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2015 North American Video Conferencing in Healthcare and Financial Services Customer Value Leadership Award
Background and Company Performance
Video conferencing adoption is undergoing rapid transition. Frost & Sullivan independent analysis confirms that this market has approached an inflection point driven by high quality and low-cost solutions, combined with an escalating need for rich video collaboration. While business adoption in the past took place as a high-end application (primarily deployed in conference rooms), the benefits of videoconferencing are now available to everyone, resulting in a rapid democratization of the technology. The ongoing shift from hardware to software and the impact of consumerization are not only overturning traditional business models, but have opened up new growth opportunities for vendors in this market.
Frost & Sullivan research shows that technology advancements, improved cost-benefit ratio, availability of video over mobile devices, and a greater flexibility in deployment models have resulted in viral adoption. Video conferencing represents a dynamic market that is being fueled by lower cost software models and wider bandwidth availability, triggering not just B2B but also greater B2C adoption, leading to pervasive video for everyone. Standing at $3.3 billion in 2014, the market for video conferencing systems and services is forecast to grow to $4.8 billion by 2018 (per Frost & Sullivan analysis).
In line with the rapid adoption, newer use cases of videoconferencing have emerged. Verticals that are at the forefront driving demand include healthcare and financial services. As consumers get comfortable with video, applications like home healthcare and online banking are being enhanced with video conferencing. Cloud, mobility, and social technologies are transforming the landscape, resulting in groundbreaking technology shifts that are empowering users with greater benefits than ever before.
Frost & Sullivan research on video conferencing identifies healthcare and financial services as key vertical industries that will drive market growth. An aging population and longer life expectancy, coupled with provider shortage, has triggered high healthcare costs that are not tenable for the long term. In addition, the sheer number of uninsured Americans leaves a gaping hole in healthcare delivery that is ready for transformation. In essence, healthcare providers are being asked to provide more care - with less resources. Video conferencing is opening up newer avenues to deliver healthcare. Video conferencing is transforming the provision of healthcare services through telemedicine and telehealth applications.
Telemedicine-enabled live video collaboration among hospitals, physicians, specialists and patients is opening up a plethora of applications such as elderly home care and remote patient monitoring, as well as delivering expertise for specialty services like telestroke, teleICUs, telepyschiatry, telesurgery and support for experts on the go with mobile solutions. Growing healthcare reforms and legislation that supports telemedicine delivery across state lines and reimbursement for medical services delivered via telemedicine are removing the traditional barriers.
In the financial services sector, companies have faced formidable challenges emerging from a volatile economy, greater global competition, and a highly competitive and regulated environment. Video conferencing is opening up opportunities for banks and insurance companies to improve customer service, reduce costs, and accelerate decision making. Video banking is transforming customer experiences, as retail banks move from brick and mortar locations to online banking. It is also enhancing quality of client interactions with high net worth clients by providing better support and services via rich face-to-face interactions. Banks can also share resources, as a single expert can provide video services to several branches, allowing the staff to be more productive while improving customer satisfaction and loyalty.
While user demand for pervasive video is growing rapidly in healthcare and financial services, Frost & Sullivan points out that concerns about ease-of-use, reliability and security have plagued adoption. Moreover, complex solutions, high costs, network requirements, and lack of interoperability kept video conferencing in the past largely confined to "controlled" environments for internal use. Organizations now want to extend the benefits of video conferencing to more engaging experiences and also extend the value of their investments through greater usage and higher ROI. For healthcare and financial services institutions, the primary goal of technology investments is to implement solutions that offer high quality, flexibility, scalability, simplicity and security for online health care and online banking. Vidyo's implementation across all these fronts has met the stringent needs of its healthcare and financial services customers.
