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November 29, 2012

Enterprise videoconferencing and telepresence market declines in third quarter

The market however increased 7.1% compared previous quarter

By CBR Staff Writer

Enterprise videoconferencing and telepresence market dropped 4.8% during third quarter of 2012 compared to corresponding quarter in 2011, according to a new report.

According to International Data Corporation (IDC), the market however increased 7.1% compared to the revenue recorded during previous quarter.

The market grew strongly in Latin America and Asia/Pacific region reporting respective growth of 13.7% and 9.7% over last year while it declined 11.5% in North America and the 10.8% in Europe, Middle East, and Africa (EMEA) during the quarter.

In terms of market segment, multi-codec immersive telepresence market declined sharply recording 35.8% year-over-year drop while gateways, firewalls market declined 26.8% year over year.

Single-codec videoconferencing segment on the other hand increased 0.4%, personal videoconferencing increased 8,7%, and video MCUs were up 5.0% year over year during the quarter.

IDC worldwide networking trackers senior research analyst Petr Jirovsk said despite the overall weak performance during the quarter, there will increase in adoption driven by video integrations with vendors’ UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users.

"Video as a key component of collaboration continues to place high on the list of priorities for many organizations and we anticipate a return to positive market growth in 2013," Jirovsk said.

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During the period Cisco’s market revenue increased 17.9% over last quarter but it is 14.7% drop in an annual basis while its market share dropped from 48.3% in third quarter last year to 43.3% this quarter.

Polycom’s revenue declined 11.8% quarter over quarter and 15.2% year over year during the quarter.

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