Enterprise Video, Q1 2011

8/4/2019 Enterprise Video, Q1 2011

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Making Leaders Successul Every Day

Jr 21, 2011

TechRdr™ Fr Ctet &Crt Prfesss:Eterprse Vde, Q1 2011 Phpp Krcher

fr Ctet & Crt Prfesss

http://www.forrester.com/



© 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective owners. Reproduction or sharing o thiscontent in any orm without prior written permission is strictly prohibited. To purchase reprints o this document, please email [email protected]. For additional reproduction and usage inormation, see Forrester’s Citation Policy located at www.orrester.com. Inormation is

based on best available resources. Opinions refect judgment at the time and are subject to change.

Fr Ctet & Crt Prfesss

ExECuTiVE SummaRy

Enterprises increasingly use video in a wide range o use cases, changing how they collaborate, issue

communications, train their employees, and even talk to customers. But the transormational nature o

video and a myriad o technology categories can cause conusion or content and collaboration (C&C)

pros when they create video strategies. o simpliy planning, Forrester analyzed video technologies by

evaluating their maturity and business value. Webcasting and streaming video will have the greatesteect on enterprises early on, due to cost and ease o deployment. But two-way video will eventually

mature rom a technology and deployment standpoint to become a regular orm o communication.

TablE oF ConT EnTSTe State Of Plans For Enterprise Video

W Te Future Of Enterprise Video Matters

Overview: Forrester’s TecRadar For

Enterprise Video

Wh D These Techges apper i The

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© 2011, Frrester Reserch, ic. Reprdct PrhtedJr 21, 2011

TechRdr™ Fr Ctet & Crt Prfesss: Eterprse Vde, Q1 2011


2

ThE STATE OF PLANS FOR ENTERPRISE VIDEO

Firms increasingly use video or corporate communications, meetings and collaboration, and

training. Forrester has seen a rise in the number o client inquiries on video in the past two years.

In addition, clients now ask specic questions on vendors, deployment, and best practices — going

beyond general questions about market trends and adoption. Data rom our Enterprise And SMB

Networks And elecommunications Survey, North America And Europe, Q1 2010 shows that

many companies have already implemented, made plans or, or expressed interest in a number o

enterprise video technologies (see Figure 1).

What is behind this trend? echnology advances have increased the reliability, usability, and

overall quality o video experience, enhancing its appeal as a high-impact medium or conveying

inormation and enabling productivity and collaboration.

Fiure 1 Eterprse Vde adpt

Source: Forrester Research, Inc.58028

Desktop videoconferencing

Traditional room-based videoconferencing

Enterprise IP video for internal use(e.g., training, demos)

HD room-based videoconferencing

Telepresence

28% 29% 27%

51% 9% 13%

25% 19% 27%

27% 16% 27%

16% 13% 32%

Base: 1,992 IT decision-makers responsible for network and telecom technology and/or services

“What are your rm’s plans to adopt the following video technologies?”

Source: Enterprise And SMB Networks And Telecommunications Survey, North America And Europe, Q1 2010

Implemented Planning to implement Interested, but no plans



© 2011, Frrester Reserch, ic. Reprdct Prhted Jr 21, 2011



3

Why ThE FUTURE OF ENTERPRISE VIDEO MATTERS

C&C proessionals must understand the potential that enterprise video has to transorm their

organizations, because it will:

· Increase collaboration. Although video hasn’t yet taken hold as the way we communicate

or work, it will play an important role in connecting the increasingly distributed workorce.

Forty-six percent o inormation workers are expected to telecommute by 2016.1 oday many

companies use or experiment with video to enrich communications and improve internal

cohesion, incorporating it into company meetings, top-down CxO communications, and

employee news portals.

· Enhance business processes. Video has already had a major impact in verticals like higher

education with lecture capture and distance learning, and in healthcare through telemedicine.2

But others will undergo transormation as well. Manuacturing and maintenance, repair, andoperations (MRO) will use video to increase productivity and speed problem resolution. And

some industries will receive video streams rather than just supply them; news organizations and

insurance providers are already receiving video captured on smartphones.

