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 Showdown

    If you feel overwhelmed by the video conferencing options available for your business, you aren’t alone. There are dozens and dozens of different solutions, ranging from no-cost options to software that will cost thousands. The question is which one is right for your business and how can you get the most value. more

  • Best Video Conferencing Features for Business

    Most businesses are currently underutilizing their video conferencing software because they aren’t aware of the different ways it can be used. Understanding the different features of video conferencing software can be critical to getting the most out of your investment. These features often vary from one option to the next as well, so it's important to do your homework before choosing a specific service. more

  • 9 Ways Video Conferencing Supports Business Growth

    90% of information is transmitted in the human brain is visual, and people process visuals 60,000 times faster than text. Video and video conferencing is fastly becoming the new must-have business tool for generating profits and successfully growing your business. In fact, over the past four years, the percentage of companies utilizing video conferencing has jumped from 41% to 58%. more

  • 9 Tips for a Compelling Video Presentation

    Face-to-face communication is the most effective way to collaborate and bring ideas to life in your business. Because of this, many businesses invest heavily in travel budgets so they can meet in person to create and nurture business opportunities. However, video technology has become more accessible, affordable, and user-friendly over the years. In fact, the enterprise video business market will reach $36.5 billion by 2018. more

  • 9 Ways Video Conferencing Gives You a Competitive Advantage

    Embracing video conferencing in your business can bring your company many lucrative and positive benefits that will help you excel through better communication and more efficient collaboration. In fact, 89% of professionals agree that video conferencing reduces the time needed to complete projects or tasks. more