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Home > CIO HANDBOOK 2007 > CEO

By 2012, video will eliminate more than 2 mn air trips
Craig Malloy, CEO and co-founder, LifeSize
Mehak Chawla
Friday, March 06, 2009
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We are at the beginning of a revolution in communication. In the next 1-3 years, the economy will drive many companies to evaluate and implement video technology to reduce travel expenses. Gartner predicts that by 2012, video will eliminate 2.1 mn airline trips annually. Craig Malloy, CEO & co-founder, LifeSize speaks on the future of videoconferencing. Excerpts

What have been the recent trends in the videoconferencing/telepresence market?
Interest in video has never been greater, and HD technology is the driver. In just over three years since LifeSize delivered the worlds first HD video system, high definition is the overwhelming choice. Companies believe this is the right time for HD video.

HD is a game changing technology primarily because it delivers on the promise of video communication to truly replicate the face-to-face experience. We see time and again that companies that explore HD video for cost reductions quickly realize that its really a productivity booster that changes the way they do business.

We see this in the market acceptance of our latest and most advanced product, the LifeSize Room 200, with 1080p30 and 720p60 resolution. Its sales are exceeding our projections. Customers are thrilled with the performance and realism, but they are telling us that because video equipment remains in service for so many years, it makes sense to invest a little more now to help future-proof their video network.

Given the condition of the economy, do you think that some tremors are going to be felt in the VC domain? Or is an impact already visible?
No other IT investment can deliver as immediate and as measurable results like HD video. In the current economic climate, CIOs, IT and telecom managers are re-evaluating projects in terms of RoI, TCO and payback time. And in that environment, video becomes the top priority.

The opportunity for HD video to deliver value has never been greater. Because the benefits of HD video are so clear, compelling and measurable, many LifeSize customers are accelerating their video communication system deployments. Some customers are telling us that HD video is the only IT project they are funding at this time.

What do you think is the role of VC in the whole unified communications ecosystem? How do you think it is helping in promoting the whole concept of UC?
Video has tremendous potential in unified communications, but it must be a quality experience. An inferior, ineffective communication experience is not helped by great managementthe worlds best-managed mediocre video does not make great video.

At LifeSize, what we do best is deliver the best video communication experience with flexibility and outstanding price performance. So for unified communications, our philosophy is to fit in and stand out. Fit in means being standards compliant, interpolable and capable of being managed by whatever system is preferable for the enterprise. Standing out means delivering the best communication experience.

Unified communications means many things to many people, from integrating with their IP PBX and 4-digit dialing plans to working with their Microsoft Active Directory structures. LifeSize video endpoints, infrastructure equipment and our management platform, LifeSize Control, excel in all these environments.

What we dont try to do is to create an entirely new UC paradigm and expect the world to adapt around it. Video is coming into a space where people already have investments in email, messaging and telephony systems. To succeed, video needs to fit into those existing paradigms.

Travel costs and environmental concerns are two areas that VC scores very highly on. Have you ever tried to position VC as a green technology? If yes, then has it yielded some results? Are companies eager to go for something like a green technology?

In the current economic climate, the value of HD video as both a business tool and green technology has never been greater. Companies are eager to embrace technologies that deliver positive environmental benefits while lowering costs and improving performance.

The green benefits of HD video are tremendous. For many businesses, air travel is the largest component of their corporate carbon footprint. Each video call that saves a trip is a direct reduction of carbon dioxide output. Video is a powerful tool that can deliver real, measurable and cost-effective carbon footprint reduction by delivering a telepresence experience so realistic and natural that it is preferable to travel, yet cost-effective for enterprise-wide adoption.

TelePresence, as a new and better experience, seems to have captured the imagination of the industry of late. But heavy costs are a hurdle. Do you think that is going to change?
The thing that will change most quickly is the definition of telepresence. Telepresence, in the form of custom three-screen mirror rooms that cost hundreds of thousands of dollars, has a tremendous appeal but an inherently limited market. At LifeSize, our goal is to make the telepresence experience available to everyone.

Fundamentally, we believe that the telepresence experience starts with a superior HD video architecture, with cognitive and aesthetic optimization to create an immersive, in-room experience. Rather than deliver a one-size fits all configuration, LifeSize Conference allows our customers to design rooms that reflect their tastes in dcor, their style and their budget.

Reliance Industries, for example, chose LifeSize Conference because we were able to provide a far superior face-to-face experience, along with a more flexible solution, that could be incorporated into their existing space without compromising on our style.

What are your India-specific plans?
India is a priority market for LifeSize because leading businesses recognize the benefits of high-definition videoconferencing and telepresence to support their business goals, and the LifeSize value proposition of superior quality of experience, unique flexibility and unmatched price performance delivers easy-to-measure results.

In less than three years, LifeSize has earned 10% market share in India, and we intend to build on this success. LifeSize is committed to India, a dynamic country with a wealth of engineering talent and customers at the leading edge of video communication. Our new and expanded engineering design center reflects the tremendous contribution the LifeSize team in India has made to our companys success, and our commitment to having the facilities to support future growth and exciting new products.

Mehak Chawla
mehakc@cybermedia.co.in

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