/ciol/media/agency_attachments/c0E28gS06GM3VmrXNw5G.png)
Follow UsFRAMINGHAM, USA: The recently published International Data Corporation (IDC) report again showed declining results for the first quarter of 2014 (1Q14), with overall videoconferencing equipment revenue decreasing 20 percent QoQ and 15.9 percent YoY.
Total worldwide enterprise video equipment market revenue in 1Q14 reached $473.5 million. The total number of video units sold in 1Q14 was also down 13.3 percent QoQ and 6.2 percent YoY.
From a market segment perspective, multi-codec immersive telepresence equipment revenue was down 25.2 percent QoQ and 33.5 percent YoY, with immersive telepresence units down 34.7 percent quarter over quarter and 25.9 percent YoY.
Room-based video system revenue was down 13.9 percent QoQ and 10.1 percent YoY. Room-based units sold were down 13.7 percent QoQ, but only declined 1 percent YoY. Video infrastructure equipment - including MCUs and other video-related infrastructure products - declined 29.2 percent QoQ and 13 percent YoY.
Regionally, only Latin America (1.8 percent) showed positive QoQ revenue growth in 1Q14. All the other major regions showed QoQ revenue declines. And all the major regions showed YoY revenue declines in 1Q14 - Europe Middle East and Africa (19.8 percent), Asia/Pacific (16.4 percent), North America (13.4 percent), and Latin America (5.1 percent).
"We continue to see the impact of delayed customer buying decisions, lower-cost systems, more software-centric products, and competitive cloud-based video service offerings on the worldwide enterprise video equipment market," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC.
"The weak vendor results are also indicative of the ongoing transition from a primarily hardware-based reporting model to one impacted by the interest in and growth of video subscription services. On the bright side, most or all of these vendors are now offering cloud-based video alternatives to customers too - in addition to their own lower cost, premises-based systems."
1Q14 Vendor Highlights
Cisco's 1Q14 results showed decreases of 27.8 percent QoQ and -22.4 percent YoY in video equipment revenue. But Cisco remains the leader in enterprise videoconferencing equipment with a 40.1 percent share of the worldwide market.
Polycom's revenue decreased 7.3 percent QoQ and -8.4 percent YoY in 1Q14. Polycom ranks second in enterprise videoconferencing equipment with a 28.9 percent share of the worldwide market.
Huawei's QoQ revenue decreased 42 percent QoQ and 1.9 percent YoY in 1Q14. Huawei still ranks third with a 7.8 percent share of the worldwide enterprise videoconferencing market.
"As dismal as these quarterly numbers are, video as a key component of collaboration continues to place high on the list of priorities for many organizations," said Petr Jirovsky, research manager, Worldwide Networking Trackers.
"IDC believes that among the challenges customers are currently trying to work through are a market transition and determining exactly what, when, and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape."