Even as we sit and deliberate over this write-up, there are thousands of conference calls going on all over the globe. And while we try to create images with words, videoconferencing is generating real-time images with codecs.

One thing which needs to be considered in all the above situations is the commonality of the video enabled room. This room, which comes at a huge cost, has a dedicated lease line for bandwidth, big LCD flat screens, file sharing applications and surround sound detection enablers. And through these rooms, the thing called video is terminating boundaries and time zones.

Beyond these rooms is another worlda world, where a common journalist sits with his laptop and waits for video to percolate down to his level, a world where an entrepreneur is busy generating money for the airlines with his extremely frequent travels. And this half of the world is the untapped video halfthe segment which still hasnt seen the value in video. The segment for which the vendors have failed to make a case, till now.

Taking Back
Its all justified to hail video as the answer to travel costs. The boast about its quality is valid too. But the video ride, in India at least, is still in its hype cycle rather than on the ground. There are a lot of implementation and integration glitches, which seem to be making some businesses at the mid and lower level rather video shy.

According to Amit Mehta, director, unified communications, Microsoft India, The biggest problem with videoconferencing is that it exists only at a room-to-room basis. There is no uncomplicated approach to Videoconferencing. So how do vendors make a convincing case for Videoconferencing for those who are low on the adoption curve right now?

The first answer perhaps lies in justifying the costs. However, in order to reach to that, we have to look at the costs first. Video solutions, conventionally, do not make a pretty picture for any companys accounts. The large enterprises, with sufficient funds, are going for it nevertheless because of the RoI that it generates in the long run. But for small enterprises, the cost itself is a barrier, forget about the returns.

The answer then is bringing videoconferencing in the affordability bracket. And the vendors are no longer ignorant of the price segmentation that the videoconferencing market is gradually demanding. Dinesh Sehgal, regional director for India, Sri Lanka and Bangladesh, Tandberg, agrees to the price segmentation happening in the Videoconferencing market. A Videoconferencing set up at Tandberg starts from $2,000 and goes upto $500,000.

Discussing cost-cutting economically, thanks to videoconferencing

If we look at that in isolation, there is an extremely wide cost bracket. But the catch here is that the expenditure for the small company wont end simply at the tag of $2,000. Video entails a number of other running expenditures and coupled with the equipment cost, its not easy for vendors to put their cost case in a tempting palette.

But the vendors in the Indian markets are far from discouraged. Anshul Dhingra, senior marketing manager, Polycom India & SAARC says, We have to clear the misconceptions around videoconferencing. For instance, we try spreading the message that multiple video rooms are not a necessary requirement. Quality Videoconferencing is possible even at a lower cost. He asserts that the mid-market segment in India holds tremendous potential and vendors only have to tap it the right way. He thinks that Reliance Web world epitomizes this potential through the fact that most of its users are SMBs. That goes on to prove that they are keen on using Videoconferencing but need the solutions which click on the cost curve.

To make visible the RoI that Videoconferencing can yield, vendors are now going all out. Polycom at once shall take out its multiple cost calculations and metrics based on the specific business type when the question of returns crop up. Tandberg and LifeSize also help their customers calculate results on Videoconferencing. There is no doubt about the fact that cutting travel costs is the most prominent factor in Videoconferencing adoption. Mehta says that it is upto vendors to analyze the travel needs of their clients. For instance, if the travel is mostly for internal meetings and reviews then Videoconferencing makes a lot of sense. On the other hand, if travel is primarily for customer or client meetings where tangible work (like paperwork, exchange of money, examining sites, etc) is involved, then Videoconferencing might prove to be of too much use.

Thus, the calculators of RoI on Videoconferencing have to get more analytical rather than just professional if a clear case for Videoconferencing has to be made.

Driving to the Desktop
The positioning of Videoconferencing over the years has undergone substantial changes. From suave video enabled rooms, vendors are now talking at the desktop level. And all this is being done to translate the potential into realization.

The moment we position Videoconferencing as Videoconferencing, it doesnt get sold. We have to simplify it. It should be something as simple as sitting on your desk and working, observes Mehta as he deliberates about the low success rate of Videoconferencing down the ladder.

Sehgal adds that the primary issues to address in order to promote Videoconferencing areis it usable? Is it people friendly? And keeping these factors in mind, he thinks that desktop conferencing holds the key to the nerve of the Indian markets.

But then, why is it that the drive of the video from rooms to desktops is still far from being a reality? Experts feel that it is because none of the vendors have been able to make a convincing case for a desktop Videoconferencing yet.

While the vendors agree to the fact that desktop conferencing has still not taken off, they are seeing this area with a lot of interest and directing their energies to power the desktops in the near future. Craig Malloy, CEO and co-founder, LifeSize says, The home marketboth home offices for teleworkers and connected familiesis going to be very exciting, and we want to be a key player in this market. A generation is growing up using video chat and webcams and they are bringing that experience to their families and into the workplace. There is tremendous room for innovation here. Price is important, but for the home market, quality and ease of use are equally critical. The desktop and notebook PC experience will be an important part of video in the home, but we will also see HD video appliances that use HDTVs and broadband connections.

However, one of the things that work against Videoconferencing is the bandwidth hungry application that it is. India, still a nascent market in terms of bandwidth, cant support Videoconferencing in tier-2 down cities. And while government is adopting Videoconferencing with great energy right now, this factor might hamper its even landscape. However, if the normal home bandwidth speed could support even an average quality video, things would change. Thats another area where desktop conferencing could see a lot of action.

Coming of Age
The age that we are in is of a slowdown, and Videoconferencing is certainly coming of age in this regard. According to Sehgal, the positioning of Videoconferencing has undergone a massive change in these months. He says, The focus six months back was how can you leverage technology through Videoconferencing. Now the story has changed. Everyone wants to see the effect that Videoconferencing can have on the bottom line now.

At present, there lies the clearest answer for making a case for Videoconferencing. The moment it will get projected as driving revenues rather than just cutting costs, (more relevant for specific businesses like telemedicine, education, travel, etc) it is bound to see a lot of traction. Travel costs are pinching the companies, and this seems like the best time for vendors to go to market and make a convincing case for Videoconferencing.

Mehak Chawla
mehakc@cybermedia.co.in