Monday, 26 April 2010
Polycom looks to growth in teleconferencing market
The world’s top teleconference solutions provider Polycom pins high hopes on the Korean market, which has robust growth potential as businesses look overseas and the government encourages telecommuting.
Country manager of Polycom’s Korea unit, Chun Yoo-jin, said the nation’s technological infrastructure and new work culture also offer favorable conditions for the business.
“The Korean market is still at a growing stage in terms of its share in the global video conferencing market. The Korean market holds a meager 2 percent share,” Chun said in an interview with The Korea Herald.
Polycom tops the world’s video conferencing market in terms of share, followed by Tandberg. Polycom Korea is one of its fastest growing operations with its revenue jumping a whopping 1,300 percent between 2003 and 2009, according to Chun.
Korea’s telecommunications and information technology infrastructure offer opportunities.
In Korea, high-definition video conferencing accounts for 90 percent of the market, whereas the corresponding figure in Europe has not exceeded 50 percent, he said.
Korean corporate bosses also see video conferencing as an attractive option as they favor face-to-face communications, he said.
“There is little resistance for the adoption of video conferencing among Korean management. The management is vigorously introducing video conferencing and embracing a videoconferencing culture,” he said.
The Lee Myung-bak administration has also been pushing for “energy-saving work” such as telework, as part of its green initiative.
“The government has put emphasis on telework to create a flexible and environmentally-friendly work environment. We expect this to give fresh growth momentum to the local video conferencing market,” he said.
Polycom’s Korean customers include Hyundai Construction & Engineering, CJ Group and POSCO. Videoconferencing helps companies communicate more efficiently with customers and between operations at home and abroad.
Not only large businesses, but small- and medium-sized ones, the government, educational and medical fields are introducing videoconferencing.
The California, U.S.-based Polycom competes with Norwegian Tandberg, which was acquired by Cisco Systems Inc., the world’s top network equipment maker. Polycom and Tandberg control three-fourths of the video conferencing products market, a growing industry as businesses try to cut travel costs.
In the face of competition from Cisco-Tandberg, Polycom is strengthening its cooperation with Microsoft, IBM, BT, Juniper Networks, Siemens Enterprise and other leaders in unified communications and networking solutions, he said.
This story can be viewed in full Here