· Improve customer service. Consumers use video calling on 36% o Skype to Skype calls today,

suggesting that many are ready or real-time video conversations rom their desktops.3 Adoption

o two-way, real-time B2C video is arther out than internal and B2B video, but it will become

engrained in business processes or service organizations such as call centers, which are starting

to invest in video capabilities.4 For example, banks already use branch oce videoconerencing

to connect customers with remote experts.5

· Impact I inrastructure. Firms need to think about video bandwidth requirements. wo-

way video is the most taxing, whereas ad hoc access to recorded video is less demanding than

a scheduled broadcast.6 Network services — some involving inrastructure investments — that

assure quality o service, reliability, and bandwidth preservation will be important as companies

broaden their use o video.

· Aect content management, compliance, and security.Many organizations have no

technology or strategy in place to manage rich media assets as part o their enterprise content.7

But companies will need to manage, search, secure, track, and report on video. As companies

increasingly decentralize video creation and distribution, they will need to revisit policies andcontrols around legal and compliance, IP, and brand control issues.






4

OVERVIEW: FORRESTER’S TEChRADAR FOR ENTERPRISE VIDEO

o help C&C proessionals plan investments in enterprise video, Forrester investigated the current

state o nine o its most important technologies. We examined past research, interviewed experts

in the eld, and spoke with vendors in each o the product areas. We also reviewed hundreds o

inquiries rom current or potential customers and users o the technologies. We used this data to

assess our categories: 1) the current state o the technology; 2) the technology’s potential impact on

customers’ businesses; 3) the time experts think the technology will need to reach the next stage o

maturity; and 4) the technology’s overall trajectory — rom minimal success to signicant success.8

W Do Tese Nine Tecnoloies Appear In Te TecRadar?

Enterprise video has come a long way in part due to solutions born out o consumer-ocused

verticals such as media and entertainment. Interest and adoption have also accelerated in recent

years due to the availability and ease o use o ree solutions or video chat and video sharing on the

Web. Tis echRadar, however, examines products that (see Figure 2):

· Focus on business video — not entertainment. Enterprise video is relevant across industries,

with applications in collaboration, training, corporate communications, and marketing. Some

technologies in this report — and others outside the scope o this report — can also support

the needs o high-end production and o publishers looking to monetize premium content.

However, this echRadar ocuses only on video as it is used in the enterprise.

· Reect enterprise interest in tools to capture, manage, and deliver video.Enterprises

are interested in technology investments that have the potential to strongly impact multiple

groups across their organizations. Tis includes videoconerencing or two-way real-time

communications, and sofware and delivery technologies to help rms capture, manage, and

distribute one-way and two-way video live or on-demand. Video creation technologies like

camcorders and editing sofware — unlikely to be used in enterprise-wide scenarios — are not

covered in this report.

· Are enterprise-grade. Although there are companies using consumer applications like

Livestream to broadcast live events, ooVoo or desktop videoconerencing, and Youube to

post marketing video online, this echRadar ocuses only on solutions designed primarily or

business use. Te exception to this is mobile videoconerencing, which only has consumer

applications at this point.






5

Fiure 2 TechRdr™: Eterprse Vde, Q1 2011 Techges Evted



Live, interactive, two-way video and audio telecommunication from a laptop ordesktop

Firms use desktop videoconferencing for one-on-one work sessions, distributed teamcollaboration, ad hoc communications, as well as customer and partner meetings.

Avistar Communications, Hewlett-Packard, LifeSize Communications (Logitech),Polycom, Radvision, Tandberg (Cisco Systems), Vidyo

Quality webcams (if not built into laptops) range from $40 to $100. Software andtraining costs vary widely.

Definition

Usage scenario

Vendors

Estimated cost toimplement

Digital asset management (DAM)

Software used to manage the creation, production, management, distribution, andretention of digital assets such as audio, video, graphical images, collateral, and otherrich media content

Firms turn to digital asset management (DAM) to support the management,transformation, and usage of branded assets such as graphical images; collateral suchas product data sheets; and audio and video content. DAM technology allowsorganizations to manage assets centrally and distribute them for use across multiplechannels.

ADAM Software, Autonomy, Canto, censhare, Chuckwalla, EMC, Extensis, Getty Images,MediaBeacon, NetExposure, North Plains Systems, Nuxeo, OpenText, PersistentSystems, Pictron, Vfinity, VYRE, Widen Enterprises, Xinet

Solutions range from $10,000 for general purpose DAM with basic features to

$200,000 and above for DAM that serves the needs of high end production.

