Videoconferencing market to see influx of service providers

As enterprises begin to adopt videoconferencing more readily, Frost & Sullivan believes a host of conferencing service providers (CSP) will begin to emerge, offering value added managed services to end users.

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By  Zoe Moleshead Published  November 4, 2002

As enterprises begin to adopt videoconferencing more readily, Frost & Sullivan believes a host of conferencing service providers (CSP) will begin to emerge, offering managed value add services to end users.

“As service providers work to reach a critical mass, they continue to improve their technology, pricing, and end-user experience,” says Roopam Jain, strategic analyst, Frost & Sullivan. "Factors such as continued implementation of fibre, advances in broadband technology, and improvements in network reliability are becoming crucial to success in this market."

As the uptake of videoconferencing continues, the research group anticipates that single source conferencing service providers will become increasingly accepted.

”CSPs offer several value added features and functionalities such as browser-based portals, centralised management and monitoring, and seamless connectivity between disparate endpoints and networks. This is prompting end users to use CSPs for all their videoconferencing needs, including point-to-point calls, multipoint or bridging calls, conversion services, events management, and other value-added services,” comments Jain.

The growth in the videoconferencing market is being spurred by the time and cost savings that enterprises can reap by cutting back on the amount of travelling that employees need to do.

Frost & Sullivan also reports that the maturing technology is beginning to attract smaller businesses as a result of the increasingly cost efficient and reliable IP services it can provide.

The research group anticipates that the US videoconferencing market will reach revenues of US$4.05 billion by 2008 up from the US$1.52 billion generated in 2001.

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