above shows that by the end of 2008, 79% of business users will have purchased HD TVs for their home use. This is a substantial milestone in the evolution of the home entertainment market, and establishes a uniform and high benchmark of user expectations for quality visual presentations, audio, control and operational reliability attributes. Figure 7 - Percent of respondents declaring the HD video conferencing experience as having BETTER features as compared to the home entertainment system. Comparing business users with HD TV at home and others. Business Users with HD TV at Home Others 100% 84% 80% 75% 56% 50% 20% 31% 25% Better Audio Quality 20% 27% 20% Better Video Quality 0% Easier Operations More Reliable System Figure 7 shows how owners of HD TV have virtually the same perspectives as the non-HD TV owners on the system reliability and video quality. Operationally, 55% more respondents that owned an HD TV agreed that HD video conferencing systems were easier to operate than others. Interestingly, 3 times more owners of HD TV systems give the HD video conferencing system particularly high grades for audio quality as compared to their home entertainment system. Seeing well it seems, is not enough of an innovation for users. Hearing well at home is therefore also relevant, maybe more so. The Value of Video Communications " 8
  11. 11. Brand Implications of Visual Communications Communications Choices Deliver a Message Too Vendor and customer collaborations is among the most important communications processes in business. Being professional, punctual and open-minded are often considered key aspects of conducting telephone conversations and audio conferences with customers. Figure 8 - Perceptions of vendors’ brand improves among customers when invited to a class of video collaboration instead of an audio conference, regardless of ability to participate. 75% 58% 61% 50% 50% 48% 25% Telepresence HD Video 0% Personal Desktop Video PC Video In The First Contact Report, Brockmann & Company shows that a company’s choice of anti-spam technologies has large and lasting effects on the brand perception of that customer with respect to the vendor. And, in this study, particularly in figure 8 we show that the choice of collaboration technology makes a difference in most customers’ perception of the vendors’ brand as well. Nearly two-thirds of respondents thought that the brand perception of a vendor would be improved if they were invited to an HD video conference than to an audio conference call. The Value of Video Communications " 9
  12. 12. Quality does matter, but to a point. Immersive telepresence experiences are often touted by the vendors to be a higher quality experience than HD video conferences. Yet, our research does not show a markedly stronger perception advantage among business users. 5 In fact, HD video conferencing is consistently rated at higher levels of perceived quality than telepresence. In this study, we show that 5% more respondents perceive a brand’s improved position as a result of an invitation to an HD video conference, than an Question for future immersive telepresence session. research: Respondents do notice a difference between the quality of room systems and desktop How often are business or personal systems. The room systems are generally 10 points higher than the personal users using video confer- and PC systems and nearly a third more (27%) respondents reported that an invitation to encing in inter-business attend an HD video conference would improve brand perception as compared to a PC interactions? video session. When asked why an invitation to an HD video conference would improve their perception of the brand, respondents gave reasons such as: • “I would be impressed by the investment they made in the meeting” - Manager, Telecom company • “Better quality, better perception” - IT analyst, Manufacturer • “Convenience” - Director, Financial Services • “Leading edge technology; improves user experience” - Vice President, Financial Services Clearly, imbedding HD video conferencing into the sales cycle sends the message to the prospective customer that your brand is a quality brand. In the hyper-competitive markets we find in virtually every product or service category today, that can translate into a shorter sales cycle and greater revenues faster than less visual competitors. 5 Brockmann & Company, The Perfect Storm: Why Video Conferencing Will Dominate Business Communications The Value of Video Communications " 10
  13. 13. So What? Building and Defending The Business Case Classical business case development shows that HD video conferencing is valuable to business because of the impact on the three currencies discussed in table 2 and shown in figure 9 below. Cost reduction through travel elimination, greenhouse gas elimination through travel elimination and time creation through freeing up wasted travel time. As is to be expected, elimination of travel is a natural driver for this business case since travel and HD video conferencing are often seen as substitutes. Figure 9 - The elements of a solid business case: cost improvement, air quality improvement and time creation are related. $ Air Time Some decision makers might be tempted to argue that the same cost reductions, business impacts and carbon remissions are possible by substituting audio conferencing Question for future for travel, an even less costly option. It would be a mistake to reach this conclusion research: because the employee is typically scheduling a business trip precisely because a How can investing in HD telephone conversation isn’t enough. Audio conferences don’t deliver enough (or any) video conferencing qualify non-verbal information which hurts the delivery of most physically-expressed emotional as greenhouse gas nuances that are useful in business. abatement investment? More importantly, the value add of actually seeing the meeting participants means a more valuable communication. Users consider HD video conferencing sessions much more valuable than audio conference sessions - 30 times more valuable, in fact. The Value of Video Communications " 11
