Video Conferencing Prices Going Down

By Jerry Olsen
Updated: August 30, 2011

With the cuurent downturn in the world’s economy, small to medium size businesses (SMBs) are cutting their travel budgets significantly. Some businesses have eliminated their travel budgets altogether simply because they can’t afford it. And with the elimination of travel budgets, the use of videoconferencing for business meetings has become a more viable option.

Video conferencing involves a meeting between two or more participants from different sites, using computer networks in order to transmit audio and video data.

In its simplest form, a point-to-point (or two-person) videoconferencing system works much like a video telephone, where each participant has a video camera, microphone, and speakers on his or her computer. As the two participants speak to one another, their voices and images are transmitted over the Internet and delivered to the other’s speakers and computer monitors.

For several years, videoconferencing has drawn a lot of attention for those looking to save money. As early as 1990, for example, Bristol-Myers Squibb in Princeton, New Jersey started using videoconferencing meetings. Today, the company believes that videoconferencing delivers a great deal of value to the organization.

Mark Lamon, director of informatics at Bristol-Myers said, “The market morphed from being a very specialized high-priced end unit to be more of an appliance situation. With most things in technology it is becoming more, better, faster, and cheaper.”

Other big companies like GE Power Systems started using videoconferencing systems in the 1990s. Mike McGary, global communications leader for GE said, “Videoconferencing started out with huge, unwieldy, complicated systems. People didn’t understand them; it was a big mystery. Now the systems are becoming much easier to use and manage, and have lost that mystery about them.”

Featured Research
  • Video Conferencing

    For many, the mere mention of video conferencing brings about bad memories of conference rooms full of people staring at a screen with dodgy sound, fuzzy images, and broken connections. What if we were to tell you that over the past decade, video conferencing solutions have evolved to where they are affordable to businesses of every size and have evolved beyond just the standard boardroom. Today, 74% of B2C marketers and 94% of B2B marketers use video in their marketing efforts. more

  • Video Conferencing Showdown

    With companies becoming more global and workforces becoming more remote, it should come as no surprise that the enterprise video market has exploded to its expected value of $32.57 billion by 2019. As you look for your video conferencing service, one of the main questions you should be asking is "should I invest in a cloud or on-site solution?". more

  • The Key Benefits of Conferencing in the Cloud

    Strong communication is essential to success for a business of any size. To further strengthen this point, studies have shown that 93% of all communication is non-verbal. While you might think to achieve this face-to-face interaction is costly and time-consuming, businesses that utilize video conferencing save as much as 30% on travel expenditures. more

  • Empty the Airport Lounge

    When it comes to budgeting, travel time and expenses typically make up one of the larger allocations for growing companies. But did you know that there was an alternative that could save you time, money, and spare your employees jet-lag? Businesses that utilize video conferencing see a 30% reduction in travel costs. And while you might think your employees will get upset about the loss of flight status, only 15% are worried about the reduced travel and their frequent flier status. more

  • 10 Reasons to Invest in Video Conferencing

    Have you been on the fence about implementing a video conferencing solution for your business? Not quite sure if your employees will utilize it or are concerned about the costs being too high? The modern workforce is adapting and evolving with more and more employees working remotely, it is essential that they have the tools to be able to communicate effectively. more