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Video setback as users look at price

Video-conferencing is losing out to PBX-based systems; users want lowest cost options.

Video-conferencing is losing out to PBX-based systems; users want lowest cost options. Market research firm Infonetics Research released excerpts from its 1st quarter 2014 Enterprise Telepresence and Video Conferencing Equipment report, which tracks dedicated and PBX-based videoconferencing and telepresence infrastructure and endpoints.

Software is the place to be; while telepresence does not seem to be in demand. “Video conferencing revenue experienced a strong seasonal decline in the first quarter of 2014, but it remains positive on a year-over-year basis. The dedicated systems market continues to struggle as companies look for more cost-effective video solutions. This dynamic is driving the PBX-based video market, which is delivering all market growth,” says Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

The worldwide enterprise videoconferencing and telepresence market was dealt a strong seasonal blow in 1Q4 and is down 22% sequentially
Demand for videoconferencing capabilities remains strong, but buyers’ preferences for less costly personal systems is slowing revenue growth

Sales of PBX-based systems are up 32% in 1Q14 from the year-ago first quarter  Videophones were once again the fastest-growing segment of the hardware endpoint market, with unit shipments increasing 48% in 1Q14 from the same period a year ago. Growth in Asia Pacific has been slowing, but it is still poised to become the strongest performing region in 2014, it says.

Infonetics projects global enterprise telepresence and video conferencing revenue to grow in the single digits through to at least 2017.