  14. 14. Analyzing The Travel Practices? This report sets the stage for a new kind of value analysis of a company’s travel practices. For example, consider two scenarios for department D of a company C where the travel reports were analyzed and organized into the three classes of business trips with an estimated actual cost shown in table 10. Table 10 - Analyzing department D’s annual travel expenses. Quantity of Business Trips by Class Typical Cost Extended Cost 820 day trips $50 per trip on average $41,000 300 overnight trips $700 per trip on average $21,000 75 week-long trips $2,800 per trip on average $210,000 Total estimated travel cost: $272,000 Scenario 1. If the company deploys a HD video conferencing system, simultaneously reducing travel by 50%, the annual savings would be $136,000. If the corporate standard in company C for capital budget expectation is a 12-month payback, the company could justify an investment of $136,000 in HD video conferencing systems. Figure 3 showed however, that things aren’t that simple. Only 12% of users would choose to pay the actual week-long trip cost to avoid the business trip, but half would pay $1,250, about half the actual cost. At the other end of the spectrum an overwhelming 90% of users would pay the $50 actual trip cost to avoid the day trip, choosing a 1-hour HD video conference instead. Using the 50% red line of figure 3 provides a uniform basis for a more practical VALUE analysis resulting in table 11. Table 11 - Analyzing department D’s annual video conferencing value. Quantity of Video Conferences Typical Value of Video Conferencing Extended Value 410 x 1-hour video conferences $337 per session on average $138,170 150 x 3-hour video conferences $700 per session on average $105,300 38 x 8-hour video conferences $1,250 per session on average $47,500 Total estimated video value: $290,970 In comparing tables 10 and 11, we can see that the longer sessions are of lesser value and that the shorter sessions are of greater value than the actual travel cost of the face-to-face meetings they were positioned to replace. This resets the assumptions about the distribution of value significantly and shows that the corporation would be better served to focus its HD deployment strategy on the shorter distance day and overnight trips, a fact that the arbitrary across-the-board 50% calculation doesn’t properly represent in potential or likely benefits to the business. Creating The Video Conferencing Demand Budget Scenario 2. A better approach to determining the capital budget for the service would be to first estimate the number of which classes of video sessions are likely to be conducted in lieu of business travel. Next, consider a network design capable of delivering the quantity of video sessions as shown in table 12. Multiplying these estimated frequencies of these classes of events by the appropriate valuation of the service creates the extended value of that class of video conferencing session. Summation for all the classes reveals the total estimated value to the business. Then, applying the The Value of Video Communications " 12
  15. 15. 12-month payback standard for company C would suggest a total capital budget of $290,970 is appropriate in the case of department D. The Demand-based approach is also more likely to produce a sustainable service deployment where usage actually meets or exceeds the estimated demand. In this way it is more capable of achieving the business goals for the investment than the classic straight line method presented as scenario 1 above. Armed with a network designed to address anticipated demand particularly in reducing day and overnight trips because of the greater perceived value to the business and to the users of actually doing do, users Question for future are more likely to change their behaviors and use the service. research: What are the advantages This approach is also independent of the operating model used by the corporation. and disadvantages of Regardless if the company operates the network as an IT service, or operates the these different investment network under a managed services contract with a telepresence or video managed determination methods? service provider the logic is the same: estimate demand and design a network to support that demand. The Value of Video Communications " 13
  16. 16. Appendix A: Our Sponsors About Sponsored Reports This report is made possible in part by grants from the following solutions providers. Brockmann & Company produces sponsored benchmark reports, independent analysis, blog posts and research briefs from time to time that address central issues affecting the user experience with communications products and services used in businesses around the world. Our motto: “In God we trust, all others bring data.” This and other independent reports are available at www.brockmann.com. The Value of Video Communications " 14
  17. 17. High De nition Video Communications for Businesses of All Sizes Telepresence Quality High De nition Video (1280x720) 30 Frames per Second Full HD at 1 Mbps Better Quality at Any Bandwidth A ordable and Accessible Schedule a live demo at Plug and Play your o ce today by calling 1.877.LIFESIZE Embedded HD Multipoint Available www.lifesize.com 1.877.LIFESIZE LifeSize is a registered trademark or trademark of LifeSize Communications in the U.S. and other countries. Copyright 2007-2008. All rights reserved.