Definition

Usage scenario

Vendors

Estimated cost to

implement

Enterprise video platforms (EVPs)

Definition

Usage scenario

Vendors


Enterprise video platforms (EVPs) are end-to-end solutions to capture, distribute, andmanage video behind the firewall, comprising video players, encoders, light videoediting, and basic media management. EVPs integrate with content delivery networksand WAN optimization solutions for delivery.

Firms integrate the solutions with their videoconferencing systems, portals, andexisting corporate networks to support their use of video for corporatecommunications. This includes webcasting, IPTV, digital signage, corporate videoportals/libraries, and “YouTube for the enterprise” with social features.

Accordent Technologies, BurstPoint Networks, Cisco Systems, Kontiki, Qumu, VBrick

Systems, Veodia

Varies widely depending on usage and whether deployments are licensed, hosted, orappliance model.






7

Fiure 2 TechRdr™: Eterprse Vde, Q1 2011 Techges Evted (Ct.)


Online video platforms (OVPs)

End-to-end solutions which distribute video on the internet and include video players,encoders, light video editing tools, and basic media management, complete withhosting and distribution through partnership with CDNs.

Large media and entertainment companies, and marketing departments inorganizations of all sizes use OVPs to integrate video with their websites.

Brightcove, Fliqz Media, Kaltura, Kewego, KIT Digital, Kyte, Limelight Networks (DelveNetworks), Ooyala, Twistage, OpenText, VMIX Media

Tiered subscription models start at $50 per user per month. Alternatively, somemodels are based on hours or terabytes of video delivered.

Definition

Usage scenario

Vendors


Telepresence

Live, interactive, two-way video and audio telecommunication that emulatesin-person meetings with life-size images of remote participants. Specially constructedtelepresence rooms provide the lighting, sound, acoustics, furniture, and ambiance of a face-to-face meeting experience.

Enterprises use telepresence for staff meetings, project management, R&D, interviewsand negotiations, corporate state-of-the-union communications, and industry-specificapplications such as remote medical diagnosis.

Hewlett-Packard, LifeSize Communications (Logitech), Polycom, Tandberg (CiscoSystems), Teliris

The upfront hardware cost ranges from $120,000 to $350,000 for a top of the linetelepresence suite. One-time installation and configuration costs are about $70,000

per room. Monthly fees for a managed service average about $15,000 per room.

Definition

Usage scenario

Vendors


Webcasting

Definition

Usage scenario

Vendors


Solutions to broadcast live events over the Internet, to archive and manage thoserecordings, and play them back. Webcasting solutions may incorporate differentpresentation mediums such as slide decks and interactive features such as chat andpolling.

Firms use webcasting for training, announcements, corporate communications, largeevents, lecture capture, distance learning, and investor relations meetings.

Accordent Technologies, Kontiki, Onstream Media, Panopto, Qumu, Sonic Foundry, TalkPoint, Thomson Reuters, VBrick Systems

On-premise deployments, including the cost of software and appliances to recorddifferent inputs, range from $25,000 to $50,000 and higher depending on the numberof endpoints. SaaS options vary widely, depending on bandwidth and storage.






8

ENTERPRISE VIDEO: ExPANDINg INTO NEW USES, BUT SOME OBSTACLES REMAIN

In mapping the uture o enterprise video technologies, we ound that (see Figure 3):

· Video encompasses more use cases and stakeholders in the enterprise.raditionally, creative

services, I, marketing, and corporate production teams have owned video creation in the

enterprise. However, as video has become a more common orm o communication, other

departments increasingly look to get involved. For example, senior executives want to meet

with their peers and want to deliver state-o-the-union addresses; learning and development

teams need to use video or training; and individual business units want to put product

demonstrations online. SaaS and managed solutions have helped spread the use o video,

allowing businesses to get up and running with video or internal and external communications.

· Video won’t achieve widespread adoption until obstacles are addressed.Many enterprises

use video technologies — particularly videoconerencing —only in pockets o the organization.9

Although vendors provide the tools to create a “Youube or the enterprise,” ew companies have

embraced employee-generated content due to concerns over lack o control and network load.10

Until companies make additional investments in network inrastructure and governance, they

will manage and provision video tightly.

· echnology categories are converging. For example, rapid innovation will continue to

close the gap between HD room-based videoconerencing and telepresence. Online video

platorm services will integrate content delivery networks and digital asset management.

