High Definition Video Conferencing - As Good As Being There?
August 17th, 2008    Subscribe To Our FeedIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
How video conferencing helps a leading private equity firm, not just stay ahead of the game, but WAY ahead of the game.
There are some things that live up to expectations, the birth of a child; a holiday maybe; and then there are some, sometimes many, that don’t. We’ve all fallen for it, stuff that just doesn’t do what it says on the, like diet pills, obvious toupees, or anti wrinkle cream! Consider video conferencing, which has in the past suffered a lackluster reputation as a boardroom luxury, and never really met expectations. Yet things are changing fast, technological advances are allowing video conferencing solutions to become powerful business tools that boost an organization’s ability to respond to market forces.
Specific developments, like high-definition, are driving major improvements in audio and visual quality. The latest video conferencing systems operate across both IP and ISDN, they are no longer difficult to manage or use and the new infrastructure solutions are reliable, inter operable and scalable. Reduced cost-of-ownership and technological advancements are making video communications available to the boardroom, the desktop and even the phone.
Indeed, the underlying infrastructure technology has advanced so much that video conferencing is, for the first-time, a cost-effective way to empower virtual teams and individuals, while managing the knowledge and information assets of an organization. This certainly is the case for one leading private equity firm, which has over 100 investment professionals working out of 10 offices around Europe, the US and Japan. this company has a reputation for providing creative and timely solutions to vendors. It has a partnership culture and works closely with management teams to create value by combining extensive geographic coverage with deep vertical sector knowledge. It’s here, that video conferencing has moved out of the Stone Age, to become a fully paid up member of its mainstream IT communications strategy. “For many years video conferencing has played a niche part of business communications, it never performed to expected levels, but this is changing - it has too - because knowledge transfer is crucial to business success.
As a private equity firm, the ability to turn information into a tangible asset cannot be underestimated; the timely sharing of market intelligence is necessary for its ongoing revenue growth. Moreover, business communications are complicated by a need to collaborate with a diverse range of external business partners and professionals, as well as with its own internationally based teams. So, the use of video conferencing has always been seen as a useful tool to aid collaborative communications. Yet, just like other organizations, its successful use of this technology has been full of twists and turns.
When the first video conferencing system was installed in 2002, from the start there were seemingly insurmountable problems for multi-site calls; “Some of our video conferences are six hours long, the first systems used just couldn’t deliver against our need for quality audio and image. Also these original systems were difficult to use and far too complex to configure and manage. If we had one technical or network hiccup, at one site, then the whole conference was affected,” said Carolyn Lees.
This was unfortunately not a rare experience of the past video conferencing systems. Traditional video conferencing systems suffer inherent problems with delivering a consistent service to multi-location conferences. This is because all participants are forced to join at the same speed and resolution, with the poorest, setting the standard for all participants. Generally, these systems only offer single pane voice activated switching which means that ‘he or she who speaks loudest’ is the person that appears on all participant screens. This limitation delivers a less than satisfying meeting experience, which is why there is a move towards systems that offer Continuous Presence for all participants. This allows everyone to be seen, all of the time, usually in a variety of layouts, determined by the individual. With Continuous Presence, it is also possible to have voice activation to place the current speaker on to the center panel of a screen. It is also this feature, which offers participants a greater feeling of real-life involvement, allowing for body language and reactions to be seen in totality, just as if they were all sat round a single table. Of course, near real-life interaction is the ultimate aim for video conferencing and Telepresence solutions alike.
