Has videoconferencing finally come of age? And if so, can it really replace the traditional face-to-face meeting? The options are plenty, and the benefits can be significant, but the cost of VC can be prohibitive for those who don’t shop around.Conferencing, in all of its forms and functions, is changing rapidly with the introduction of new technologies and improved networking capacity. While audioconferencing is still the most dominant technology used by businesses around New Zealand, the introduction of high-definition (HD) videoconferencing means that video-based conferencing is quickly catching up.The introduction of HD systems also means that the interoperability issues with ISDN-based standard definition (SD) systems are becoming a thing of the past. Soon, users will able to hook into systems from different vendors via a range of devices, including a mobile phone. Much of videoconferencing growth in the business sector has been propelled by increased awareness and use of the technology behind VC in the home. The proliferation of services such as Skype and consumer awareness of high-definition televisions has also assisted corporate VC adoption.Coinciding with the ‘green’ IT theme, a lot of hype has surrounded new forms of conferencing.But hype aside, the APAC videoconferencing market was worth around US$330 million last year. According to analyst firm Frost and Sullivan, Polycom has 32% of APAC end point market share, while Tandberg has 17%, Huawei 13.5%, ZTE 11% and Sony 8.6%. While the ‘green’ benefits of conferencing have largely subsided, there are still a range of benefits for businesses to take into account.Faster decision making, improved collaboration, less spent on travel and the interoperability of different forms of media are just some of the benefits experienced by users of conferencing around New Zealand. Users have a range of options to choose from. Asnet, which represents Polycom solutions, has just brought in an entry-level high-definition (HD) system for under $12,000. Tandberg, Agile and Cisco – among others – all have entry-level products ranging from desktop conferencing solutions through to big-budget solutions. Gen-i runs the biggest network in videoconferencing and is the biggest provider of videoconferencing in New Zealand. The company uses a mix of Polycom and Cisco-based solutions among others. The company also offers VC and AC managed systems for clients. Telecom or Gen-i currently have 85 videoconferencing rooms around New Zealand, Australia and overseas.Internally, Telecom and Gen-i used to conduct around 400 conferences a month, but the telco now conducts around 650 conferences per month video-only and around 100 per month using Cisco’s Telepresence. The company also manages some 12 million minutes a year in audioconferencing. As an aside, Gen-i has just sold its first Telepresence unit to an unknown Auckland customer with presence in Melbourne. The customer will use the 1300 system.Gen-i Business Manager – Channels Integrated Communications Services, David Sylvester, says the benefits are the same for audioconferencing, but video offers real “face time” with clients and inter-company meetings. He says VC does not replace ‘face to face’ meetings, but faster decision making makes up for that. While Gen-i is a big Polycom customer and reseller, it is also New Zealand’s pin-up company for Cisco’s Telepresence offering. Sylvester admits that the costs are reasonably high, but the solution is really for the ‘top end’ of clients and companies. With a $400,000 starting price tag for a dedicated Cisco Telepresence six-seat room, the price is prohibitive for many. Gen-i’s Keith Block says, however, that they have a fully managed service available for customers. Gen-i currently manages around 250 systems for customers around New Zealand. With the influx of IP, many customers tend to opt for a managed service because it means that providers can manage both the network and technology running over the network. BenefitsCutting down on travel is a key driver of videoconferencing implementation. As many readers will know, travel time is not what cuts into productivity, but downtime in between travelling to and from the airport. Up to 3.5 hours can be lost in productivity with domestic flights in New Zealand. Telecom and Gen-i have an internal mandate to reduce travel costs by 20%. “The figures we’ve had have resembled forecasts,” says Sylvester. “Over the last three months we’ve cut out 410 domestic flights and 65 trans-Tasman flights, resulting in $500,000 in cost savings.”Agile, which sells a lot of Tandberg solutions, is also a big player in the New Zealand market. Agile’s Ian Darby says many of the benefits of conferencing have been well documented, but he believes that one of the biggest benefits of VC is integrating other technologies such as content and other forms of multimedia. He also notes that VC is a tool that helps companies make revenue through the delivery of products and services through video. New Zealand banks are now looking at how they can use VC as a tool to retain customers by offering clients VC meetings with a number of bank personnel through a myriad of devices. High Definition (HD) or Standard definition (SD)Analyst firm Frost and Sullivan says the split ratio between HD and SD globally is reasonably close. HD now has 41% of the market, while SD has around 59%. HD is gaining ground, says the firm, with advances in markets such as Australia and New Zealand, South Korea and Japan leading HD deployments. Interestingly, it’s the island nations that are leading the videoconferencing market. Gen-i will be able to bridge other systems into a single meeting space with any device from next year. The company is about to invest in either a Polycom or Cisco HD bridging system. With the influx of HD, interoperability will become more robust between systems and devices. Proliferation of LCD screens has also assisted with HD, says