Online video platorms — although primarily or customer-acing video — increasingly have

internal enterprise uses. And both enterprise video platorms and online video platorms now

incorporate webcasting. Blurring lines between technologies have the potential to simpliy purchases and make it easier or companies to deploy enterprise video. However, this may

also result in overlapping investments, with dierent departments using separate solutions to

manage and distribute video to dierent audiences.

Creation: Two-Wa, Real-Time Video On Mobile Devices Starts To Emere

Although cell phones with cameras and video calling plans have been around since 2003, mobile

videoconerencing is less mature than other technologies in this report and remains unproven in the

market (see Figure 4).

· Mobile videoconerencing. Several years afer the introduction o mobile video chat tolackluster demand, Apple’s introduction o Faceime on the iPhone in mid-2010 brought a

resurgence o interest in the technology.11 New applications have since emerged that enable

video calling across devices, platorms, carriers, and cellular and Wi-Fi connections. It is

too early to predict how widespread enterprise adoption will be when the technology is still

unproven with consumers.






9

Fiure 3 TechRdr™: Eterprse Vde, Q1 2011


Creation

Negative

Low

Medium

High

Survival Growth Equilibrium Decline

B u s i n e s s v a l u

e - a d d ,

a d j u s t e d f

o r u n c e r t a i n t y

Ecosystem phase

Time to reach next phase:Trajectory:

< 1 year

> 10 years

1 to 3 years 3 to 5 years

5 to 10 years

Signicant successModerate success

Minimal success

Desktopvideoconferencing

Mobilevideoconferencing

HD room-basedvideoconferencing

Enterprise videoplatforms

Global content

delivery networks

Webcasting

Telepresence

Online videoplatforms

Digital assetmanagement






10

Fiure 4 TechRdr™: Cret Phse Techges

Survival: Maturin Tecnolo And Distributed Collaboration Will Fuel Videoconferencin

Videoconerencing has had one o the longest liespans o technologies in this report. However,

low levels o engagement due to the poor user experience, compounded by a lack o access or even

interest by peers in using it, has limited videoconerencing rom reaching its enterprise potential.

But now, technologies in the Survival phase are on the brink o exploding into wider adoption (see

Figure 5):

· Desktop videoconerencing. Desktop videoconerencing usage has been hindered by low-

quality experiences. But the technology caught its second wind as business users started using

ree solutions like Skype ooVoo. Enterprise solutions by the likes o Polycom and industry giantCisco provide a higher quality experience with better integration to your other video endpoints.

Easily-accessible hardware and sofware and momentum rom unied communications (UC) —

technology that connects communication and collaboration applications on a common platorm —

combined with an increasingly distributed workorce, will push desktop videoconerencing into

the next phase o adoption.


Mobile videoconferencing

Apple’s promotion of FaceTime as a major feature — on a heavily penetrated deviceand with Apple’s reputation for usability — has brought a resurgence of interest in thetechnology. A number of startups oering third-party solutions on Apple, Android,and Symbian devices are raising their proles while established desktop clients likeGoogle, Oovoo, Skype, and Yahoo! are joining the game.

Negative. Mobile video chat is still an early-stage consumer play. There has beenprogress in addressing the obstacles of carrier support, interoperability, ease of use,and quality of experience, but there isn’t yet a clear use case for business and thetechnology is far from enterprise-ready.

1 to 3 years. Mobile video chat will gain adoption with consumers over the next threeyears due to improvements in network infrastructure, the growth of tablets, andincreased penetration of smartphones with front facing cameras. The technology is

advancing quickly as vendors have already started to oer multiparty calls andconnections with desktops.

Moderate success. Mobile video chat will see success with consumers as a personal,intimate form of communication, but enterprise adoption remains uncertain. Businessusers are skeptical about the ergonomic challenges of two-way video on a handhelddevice and whether video communication from anywhere will be culturally acceptablein a business scenario. One possible scenario for the technology is to connect withdesktop users for internal mobility (away from your desk but still located onsite), whichis less daunting from an organizational culture and network infrastructure perspective.

Why the Creationphase?

Business value-add,adjusted foruncertainty

Time to reach nextphase

Trajectory (knownor prospective)






11

· Enterprise video platorms.Enterprise video platorms (EVPs), provided by vendors such as

Accordent and Qumu, are end-to-end solutions which capture, distribute, and manage video

behind the rewall. Although they are primarily used or webcasting, companies also use EVPs

to create employee video portals and deploy “Youube or the enterprise” as well as power IPV

and digital signage. Although most EVPs have the same core unctionality, some combine

eatures typically ound in other technology categories, such as Kontiki’s CDN technology and

VBrick’s video surveillance platorm.