Another key limitation for users of traditional multi-point systems is that they are not usually endpoint agnostic, and so there can be interoperability difficulties from the start. Not good if you need to communicate with other business partners and customers. To prevent such difficulties it has always been a default that endpoints and infrastructure typically come from the same manufacturer. Up until now, this has been the most practical user environment, avoiding the hassle of integrating disparate systems. All in all, it is no wonder that video conferencing never quite did what it said on the tin; the products available to Permira in 2002 just could not achieve anything like a visually satisfying interaction let alone a competent audio one! Despite poor quality experiences, however, video conferencing remained a vital communications tool within Permira.
he first objectives were to tackle the overall reliability issues and to ensure good quality audio. Even if you have a poor picture, people can still interact, but if you lose sound then the conference is rendered useless. We set about improving the reliability of the system by addressing some complicated network settings. In terms of the audio improvement, we introduced, what were relatively cheap, new endpoints that produced better audio. The combination of network settings and better audio output delivered an acceptable improvement in our video conferencing system capability. Having done this, at least we could stop sweating every time we started a video conference. However, there was still ample scope for improvements.
After audio, the next step was to address the poor image quality. “Fortunately, Codian had just appeared on the scene and was hailed as the must-have piece of kit for video conferencing - we evaluated Codian’s MCU [multipoint control unit], which it was claimed would solve all of our quality [voice and image] and technical issues.”
Following its evaluation, they purchased the Codian MCU 4200 Series, which offers a unique video stream for each participant. This single feature, of the Codian MCU, meant that they could provide each of its participants with the best possible audio and video quality, for available bandwidth and endpoint capabilities. “Codian dynamically allocated the best resource it could to all endpoints, so sites were not communicating at the lowest common standard. This dynamic handling, also lowered the overall cost-of-ownership; no more complicated template configurations were necessary.”
“Codian was impressive from the beginning, we had it out of the box and up and running in 15 minutes flat. It has an easy interface, so it is quite straightforward to set-up a conference and manage calls. Clearly, being able to isolate and solve an individual network or endpoint problem is a huge advantage, it meant that for the first time, any individual breaks in service, could be solved without impacting the other participants.”
Video conferencing was and remains a top priority for them, making it work to an acceptable standard was the first key objective. However, with an eye always cast towards improvements, it wasn’t long before they decided to look at high-definition video conferencing, which became available in late 2006. “The Codian MCU 4200, with its inherent interoperability brought about significant improvements in reliability and overall endpoint quality. But then, Codian launched its HD [high-definition] MCU, which together with competitively priced LifeSize’s HD endpoints, took the market by storm. This was a real opportunity for us to make dramatic progress, bringing us as close to face-to-face communications as we could, without hopping on a plane. It was an easy decision for us to upgrade from SD to HD and replace our existing endpoints with LifeSize.”
The Codian MCU 4500, Carolyn Lees refers to, is hailed as the only true high-definition voice and video bridge. It supports the highest video resolution, speed, frame rate and codec of the latest HD endpoints. This includes full Continuous Presence for all conferences, including those with a mix of both HD and SD [standard definition]. Always mindful of existing infrastructure and market developments, Codian has ensured that its MCU will scale up to match future capabilities of forthcoming HD endpoints and that it seamlessly integrates with existing SD equipment as well as with other devices such as 3G, SIP and desktop video. Such clear investment protection makes it all the more compelling for companies.
“Having now completed the transition from SD to HD with Codian, we have a video conferencing experience that is more lifelike than we ever imagined possible. The take-up of video conferencing throughout many organizations is on the increase and is now an accepted part of our day-to-day operations. We have regular, weekly scheduled meetings with our teams throughout the world and user acceptance gains momentum with each conference. The interoperability of the Codian allows us to cater for external partners to join meetings, as and when necessary - plus there are rarely any technical hitches - allowing our customers and partners to experience a superior service too,” concluded Carolyn Lees.
Some things will never live up to expectations, today this cannot be said of the latest systems for video conferencing. These can now deliver a visual experience that is almost as good as being there. What’s more the new generation of solutions are reliable, easy-to-use and manage, offering a broad range of options for connectivity over IP from a multitude of devices, making video conferencing an affordable business must-have rather than a boardroom luxury.
