Competition in the hottest video conference market

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Video conference market competition intensifies Microsoft's acquisition of Skype, which makes Cisco uneasy

introduction: foreign media published an article today that Cisco is trying to convince a European Court to put forward stricter additional conditions for Microsoft's acquisition of Skype. This shows that the competition of technology companies in the video conference market is becoming increasingly fierce, and video conference is expected to become the next hot technology in the technology industry

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popularization of video services

Cisco is trying to maintain its leading edge in the video conference market, and competitors such as Polycom and Citrix have also developed user-friendly solutions in this field. However, Microsoft will be a competitor to all these companies. By integrating Skype services into existing products, Microsoft software and windows devices will be able to better attract users

at present, the video conference market is not large, but this technology is becoming more and more popular and gradually popularized among users. Therefore, the competition in the video conference market is very fierce at the legal, M & A and regulatory levels. Krish Ramakrishnan, CEO of blue jeans network, a video conferencing service provider, said: "video is a new world. You will see a lot of acquisitions and lawsuits. Many companies will initiate patent lawsuits."

infonetics, a market research company, predicts that video will become the most important trend in the telecommunications industry. By 2015, the global enterprise video conference market will reach US $5billion, higher than US $2.2 billion in 2010

video conferencing is being quickly accepted by users. New services and software have driven the development of high-speed Internet, while standard desktop computers, smart and tablet computers can provide communication quality similar to expensive systems in previous corporate meeting rooms. On the other hand, services such as apple FaceTime, Skype and google+ have made video services a part of people's daily life

interconnection problem

a major factor affecting the development of video services is that many video technologies are private, which leads to incompatibility between different services. For example, Skype users cannot have video communication with Polycom users. The development of SMS has experienced a similar stage. In the United States, SMS service was not gradually popularized until about 2005, and became a reliable revenue source for mobile operators. At that time, several operators in the United States reached an agreement to allow users to send text messages across operators

on the surface, the interconnection problem is Cisco's biggest dissatisfaction with Microsoft's acquisition of Skype. The transaction was completed in October last year. Cisco said the deal would affect the interoperability between Skype and other services. If Microsoft only integrates Skype into the company's lync communication platform, it will completely lock in the 700million registered users of Skype from the end of last year to the beginning of this year

John Chambers, CEO of Cisco, said that when Cisco acquired Tandberg, a Norwegian company, in 2009, the EU had put forward additional conditions for the transaction, requiring Cisco to adhere to open standards. Cisco believes that Microsoft should comply with the same requirements

Microsoft's prospects are doubtful

many analysts believe that if Microsoft successfully integrates Skype into its existing products, Cisco's leading position in the field of video services will be seriously challenged. Many companies, including computer consulting firm Capgemini, have used Skype as an unofficial video tool, and Skype has benefited tens of millions of ordinary users around the world

however, some industry observers believe that considering Microsoft's poor record in innovation, Cisco need not worry about this problem. Ian Jacobs, an analyst at ovum, a market research company, said: "I am surprised that they are still looking for ways at the regulatory level and put forward reasons for interoperability. Cisco should let Microsoft do it and devote itself to the innovation of its products."

Dick brass, former president of Microsoft, once said that Microsoft had developed a tablet computer as early as 2001, but it failed due to internal opposition. Joseph Coyle, technical director of Capgemini's North American business, said: "the acquisition of Skype is one of Microsoft's smartest moves for a long time. Unless they make mistakes, Microsoft will pose a huge challenge to Cisco."

Peter Klein, CFO of Microsoft, said at the Goldman Sachs Technology Industry Conference earlier this month that the soft lycn communication platform, which wants to remove the iron filings left during the test, has attracted enterprise and individual users, but it cannot be used outside the company's firewall or with incompatible systems. Klein also said that Microsoft is considering integrating Skype into its various products, including lync communication platform and Xbox 360 game console

related lawsuits increase

whether Microsoft can succeed remains to be seen. However, if the opinions of industry experts are accurate, the video service companies will take more measures to prevent the development of competitors. "Everyone is trying to build an island of I technology," said lamarcrishnan. "Cisco's approach is more about slowing down the inevitable trend." He believes that enterprise video conferencing and consumer video services will eventually converge, and it is only a matter of time before this goal can be achieved

Microsoft recently sued Motorola mobile to the European Commission, claiming that Motorola mobile tried to charge Microsoft too much patent fees, which affected the sales of Microsoft products with video playback, wireless connection and other functions

Jacobs also believes that there will be more such lawsuits in the future. "In the coming year, if slow-moving service providers and technology companies cannot keep up with the pace of development, they may try to stop the industry from moving forward and keep it as it is," he said However, such legal disputes will leave room for the development of small enterprises in the video conference market

Jacobs said that some companies will target the segment of the video industry, which will promote some acquisitions. As a vested interest in the video industry, Cisco has been cracking down on competitors in this field. By acquiring Tandberg, Cisco has filled the gap between high-end real conferencing products and WebEx desktop video services, thus becoming the absolute leader in the video conferencing market

promote equipment sales

Cisco's router and switch sales have also been improved because video services require higher bandwidth and more advanced networking equipment. Routers and switches are the most critical services of Cisco. Cisco is exploring new features of the network, and video is one of the important areas. Chambers believes that video will not only become the most important way for people to communicate, but also the most important form of enterprise it

Cisco hopes to provide users with one-stop services and vigorously publicize the advantages brought by the single supplier strategy. At present, it is not clear how Cisco will respond to the development of new technologies in the video conference market and the rise of new competitors. Analysts pointed out that Cisco is still very strong in the enterprise market, but the situation has begun to change

donald Tom, assistant vice president of IT services at TCS education systems, said: "we have been WebEx users for a long time." However, he pointed out that the three universities and graduate schools affiliated to the company have recently turned to Citrix's gotomeeting HD to ensure that there is a large polishing rate to remove and polish the damaged layer faces. "We found the service easy to use and very reliable. It will change the way we teach," he said

Coyle also said that Capgemini used Cisco equipment extensively, but the company has changed its practice. He believes that Cisco's biggest problem lies in product prices

strengthen cooperation and win-win results

bernardo de albergaria, director of Citrix collaboration business, said that due to the high cost of infrastructure construction and maintenance, users are looking for simple solutions. "As long as you have a laptop and a camera, you can use the service. Since you already have such an easy-to-use product, why do you need to buy a complex solution?" he said

polycom and other companies choose to make their products compatible with competitors. Jim Kruger, senior vice president of the company, said that Cisco tried to do everything and hoped that the enterprise would replace all equipment with Cisco products

like Cisco, Polycom is currently under pressure from Citrix, vidyo and other companies. The video conference system of the latter is based on virtual machine, so it gets rid of the dependence on special equipment and services. In addition, some new employees hope to use their mobile devices at work and work remotely. They also need to use functions such as video and data access

Jacobs of ovum said: "it is worth paying attention to what will happen when multiple systems coexist and which manufacturers will formulate unified standards." Cisco currently hopes to develop this standard. "They have invested a lot of energy in the video field. There is no doubt that they do not want to fail in this field," said Joanna MAKRIS, an analyst at Mizuho Securities Sina Technology ()

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