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Technology / Networks

How much did the global enterprise videoconferencing equipment market rise in Q2?

The global enterprise videoconferencing and telepresence equipment market reported 1.8% rise during the second quarter of 2014, compared to earlier quarter, while dropped 9% year over year, the latest IDC report reveals.

According to IDC’s Worldwide Enterprise Videoconferencing and Telepresence Equipment QView, the overall global enterprise video equipment market revenue reached $482m, with 7.2% rise in the number of video units sold quarter over quarter and 5.5% year over year.

During the quarter, multi-codec immersive telepresence equipment revenue rose 0.6% quarter over quarter, while also reporting a 17.3% drop year over year, with sales up by 2.3% quarter over quarter.

IDC Enterprise Communications Infrastructure Senior Analyst Rich Costello said: "We continue to see the impact of delayed customer buying decisions, lower-cost systems, more software-centric products, and competitive cloud-based video service offerings on the worldwide enterprise video equipment market.

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"The mixed video equipment results are also indicative of the ongoing transition from a primarily hardware-based reporting model to one impacted by the interest in and growth of video subscription services.

"On the bright side for the video equipment vendors, most or all of these vendors now offer, or are ramping-up to offer, cloud-based video alternatives to customers – in addition to their own lower cost, premises-based systems."

Room-based video system revenue also revealed similar results by rising 4.5% from earlier quarter and declining by 4.5% from corresponding year ago quarter, with sales rising by 10.8% and 7.7% respectively.

However, video infrastructure equipment, such as MCUs and other video-related infrastructure products, dropped by 5.7% quarter over quarter and rose by 14.1% year over year.

North America topped the list regionally reporting highest quarter over quarter revenue rise of 6.8%, followed by Asia/Pacific (6.5%), Latin America (-12.6%), EMEA (-5.4%), with their respective year over year revenue reaching -12.2%, -12.1%, 9.1% and -4.1% respectively.

During the quarter, Cisco’s video equipment revenue dropped by 2.4% quarter over quarter and 15.2% year over year; Polycom reported 6.7% rise and 6.2% drop respectively; while Huawei’s also reported 18.6% revenue rise quarter over quarter and 8.6% year over year.

IDC Worldwide Networking Trackers Research Manager Petr Jirovsky said: "Despite the mixed results, recent IDC survey data indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organisations.

"IDC believes that among the challenges customers are currently working through is determining exactly when and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape."
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CBR Staff Writer

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