Lower priced video conferencing systems have been becoming more common for a couple of reasons. Video technology has worked its way into the mainstream, so the cost of system components has been dropping. Also, small and medium businesses have been deploying high bandwidth services that can support video conferencing transmissions. The recent rise in gasoline prices may also have a positive impact on the video conferencing market. Higher gasoline prices translate into rising travel costs, and that change may impact small and medium businessesï¿¼ travel budgets.
As Polycom moves more squarely into the small and medium business space, it faces a few challenges. Traditional foes, such as Direct Packet Research and Tandberg, have also targeted this sector. New competitors, mainly from the VoIP sector, have been moving into the video conferencing space. Video conferencing technology has been integrated with more desktop applications, so its future as a stand-alone application has become murky. While the long term prognosis for vendors like Polycom is unclear, it should become easier in the future for interested small and businesses to deploy such systems.
How much interest does your company have in video conferencing systems? Would price hikes from gasoline related ventures change your mind at all? How much would you be willing to pay for one of these systems?