I had a chance to sit down and chat with Mark Noble, Director of Product Marketing at Vidyo, about the impact of VidyoPanorama and the HP-Polycom announcement. There has been thorough coverage from last week’s announcement of the VidyoPanorama product from CNBC and many tech blogs such as this one. The real breakthrough for Vidyo is not only about the product itself, but the fact that it rounds out the product line so well. The VidyoPanorama joins the VidyoRoom, VidyoDesktop and the soon to be released VidyoMobile to span the entire range of video conferencing experiences. VidyoMobile is nearing general release on the Apple App Store and an Android release will follow soon after. This means that Vidyo will be particularly difficult to compete with given their intrinsic price advantage. No longer will competitors be able to sell against Vidyo on scalability.
I asked Mark about the HP-Polycom alliance impact on Vidyo. He mentioned that HP was only one partner of many and the VidyoPanorama announcement takes the sting out of the eventual severing of ties with HP. I believe the sale of HP’s video assets to Polycom will be one of many consolidations in the market. Larger players will need to cut costs to be more price competitive, while smaller players will become either niche video marketers or fade into the sunset since their price advantage from being small nimble companies simply no longer exists. It will be interesting to see the changes in the market over the next year as video conference companies adjust to the changing competitive landscape. It is entirely possible that lower prices will bring about a surge in revenues that will benefit everyone in the enterprise video space in the short term.