Frost & Sullivan believes that holding a customer value leadership position puts a vendor in a favorable position to increase its footprint and share in the market. A customer value leadership position demonstrates excellence in implementing strategies that proactively create value, with a focus on improving the return on the investment for customers. The Frost & Sullivan Customer Value Leadership Award recognizes a specific company's focus on constant innovation and technology improvements that it drive a business advantage and enhance the value that its clients receive - beyond simply good customer service. This is earned by proven dedication to not just responding to changing market conditions and customer demands, but also by helping to drive the overall market. Such validation helps a vendor to protect and grow both its installed customer base and partner ecosystem.
Customer Impact and Business Impact
Criterion 1: Solution Simplicity and Reliability
Vidyo has been quite critical in removing several barriers for mass adoption of video conferencing. Specifically, it has enabled a shift in cost and deployment models. It offers an alternative approach to expensive, network-dependent video conferencing solutions by leveraging its patented H.264 Scalable Video Coding (SVC)-based compression technology. Vidyo's patented technology dynamically adapts to device and network, providing a continuously optimized experience. As a result, Vidyo's approach offers a simple, high-quality communications experience that can scale for large deployments, such as video conferencing over desktops and mobile devices over any network, including packet loss-prone Internet and wireless connections.
Requiring no download for participants, Vidyo desktop meetings offer a simple and intuitive user experience which has led to a growing installed base of users. Frost & Sullivan feels that Vidyo has consistently and properly focused on the core principles of simplicity and reliability to address the growing demand for more user friendly video collaboration. As a result, it has successfully disrupted the market and seen strong adoption for both B2B as well as emerging B2C applications in healthcare and financial services.
Vidyo's core value proposition of simple and affordable video collaboration has appealed to customers in both healthcare and financial services. With Vidyo's visual communications platform, VidyoWorks, there is no need to implement expensive hardware, and multi-party video calls can be conducted from any device (including webcams and mobile phones) to facilitate secure healthcare delivery and video banking to the home.
The Vidyo infrastructure can be fully virtualized and is therefore economical to deploy and manage in an "as-a-service" model. Vidyo's approach changes the economics of video deployments, reducing the cost of high-definition personal video conferencing and bringing it down to the range of what users typically pay for audio conferencing.
Criterion 2: Vidyo's Performance in Healthcare and Financial Services
Frost & Sullivan research shows that in 2014 Vidyo grew at a rapid pace and increased its market share. Vidyo has seen rapid growth in new customer acquisition. Moreover, its billings mix between new and existing customers, shows an equally strong growth from existing customers that continue to expand their spend with Vidyo.In healthcare and financial services Vidyo has seen tremendous momentum. Healthcare remains its largest vertical while financial services is a fast growing area for Vidyo.
- In healthcare Vidyo has won 39 of the top 100 IDNs in the United States including Kaiser Permanente, Mayo Clinic, Partners HealthCare (Massachusetts General), UPMC, Children's Hospital Colorado, Miami Children's Hospital and Mercy. An IDN is a network of facilities and providers that work together to offer a continuum of care to a specific geography or market. Vidyo also directly integrates into established workflows with leading electronic health record (EHR) companies including EPIC, Cerner and EMIS.
- In financial services, while Vidyo's footprint is relatively small, it is expanding at a fast pace. Currently, two out of the ten largest banks in the world have selected Vidyo for their consumer-facing video conferencing banking services as well as other financial institutions around the world.
Examples of successful deployments include the following prominent customers.
- Mercy -Mercy SafeWatch, the largest single-hub TeleICU in the country, enables specialists to monitor critical patient data across 15 hospitals and interact via video communication with on-site medical teams and patients on a 24/7 basis. Over 450 Philips TelelCU monitored beds have been integrated with Vidyo's visual communication solution, so that Mercy's critical care doctors and nurses can watch over and communicate with ICU patients, their families and bedside healthcare staff via Vidyo from a central command center. Mercy expects to expand the use of Vidyo to more beds and applications.