  18. 18. Appendix B: Methodology 281 Members of the Brockmann & Company Panel Participated Brockmann & Company nurtures a global panel of 25,000 business users of communications technologies that frequently participate in our various research initiatives. Participating respondents typically receive no consideration other than these research results that they use to improve their business communications infrastructures and operations. Regional Representation Figure 12 - Relative proportion of research participants by region. Caribbean and South America Asia-Pacific 1% 4% EMEA 8% North America 87% Job Classifications of Participants Table 13 - Job classes of respondents. Staff or Manager or Director Vice CIO, CFO CEO, COO, Consultant Senior President President Manager 34% 25% 13% 11% 3% 13% Industries Represented Finance, banking, legal, insurance and real estate services 31%, Telecom, wireless, VoIP, cable and Internet service industries 21%, Software, business process outsourcing and IT services 8%, Medical, dental service, medical devices, pharmaceuticals 8%, Education 8%, computer, network and telecommunications equipment industries 5%, and the public sector 4%. Other industries including distribution, construction, automotive, retail, hospitality, mining and aerospace were the remainder. The Value of Video Communications " 17
  19. 19. Appendix C: Related Research Telepresence by Industry 2008 Details. Telepresence is defined as a new class of video conferencing technologies including immersive, modular and high definition room video conferencing products and services. Some industries are adopting the technology faster than others, with greater expectations for growth in adoption and usage than others. Video Conferencing Around the World 2008 Details. The adoption of video conferencing products and services is not uniform throughout the world. This report defines the perspective of our global business user panel and presents regional variances for discussion. The Perfect Storm: Why Video Conferencing Will Dominate Business Communications Details. Do you see what I see? Based on the study of 350 business users of video conferencing, this report sets the stage for the dominance of video conferencing as the business communications tool of choice in the coming decade. MidMarket Leads Video Conferencing Adoption Details. The MidMarket is defined as organizations with more than 100 users and less than 2,500. In this report, it is determined that the MidMarket user consumes more video conferencing than other segments. The MidMarket also uses it more to communicate and collaborate with partners and suppliers than the enterprise and small business market segments. The Desktop Video Conferencing Experience Details. Desktop video conferencing is not the geeky technology toy it used to be. With the advent of high speed networks, built-in cameras, and excellent computers, H.264 on the desk is not as far fetched as it used to be. Telepresence: Seeing is Believing Details. This report reviews the insights provided from respondents that had determined that room video conferencing was very important to their job success. Telepresence is defined as a particularly high-end bandwidth implementation of high definition room video conferencing.# The Conferencing In… series The collaboration services experience across seven leading industries have been consistently reviewed and presented in these short reports. Adoption, preferences, expectations and critical decision factors in decisions affecting video conferencing and audio conferencing as well as typical collaboration participants are reviewed. The Value of Video Communications " 18
  20. 20. About The Author Peter Brockmann is President of Brockmann & Company, a high tech analyst and consulting company. Prior to forming Brockmann & Company, Brockmann was the Senior Vice President of Sales, Marketing and Business Development for FirstHand Technologies, an innovator in mobile VoIP software. Brockmann facilitated a rebranding, repositioning and refocusing of the company that led to a successful C round of investment by Canadian venture capitalists.# Brockmann also worked at 3Com where he was responsible for the product introduction of the 3Com Convergence Applications Suite as the Vice President, Enterprise Voice Solutions Marketing, was Vice President Marketing for bTrade and co-founder of A4 Networks Corporation, a startup focused on business-to-business process automation software. Prior to 2001, Brockmann# held various executive, product marketing, and business development positions at Nortel Networks in customer relationship management software, enterprise data products, and enterprise telephony businesses. In 1998 he served as an expert witness before the United States Department of Justice and the European Commission during inquiries into the Nortel Networks' acquisition of Bay Networks. A frequent writer and presenter on issues in communications and business technologies, Brockmann offers unique insights into how communications and computing technologies change business and change our lives. Brockmann is a frequent contributor to Wikipedia, No-Jitter and Sales & Marketing Magazine Soundoff . An accomplished pianist, Brockmann has an MBA from McMaster University in Hamilton, Canada, a Bachelor of Engineering Science from the University of Western Ontario in London, Canada, and a piano performance degree from the Western Ontario Conservatory of Music in London Canada. About Brockmann & Company Brockmann & Company is a consulting and advisory firm serving high tech equipment & application vendors and service providers. Clients accelerate growth through customer research & thought leadership. Our motto: “In God we trust, all others bring data.” Learn more at www.brockmann.com. May 2008 © 2008 Brockmann & Company. All rights reserved. No portion of this document may be reproduced or distributed in print or electronically without prior written permission of the copyright holder. The Value of Video Communications " 19

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