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 Channel Futures

Best Practices


HP Vs. Cisco Will Bolster TelePresence

  • Written by The VAR Guy 1
  • August 28, 2007

It’s still a niche technology, but The VAR Guy expects TelePresence to generate healthy margins for years to come. A few dozen U.S. VARs already specialize in TelePresence — the next-generation video conferencing technology — but more VARs will likely take the plunge as more vendors focus on the market. A case in point: A TelePresence showdown between Hewlett-Packard and Cisco appears to be looming.

HP has launched a $250,000 TelePresence system, which is roughly $100,000 less than previous HP offerings in this market. Cisco’s highest-end TelePresence solution runs about $300,000 per office. But let’s put the numbers in perspective: Some low-end Telepresence systems can cost about $10,000, and mid-tier systems can cost around $100,000 or so.

Prices will surely drop rapidly since TelePresence leverages plasma TVs and other technologies that benefit from economies of scale in the consumer sector. But we’ll need better standards for the TelePresence market to really take off. For instance, most high-end TelePresence systems only work within a single company or a single private network. Cisco’s Pete Alexander says next-generation systems will allow TelePresence links between companies.

Standards and healthy competition between HP and Cisco could open up plenty of opportunities for unified communications VARs.

Tags: Agents Cloud Service Providers MSPs VARs/SIs Best Practices Networking

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5 comments

  1. Avatar luther August 29, 2007 @ 2:52 pm
    Reply

    $250,000 is too much. what is the monthly support and bandwidth costs?

    Break it down.
    3 displays screens 10k
    2 servers $10k or less
    codec 20k
    interface????built for 4k
    echo cancellor, speakers, other AV equip $8k
    lighting retro $4k
    accoustics??? $7k
    Table $10k

    All these prices are high, comes out to about 70k per location….
    And HP is charging $250k.

    Please tell me my mistake in the numbers.
    in cisoc’s case, you get a call manager with the system….its useless.

  2. Avatar The VAR Guy August 29, 2007 @ 3:07 pm
    Reply

    Luther: I don’t have an itemized list of the total solution. We agree that prices have to come down. But seeing is also believing. The VAR Guy has participated in several TelePresence sessions in New York and Las Vegas. He was impressed. But more importantly, CEOs with deep corporate wallets were impressed with the demos as well.

    A TelePresence solution is more than bolting a desk to a speaker phone and a plasma TV. It’s an immersive solution where each component is designed to blend with every other component. That deserves a price premium.

    Still you may have a point: The premium is still too high for many customers. For those looking to save money and get their feet wet, there are entry-level systems like Lifesize.com

    By the way, are you a Cisco VAR/partner? Or do you represent someone else? Just trying to get a feel for your background.

    Thanks for taking the time to comment.
    – TVG

  3. Avatar Elizabeth August 30, 2007 @ 12:52 am
    Reply

    The productivity and cost benefits: both direct savings and positive side effects from less travel is remarkably high for Telepresence. Depending on what type of worker, the travel cost saving per month alone can be $500-3000.

    Telepresence is also proving to be a very powerful collaboration tool. Being able to connect teams around the world will fuel innovation faster than ever before.

    But, yes, Cisco Telepresence does come with some requirements in order to deliver a superior, simple user experience. Cisco does requires customers to deploy Cisco Unified Communications Manager with Cisco TelePresence. This, in conjunction with integration to enterprise groupware, provides one button to push simplicity for call launch, both for point-to-point and multipoint calls.

  4. Avatar LT August 30, 2007 @ 11:17 pm
    Reply

    I know the VARGuy has seen Cisco Telepresence and as an average Joe he appreciates the high quality aduio and video that he has only seen while watching his beloved Mets at the local sports bar. But as a business man the ability to conduct a video conference with one click of the button as opposed to requiring to 3-5 Aduio/Video sepcialist has to be one of his favorite features. Setting up a telepresence meeting is actually simpler than a phone call and that’s a huge competitive advantage for Cisco, wouldn’t you agree?

  5. Avatar The VAR Guy August 31, 2007 @ 12:46 am
    Reply

    Wow. The Cisco police are out in full force. But that’s ok. Good to see them patrolling our site because they weigh in with the facts rather than heavy spin. Yes, TelePresence connections are that easy to set up. It’s like turning on your TV…

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