The Wainhouse Research Blog
News & Views
on Unified Communications & Collaboration
We just finished our Q3-2016 tally of the video conferencing products market – both endpoints and infrastructure. We are happy to report that Q3 continued a modest turnaround, with sequential quarterly growth numbers generally positive. The big turnaround is happening in video infrastructure products, a trend that is counter to my past predictions. Indeed, the video infrastructure market ended its string of negative growth as enterprises seemed to come to grips with the VCaaS phenomenon and its hybrid potential, as well as the need to replace aging products. Cisco and Polycom reported sequential infrastructure revenue growth rates of 61% and 36% respectively; the results for the big China-based vendors were less glowing.
The all-important single-codec room systems results, representing about 80% of the total market, were up sequentially 2% in units, and even more in revenues, while multi-codec units were down 11% in units, but flat in revenues. ASPs have been bouncing around, driven by product shifts and by regional differences.
Overall growth figures, both sequential and annual, however, varied widely by vendor, with both Cisco and Polycom reporting sequential revenue growth and the two largest China-based vendors reporting sequential declines. Revenues in the table below represent $ millions. If not a return to the glory days of video conferencing, at least things are starting to move in the right direction. The real question is what’s happening outside the traditional room market and the traditional room systems as customers deploy personal conferencing solutions, room systems based on PCs and add-on devices, and flock to VCaaS services. Stay tuned for more.