Thursday, March 18, 2010
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Videoconferencing is a classic example of a service that has had to wait for technology to catch up, with many businesses having had poor experiences of early systems that offered low quality, jerky images across often unreliable connections.
Recent advances in communications networks and technology combined with reduced travel budgets and increased awareness of the environmental impact of air travel have contributed to a market predicted to experience rapid growth over the next few years.
There are about a million videoconferencing systems deployed today in conference rooms and executive offices around the world by businesses who need to improve their internal communications, either within the enterprise or to a small and tightly controlled set of external partners (customers, suppliers, business partners), says Andrew Davis, senior partner Wainhouse Research
Videoconferencing is largely taking place over IP networks such as the internet and the private networks used by enterprises. 'Whether you are a small or a large business, if you have a need to communicate between offices then videoconferencing is an ideal solution, whether the offices are scattered on a campus, within a city or spread around the globe,' adds Davis.
IMPROVED PRODUCTIVITY
Sean Mahon, managing director Ireland, Cable & Wireless Worldwide says the recession has led to increased interest in videoconferencing solutions as companies seek to reduce costs and improve productivity.
A recent report by telecoms analyst house Ovum predicted that businesses would invest about $1.7 billion in videoconferencing between 2010 and 2014 and Mahon expects to see rapid growth in live deployments over the next few years.
Even in a growing market, consolidation is inevitable - Sony Professional Solutions Europe has decided to discontinue its videoconferencing business in EMEA with effect from 31 March 2010, but according to a Com Reg report published in May 2008, 10 per cent of Irish SMEs and more than half of Irish corporates already use videoconferencing technologies and Digicom director Peter Fox expects global growth rates to be replicated in Ireland. 'Some organisations have embraced the notion of substituting travel for video linked calls, saving travel down time, expenses and accommodation costs. There has been particuLar success in communication between head office and regional offices and project teams reviewing work in progress of particular projects. Businesses that have VPNs (virtual private networks) and WANs (wide area networks) are best suited to videoconferencing because connectivity between sites is generally better and firewall issues are overcome at set up.
One of the major barriers to telepresence in the past, adds Mahon, was that telecoms networks were simply not up to the task, running at speeds far too slow to support the application. So-called next generation networks now provide increased bandwidth and technology that is more agile and able to prioritise bandwidth enables real time video.
High definition over IP videoconferencing has significantly improved the quality of the picture on the call, explains Fox. 'Videoconferencing codecs (computer programs capable of encoding and/or decoding a digital data stream or signal) have become cleverer with pixel delay intelligence making the whole experience more virtual.
Telepresence has created an immersive virtual meeting room experience, with the same furniture at the 'near' and 'far' end. There is a display panel for each participant and a camera above each also, for as near to the real thing as technologically possible today.
EVOLVING PRODUCTS
Liam Fahy of Videnda Distribution admits it is possible that some potential users have been put off by past experiences with inferior equipment, but adds that products have evolved and are evolving at a rate equivalent to developments within mobile and software technologies. 'All the main vendors are now focused on high definition, which can be achieved at call speeds beginning as low as 512KB. I think if you are basing your views of videoconferencing on experiences you had with equipment more than three years ago then you would need to look at the technology again as there
is no comparison with what is now availabLe in the market.'
He describes the two key current issues as budget and bandwidth and is confident that both are addressable. 'On the budgetary front. companies are looking at reallocating travel and subsistence budgets to videoconferencing as they know they will experience significant savings when the solution is deployed. Bandwidth is being addressed in two ways - we are seeing much improved availability for end users and this is increasing all the time, while manufacturers are developing technologies that make it possibLe to have quality experiences at much lower call speeds and on public networks that may have packet loss issues.
With the right maintenance, videoconferencing solutions can last as long as any other communications tool, Mahon explains. 'However, to get the most out of a telepresence investment, it is wise to investigate solutions based on IP platforms that integrate with next generation networks.
As the technology continues to evolve, users without the correct infrastructure or definition quality may suffer and find themselves unable to interconnect with users on more modern teleconferencing platforms.
The hardware used in telepresence has become much more advanced, but getting videoconferencing right is about more than just installing the latest equipment - the key is to focus
on what exactly is needed by the organisation and what the key drivers are. Is the intention to reduce travel expense or is more effective and regular collaboration between different locations the aim? Once the drivers are identified, businesses can decide on the right solution is for them.
ENVIRONMENTAL IMPACT
Increased concern over the environmental impact of air travel is another potential driver. 'Facing an increasingly stringent political drive for a reduction in carbon emissions, businesses have to make real step changes to the way they operate,' concludes Mahon. 'By removing the need to travel for meetings, businesses can save hundreds of thousands of kilograms of carbon from entering the environment while preserving the world's dwindling supplies of fossil fuels.
Eircom's Stephen Mulligan points out that the technology is becoming more user friendly and intuitive, which will help to overcome some of the initiaL reluctance of potential users to sit in front of a camera and maintain eye contact with someone who could be on the other side of the world. 'Previous negative experiences of the technology are another challenge for anyone in an organisation who is trying to champion videoconferencing,' he says.
Organisations need to have a culture that embraces the technology and endeavours to save the time and money involved in travel, adds Fox. 'If the key people in a company prefer to travel, the rest of the organisation will follow suit and the videoconferencing system will gather dust.'
According to Bob Seidel, vice president of marketing for BT's video business unit, other barriers to adoption include lack of knowledge of the benefits, the perceived complexity of the implementation and poor network access. 'In smaller businesses the initial outlay for the technology may be a disincentive in the current economic climate. However, we have experienced increasing demand over the last 12 months, particularly from multinational companies seeking to improve cost efficiencies and increase productivity and we expect this level of demand will continue through 2010.
Exact costs depend on the system used. 'High definition room systems start at about €5000 plus installation, support and training, whereas desktop solutions cost from €150 per user,' explains Fahy. 'Once the basic cameras are purchased there may be other expenses for audiovisual integration, screens, room control etc. We would expect any current system deployed today to have a minimum useful life of five years and in a lot of cases it would be longer than this because as new kit comes available the older equipment is usually redeployed within an organisation.
COMPLEMENTARY TECHNOLOGY
Many observers have speculated on the impact virtual reality technology might have on videoconferencing and what difference it could make to the user experience. However, Fox is of the view that virtual reality will complement videoconferencing rather than replace it and Videnda Distribution's Fahy agrees. 'I don't see anything happening soon in this space for business deployment as you are looking at a more conservative user base that demands tested and supported solutions for large scale deployments with defined operational performance.'
He also rejects the suggestion that videoconferencing could eventually eliminate conventional human interaction. 'As a general industry rule of thumb, a professionally deployed videoconferencing solution should reduce the requirement to travel by 60 per cent and increase the number of meetings that take place by 25 per cent, but it will not remove the requirement for face to face meetings.'
However, Davis does view virtual reality technology as a long term threat to videoconferencing. 'Users will be familiar with 'Second Life' and avatar-based meetings and are likely to find that paradigm an acceptable meeting experience, sacrificing the ability to see someone's real eyes and facial expressions in exchange for 'privacy'.
Taken from Techonology Ireland. Written by Che Golden.
