Cisco Systems Inc's attempt to convince a European court to impose tougher conditions on Microsoft Corp's acquisition of Skype signals that technology companies are gearing up to battle for control of what some say is the next big thing: videoconferencing. As the networking giant scrambles to safeguard its market leadership and ownership of a technology that is crossing over from business into the consumer world, rival players like Polycom Inc and Citrix Systems Inc are devising their own user-friendly solutions. All will contend with Microsoft, which analysts say plans to integrate Skype into its products, potentially boosting the allure of its software and a future crop of Windows devices. The teleconferencing market is small, but its growing popularity among consumers and its widening use in mobile phones make this struggle -- waged through courts, mergers and regulators -- a crucial one. "Video is the new world ..., and you will see lots of acquisitions, lots of lawsuits, and those who are behind will use patent litigation," said Krish Ramakrishnan, chief executive officer of videoconferencing service Blue Jeans Network. Research firm Infonetics forecast that video would be the top trend in telecoms. The global enterprise videoconferencing market will hit $5 billion in 2015 compared with $2.2 billion in 2010.
Videoconferencing is on the brink of widespread adoption. New services and software are enabling a high-speed Internet connection and standard desktop computer, smartphone or tablet to provide quality similar to the expensive systems that were once confined to corporate boardrooms. In fact, free chat services such as Apple Inc's FaceTime, Skype and Google+ are slowly making video a part of everyday life for many users outside of the workplace. But one thing holding back its growth is that the technology is often proprietary. That makes many services incompatible with each other, so callers on Skype cannot hook up with people using Polycom, the No. 2 videoconferencing player, for example. Text messaging did not become ubiquitous -- and create dependable revenue streams for operators -- in the United States until the middle of the last decade, after mobile providers agreed to work together and allow people to send messages regardless of their carrier. On the surface, that's Cisco's main gripe with the Microsoft-Skype deal, which closed in October. Cisco argues that the deal will impede interoperability and that Microsoft will be able to lock in businesses that want to reach Skype's 700 million account holders if it integrates the acquired technology exclusively into its Lync Communications Platform. Cisco Chief Executive Officer John Chambers said that when the company acquired Norway's Tandberg in 2009, the EU approved the deal under the condition it stick to open standards. Now it wants to ensure Microsoft does the same. A FIG LEAF Most analysts and industry experts say Cisco fears it could lose its dominant position if Microsoft does a good job of absorbing Skype, which already allows a combination of business and consumer usage. Many companies, including computer consultancy Capgemini, already use Skype as an unofficial video tool, and millions of consumers worldwide take advantage of it. But industry observers also argue that given Microsoft's less-than-stellar track record on innovation, Cisco can afford to sit back and relax. "I am surprised they are still pursuing regulatory relief and using interoperability as a fig leaf for it," Ovum analyst Ian Jacobs said. "Cisco needs to let Microsoft do what it does best and stifle innovation of its own products." Ex-Microsoft President Dick Brass once described how the company had developed a tablet PC as early as 2001, but it was doomed because of internal opposition. "Buying Skype was one of Microsoft's most brilliant moves in a long time," said Joseph Coyle, Capgemini's North American head of technology. "They'll pose a big challenge to Cisco
Videoconferencing is on the brink of widespread adoption. New services and software are enabling a high-speed Internet connection and standard desktop computer, smartphone or tablet to provide quality similar to the expensive systems that were once confined to corporate boardrooms. In fact, free chat services such as Apple Inc's FaceTime, Skype and Google+ are slowly making video a part of everyday life for many users outside of the workplace. But one thing holding back its growth is that the technology is often proprietary. That makes many services incompatible with each other, so callers on Skype cannot hook up with people using Polycom, the No. 2 videoconferencing player, for example. Text messaging did not become ubiquitous -- and create dependable revenue streams for operators -- in the United States until the middle of the last decade, after mobile providers agreed to work together and allow people to send messages regardless of their carrier. On the surface, that's Cisco's main gripe with the Microsoft-Skype deal, which closed in October. Cisco argues that the deal will impede interoperability and that Microsoft will be able to lock in businesses that want to reach Skype's 700 million account holders if it integrates the acquired technology exclusively into its Lync Communications Platform. Cisco Chief Executive Officer John Chambers said that when the company acquired Norway's Tandberg in 2009, the EU approved the deal under the condition it stick to open standards. Now it wants to ensure Microsoft does the same. A FIG LEAF Most analysts and industry experts say Cisco fears it could lose its dominant position if Microsoft does a good job of absorbing Skype, which already allows a combination of business and consumer usage. Many companies, including computer consultancy Capgemini, already use Skype as an unofficial video tool, and millions of consumers worldwide take advantage of it. But industry observers also argue that given Microsoft's less-than-stellar track record on innovation, Cisco can afford to sit back and relax. "I am surprised they are still pursuing regulatory relief and using interoperability as a fig leaf for it," Ovum analyst Ian Jacobs said. "Cisco needs to let Microsoft do what it does best and stifle innovation of its own products." Ex-Microsoft President Dick Brass once described how the company had developed a tablet PC as early as 2001, but it was doomed because of internal opposition. "Buying Skype was one of Microsoft's most brilliant moves in a long time," said Joseph Coyle, Capgemini's North American head of technology. "They'll pose a big challenge to Cisco
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