Thursday, December 4, 2008

Death of The Show Room? Using Video Conferencing




What will be the impact of Video Conferencing Technology on more traditional forms of meeting clients and demonstrating products? Will technological advances and concerns about the environment reduce business travel and the need for face-to-face contact?

The death of the showroom (as we know it) has long been predicted as a consequence of improved technology: websites are proclaimed to be “virtual showrooms” in the internet age; improved communication through increased up-take of video conferencing; simulated constructions of interiors with furniture in-situ all seem to be reasons not to invest in an expensive facility in a prime location.

Video conferencing is predicted to be one of the most significant technological developments of our generation in terms of the impact it will have upon the way we all do business. It enables two or more locations to interact via two-way video and audio transmissions simultaneously. And much more, it can be used to share documents, computer displayed information and whiteboards. Its use is being driven increasingly by concern for the environment. Motivated by climate change, green specification is the hot topic of the noughties. By reducing the need for travel to meetings video-conferencing is playing a pivotal role in reduction of carbon emissions.

It wasn’t until the nineties that the technology came into its own when Internet Protocol (IP) based video conferencing became possible and more efficient video compression technologies were developed. For many years, futurists have envisioned a future where telephone conversations will take place as actual face-to-face encounters with video as well as audio. Sometimes it is simply not possible or practical to have a face-to-face meeting with two or more people. Sometimes a telephone conversation or conference call is adequate. Other times, an email exchange is adequate.

Video conferencing adds another possible alternative, and can be considered when:

a live conversation is needed

visual information is an important component of the conversation

the parties of the conversation can't physically come to the same location

expense, time of travel or a company’s carbon footprint is a consideration

So if the primary function of a showroom is to communicate with partners, buyers and specifiers why is face-to-face contact still so important in the business world today and with these technology-based methods of communication on the increase will we see the significance of showrooms start to dwindle? Probably not, limitations of videoconferencing such as our preference for eye contact during conversations and our still embedded appearance consciousness have been highlighted as reasons why face-to-face meetings will continue to be important.

More will be demanded of the Showroom of the Future, as methods of marketing and communication become increasingly complex and with so many more considerations and stakeholders’ views to take into account. Technology, education and people will play vital roles. All of these elements co-exist in the showrooms of the digital age: with spaces to meet, learn, touch and feel alongside state of the art technology which enables communication not bound by geographical location.

About the Author
Colebrook Bosson Saunders are worldwide designers & manufacturers of ergonomic furniture including monitor/screen arms, AV Supports, CPU cradles and cable management. Click here to read more on conversation.



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Costco Saves $5 Million with Video Conferencing


Brandon Hall Research blogged that:

Costco’s Savings From video conferencing will exceed $750K in 2008.

The December 8, 2008 issue of Fortune reports that Costco replaced in-person meetings with video conferencing in its northwest region.

Fifty-nine managers who typically traveled to headquarters monthly, now met virtually every other month via video conferencing.

The savings in 2008: $750,000.

Projected savings when it rolls out nationwide: $3 million to $5 million.

As the technology gets better, the bandwidth size used by a company eg T1 T3 OC3 MPLS, the cost for this bandwidth continues to decrease in price more and more companies are going to opt for video conferencing.



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Tightening Telecom Economy! Business BroadBand On Rise

Doug Allen or Vertical Systems Group writes about the Broadband industry....

If you’re looking for a narrow snapshot of the overall health of business telecom, you might want to check out a recent research report from Vertical Systems Group. In a report entitled “U.S. Access Landlines Connect 5.3 Million Business Sites,” lead author and VSG Principal Rick Malone finds that the number of business customers with landline connections at their U.S. sites has increased by nearly 700,000 lines over the past five years to the aforementioned 5.3 links. That’s a net increase of about 7 percent over that period.

As things stand, this shift towards more Ethernet-based access alternatives over traditional T1s means incumbent telcos have to share more of the business broadband access pie than they are accustomed to. Those incumbents account for about 46 percent of the U.S. Ethernet access market, a far smaller showing than it used to command when T1s were the dominant access medium.

The balance is made up of rival service providers such as Time Warner Telecom and Cogent (remember when this former DLEC/CLEC used to specialize solely in DSL and T1 access?), at about 34 percent, and 20 percent sold by the hard-charging, surging cable operators who continue to raise access line rates much more quickly than corresponding rate increases for telco DSL.

However, as reported elsewhere, the trend towards growth in broadband access lines has started to reverse itself over the last four to five months. Malone has been quoted predicting a “moderate downturn,” though “not a huge disastrous” one in business broadband access.

The decline in business access lines is largely due to office/site closings, especially among financial services companies, according to Malone, who feels businesses are likely only to add access lines where deployments are already in progress or new access lines will bring near-term savings over the existing plant. Examples include legacy network (Frame Relay and ATM) convergence and migration to an IP VPN or Ethernet VPLS transport.

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