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June 01, 2009

Report: VC Equipment Sales Will Recover in 2010


Wainhouse Research has announced the release of its latest market research report, titled “Rich Media Conferencing – 2009 Volume 2: Enterprise Videoconferencing Endpoints and Infrastructure,” and its main findings were that the sagging video conferencing equipment segment should recover in 2010.



 
The market analysts claim that nearly 232,000 units were sold in 2008 and the predicted sales in 2009 will be flat and should marginally increase to a little more than 230,400. It forecasts that 2010 should see a healthier 6 percent growth and ultimately, by 2014, the firm believes that the number of units sold globally should exceed 350,000.
 
Wainhouse claims that growth during the coming 5 year span should be well aligned with the long term growth rate trend that was witnessed in the previous 10 year time frame. It indicates that the five year Compound Annual Growth Rate for enterprise group video conferencing systems will be 9 percent in units and 13 percent in revenues.
 
The highest growth rates should be for thre screen type systems, claim officials, with significant contributions coming from those systems capable of delivering a telepresence experience.
 
A recent, real-time trend-setting demo for 3 party video and voice capability, as reported recently by TMCnet, was initiated by ooVoo from the Virgin America Flight 350, while it was in air transit between San Francisco and Boston, to simultaneously contact people in Florida and New York City.
 
As TMCnet has recently reported, TANDBERG  demonstrated its Telepresence (News - Alert) T3 solution, which delivers instant, high quality audio and video with command and control possibilities, an immersive, multiple screen, HD, ‘As if I was there’ experience, and is the first of its type that maintains consistency when teleconferencing, and is interoperable, with a third party telepresence solution.
 
Wainhouse claims that video infrastructure products should grow at a 15 percent compound annual clip because it sees enterprise customers investing in gatekeepers, NAT-firewall traversal solutions, and management systems to handle large scale deployments of group and personal conferencing systems.
 
The company claims that the equipment growth rate decline started in the second quarter of 2007 just after Q107 registered an 8.3 percent increase Quarter over Quarter from Q406. The growth in Q207 dipped a bit by 4 percent, increased 5 percent in Q307 to give false hopes and then started declining steadily since Q407 to such an extent that in Q109 it experienced an all time first nadir of negative growth to register in at -8.9 percent.
 
One probable cause for first hand equipment sales dropping is that used equipment sales picked up in 2008 and have predictably experienced sustained growth in Q109. As TMCnet has reported earlier, a survey claimed that the used network equipment revenue was nearly $2.5 billion in 2008, which translates to six and a half percent of networking Original Equipment Manufacturer market share.
 
Nearly 67 percent of the respondents surveyed say they saw an increase in business in 2008 over 2007 because companies ranging from small to very large ferreting for cheaper hardware and easier maintenance deals, and more than 75 percent are confident of increased business in 2009 even though the ongoing recession has slashed information technology linked spending.
 
This new report contrasts with a 2008 forecast, which TMCnet reported, that claimed the videoconferencing market was projected to see a record-setting growth over the next five years with the next two years being more in line with long-term figures and that hyper-growth numbers would return to those experienced by the industry during 2006, 2007 and Q107.
 
Research officials at the consulting agency say that the report is its tenth published yearly analysis on the video conferencing industry over the last ten years and this year’s marketing research has been split up in to three separate volumes. Volume 2 itself has been spread over two publications and the five year forecast section is now available for purchase.
 
While the first volume analyzes and predicts audio and web infrastructure and related technologies, the third volume provides deep level insights and reviews of nearly 30 vendors that are classified under categories such as service providers, leaders, influencers, and contenders in the video conferencing market, claim official sources.
 

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.


Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.

Edited by Michael Dinan





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