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Economic Difficulties Boost Videoconferencing Sales
August 11th, 2008    Subscribe To Our Feed
Videoconferencing equipment makers, such as Norway’s Tandberg and its U.S. rival Polycom and LifeSize are riding high as companies try to cut costs
Reducing carbon footprint, a new priority for multinationals, is no easy task for Dutch express-delivery outfit TNT, which operates 47 aircraft and more than 26,000 trucks to move an average of 4.4 million parcels, documents, and pieces of freight each week. That takes a lot of jet fuel and gasoline.
There is not much that can be done to cut back on that traffic, so TNT is instead urging employees to reduce carbon dioxide emissions under a program called Planet Me. A big part of Planet Me is a drive to reduce business travel and use videoconferences instead. TNT estimates the CO2 savings from videoconferencing alone to be 2.6 kilotons a year for the next four years, or a total of 10.5 kilotons.
There are other benefits, too. “We’re telling our employees that using videoconferencing is beneficial not just for the environment, but also for life balance,” says Carin ten Hage, TNT’s social responsibility director. “Top management who fly a lot recognize that spending your life in airports can be really horrible.” Not to mention expensive.
Tandberg Has 40% Market Share
The embracing of videoconferencing by TNT is part of a larger trend. The worldwide videoconferencing systems and services market, which reached $1.63 billion in 2007, is expected to grow to $4.2 billion by 2012, according to technology consultancy Frost & Sullivan, as more companies try to become greener and cut costs.
Few companies are benefiting as much as Norwegian videoconferencing equipment maker Tandberg, which counts TNT as one of its customers. The company, which has dual headquarters in Oslo and New York, leads the industry in revenue with 40% of the global videoconferencing market, says Frost & Sullivan. The U.S.’s Polycom (PLCM) is market leader in number of units shipped. Together, Tandberg and Polycom control about 70% of the market for videoconferencing devices and infrastructure, selling against and sometimes cooperating with Hewlett-Packard and Cisco, both of which make high-end videoconferencing systems.
“There has been a big takeoff in growth,” says Fredrik Halvorsen, chief executive of Tandberg, which had revenues of $630.5 million in 2007, up 50.2% over 2006. “Videoconferencing has become an integral part of corporations’ communication strategy over the last 18 to 24 months.”
Investors Fear Subprime Fallout
Tandberg has racked up 33.5% annualized revenue growth for the past 10 years, and the outlook for 2008 is looking even better. Second-quarter revenues were $194.9 million, compared with $143.8 million in the same quarter last year, representing 35.5% year-over-year growth. Operating profit was $41.2 million, compared with $33.3 million in the same quarter last year.
The stock price, though, has dipped some 37% over the last year. Tandberg does half its business in the U.S. and the fear is that the subprime crisis will lead to cutbacks in spending on videoconferencing equipment, says Halgeir Hollup, a financial analyst at Oslo brokerage ABG Sundal Collier. While economic woes are expected to prompt more companies to buy videoconferencing gear and cut back on travel, one theory is that companies will first lay off employees and then wait before buying new equipment, creating a spending lull, says Hollup.
Tandberg doesn’t see it that way, given its strong growth numbers so far this year. Many companies are still investing in its technology to reduce their overall cost level. Its growing roster of customers includes British banking behemoth HSBC (HBC) and Norway’s Statoil (STO), which uses videoconferencing on its offshore drilling platforms so engineers on shore can diagnose a problem when something breaks down.
Riding the “Perfect Storm”
Polycom is thriving, too. It counts Doubleclick, Adobe Systems (ADBE), and financial-services company Bear Stearns among its customers. “We’re doing a great business right now,” says Robert Hagerty, chief executive and chairman of Pleasanton (Calif.)-based Polycom. A combination of factors is causing what Hagerty refers to as “the perfect storm.”
Travel cost and time savings have always been a key driver for videoconferencing. “However, in times like these when fuel costs are sky high, travel has become more expensive, financial markets are in turmoil, and several organizations have mandated strict travel restrictions, collaborative technologies like videoconferencing get significant attention,” says Roopam Jain, a principal analyst at Frost & Sullivan who specializes in conferencing and collaboration.