· HD room-based videoconerencing. Although much attention has been on telepresence,

vendors like HP and Logitech/LieSize have ocused again on more aordable HD room-based

videoconerencing solutions, which can scale across the organization. Room-based systems

today represent a vast improvement over the traditional systems o several years ago in terms o

usability, reliability, and video quality.






12

Fiure 5 TechRdr™: Srvv Phse Techges



Although videoconferencing has been around for 20 years, the popularity of Skype hassignicantly boosted it in recent years. SaaS solutions from major providers oer ahigher quality experience with security features, and allow companies to oset theinfrastructure requirements of handling desktop video. The wide availability of webcams, which are standard in most new laptops, and the ability to connect throughinstant messaging clients makes desktop videoconferencing easily accessible today.

Low. Users remain discouraged by poor image and audio quality or latency, whichdeteriorates with additional meeting participants. Although more people havebecome comfortable with desktop videoconferencing in their personal lives, our datashows that most employees with desktop videoconferencing today use it rarely ornever.

3 to 5 years. Desktop videoconferencing will grow with the integration of video into

the collaboration toolkit. Protocols such as H.264 SVC will improve video quality onlower cost hardware platforms and boost desktop connectivity with room-basedsystems.

Signicant success. Companies will look to desktop videoconferencing to satisfy theneed for face-to-face interaction as the workforce becomes increasingly distributed. Asmore companies upgrade network infrastructures over the next ve to 10 years —removing technology obstacles to adoption — desktop videoconferencing willbecome a regular part of communication and collaboration.

Why the Survivalphase?


Time to reach next

phase


Enterprise video platforms (EVPs)

Although EVPs are less well known compared to the other categories of enterprisevideo technology in this report (particularly OVPs), they are deployed in Fortune 500companies across all verticals. The technology continues to mature as EVPs

incorporate the functionality of dedicated webcasting solutions.

Medium. Firms use enterprise video platforms primarily for webcasting today.Although most EVPs are not as comprehensive at webcasting as dedicated solutions,they can support many of enterprise video needs, from webcasting to corporate videoportals to employee generated content.

1 to 3 years. Investments in videoconferencing, increased interest in streaming mediafor communications, and the convergence of functionality across video softwarecategories will benet EVPs as companies look for a single solution to manage theirvideo needs.

Signicant success. EVPs will gain momentum as companies leverage video formultiple purposes in the enterprise. They will become increasingly prominent ascompanies begin to decentralize video creation and look to provision more

departments and employees with tools to create and share content.

Why the Survivalphase?









13

growt: Tools To Manae And Distribute Video Are Te Most Mature

Several technologies are relatively mature in this market, but will continue to grow or years (see

Figure 6):

· Digital asset management (DAM).DAM sofware enables the creation, production,

management, distribution, and retention o digital assets including video. DAM has traditionally

been a niche solution, geared primarily or enterprises with large digital content production

costs (such as media, entertainment, and publishing). However, emerging solutions target the

more common enterprise needs or marketing and corporate communications. DAM products

like Openext’s Media Management provide eatures to manage regulatory compliance, while

Autonomy provides sofware to apply search (such as acial recognition and searchable audio

tracks) and analytics to video.

· Global content delivery networks (CDN). CDNs accelerate the delivery o archived videoover the Web to reach global audiences. Vendors such as Akamai and Limelight provide these

technologies, or they may come rom telcos, access, or hosting providers that now hope to

compete in this space.12 Bandwidth needs will continue to rise as companies look to deliver

more video around the world to their customers and employees.

· Online video platorms (OVP). Introduced around ve years ago, OVPs like Brightcove and

Ooyala have experienced rapid growth, driven by media companies looking to syndicate and

monetize their premium content and by marketers in all verticals looking to integrate video on

their websites.13 OVPs will continue to provide strong value or this purpose, but won’t gain as

much traction in the market or corporate communications video, which is typically delivered

behind the rewall.

· elepresence. elepresence — the corporate jet o videoconerencing — replaces travel by

simulating ace-to-ace meetings with lie-size images o people, realistic lighting and sound,

and no perceived latency.14 Although customer satisaction is high, the prohibitive cost to

acquire and run these solutions has limited their use to mostly senior executives, ofen in the

orm o a managed service. elepresence still has room to grow with new deployments at the top

o the organization. elepresence will also see wider use within the organization, but usage won’t

be as widespread as HD room-based videoconerencing.

