Cisco joins video conference foray
Network equipment maker Cisco Systems Inc. on Sunday unveiled a high definition, video conferencing system that it says can grow into a billion dollar business in five to seven years.
Named TelePresence, the product is the latest move by Cisco to expand from its traditional business of network routers and switches into video a strategy it launched with the February acquisition of cable set top box maker Scientific Atlanta.
A few analysts who were given a demonstration said TelePresence will likely compete with Hewlett Packard Co.'s Halo Collaboration Studio and other high end video conferencing products by specialist technology firms like Teliris Ltd. and Polycom Inc..
It will be available from December in two versions initially. The basic TelePresence 1000 model, designed for one on one meetings, is priced at $79,000 per station.
TelePresence 3000, for larger meetings, is installed in the form of a small conference room with three high definition screens on which participants are displayed life size. It is listed at $299,000 per station.
Cisco did not give sales targets, but Marthin De Beer, vice president of its emerging markets technology group, said it would take a few years for the product to turn profitable.
"We think it could be profitable in two to three years. We think it has potential to become a billion dollar business in five to seven years," he told Reuters.
Video conferencing systems have long been touted as a way for companies to cut travel expenses, but they have yet to live up to expectations, partly because of poor video quality and cumbersome technology.
Cisco Chief Development Officer Charles Giancarlo said TelePresence's high quality screens, as well as speakers and cameras positioned to help users feel like they are in the same room, may persuade companies that have so far shunned video conferencing products.
"The equipment of a few years ago was never able to deliver real time experience. TelePresence is something totally different," he said.
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