Asnet spokesperson Denise Hansen. Despite many saying that you will need a 1020i or 1020p screen, Hansen says that 720p system over 2Mbps is sufficient.If a user wants to invest in top-of-the-line screens with 1080p capability, then they will also need to hand out the cash for a 1080 projector and other kit. “You can’t make blanket statements because the screen is just part of it… networking and bandwidth are also key factors,” says Hansen.HD will also kick in with Polycom units at speeds as low as 830Kbps of bandwidth.Hansen says interoperability is essential, so that SD can interoperate with HD. According to Hansen, many providers weren’t prepared for the interest in HD VC models, but the industry is rapidly catching up. She says Asnet still has a SD legacy group of good users. “They may well still be using SD, but there has been a much faster uptake of HD than expected.” Polycom HD systems have an ‘off-packeting recovery’ feature, which absorbs up to 5% of packet loss without users noticing. Hansen says that even when using VC over low bandwidth, it is relatively clear.Desktop conferencingWeb-based conferencing has not seen as much adoption as anticipated because it has struggled to compete with other forms of conferencing. Service providers have begun to offer integrated conferencing solutions. Unified Communications providers are also beginning to package conferencing, especially web-based conferencing features into offers. Analyst firm Ovum predicts that desktop conferencing will continue to grow, however, as a low-cost alternative to room-based solutions. The product is growing in popularity. Asnet recently supplied the Ministry of Economic Development, the Fire Service and Statistics NZ with Converged Management Application or CMA, which enables integration between desktops.Ian Darby at Agile says he has noticed more clients wanting desktop conferencing. Companies with dedicated VC meeting rooms are now looking at installing desktop VC, which creates a greater staff reach. Desktop conferencing can put constraints on a client’s network, so it’s important to have a robust network as well as good support and management in place, says Darby. FirewallsWith varying networks in place around NZ businesses, firewalls can be hazardous to VC. Some corporate or individual firewalls do not recognise VC over IP, although it’s worth noting that the H.323 standard does.BandwidthIan Darby at Agile believes that users are still hamstrung by bandwidth costs. “People know that VC will deliver a great experience, but at a cost,” he says. He says a lot of people are using SD and audio-only conferencing because of prohibitive bandwidth costs.Nonetheless, technology is changing, and that means it is becoming more adaptable. HD can be experienced at low bandwidths, but even with an HD camera or projector over low bandwidth is still a better experience than when an SD camera is used. AudioconferencingGrowth continues in the audioconferencing market. Both Asnet and Gen-i say that the bulk of customers still use audioconferencing (AC) before videoconferencing. According to Ovum, global AC will continue to grow from 37.8 billion minutes in 2007 to 57 billion minutes in 2012. The multi billion- dollar AC industry is expected to decrease slightly when compared with VC. Ovum predicts that VC revenue will grow from 18% to 26% by 2012, while AC will go from 67% to 59% and web will drop from 14% to 8% as VC takes off. The main drivers for continued global AC are increasing globalisation of the workforce and low-cost conferencing tariffs. In addition, Unified communications (UC) providers are introducing both AC and VC into communications packages. AC is likely to be used more frequently as UC grows, but it depends to what extent the service providers package AC into UC. Many enterprises still see AC as a standalone product. Unified CommunicationsThe world of UC has also experienced a lot of hype in recent years. Despite this, providers are now offering conferencing as part of a UC package. You may find that you can cut costs on a system that offers you a range of products in one package. Telcos are also seeing the benefits of this and are now are on the hunt for ‘all of business’ products, which attempt to capture most, if not all, of a corporation’s business including data, fixed and mobile business, conferencing, desktop-based applications, cloud computing applications and wider networking systems among other things. Adoption of HD VCIAG, which has around 2000 staff, has been using Asnet SD VC and AC systems for four to five years. Each month IAG conducts around 240 meetings with an average duration of 30 minutes. Recently however, the insurance company began implementing HD systems into its offices. The company recently installed five Polycom HDX8000 units in Auckland, and is installing one system in Wellington and one in Christchurch. Overall, the company uses 35 SD and HD units. “The HDX systems have taken us to a new level,” says IAG infrastructure architect Darryl Sargent. He says while the company may be cutting down on domestic and trans-Tasman travel with VC, IAG is also now able to use content in a different light with the implementation of HD systems. “Users have been impressed by the quality of the picture, but we didn’t buy HD because it’s HD; it’s because of the richness of content.” With the use of an AMX touchpad control system in the meeting room, PCs and interactive whiteboards, the company is able to use various information and media over HD, resulting in a richer conferencing environment.The company also uses Polycom’s CMA 4000 product, which allows interoperability between meeting rooms and desktops. IAG also bought 10 desktop clients. The company integrates its VC with an Avaya phone system for audio experience. And like many VC users, IAG users its VC capability for audio-only conferences as well. “It’s about making the investment work better for you,” says Sargent.