· Webcasting. Webcasting live or on-demand events and presentations presents clear business value and is one o the more common applications o enterprise video today.15 Viable on-premise,

SaaS, and managed service options open the technology to a variety o internal- and external-

acing use cases and make it easily accessible to companies o all sizes. Vendors like Accordent,

Onstream Media, and Sonic Foundry are nding traction in regulated companies with compliance

concerns looking to leverage video in training and corporate communications. Webcasting is also

expanding into virtual and hybrid in-person/virtual events such as user conerences.






14

Fiure 6 TechRdr™: Grwth Phse Techges


Digital asset management (DAM)

With the continued rise in customer experience spending — particularly in the onlinechannel — rms’ needs to manage rich media assets have risen as well. New avors of DAM have emerged which support marketing functions as well as corporate audioand video.

Medium. DAM is still somewhat of a niche technology when compared to othercomponents of enterprise content management (ECM), historically providing businessvalue primarily for rms with large digital content production costs.

3 to 5 years. DAM will continue to grow as more rms realize they must manage richmedia dierently from their other enterprise content and as vendors respond withnew solutions to meet those needs. Advancements in marketing functions, metadatamanagement, and searchable audio and video, as well as the deeper integration of DAM into other enterprise applications and CDNs have the potential to ingrain DAM

more in business.

Moderate success. DAM will continue to provide business value for those enterpriseswith large digital content production costs. Despite DAM’s robust approach to contentmanagement, its application to enterprise video such as training videos and corporatecommunications is uncertain in the face of other end-to-end solutions touting videomanagement capabilities.

Why the Growthphase?




Global content delivery networks (CDNs)

Content delivery networks will continue to grow with the expansion of the Internet.Akamai reported 2009 revenues more than triple its 2005 levels, and Limelight ismoving nearly 50x as much trac today as it did in 2005.

High. A CDN is necessary to reach a large and global audience with appropriate

quality. The bandwidth-intensive nature of streaming video, particularly HD video,necessitates CDNs.

5 to 10 years. CDNs are a mature technology. As hosting providers, ISPs, and telcosenter this market, however, Forrester believes M&A and partnerships will reshape theCDN landscape. Network service providers will look to meet the broad set of enterprise needs by bundling access, CDN, and hosting with other managed serviceslike security. Data and application hosting providers will also enter the market,bundling CDN services with their web and application hosting services.

Signicant success. CDN technology — whether provided by the traditional playersor by new entrants — will continue to present strong business value. CDNs will growin tandem with bandwidth needs, fueled by rising demand for mobile distribution, HDvideo quality, and application acceleration services.

Why the Growthphase?

Business value-add,

adjusted foruncertainty








15

W H a T i T m E a n S

ENTERPRISES WILL PLOT ThEIR ROAD MAPS FOR A FULL RANgE OF VIDEO CAPABILITIES

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SUPPLEMENTAL MATERIAL

Online Resource

Te underlying spreadsheet that exposes all o Forrester’s analysis o each o the nine technologies in

the echRadar (Figure 2) is available online.

Data Sources Used In Tis TecRadar

Forrester used a combination o three data sources to analyze each technology’s current ecosystem

phase, business value adjusted or uncertainty, time to reach next phase, and trajectory:

· Vendor meetings. Forrester discussed the market ecosystem, growth, competitive landscape,

and customer case studies with more than 20 technology vendors.

· Expert interviews. Forrester interviewed experts on each technology, including scientists in

labs, academics, developers, and evangelists.

· Current and prospective customer and user interviews. Forrester interviewed current and

potential customers and users or each technology to understand current and prospective uses

or the technologies and their impact on the customers’ businesses and the users’ work.






16

Te Forrester TecRadar Metodolo

Forrester uses the echRadar methodology to make projections or more than a decade into the

uture o the use o technologies in a given category. We make these predictions based on the best

inormation available at a given point in time. Forrester intends to update its echRadar assessments

on a regular schedule to assess the impact o uture technical innovation, changing customer and

end user demand, and the emergence o new complementary organizations and business models.

