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August 26, 2012

Worldwide videoconferencing and telepresence market dropped in Q2 of 2012: report

Cisco has declined by a 23.7% year-over-year and now holds 41.9% of the market

By CBR Staff Writer

Worldwide enterprise videoconferencing and telepresence market dropped 6.9% during the second quarter of 2012 to $564m compared to the corresponding quarter in 2011, according to a report by International Data Corporation (IDC).

According to the report, the revenue declined 10.0% year over year and more than 27% below the revenue recorded in fourth quarter of 2011.

IDC Enterprise Communications Infrastructure senior analyst Rich Costello said the video vendors pointed to the currently difficult macro-economic situation, as well as a cutback in spending in key areas such as the public sector, including government and education, as reasons for the decrease in quarterly results.

"Although these factors are expected to persist and influence results somewhat in the second-half of 2012, interest in video continues to grow among organizations, especially those with good use-case requirements," Costello said.

The report says, multi-codec immersive telepresence continues to decline with a 38.4% year-over-year drop.

Asia/Pacific market performance was better in comparison to other regions, growing at 11.3% year over year in 2Q12, while revenue in Europe, Middle East, and Africa (EMEA) region decreased 20.7% and North America declined by 16.4% year over year.

Cisco has reported a decline of 23.7% year-over-year though it remained the market leader with a 41.9% market share, while Polycom has recorded 8.9% increase in its revenue over the first quarter, but was still down 4.3% year over year.

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IDC Worldwide Networking Trackers senior research analyst Petr Jirovsky said: "Despite the overall weak 2Q12 performance in the worldwide enterprise videoconferencing market, we still see adoption being driven by video integrations with vendors’ UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users."

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