Enterprise spend on videoconferencing and telepresence set to soar

The global business spend on videoconferencing and telepresence is set to see a massive increase as enterprises continue to focus on cost-cutting and productivity, according to industry analysts Ovum.

"Enterprises are seizing the huge opportunity that videoconferencing offers them to cut costs and improve productivity by reducing business travel," said Richard Thurston, Ovum analyst.

Thurston explained that videoconferencing is looking increasingly attractive to many businesses.

"They are starting to use videoconferencing much more frequently because of ongoing economic concerns, continued efforts to reduce their carbon footprint, enhancements in video technology, and price reductions that are improving the business case," he said.

"The next five years will see a solid increase in expenditure from businesses in every region around the globe."

According to Ovum, business videoconferencing will grow at a compound annual growth rate of 5.7 per cent from 2011 to 2016, making it one of the fastest-growing markets in ICT.

This trend will be even stronger for telepresence, as Ovum predicts it to grow at 19.49 per cent over the same five-year period.

By 2016, global spend on videoconferencing will hit £2.3bn, and telepresence £667m.

"The improved quality of telepresence in terms of both visual and audio quality is resonating strongly with many large businesses," said Thurston.

"But these systems are complex to manage, and we forecast that businesses will opt for third-party managed services from operators, system integrators and equipment vendors to help them with their telepresence installations."