Streaming video specialist VDONet Corp has laid off more than 20 employees as part of an effort to deal with dramatic changes in the streaming video market. The company, which provides video networking applications to the service provider market, including its VDOPhone video conferencing technology and VDOLive video broadcasting technology, has said that it will refocus its efforts to begin selling into OEM markets. Sources close to the Cambridge Massachusetts-based company maintain that its troubles are a direct result of Microsoft Corp’s recent shake-up in the video streaming market. Earlier this summer, the software giant acquired VXtreme Inc and bought core technology from RealNetworks Inc, formerly Progressive Networks Inc. It now bundles both technologies in its Netshow product for no charge – a platform which provides streaming capabilities as well as data collaboration and videoconferencing functionality. Dramatic changes in the streaming video market over the past few months have changed the dynamics of our business, explained Asaf Mohr, president and chief executive of VDONet. It became increasingly clear that the business interests of our key customers and of the company would best be served by our concentrating fully on our core technology and providing the best possible service to a specific set of large customers. The major thrust of VDONet’s activities will be on developing various video networking applications for OEM markets. These applications will combine VDONet’s VDOPhone software videoconferencing technology and the VDOLive video broadcasting technology. Ironically, Microsoft has invested in Palo Alto based VDOnet (CI No 3,044).
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