Once again, the IT pundits were wrong. Lots of “experts” said the video conferencing and TelePresence industries would enjoy a boom during the economic bust. The reasoning: Executives are cutting business travel to save money, and opting instead for video conferencing and TelePresence. But here’s the problem: Not all video conferencing companies are built equally. Consider the situation of Polycom (a big, established player) vs. LifeSize Communications (a nimble start-up).

On December 12, the Barron’s Tech Trader Daily blog noted:

The key takeaway: Hundreds of articles written in September and October alleged that the video conferencing and TelePresence industries were immune to the recession. In stark contrast, The VAR Guy has warned readers  — over and over again — that NO industry is immune to a recession. He told readers that TelePresence (i.e., next generation video conferencing) still faced challenges.

Competition Thrives

Sure, certain companies within hot industries will continue to do well. But Polycom competes against an entrenched VoIP giant (Cisco Systems, which has TelePresence momentum) and small, nimble firms (LifeSize Communications… which The VAR Guy spotted last February). So even in strong IT markets, fierce competition looms around every corner.

If videoconferencing and TelePresence are going to save everyone, how come Wall Street appears bearish on Polycom?

Fact is, Polycom has some compelling video conferencing and TelePresence solutions. But the rising video conferencing tide won’t lift all boats. Polycom and many other video conferencing companies will still need to build channel programs and drive demand for their solutions…

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