Vertical Markets and Applications for Videoconferencing Systems (U.S.)

Published by: Frost & Sullivan

Published: Feb. 18, 2004

Table of Contents

Abstract

After nearly three years of low- to no-visibility, tech recovery is in sight, improving the outlook for spending on collaborative solutions including videoconferencing. Companies are posting strong gains but a repeat of the '90s boom is unlikely as end users focus on conserving cash and cutting costs. CTOs/CIOs are willing to invest only in technologies that raise ROI or improve the bottom line. Hence, videoconferencing vendors will continue to face the challenge of convincing decision makers about the value proposition of their solutions. Vendors need to work on improving the end-user experience, overcoming usage barriers, and moving the technology forward to offer enhanced value to reach critical mass. Offering vertical solutions - tailored applications and functionality for specific vertical markets - can demonstrate the rapid ROI that dynamic end-user markets are demanding.

This Strategic Analysis offers a comprehensive overview of the vertical markets for videoconferencing systems in the United States. It employs a blend of sources and evaluation techniques to estimate spending size and growth depending on drivers and inhibitors typical of each vertical market. The research covers client endpoint systems (group and desktop) and network products (multipoint control units or bridges, gateways, gatekeepers, and management/scheduling software for infrastructure systems).

Vertical Markets Present Several Opportunities for Conferencing and Collaboration Solutions

"'Verticalizing products, sales, and marketing makes the vendors' message resonate more accurately with the customers' needs," says the analyst of the research. Market trends have driven videoconferencing vendors to develop strong vertical market strategies in their business models. As a result, there are several growth opportunities within the vertical markets for conferencing and collaboration solutions. The government sector spending has increased, spurred by homeland security needs. The adoption of videoconferencing by small and mid-sized businesses (SMBs) also represents an untapped opportunity.

As Technology Matures, Developing an 'Application Sales' Approach is Important to Gain Competitive Edge

The market is becoming increasingly competitive and videoconferencing vendors will have to work on innovatively sustaining as well as enhancing their relationships with vertical markets. To boost uptake, vendors must make a cohesive effort to move the sales teams, support staff, and all end-user contact points to the approach of offering 'valuable solutions', not 'products'. Developing an "application sales" approach is important and will serve as a competitive differentiator as the technology continues to mature.

The ongoing transition to IP will help facilitate integration of videoconferencing with applications such as presence detection, instant messaging, streaming, and web collaboration, which are primarily being used on IP networks today. Working as partners with end users to help them through this transition as well as vertical specialization by channels will help vendors gain competitive advantage.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.