From science fiction to desktop for telepresence

By David Lawsky
Reuters

Dec 22, 2009 16:19 EST

http://blogs.reuters.com/mediafile/2009/12/22/from-science-fiction-to-desktop-for-telepresence/


Telepresence was science fiction in the 50s, a Disneyland attraction in 
the 60s, and eventually morphed into costly corporate “telepresence 
rooms” and other high-end systems, which relied on expensive dedicated 
communications lines.

Vidyo, a start-up company in New Jersey, says it has invented the next 
generation of teleconferencing that is cheaper and more portable, in 
part by using the Web to transmit, getting around the need for special 
communications lines and instead using the Web. It says that it will 
make teleconferencing available in offices, homes and hotels – and not 
just in boardrooms.

“Our product is a breakthrough to democratize telepresence and make it 
more affordable and portable,” said Ofer Shapiro, chief executive of 
Vidyo. Shapiro knows the earlier generation. He led the design team at 
Radvision in the 1990s that designed a key piece of equipment called a 
Multipoint Control Unit, or MCU, still in use today. Shapiro thinks it 
obsolete.

Most teleconferencing offered today by such dominant players as Tandberg 
and Polycom, depends on MCUs, which are refrigerator-sized appliances 
that take television pictures from individual feeds, re-digest them and 
then put them together as Hollywood Square style pictures on a single 
screen.

The companies are players in a market projected to explode. Research 
firm Gartner says Teleconferencing among corporate users is projected to 
increase nearly 30-fold by 2015, to 200 million from 7 million last year.

Recently Cisco bid to buy market leader Tandberg for $3.4 billion while 
Logitech, the world’s top computer mouse maker, is to buy privately held 
video conferencing group LifeSize Communications for $405 million.

One analyst, who asked not to be identified, said that what Cisco bought 
was market share, an established customer base that includes government 
agencies, and a system that is standardized to inter-operate with 
others. Tandberg, the biggest player, and second-placed Polycom together 
hold around three-quarters of the market.

Vidyo would change those standards. Shapiro’s group has eliminated the 
MCU, which means that signals don’t need to be re-processed. That and 
new standards that change how “packets” of information are handled on 
the Web has eliminated freezing and stuttering videos associated with 
the Web.

That makes it possible for people to use the Vidyo conferencing system 
from laptops, and gets rid of dedicated communications. And it means 
that dozens of people can be on one conference, with the pictures of 
nine on a screen at any one time. The people appearing on the screen 
change easily and automatically, depending on who is talking. But it’s 
not just about who is talking.

“Everyone thinks teleconferencing is about seeing the speaker. No. It’s 
about seeing people’s reactions. When I see someone on Vidyo I can see 
what you’re thinking,” said Martin Hollander, senior vice president of 
marketing at Vidyo.

Even though Vidyo for the moment is only a blip on the screen, analyst 
Rohit Chopra of Wedbush wrote earlier this month that he believes it 
will change the industry.

“A solution which offers a cheaper conferencing experience with higher 
quality, represents a threat to traditional vendors and could alter the 
economics of the industry,” Chopra said. He predicted that it could 
emerge as a disruptive force in the next one to two years.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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