Videoconferencing technology, which has been around for almost 20 years, has also significantly improved. Until recently “video quality was not good, voice synchronization was a problem, and it was tough to set up the conferences unless someone knowledgeable was there,” says Rich Costello, research director for enterprise communications at technology consultancy Gartner (IT). “It was not a very pleasant experience overall, so everyone got frustrated.”
Videoconferences Get Second Look
Now, though, “people are willing to give this technology a second look,” says Tandberg chief Halvorsen. For starters, the resolution has become far sharper and less choppy and the audio sync problem has gone away, both in boardroom systems and on desktop systems. That is because high-definition video is now becoming available on the desktop, improving quality and user experience, say analysts.
Meanwhile, the move to Internet Protocol has dramatically driven down the cost, since the calls are sent over broadband networks that charge all-you-can-eat fixed tariffs rather than by the minute. And videoconferencing is no longer confined to special rooms with huge screens that cost anywhere from $3,000 to $300,000 to install, though demand for these high-end systems is booming as well.
The market leaders for big-screen systems for executive suites and boardrooms include Tandberg, Polycom, Sony (SNE), Italy’s Aethra, and a Texas company called Lifesize Communications. HP and Cisco make high-end “telepresence” systems that help people in far-flung locations feel as if they are in the same room. These systems represent only one-half of 1% of all the units sold, but about 12% of the revenues. Although their market share is insignificant, HP and Cisco have access to top-level executives and have raised awareness of the impact on visual communications on the bottom line of corporations. “They have raised the water for all the folks in this pond,” says Andrew Davis, an analyst at Wainhouse Research, a market research firm based in Duxbury, Mass.
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Tips and Trends in the Corporate AV Market
July 28th, 2008    Subscribe To Our Feed
Today, corporate customers have more experience with AV technology than ever before. Reliability is critical. From High definition projection presentations to sophisticated videoconferencing systems, the corporate AV market increasingly depends on top-notch, cutting edge technology to deliver the results that corporations demand.
Q: What technology has been on the rise in terms of effectively equipping executive boardrooms, training rooms and auditoriums?
Over the past year, there has been a dramatic increase in requests for videoconferencing solutions. The reasons behind this lie in the introduction of HD videoconferencing and tele-presence solutions, the improved quality of the more traditional line of these products, and a reduction in the costs for the components and required infrastructure (ISDN lines, network bandwidth).
At the same time, travel has gotten more expensive, increasing the cost of attending meetings out of town and overseas. Because of this, it’s much easier for a company to see the return on its investment through the use of videoconferencing technology. All of these combined factors certainly make the need for videoconferencing systems more appealing.
Q: Have there been an increase in digital signage applications?
There has been a greater demand for these systems, as companies are looking for ways to share important information with their employees, partners and visitors. Digital signage is a technology that can quickly and easily impact a variety of settings. Sometimes these systems are as simples as a few displays in a lobby or cafeteria. In other cases, clients can effectively use them as a network of dozens of displays distributed across a campus, sharing information specific to a building or department.
Q: Do you have any application tips that you’d like to share with end-users?
We always try to work with our clients to make their systems as easy to use as possible. In our opinion, fear is the number one reason that AV systems are not fully utilized. People are afraid of technology. When you introduce that technology into a potentially stressful business environment where someone needs to present information to their peers or management, the potential for disaster is high. By customizing the technology and adequately addressing concerns, we can certainly make the transition into new technology as seamless as possible. In this regard, proper training is critical making the technology user friendly making sure everyone is comfortable using it.
The top concern of nearly every customer is that the system function reliably and meets their needs. Ease-of-use has a direct relationship to reliability. We now have the ability to introduce a control system that can make the AV technology as easy to use as an ATM machine. The cost of the control system can be offset by the increased use of the technology. If a customer wants multiple rooms, we always recommend that they keep the interface (touch panel or pushbuttons) as similar as possible from room to room. Someone who uses Room A should feel familiarity when they walk into Room C. These small details will encourage people to maximize their use of the technology and increase efficiency and productivity.