- American Well - American Well aims to democratize health care by extending its reach to geographies where quality health care doesn't exist. The unknowns can range from varying network conditions to a broad range of access points, creating diverse user environments. American Well leverages the VidyoWorks� APIs to embed high-quality video communication in its Online Care System. The VidyoRouter� infrastructure makes it possible for providers and patients to have secure, HIPAA-compliant consultations over a standard or wireless Internet connection using consumer-grade devices such as laptops and PCs to mobile phones and tablets. American Well providers can meet face-to-face with patients from virtually any location - physician home offices, medical facilities, clinics, other hospitals - and Vidyo's patented adaptive video and audio technology is providing reliable interactions.
- IndusInd Bank - IndusInd Bank is one of the fastest growing new-generation private sector banks in India. It has 638 branches, 1,238 ATMs and 439 locations across the country. It has launched Video Branch, a mobile and desktop-based free banking service offered to all its customers for video conversations with a branch manager, relationship manager or with a centralized Video Branch executive. Video Branch is being deployed across the country and offers a wide range of information and transactions that cater to all banking services currently offered through IndusInd phone banking. In addition, bank customers can also conduct financial transactions like opening a fixed deposit or recurring deposit and transferring funds. IndusInd chose VidyoWorks to deliver high quality connectivity from any location, on any device over any network.
Besides these verticals, multiple large government agencies and more than Fortune 500 companies are adopting Vidyo solutions as a key business enabler. Vidyo is currently deployed by the Government of Andhra Pradesh, the largest video conferencing deployment in India. Additionally, Vidyo is JITC certified for the US Department of Defense. The VidyoWorks platform is being used by the Defense Information Systems Agency (DISA) as the backbone for their Global Video Service, which provides secure video collaboration to their agencies. The accelerated growth is positioning Vidyo well to continue leading and growing in vertical markets, while also seeing greater traction for broader enterprise usage.
Criterion 3: Smart Workflow Integration
One major barrier to telemedicine adoption by healthcare professionals has been the fact that video conferencing has remained a technology silo cut off from workflows and processes. Stepping outside of healthcare workflows puts a tremendous drag on productivity. Vidyo's open APIs provide seamless integration with business applications and workflows that incentivize users to stay within the comfort zone of their routinely used applications and processes. The VidyoWorks platform allows organizations, system integrators, and software developers to Vidyo-enable applications and workflows.
In healthcare, Vidyo partners with key workflow application vendors who supply the EMR solutions that drive healthcare organizations to build Vidyo into their solutions. Combined with the Telehealth initiative, most healthcare delivery organizations are embedding video communications into their operations. The VidyoWorks platform includes core intellectual property, APIs and SDK, and a development framework that allows embedding video into workflow applications from companies such as AMD Healthcare Solutions and Philips Healthcare.
This same trend is occurring in financial services, as organizations build customer facing applications that will be enriched with video communications to better engage with customers who are less likely to visit the physical locations. In the past, the use of video communications has been to lower the cost of operations. Today, financial institutions view customer engagement as a revenue generation opportunity. This change in drivers has led financial institutions to seek the highest quality experience while shortening the time to deployment. These organizations are racing to implement video-enabled applications to give themselves a competitive advantage. Recent announcements by major financial institutions, such as Barclays Bank, to improve their customer engagement with the use of video conferencing is a proof of this trend.
In healthcare and financial services, Vidyo has been instrumental in moving video communications from an endpoint solution to making it an integral part of the workflow of the organization.
Video Conferencing has become a game changer for telemedicine. Vidyo offer a high-performance, low-priced approach eliminating the traditional hurdles to adoption. Banking has evolved from traditional business to rapid digitization, but innovative banks understand that visual communications is an important aspect of building trust and customer loyalty while offering convenience and flexibility. Vidyo has effectively leveraged its expertise in offering video solutions to expand adoption of technology in these two verticals and has truly enhanced customer value through innovation and sound execution. Its rapidly expanding customer base in healthcare and financial services is a strong testament to the strength of its portfolio and the overall value of its services. For these reasons, Frost & Sullivan is proud to present the 2015 Customer Value Leadership Award to Vidyo.
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