by Mariette Johnson Wharton, VP of Marketing
Until now, Cisco has focused on high-end video conferencing, far too expensive for anything but the largest companies. With the October 1 announcement of a $3 billion acquisition of the leader in video conferencing (Tandberg), Cisco is showing that they will be tackling the enormous opportunity to serve the middle market. Tandberg now has 40% of the video conferencing market (Polycom has 34%).
Tandberg’s video equipment ranges from extremely high-quality desk-top video phones to full conferencing room systems with the pricing starting at about $1500. Cisco’s acquisition, if it goes through, will allow them quickly capture the burgeoning opportunities among mid-range companies. While Cisco’s high-end video conferencing sales have been only marginally impacted by the economic downtown, the Tandberg strategy will enable them to explode.
Video is clearly a growth strategy for Cisco, evidenced by another recent acquisition of Pure Digital, maker of Flip cameras. Polycom is likely scrambling for a strategy to counteract Cisco’s dominance of the video conferencing market.
With the brand and marketing power of Cisco, high performing video calling and video conferencing equipment will be coming to the middle market like never before.
Now that business-grade video endpoints from Tandberg and Polycom have been launched, Vidtel is now focused on serving the SMB market (as opposed to the consumer market when we first launched) with service for these devices.
