Videoconferencing for the Enterprise

By Renee Oricchio

Videoconferencing dates back almost to the invention of television. However, one of the first examples that really put it on the map was in the 1960's when NASA used it to communicate with astronauts en route to the moon. While a transfixed public watched live coverage and dreamed of new frontiers in space, corporate executives got a glimpse of a new way to conduct business and harbored their own dreams as well.

More than 40 years later, the question remains if that dream has yet been fully realized. It's debatable whether videoconferencing has finally matured into a stable technology. It is also still debatable how or when it should be used, which department should control it and whether it will ever hit critical mass in the enterprise.

"Videoconferencing will never achieve 100% penetration like email, or even 50% like instant messaging," says Zeus Kerravala, a senior analyst from The Yankee Group.

That said, videoconferencing has gotten a big boost over the past few years, thanks in large part to Voice over IP (VoIP). According to Computer Economics, a research group based in Irvine, Calif., as of this year only 14% of enterprises are not pursuing VoIP, 43% have already implemented it and 28% say they're looking into it.

"Web-based videoconferencing is still relatively new. But as more organizations are adopting VoIP, they are realizing the capabilities of videoconferencing online," says Frank Scavo, president of Computer Economics.

Since VoIP impacts the company network, the IT department is increasingly bound to have a stake in managing the organization's videoconferencing strategy. A CIO would therefore be wise to have a clear picture of how specific business units will be using videoconferencing, what solutions will work best for them, and how it is to be managed.

When videoconferencing is necessary
Whether it's a sales call, collaboration on a project, training, or a board meeting, the motivation for long distance face time usually comes down to one justification.

"The business case behind videoconferencing is largely to eliminate business travel," says Scavo.

It's also typically not about participants actually seeing each other, but rather more about collaborating over information.

"I can't remember the last time that I was in a videoconference and saw the people on the other end," Scavo says. "Most Web conferences are about viewing a whiteboard that can be marked up or a slide show or a PowerPoint."

Different uses, different options
While IT has traditionally managed the gear, the connection and the setup, it is the business units actually using the technology that have driven its adoption.

Over time in many places, control over videoconferencing has transferred to departments like Human Resources, which traditionally use it the most for things like education and training. Kerravala cautions against this trend, however, pointing out, "If I were a CIO, I would want to own it at least in partnership with other business units. Because if it's solely managed by the end users, how can you take lessons learned from that business unit and show other business units?"

In the meantime, Kerravala sees three distinct tiers of videoconferencing solutions, based less on the technology and more on the location of the meeting itself.

• At the desktop   Used primarily for one-on-one meetings, this is the cheapest and most spontaneous use of video-based conferencing. All it requires is a webcam and an Internet connection, although many companies choose to upgrade to a better camera. Setup is minimal, fast and can be handled by the user. "In the old days it took an average of 30 minutes to set up a videoconference. Now that it's integrated into the desktop with VoIP, it's more like three to four minutes," says Kerravala.
• In the conference room   Room-based videoconferences are optimal for project teams or departments that need to connect over distances on a regular basis, like monthly meetings. This requires more sophisticated software, A/V equipment, and, perhaps, a technician on both ends. Kerravala estimates the initial investment at about $60,000.
• In the boardroom The most elite room in the building is increasingly home to the most elite videoconferencing solution on the market today: telepresence. It is a very high-end solution that allows participants to feel as if they are in the same room with each other. There are no signal delays and often the setups on both ends are identical with cameras positioned to make it appear like remote guests are life size and right across the table from each other. "We see telepresence being used for that boardroom-to-boardroom experience, which needs to be as lifelike as possible. But it's very expensive, about $160,000," says Kerravala.

Overcoming an unreliable reputation
While the technology has improved dramatically over the past few years, the reputation of videoconferencing has not. Too many years of technical delays, lost connections interrupting a meeting and distracting out-of-sync, fuzzy signals have taken a toll that has not yet been overcome in the business community.

One of the biggest ways CIOs fall short in selling the adoption of videoconferencing is overlooking those past perceptions. "Too many people have had a bad experience, but don't realize those days are pretty much gone," says Kerravala.

Ultimately, it may not be improvements in the equipment that take videoconferencing to the next level, but rather strategy.

"Videoconferencing needs to be part of a larger collaboration suite. It's not a standalone tool," adds Kerravala.

Many enterprises are bundling videoconferencing into one unified messaging strategy, which involves a centralized solution that allows users to access all their communication tools (email, phone calls, instant messaging and Web conferencing) into one integrated platform.

Once again, it is VoIP making it all possible.

Renee Oricchio is a freelance writer in Norwalk, Conn. For the past 20 years, she has been writing and producing news segments about technology and business for CNN, MSNBC, Ziff-Davis, CNET and a variety of Silicon Valley-based local news outlets.