Video Conferencing Companies Beginning to Collaborate
Large telecom companies like AT&T Inc. (T) and Cisco Systems, Inc. (CSCO) are starting to see the value video conferencing companies like Polycom, Inc. (PLCM) and CoroWare, Inc. (COWI) as evidenced by recent contracts and acquisitions in the sector.
After decades of losses and several failed attempts, video conferencing is finally making its way to businesses and the consumer. The idea of conducting business on video screens was introduced by AT&T (NYSE: T) in 1964 as the Picturephone. The Picturephone was supposed to revolutionize business communications. But it has taken until recently for the technology to make its way into today’s businesses.
In the last month, BT and Polycom (NASDAQ:PLCM) have teamed up by signing a three-year agreement. Polycom will feature their version of video communications to enterprises and various public organizations. This announcement coming right after Logitech International agreed to acquire privately held Texas-based LifeSize Communications, another video communications specialist, for $405 million. Meanwhile, Cisco has increased by their bid by $400 million to acquire Tandberg for $3.4 billion.
Tandberg’s revenues are running at a rate of less than $1 billion a year and Cisco is willing to pay $3.4 billion for the Norwegian firm while Logitech is paying $405 million for LifeSize, which expects to log $90 million in revenues this year. This trend that acquiring companies are willing to pay so much for video communications expertise enhances their belief that video conference, telepresence, and other versions of business video communications are becoming a large factor in every day business use.
Videoconferencing SaaS (software as a service) companies, such as publicly traded Coroware. (OTCBB: COWI), offer a smart and affordable video conferencing solution with high definition video quality. In addition, CoroWare integrates video and phone access so that customers can attend a CoroCall whether working from the office, from home, or on the road.
“We have participated in numerous CoroCall-hosted meetings and have been pleased by the usability, interactivity, and quality of the video sessions,” said Ira Weinstein, senior analyst and partner, Wainhouse Research. “The addition of audio dial-in capabilities further expands the reach of this hosted offering by allowing users who aren’t able to participate using video to join the meeting.”
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com