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Cisco to step up telepresence push
Advanced video conferencing systems shows billion dollar potential, says
Chambers
Tom Sanders at Networkers at Cisco Live in Anaheim, CA, vnunet.com25 Jul 2007
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Cisco is
preparing to promote
telepresence
from an 'emerging' to an 'advanced' technology later this year.
Chief executive John Chambers said at a meeting with reporters at the
Networkers
at Cisco conference in Anaheim, CA that he believes that telepresence is
already an advanced technology.
"It is more an internal debate about when that [transition to an advanced
technology] occurs," he said.
Cisco's
TelePresence
is a $299,000 advanced video conferencing system that uses three high definition
televisions and requires a 10Mbps connection. Cisco started shipping the systems
in December.
As more companies start rolling out the technology, the value of the overall
network increases exponentially, argued Chambers, because the expansion allows
clients to contact a wider network of other users.
The phenomenon of the exponential increase value of an expanding network is
known as
Metcalfe's
law.
Cisco uses the 'advanced' moniker to identify technologies with the potential
to turn into billion dollar markets. Products in this category will see a focus
of investment in research, acquisitions and partnerships.
Cisco has not disclosed the number of TelePresence units that it has sold.
The company earlier this year signed
Regus, a
provider of temporary office space, for 50 units and is using 104 itself.
Analysts have cited the $299,000 price tag as an obstacle to wide adoption.
But Chambers claimed that savings in travel expenses mean that the systems offer
a return on investment in less than a year. "Price is not an issue. This is
about process change," he said.
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