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InFocus is first to transmit video to projector over USB, instead of VGA
July 25th, 2008    Subscribe To Our Feed
This is revolutionary. InFocus is the first projector manufacturer to bring models to market that use mini-USB to transmit video. Their new IN1100 and IN3100 series projectors feature “DisplayLink”, the technology that enables near instantaneous video connection via USB as well as multi-display capability to show multiple presentations on multiple projectors from just a single USB connection and single computer. More than that, when connected to the projector via USB, your computer can act as a fully functional projector remote control too.
Advantages of using the InFocus projector USB connection:
- Near instant recognition of video source
- No fumbling for the function key to toggle the image between PC or laptop display and the projector
- Smaller input real estate on the projector, so future projectors can continue to shrink
- Makes projector presentation setup faster and easier
- Computer becomes a projector remote control
- One USB output can power multiple projectors and presentations
InFocus projectors with the new USB video connection:
- IN1100
- IN1102
- IN3102
- IN3104
- IN3106
- Click here for pricing on InFocus Projectors »
Previously, InFocus skipped the VGA connection in favor of the much less popular M1 connection. This new USB solution is by far their best innovation in some time.
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InFocus is first to transmit video to projector over USB, instead of VGA
July 25th, 2008    Subscribe To Our Feed
This is revolutionary. InFocus is the first projector manufacturer to bring models to market that use mini-USB to transmit video. Their new IN1100 and IN3100 series projectors feature “DisplayLink”, the technology that enables near instantaneous video connection via USB as well as multi-display capability to show multiple presentations on multiple projectors from just a single USB connection and single computer. More than that, when connected to the projector via USB, your computer can act as a fully functional projector remote control too.
Advantages of using the InFocus projector USB connection:
- Near instant recognition of video source
- No fumbling for the function key to toggle the image between PC or laptop display and the projector
- Smaller input real estate on the projector, so future projectors can continue to shrink
- Makes projector presentation setup faster and easier
- Computer becomes a projector remote control
- One USB output can power multiple projectors and presentations
InFocus projectors with the new USB video connection:
- IN1100
- IN1102
- IN3102
- IN3104
- IN3106
- Click here for pricing on InFocus Projectors »
Previously, InFocus skipped the VGA connection in favor of the much less popular M1 connection. This new USB solution is by far their best innovation in some time.
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As Travel Costs Rise, More Meetings Go Virtual
July 23rd, 2008    Subscribe To Our Feed
Jill Smart, in foreground, in a videoconference from her office in Chicago with colleagues in Atlanta and London.
Jill Smart, an Accenture executive, was skeptical the first time she stepped into her firm’s new videoconferencing room in Chicago for a meeting with a group of colleagues in London. But the videoconferencing technology, known as telepresence, delivered an experience so lifelike, Ms. Smart recalled, that “10 minutes into it, you forget you are not in the room with them.”
Accenture, a technology consulting firm, has installed 13 of the videoconferencing rooms at its offices around the world and plans to have an additional 22 operating before the end of the year.
Accenture figures its consultants used virtual meetings to avoid 240 international trips and 120 domestic flights in May alone, for an annual saving of millions of dollars and countless hours of wearying travel for its workers.
As travel costs rise and airlines cut service, companies large and small are rethinking the face-to-face meeting — and business travel as well. At the same time, the technology has matured to the point where it is often practical, affordable and more productive to move digital bits instead of bodies.
The emerging trend, analysts say, goes well beyond a reaction to rising travel costs and a weakening economy. “These technology tools are going to change the way corporations think about travel and work in the long run,” an analyst at Forrester Research, Claire Schooley, said.
