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Enterprise telepresence sales slide: More than economy at fault

August 27, 2012 | David S. Maldow, Esq.

Cisco_Telepresence_TX9000.pngImmersive telepresence rocks, but in may cases cheaper alternatives will do. Credit: Cisco

 for Between the Lines |
The enterprise videoconferencing and telepresence market revenue pie shrunk 10 percent in the second quarter relative to a year ago, according to IDC data.

IDC reported that enterprise videoconferencing revenue was $564 million, the lowest mark since the first quarter of 2011. Immersive telepresence sales basically collapsed---down 38.4 percent in the second quarter compared to a year ago. Only Asia/Pacific showed growth in the second quarter.

Cisco's second quarter market share stood at 41.9 percent of the market, down from 48.7 percent in the first quarter. Polycom's market share was 32.5 percent, up from 27.7 percent.

The culprit for the weak sales, based on earnings conference calls and IDC, has been the economy and lower spending by governments and education institutions. However, I'd argue something else is behind the slide---good enough video conferencing.

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