LifeSize winning battle to grow video conference market share

LifeSize winning battle to grow video conference market share
It was November 2009, less than two years ago. Headlines proclaimed that Logitech was purchasing HD pioneer LifeSize in a quest to take on Cisco, challenging the giant in the burgeoning video conferencing market. Today, LifeSize and its parent company have made good on that challenge. The company’s sales are expected to rise two to three times faster than the video conferencing market overall, which is growing at a healthy clip of about 15 percent annually. In the first quarter of 2011, which ended June 30, LifeSize saw sales increase by 34 percent compared to the same time period last year. It was the business unit’s best quarter to date for billings. In the last several months, Logitech has doubled down on its initial LifeSize investment. The company is investing heavily in both acquisitions and new product releases, in an effort to create a broad-based video conferencing portfolio unmatched by the competition. “The momentum we’ve established with LifeSize plays a key role in our strategy to unlock the significant long-term growth potential associated with Unified Communications (UC),” Logitech stated in its first-quarter earnings release. “For us, UC is about integrating voice and video to connect people and companies across any and every platform. Our UC strategy is focused on making it accessible with simple, scalable technology and superior total cost of ownership. With video poised to become the next evolution of communication, more closely representing in-person interaction than any other communication platform, we believe we are increasingly well positioned to ride the UC growth wave.” To that end, in July, Logitech acquired Mirial, a Milan-based provider of personal and mobile video conferencing solutions. Mirial provided a key piece of the puzzle: the capabilities to extend video conferencing to mobile devices. “The advent of mobile devices has created a new anytime, anywhere office environment – burdening businesses with a fresh set of communications needs and challenges,” said Gerald P. Quindlen, Logitech president and chief executive officer. “Acquiring Mirial makes Logitech uniquely positioned to address these needs by equipping businesses with a complete HD video conferencing solution spanning the mobile device to the desktop to the conference room. This acquisition is a significant step forward in our ongoing efforts to make video communication as ubiquitous as voice-only calls are today.” At about the same time, LifeSize launched two new products:
  • LifeSize Connections, a cloud-based HD video collaboration platform that connects video systems in conference rooms to desktop users on PCs or Macs.
  • LifeSize Passport Connect, an HD video conferencing system optimized for cloud-based platforms.
Additional new products are in the soft-launch stage, and should be making a splash in the news in the coming weeks. So why has LifeSize been so successful competing with a much larger player in the marketplace?
  • LifeSize pioneered HD video conferencing, setting a new standard for corporate users – even among small and mid-sized businesses.
  • The company’s video conferencing products are simple to use, raising their adoption rates and increasing user satisfaction.
  • At a time when many companies are hard-pressed to make new technology investments, LifeSize continues to launch and offer value-priced solutions with a high level of quality, stability and features.

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