Here’s the detailed explanation o how the echRadar works:

· Te x axis: We divide technology ecosystem maturity into fve sequential phases.

echnologies move naturally through ve distinct stages: 1) creation in labs and early pilot

projects; 2) survival in the market; 3) growth as adoption starts to take o; 4) equilibrium

rom the installed base; and 5) decline into obsolescence as other technologies take their place.

Forrester placed each o the nine enterprise video technologies in the appropriate phase based

on the level o development o its technology ecosystem, which includes customers, end users, vendors, complementary services organizations, and evangelists.16

· Te y axis: We measure customer success with business value-add, adjusted or uncertainty.

Seven actors dene a technology’s business value-add: 1) evidence and eedback rom

implementations; 2) the investment required; 3) the potential to deliver business transormation;

4) criticality to business operations; 5) change management or integration problems; 6) network

eects; and 7) market reputation. Forrester then discounts potential customer business value-

add or uncertainty. I the technology and its ecosystem are at an early stage o development,

we have to assume that its potential or damage and disruption is higher than that o a better-

known technology.17

· Te z axis: We predict the time the technology’s ecosystem will take to reach the next phase.

Content and collaboration proessionals need to know when a technology and its supporting

constellation o investors, developers, vendors, and services rms will be ready to move to the

next phase; this allows them to plan not just or the next year but or the next decade. O course,

hardware moves more slowly than sofware because o its physical production requirements,

but all technologies will all into one o ve windows or the time to reach the next technology

ecosystem phase: 1) less than one year; 2) between one and three years; 3) between three and

ve years; 4) between ve and 10 years; and 5) more than 10 years.18

· Te curves: We plot technologies along one o three possible trajectories.All technologies willbroadly ollow one o three paths as they progress rom creation in the labs through to decline: 1)

signicant success and a long liespan; 2) moderate success and a medium to long liespan; and 3)

minimal success and a medium to long liespan. We plot each o the nine technologies or

enterprise video on one o the three trajectories to help content and collaboration proessionals

allocate their budgets and technology research time more eciently.19 Te highest point o all






17

three o the curves occurs in the middle o the Equilibrium phase; this is the peak o business

value-add or each o the trajectories — and at this point, the adjustment or uncertainty is

relatively minimal because the technology is mature and well-understood.

· Position on curve: Where possible, we use this to fne-tune the z axis.We represent the time

a technology and its ecosystem will take to reach the next phase o ecosystem development with

the ve windows above. Tus, technologies with more than 10 years until they reach the next

phase will appear close to the beginning o their ecosystem phase; those with less than one year

will appear close to the end. However, let’s say we have two technologies that will both ollow

the moderate success trajectory, are both in the Survival phase, and will both take between

one and three years to reach the next phase. I technology A is likely to only take 1.5 years and

technology B is likely to take 2.5 years, technology A will appear urther along on the curve in

the Survival phase. In contrast, i technologies A and B are truly at equal positions along the x, y,

and z axes, we’ll represent them side by side.

Forrester Analsts Interviewed For Tis Document

Claire Schooley

Henry Dewing

Stephen Powers

ed Schadler

J Keitt

Companies Interviewed For Tis Document

Accordent echnologies

Akamai echnologies

Altus

Autonomy

Blinkx

Brightcove

Canto

Cisco Systems

Fring

Hewlett-Packard

Kaltura

Kontiki

Limelight Networks

Logitech/LieSize

Onstream Media

Ooyala

Openext

Polycom

Qik

Qumu

Sonic Foundry

ango

VBrick Systems






18

ENDNOTES

1 Fueled by broadband adoption, better collaboration tools, and growing management experience, the US

telecommuting ranks will swell to 63 million by 2016. See the March 11, 2009, “US elecommuting Forecast,

2009 o 2016” report.

2 For more examples o how video is being applied and how it impacts the enterprise, see the April 1, 2010,

“How ech Strategists Can Ride Te Coming idal Wave O Business Video” report. Uses o telepresence — the

name coined or the high-quality, lie-like, and in-person videoconerencing experience — include executive

meetings; merger and acquisition negotiations; discussion o graphics or video clips; evaluation o x-rays or

telemedicine; and collaboration on detailed product designs. See the April 18, 2007, “elepresence: Te

Cadillac O Videoconerencing” report.

