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Enterprise Videoconferencing. Telepresence Mkt Sees Mixed 3Q13 Revenue Results
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  • Enterprise Videoconferencing. Telepresence Mkt Sees Mixed 3Q13 Revenue Results

Enterprise Videoconferencing. Telepresence Mkt Sees Mixed 3Q13 Revenue Results

FP Archives • February 3, 2017, 00:16:56 IST
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From a market segment perspective, the quarterly revenue growth was positive across all segments, while the yearly revenue growth was just the opposite.

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Enterprise Videoconferencing. Telepresence Mkt Sees Mixed 3Q13 Revenue Results

The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence QView showed mixed results for the third quarter of 2013 (3Q13), with overall videoconferencing equipment revenue increasing 8.2 percent quarter over quarter, but declining -9.7 percent year over year. Total worldwide enterprise video equipment market revenue in 3Q13 was approximately $576 million.

From a market segment perspective, the quarterly revenue growth was positive across all segments, while the yearly revenue growth was just the opposite. Multi-codec immersive telepresence equipment revenue was up 13.1 percent quarter over quarter, but still declined -16.3 percent year over year. Similarly, video infrastructure equipment, including hardware MCUs and other video-related products, increased 13.7 percent quarter over quarter, but declined -16.7 percent year over year. Room-based video systems increased 6 percent quarter over quarter in 3Q13, but decreased 5 percent year over year. And desktop video systems showed 4.7 percent revenue growth quarter over quarter, but declined -13.6 percent year over year in 3Q13.

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Regionally, Latin America (41.8 percent), Europe, Middle East and Africa (EMEA) (22.6 percent), and North America (3.9 percent) all showed positive quarter-over-quarter revenue growth in 3Q13, while revenue in Asia/Pacific (-3.7 percent) declined quarter over quarter. In addition, Asia/Pacific (-13.7 percent) and North America (-18.2 percent) showed the largest year-over-year declines in 3Q13, while both EMEA (3.4 percent) and Latin America (10.7 percent) experienced year-over-year revenue growth.

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“Interest in video and collaboration technology and applications helped the quarterly revenue numbers. But the lingering macroeconomic situation – including some softness in emerging markets, the recession in Europe, and the sequestration in the U.S. (i.e. budget cuts) – produced some cautionary IT spending that has impacted year-over-year video equipment revenue growth so far in 2013,” said Rich Costello , Senior Analyst, Enterprise Communications Infrastructure at IDC. “In addition and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-centric products and offerings on the enterprise video equipment market.”

Key Vendor Updates:

Cisco’s 3Q13 results showed a 17.9 percent quarter-over-quarter revenue increase, but a -7.6 percent year-over-year decline in video equipment revenue. Cisco remains the leader in enterprise videoconferencing equipment with a 44.7 percent share of the worldwide market.
Polycom’s revenue decreased -11.4 percent quarter over quarter in 3Q13 and was down -14.5 percent year over year in the quarter. Polycom ranks second in enterprise videoconferencing equipment with a 23.9 percent share of the worldwide market.
Huawei’s 43.2 percent quarter-over-quarter revenue increase and 2.5 percent year-over-year revenue increase in 3Q13 were good for a third-ranked 10.1 percent share of the worldwide enterprise videoconferencing market.

“Video as a key component of collaboration continues to place high on the list of priorities for many organizations,” said Petr Jirovský, Research Manager, Worldwide Networking Trackers. “IDC believes that among the challenges customers are currently trying to work through are exactly when and how to provision their video deployments, as more software-centric solutions and video cloud service offerings become part of the enterprise video market landscape.”

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