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Vendors Jump on IP Video Bandwagon

By Robert L. Mitchell
March 3, 2003 12:00 PM ET

Computerworld - Videoconferencing products fall into two categories: group/room systems, and single-user desktop systems. The endpoint equipment may consist of a stand-alone appliance, or it may connect to a PC using a Universal Serial Bus port or internal add-in card.

Most corporate deployments are group systems. While appliances are easier to use, PC-based units offer better integration with Web conferencing features such as application sharing, says Giga analyst Elizabeth Herrell. Conferencing with more than one location requires a multipoint control unit, which acts as a central call manager. Vendors also offer specialized software that handles bandwidth management and call scheduling and enables the creation of a global address book.

Prices range from less than $5,000 per site for a system supporting up to three callers to $15,000 or more for room systems with large screens. But users also need to consider the incremental cost of upgrading and managing a more complex network infrastructure to support IP videoconferencing, Herrell notes. All systems can support a mix of ISDN and IP connections.

Polycom's iPower 9000
Polycom's iPower 9000
While at least 10 vendors offer products in this area, three players dominate, Herrell says.

Polycom Inc.

Pleasanton, Calif.

Polycom has more than two-thirds of the market and a comprehensive suite of hardware and software offerings. Products include the $599 ViaVideo PC-based single-user system. Pricing for group systems, which include the ViewStation set-top and PC-based iPower series, start at $3,999.

Tandberg Inc.

Reston, Va.

Tandberg focuses on the high end, offering 128-bit Advanced Encryption Standard encryption and directory integration via the Lightweight Directory Access Protocol. Its integrated 2500, 7000 and 8000 systems start at $15,990 per site and go up to $59,990. The 800 and 550 series set-top units start at $4,990 per site. Its 1000 series single-user desktop units start at $5,490.

Sony Business Solutions & Systems Co.

Park Ridge, N.J.

Sony's high-performance, low-cost systems have sold well to small and midsize businesses, Herrell says. Its PCS-1600 series set-top units start at $3,394; desktop units start at $3,994. On the high end, a packaged system capable of supporting six multipoint sessions sells for $21,300.

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