3 Skype’s chie technology strategist, Jonathan Rosenberg, presented this statistic during a presentation at the

Emerging Communications Conerence (eComm) in June 2010. Source: http://blog.ecomm.ec/2010/06/

jonathan-rosenberg-rise-o-real-time.html4 Advanced contact centers already support their customers over any device, and in Europe video

engagements are increasing. See the May 14, 2010, “Contact Center Purchase Plans 2010” report.

5 Banks are using video to carry on business with customers remotely. Trough branch oce

videoconerencing or video-enabled web conerencing, banks conduct high stakes business: selling

mortgages, advising on loans, discussing purchase and sale o stock, and structuring investment portolios.

See the January 30, 2008, “Te Banking Industry Is Using Video o Better Meet Customer Needs” report.

6 For more details on the challenges and considerations network managers considering video will ace, see

the April 1, 2010, “How ech Strategists Can Ride Te Coming idal Wave O Business Video” report.

7

Rich media management is broadening beyond traditional DAM sofware. See the December 21, 2010,“Market Overview: Rich Media Management Sofware” report.

8 For urther details on the echRadar methodology, see the Supplemental Material section o this document

and our report introducing this new type o research. See the August 1, 2007, “Introducing Forrester’s

echRadar™ Research” report.

9 Forrester’s survey o North American and European business technology users shows the workorce

overall has little interest in and access to desktop video. You can read more details in our upcoming report,

“Inormation Workers Are Not Quite Ready For Desktop Video.”

10 Although the trend hasn’t caught on, there are successul cases o technology orward companies leveraging

employee-generated content. See the November 2, 2010, “Case Study: A Stanley Black & Decker HERO

Empowers Employee Learning” report and see the January 13, 2009, “ap Te Potential O ‘Youube For

Te Enterprise’” report.

11 Te Faceime initiative is as important or the statement o intent that it makes on the potential or video

communication as or its initial implementation. Faceime version one has ar too many is and buts or it

to see major adoption unless Apple adds to the initial proposition with more Faceime-compatible devices.




































19

Instead, Faceime version one will be signicant or raising awareness — opening the door to Apple's

partners to leverage the iPhone 4's ront-acing camera to drive signicant mobile video communication

use on the wave o publicity. See the July 21, 2010, “Faceime Is Te Second Coming O Video elephony —

Again” report.

12 Te combination o CDN services with network transport, web hosting, and perormance metrics is now

necessary to deliver — and guarantee — business process improvements or CDN buyers beyond the

media giants. Look or CDN companies and their new competitors to reinvent the CDN market by buying

technologies, acquiring or merging with others, or orming strategic alliances capable o delivering new

bundles o services that meet the ast-emerging demands o a broader range o rms that must deliver

content eciently to compete. See the May 22, 2009, “CDN Road Map: New Solutions Storm Te Market”

report.

13 For an evaluation o dierent OVPs see the November 6, 2009, “Te Forrester Wave™: US Online Video

Platorms, Q4 2009” report.

14 For an evaluation o the costs and benets o telepresence, see the February 25, 2009, “Te ROI O

elepresence” report.

15 Unlike web conerencing, which is suited or small group collaboration sessions and typically doesn’t

incorporate video, webcasting is a one-to-many delivery ormat or large audiences. See the October 11,

2005, “Web Conerencing And Webcasting . . . What’s Te Dierence? ” report.

16 Note that the ve phases are not o any prescribed length o time. For the typical technology ecosystem

proles or each o the ve phases, see Figure 3 in the introductory report. See the August 1, 2007,

“Introducing Forrester’s echRadar™ Research” report.

17 We outline the detailed questions we ask to determine business value adjusted or uncertainty in Figure 4 o

the introductory report. See the August 1, 2007, “Introducing Forrester’s echRadar™ Research” report.

18 Forrester will include relatively ew technologies that we predict will take more than 10 years to reach

the next ecosystem phase. Expect to see these 10-year-plus technologies only in the Creation phase or

undamental hardware innovations and in the Equilibrium and Decline phases or hardware and sofware

on the “great success” trajectory. We provide details on how we predict the amount o time that a given

technology will take to reach the next phase o technology ecosystem evolution in the introductory report.

See the August 1, 2007, “Introducing Forrester’s echRadar™ Research” report.

19 We provide detailed inormation and examples o how we predict the amount o time that a technology will

take to reach the next phase o ecosystem development (alternatively called “velocity” or “velocity rating”)

in the introductory report. See the August 1, 2007, “Introducing Forrester’s echRadar™ Research” report.



























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Enterprise Video, Q1 2011

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