Videoconferencing takes the Orient express
Barry Cross says videoconferencing is set to benefit from a range of new entrants from the Far East
The videoconferencing market is expanding, according to IDC figures. There is more business out there for more vendors, and I would urge resellers to start broadening their reach and looking at new players coming into the UK from Asia and China in particular to ensure they get their share.
The Chinese economy is still growing fast, compared to Europe and North America, and to go on expanding, China will look further afield, towards EMEA as well as the Americas.
We are already seeing this with companies such as ZTE and Huawei. These are huge conglomerates, introducing proven technology and funding that supports it.
Such companies have until recently generated most of their business from in and around their homelands but are now looking overseas. My advice to resellers is to get on board this train or risk being run over by it.
Many firms have taken the market by storm over the years, bringing fresh ideas that shape the way people interact with technology. Take Apple, for example: the huge influx of Android devices recently makes it unlikely Apple will hang on to its market share.
There will always be companies that come along and improve production methods and distribution in order to lower costs, and these companies will arguably dominate in future, even though there are others that focus on innovation and creation.
We have seen this time and again. Look at cars or motorbikes: the initial innovations came from the West, but today Asia has the stronger position in the mainstream market. The same is largely true of consumer electronics such as television and video devices.
I can see the same thing happening in videoconferencing. LifeSize blazed a trail with HD, but much of its manufacturing is in the Far East. Looking ahead, it will be companies such as ZTE that will dominate in years to come by offering lower prices for the same or better performance.
Many resellers will be committed to their vendors, and I am not suggesting they should dump these relationships. However, it would be wise for channel players to start looking at broadening their offerings. The traditional vendor landscape in videoconferencing is changing fast – not least because acquisitions are rising.
Many resellers will find that change is coming, whether they want it to or not. The past three years have been particularly turbulent, with Tandberg being acquired by Cisco, LifeSize by LogiTech and, most recently, Radvision by Avaya.
The landscape is changing, and some would say that for resellers these changes are not for the better.
VARs must also consider whether their vendors' long-term corporate visions are aligned with their own future strategies. A case in point, once again, is LifeSize, which is now looking at more cloud-based offerings.
Having monthly returns over a longer period could be great for many resellers. For others that rely on capital cost sales, it could challenge their cashflow as well as their basic business model.
Similarly, Polycom is looking more at integrating its products with a broader unified communications offering. Again, this could be a great opportunity for some resellers in the short and medium term, but not for others.
For some, it may be better to stick with what they know, rather than chasing the latest trend. If this is the case, new, large, well-funded, technologically sound and stable players with proven records in the field could prove attractive. Getting involved with their early forays into cracking the UK market could prove lucrative.
Such new entrants will need partners to help them understand the market, so there may be more scope for additional revenue.
When established players think they have cornered their markets, new blood could offer a rude awakening. Clever partners should start looking further afield to ensure they themselves are on the right track.
Barry Cross is managing director of Touchline Video