Past predictions that technology could replace travel have been frequent and premature. The main difference today, analysts say, is that the technology is finally catching up to its promise. No single breakthrough explains the progress, but rather a series of step-by-step advances — and steady investment — in telecommunications networks, software and computer processing.
The results can be seen not only in the expensive new telepresence systems like those from Cisco Systems or Hewlett-Packard, but also in more mainstream collaboration technologies — Web conferencing, online document sharing, wikis and Internet telephony. The audio and desktop presentations in Web-based meetings, for example, are now more likely to be in sync and interactive.
Companies of all sizes are beginning to shift to Web-based meetings for training and sales presentations. “Only in the last two years has the technology gotten to point where it really makes sense to use it,” said Alan Minton, vice president for marketing at Cornerstone Information Systems, a 60-person business software company in Bloomington, Ind.
With his sales force doing many product demonstrations online, Mr. Minton estimates the group’s travel costs of have been cut by 60 percent and the average time to close a new sale has been reduced by 30 percent.
No one suggests that the face-to-face meeting is becoming obsolete, or that it is time for a requiem for the road warrior. Companies talk about using digital tools mainly as a way of making business travel more selective and more productive.
Still, the potential for digital displacement of business travel is substantial. A report last month by the Global e-Sustainability Initiative, a group of technology companies, and the Climate Group, an environmental organization, estimated that up to 20 percent of business travel worldwide could be replaced by Web-based and conventional videoconferencing technology.
The most dedicated business travelers tend to be management consultants, investment bankers, accountants, lawyers and technology services consultants. Much of their work has to be done in person with clients. But these professionals are increasingly using online collaboration tools for work within their firms.
At I.B.M., Michael Littlejohn, a work force and technology expert in the company’s global services unit, said two years ago, he was on the road 13 to 15 days a month. These days, he says, he travels 8 or 10 days a month. “But my time spent with clients is not less,” he said. “To really understand a client’s problems or to close a deal, you need face to face.”
Corporate training and education is a field many companies are moving online, in part to trim travel costs. Darryl Draper, the national manager of customer service training for Subaru of America, used to travel four days a week, nine months of the year, presenting educational programs at dealers nationwide. Today, Ms. Draper rarely travels and nearly all of her training is done online.
Previously, Ms. Draper estimated, in six months she would reach about 220 people at a cost of $300 a person. She said she now reaches 2,500 people every six months at a cost of 75 cents a person.
A range of companies offer the mainstream online communications and collaboration tools, including WebEx, Citrix, Microsoft, I.B.M. and others. The most rarefied offering, though, is telepresence videoconferencing. Today, it is an elite product supplied by a few companies, including Cisco, H.P. and Polycom.
Completed telepresence rooms, typically with three huge curved screens (and a fourth screen above for shared work), custom lighting and acoustics, cost up to $350,000 — though that is down from $500,000, when H.P. sold its first system in early 2006.
The resolution on telepresence screens is even sharper than on high-definition televisions, and images can be magnified to inspect products. Engineers at the far-flung labs of Advanced Micro Devices, for example, scrutinize the microcircuitry on new chip designs using the company’s telepresence systems. And the images of people on screen are life-size.
Cisco, which has more than 200 telepresence rooms, figures it is avoiding $100 million in yearly travel costs, and reducing its greenhouse gas emissions from air travel by 10 percent. H.P. says air travel among its offices with telepresence rooms is down 25 percent.
When used regularly, the rooms pay for themselves within a year, analysts estimate. Sales of telepresence systems will more than double this year to 627, estimates the market research firm IDC, and reach more than 8,000 by 2012.
There is a certain paradox in telepresence, in that it is all to simulate the richest form of human interaction: people talking to each other, face to face.
And it is not a perfect substitute. Ms. Smart, the chief of human resources for Accenture, still travels about 10 days a month. “You don’t learn about other cultures in telepresence,” she said. “You get things from being there, over breakfast and dinner, building relationships face to face.”
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