The video conferencing market is defying the global economic slowdown and continuing to succeed, according to a recent report by Frost and Sullivan, a market research firm.
The report found that, as organizations are looking to cut travel costs during the economic downturn, the video conferencing industry is on a "high-growth trajectory."
But the video conferencing industry is succeeding for more reasons than just convenience and cost-cutting capabilities it provides to its customers. Frost and Sullivan found that companies are also turning to video conferencing to enable for team collaboration. The technology allows companies to have rich engagements with partners, suppliers and customers.
Although the study has found that the future is bright for the video conferencing market, there will be some challenges. Buyer power in the market may become diluted due to increased consolidation and lack of choice.
However, as the quality and accessibility of products increase in the market, Frost and Sullivan predicts bright things for the industry.
"Conferencing technologies are quickly evolving from siloed to converged solutions where data, voice and video, presence, secure instant messaging, unified messaging, as well as voice over internet protocol are merging," the report states.
The Frost and Sullivan report from last year also predicted substantial growth, stating that the market earnings increased 11 percent from 2007 to 2008.